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Feb 1, 2012

Why ECB liquidity is not reaching Portugal

LONDON, Feb 1 (Reuters) – A slump in Portuguese bond
prices in the past month shows there are parts of the euro zone
government debt market that massive shots of cheap money from
the European Central Bank cannot reach.

Italian, Spanish and Irish bonds have all rallied as banks
used some of the 489 billion euros they borrowed from the ECB in
December to buy such debt, a profitable trade because the
special three-year loans were so cheap.

Nov 18, 2011

Insight: Even Germany not immune to euro zone crisis

LONDON (Reuters) – German bonds have so far been viewed as the last bastion of safety in the euro zone sovereign debt markets but some prices are beginning to suggest their allure will not be eternal.

A relentless rise in southern European countries’ borrowing costs and the hefty premium they pay over Germany overshadowed an unusual development this week — German yields rose as the euro zone crisis sucked in France and the Netherlands, rather than falling as they did when Italy fell victim.

Nov 18, 2011

Even Germany not immune to euro zone crisis

LONDON, Nov 18 (Reuters) – German bonds have so far
been viewed as the last bastion of safety in the euro zone
sovereign debt markets but some prices are beginning to suggest
their allure will not be eternal.

A relentless rise in southern European countries’ borrowing
costs and the hefty premium they pay over Germany overshadowed
an unusual development this week — German yields rose as the
euro zone crisis sucked in France and the Netherlands, rather
than falling as they did when Italy fell victim.

Nov 16, 2011

Euro zone crisis is tough going — for traders

LONDON (Reuters) – Life is not easy for the financial market traders who are making things so hard for euro zone policymakers.

There are no pumped-up traders cheering from their screens as Italy’s bond yields rise or as France gets sucked into a debt crisis which has already forced Greece, Ireland, and Portugal to seek international bailouts. The mood is weary and fraught.

Nov 11, 2011

Five world markets themes in the coming week

By Swaha Pattanaik

(Reuters) – Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them.

1/ THINKING OUTSIDE THE BOX

European dominoes are falling quickly, with Italian bond yields in the past week entering territory that has previously triggered bailout requests from Greek, Ireland and Portugal. Financial markets are keenly aware that there isn’t enough money in the coffers to bail Italy out and are wondering how many euro zone taboos are about to be broken (euro bonds, ECB printing money, one or more country leaving the euro, euro break-up). The problem for traders and investors is how to price financial assets given the existential angst gripping the region. Conventional models of determining value or potential entry/exit points for positions will be less use as a compass if the single currency paradigm is about to change. Moreover, financial-system stresses threaten to become even more pronounced and will heighten pressure on policymakers – and especially central bankers — to act. The more radical the solutions under consideration, the harder it will be to come up with easy answers to where markets will or should be trading.

Nov 10, 2011

Insight: Firms find it hard to think outside the euro

LONDON (Reuters) – German travel group TUI AG is going where the world’s biggest financial firms have yet to venture.

It has decided to protect itself from the risk that Greece could leave the euro zone by asking Greek hoteliers to sign new contracts which would apply if this were to happen.

Nov 10, 2011

Firms find it hard to think outside the euro

LONDON, Nov 10 (Reuters) – German travel group TUI AG is
going where the world’s biggest financial firms have yet to
venture.

It has decided to protect itself from the risk that Greece
could leave the euro zone by asking Greek hoteliers to sign new
contracts which would apply if this were to happen.

Nov 9, 2011

Italian crisis evokes dark days for traders

Nov 9 (Reuters) – Italy’s borrowing costs entered such
dangerous territory on Wednesday that traders had to reach back
to historic financial crises to find parallels.

The uncertainty created by a short-lived Greek call for a
referendum, the more recent political upheaval in Italy and the
long-running euro zone sovereign debt crisis have conspired to
drive bond yields past the critical 7 percent.

Mar 18, 2011

G7 will not allow FX credibility to be questioned

LONDON (Reuters) – The Group of Seven nations do not put their credibility on the line lightly. Those tempted to question whether their first coordinated intervention in the currency markets in a decade will be successful should be mindful how much is at stake and the G7 nations’ successful track record of getting their own way.

This is not the primary concern of corporates and hedge funds, whose yen purchases are currently diluting the impact of the yen slide that the G7 engineered with Friday’s intervention after speaking out the previous day against “excess volatility and disorderly movements in exchange rates”.

Mar 18, 2011

Analysis: G7 will not allow FX credibility to be questioned

LONDON (Reuters) – The Group of Seven nations do not put their credibility on the line lightly.

Those tempted to question whether their first coordinated intervention in the currency markets in a decade will be successful should be mindful how much is at stake and the G7 nations’ successful track record of getting their own way.

    • About Swaha

      "Swaha is a columnist for Reuters Breakingviews. She has been covering financial markets and policymaking for 22 years, reporting on key economic and monetary milestones and breaking market-moving news. She was responsible for regional FX, bonds and stock market teams as Reuters EMEA Markets editor between 2008 and 2013. She was Senior Economics Correspondent in France between 2005 and 2008, European Economics and Monetary Affairs Correspondent in Brussels between 2001 and 2005 and headed up the Reuters FX reporting desk in London between 1998 and 2001. Swaha previously worked at Bloomberg, Euromoney and IDEA."
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