Friday, October 14, 2011

The Pressure of Europe to Asia Enlarges

Pressure from the problem of the debt crisis in Europe towards other regions, including Asia, is feared enlarged. The IMF estimates that Europe has the potential escalation of the crisis triggered selling assets in Asia, triggered the policy of foreign banks to cut lending to Asia.

EU Commission declared that EFSF is fully operational after Slovakia said it would support the bailout area. Support for Italian Prime reduced but is expected to successfully pass the parliamentary motion of no confidence in terms of budget policy.

Political chaos in Italy is potentially aggravate the situation in Europe. Credit Suisse estimates that at least 66 banks in Europe could potentially fail to pay if the European Union to revise the provisions of stress tests and capital increased to USD302, 3 billion. Major banks such as RBS, Deutsche Bank, BNP Paribas will require a total capital of 47 billion Euro.

U.S. stocks closed thin lower after a rally reinforcement in three days. This slight decline was triggered weak financial performance of JP Morgan, but instead Google posted fairly good financial performance. Asia's main index moved lower this morning. China reported a decline in trading in September. Weakening exports that occurs is the effect of strengthening the Yuan since mid-August.

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