02-11-2016, 01:25 PM
Risks are increasing almost everywhere..
“The root cause of this debacle is the way the eurozone is designed. We don’t have a mutualisation of the risks. That is why this is escalating,” said Mr Guglielmi. Europe’s leaders agreed in June 2012 to break the “vicious circle between banks and sovereigns” but Germany, Holland, Austria and Finland later walked away from this crucial pledge. The chief cost of rescuing banks still falls on the shoulders of each sovereign state. The Sword of Damocles still hangs over the weakest countries.
Europe's 'doom-loop' returns as credit markets seize up - Telegraph
Peter Schaffrik, from RBC Capital Markets, said there is a nagging concern among investors that the ECB is running low on ammunition. “How much further can the ECB go before it becomes outright harmful?” Peter Schaffrik, from RBC Capital Markets It cannot usefully cut interest rates any deeper into negative territory since the current level of -0.3pc is already burning up the “net interest margin’ of lenders and eroding bank profits.
Europe's 'doom-loop' returns as credit markets seize up - Telegraph