Editor, Investment Strategy. Europe, Middle East and Africa, London
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Mar 29, 2013

Investors wary of “slow panic” on growth after Cyprus rescue

LONDON (Reuters) – World markets have reacted calmly to the twists and turns of Cyprus’s financial rescue in the last fortnight but many investors fear the economic fallout is yet to come.

They have sold European assets, rather than make a global dash for safety that could signal concerns about a euro breakup.

Mar 28, 2013
via Global Investing

Weekly Radar-”Slow panic” feared on Cyprus as central banks meet and US reports jobless

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US MARCH JOBS REPORT/THREE OF G4 CENTRAL BANKS THURS/NEW QUARTER BEGINS/FINAL MARCH PMIS/KENYA SUPREME COURT RULING/SPAIN-FRANCE BOND AUCTIONS

Given the sound and fury of the past fortnight, it’s hard not to conclude that the messiness of the eventual Cyprus bailout is another inflection point in the whole euro crisis. For most observers, including Mr Dijsselbloem it seems, it ups the ante again on several fronts – 1) possible bank contagion via nervy senior creditors and depositors fearful of bail-ins at the region’s weakest institutions; 2) an unwelcome rise in the cost of borrowing for European banks who remain far more levered than US peers and are already grinding down balance sheets to the detriment of the hobbled European economy; and 3) likely heavy economic and social pressures in Cyprus going forward that, like Greece, increase euro exit risk to some degree. Add reasonable concerns about the credibility and coherence of euro policymaking during this latest episode and a side-order of German/Dutch ‘orthodoxy’ in sharp relief and it all looks a bit rum again.

Mar 26, 2013
Mar 25, 2013
Mar 22, 2013

The benefit of the doubt

LONDON, March 22 (Reuters) – More dogged than complacent,
global investors appear determined to stay the course with
equities, betting on a bumpy and protracted economic healing.

The first quarter of another turbulent year comes to a close
next week with no shortage of potential prompts to cash in on
what for some was a counter-intuitive bull run in the major
stock markets to five-year highs.

Mar 22, 2013
Mar 21, 2013
via Global Investing

Weekly Radar: Cyprus hogs the headlines but contagion fears limited

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CYPRUS BRINKMANSHIP/BERNANKE IN LONDON/BRICS SUMMIT/MARCH CONSUMER SENTIMENT IN EUROPE/JAPAN INFLATION-JOBS-PRODUCTION/US-UK Q4 GDP REVISIONS

Cyprus has hogged the headlines since Friday, with bank closures now extended to a full week as they try to sort out a very messy bailout - made worse by domestic policy missteps over taxing bank deposits. As with Italy’s elections, the saga certainly challenges any market assumption that the euro crisis had abated for good and it’s also loaded with a series of potential precedents – not least the biggest taboo of them all, a euro exit. This is where the politics, brinkmanship and smoke-filled-rooms come in.  Yet as Cyprus is so small and its banks in such a peculiar setup – given the scale of Russian and other foreign depositors – the euro group, ECB and IMF appear determined not to be pressured into a bailout above the already gigantic 60 percent of GDP.

Mar 21, 2013
Mar 21, 2013
Mar 20, 2013
    • About Mike

      "Mike Dolan is Reuters' Investment Strategy Editor in Europe. He has been a correspondent and editor for the past 20 years, working for Reuters from London and Washington DC in a variety of roles covering global policymaking, economics and investment trends."
      Hometown:
      Tralee, Co Kerry
      Joined Reuters:
      1995
      Awards:
      Reuters Editor of the Year, 2009. Reuters multimedia journalist of the year award, 2011
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