- US Equities dropped sharply lower on Friday on fresh worries about the debt crisis in Europe, which even intensified after the resignation of ECB’s Stark. The S&P ended 2.67% lower. This morning, also Asian shares trade sharply lower.
- ECB Executive Board member Juergen Stark resigned unexpectedly on Friday in conflict with the central bank’s policy of buying government bonds to combat the euro zone’s debt crisis. The ECB confirmed that the chief economist would leave for personal reasons.
- After weeks of market turbulence, finance ministers and central bankers from the Group of Seven industrialized nations pledged a coordinated response to the global slowdown, but offered no specific steps and differed in emphasis on Europe’s debt crisis.
- Britain’s banks should shield their retail operations from riskier investment banking units and boost capital levels to protect taxpayers from future crises, according to far-reaching proposals that could cost the industry £7 billion a year.
- The Greek government announced yesterday that it would impose a two year property tax to raise €2 billion this year, closing a €1.7 billion budget gap that the EU and IMF said must be resolved or they would stop making bail-out payments.
- France’s top banks are bracing themselves for a likely credit rating downgrade from Moody’s sources close to the situation said on Saturday. Several sources said that BNP Paribas, Societe Generale and Credit Agricole were expecting an imminent decision from the rating agency, which first put them on review for a possible downgrade on June 15.
- Chinese inflation is still too high and the country needs to maintain its prudent monetary policy, the central bank said this morning, adding that stabilising overall price levels remains the top priority of macro economic policy.
- Today, the eco calendar is thin with only the Italian industrial production data. The BIS holds its bimonthly meeting and Germany’s Merkel and EU’s Barrosso hold crisis talks.
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GD Star RatingForex – Commodities – Stocks: Headlines of September 12th,