Monday, June 14, 2010

20100614 0901 Regional News.

World stocks, euro rise for 4th day
LONDON, June 11 (Reuters) - World equities extended their relief rally into a fourth day on Friday on optimism over global economic growth, while the euro rose and was on track to post its biggest weekly gain this year.
"The flight to safety that we have seen out of euro and out of many euro bonds into gilts and into U.S. Treasuries suggests to me there is not a lot of value in bonds," said Neil Dwane, chief investment officer at Allianz's RCM.  

June 14 (Bloomberg) -- European banks at risk of writedowns from the sovereign debt crisis face a funding squeeze that may depress earnings, curb lending and imperil economic recovery in the region. Investors are shunning bank securities on concern Greek, Portuguese and Spanish bonds held by the lenders will plunge in value. Bank bond sales slowed in May to the lowest since Lehman Brothers Holdings Inc.’s failure in 2008 as the extra yield buyers demand to hold the securities over government debt soared to the highest this year. Firms are wary of lending to each other, depositing record funds with the European Central Bank.

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