Stephen Roach Questions the Sustainability of the Global Recovery on Bloomberg TV

"The Last Word" with Andrea Catherwood on Bloomberg TV

Nikkei to Remain Closed Citing Volatility: Reuters Reports

(Reuters) - Some foreign financial institutions are calling for Japan's stock market to halt trading, while the Tokyo Stock Exchange and Japanese financial regulators are planning to keep markets open, news agency Nikkei reported.


The report said that foreign firms were looking for a trading halt because the "market was experiencing too much volatility," but did not elaborate.

The scale of volatility can be seen clearly in this three day chart of the Nikkei 225. 

US equity market have also experienced a surge in volatility over the same three day period. The chart below shows a massive 40% spike in the VIX volatility index - better know as the fear gauge for Wall Street

The currency market also seen extreme volatility, especially in the last several hours as the FT reports.

"The yen breached its record high from April 1995 of Y79.70 versus the dollar as traders continue to bet that the Japanese unit is likely to see buying from the repatriation of funds. The yen’s gains accelerated once the previous high was broken, and surged within minutes to Y76.36. Traders were seemingly not worried by the threat of Japanese currency intervention."

Sudan: A Divided Country on the Brink

Source: http://www.daylife.com/photo/0fiug5WaoT8g9


A senior official based in southern Sudan as accused the current Sudanese President Omar al-Bahir of plotting to overthrow the government of the south.

Pagan Amum (pictured above) has said the south's ruling People's Liberation Movement (SPLM) has details of a plan by al-Bahir's National Congress Party (NCP). This comes amid an escalation in violence between forces in the north and the south with the most recent skirmish taking place in the oil town Malakal, in the upper Nile. This was carried out by George Athor a leading General of the rebel militia forces.

Additionally Amum has also said that the NCP has been creating, supplying and training armed militia groups in southern Sudan with the aim of overthrowing the government before July.

Southern Sudan is to declare is independence in July following January's referendum. The people of southern Sudan voted overwhelmingly in favour of partitioning the country by 99%.

Sudan's arid northern regions are home mainly to Arabic-speaking Muslims. But in Southern Sudan there is no dominant culture. The Dinkas and the Nuers are the largest of more than 200 ethnic groups, each with its own traditional beliefs and languages. 

(taken from: http://www.bbc.co.uk/news/world-africa-12111730)

Responding to accusations from Amum, an official from the north said that reports of plots to overthrow the government in south were 'ridiculous'. 

General Athor, went into rebellion after losing the election last April and fears are growing that this recent escalation in violence could threaten the south's independence before it has chance to take hold.

Map source: http://www.bbc.co.uk/news/world-africa-12111730

A Sign of the Times: Libyan Relations: Then & Now

This excellent graphic is courtesy of Channel 4

As Ras Lanuf Falls, The Arab League Back Calls for a No-Fly Zone

Rebels retreat: Smoke billows from a burning oil refinery behind an abandoned rebel rocket position on a road leading to the flashpoint Libyan town of Ras Lanuf. Source: AFP

The Arab league on the same day Gaddafi loyalists have re-taken control of the oil town of town of Ras Lanuf have back plans for a no-fly zone over Libya. This according to reports from the New York Times

Al-Jazeera has also reported that rebel forces appear to in wide-spread retreat, Gaddafi forces also appear to advance to Benghazi, an opposition stronghold.

The Washington Post has also reported that 2 US warships have crossed the Suez Canal en route the Mediterranean sea, which would place them close to Libyan territory.


Events seem to be moving rapidly in this ongoing crisis, with the possibility of a no-fly zone edging ever closer. If a no-fly zone is adopted by either NATO or the UN then they would effectively be at war with Libya. The reason for this is because one of the first actions of military forces would be to bomb Libyan air defences, thus invading their air space and violating the countries sovereignty. 

The Military Balance (Rebel v Gaddafi Forces) BBC Reports

http://www.bbc.co.uk/news/world-africa-12692068

Saudi Price Alwaleed Speaks Candidly on CNBC - Excellent Interview with Maria Bartiromo

"Closing Bell" with Maria Bartiromo on CNBC - Interview with Prince Alwaleed bin Talal al Saud

 

Discussion points included: - 

1. Saudi Arabia's "day of rage"
2. Ongoing unrest in the Middle East and the need for reform
3. Oil production
4. His investment in Citigroup (largest shareholder)

Price Alwaleed's Profile:

http://www.arabianbusiness.com/arabian-business-rich-list-2010-367763.html?view=profile&itemid=367773

440bn Euros, 17 Governments, 1 Summit, 1 Economic Union = 1 Deal

Breaking News - FT

The Financial Times has released details of a surprise breakthrough in negotiations surrounding the Eurozone's debt crisis

A deal has been reached between the Eurozone's 17 governments in order to prevent further deterioration in the Eurozone's finances. 

Some of the key points are laid out below: -

1. the leaders of the 17 governments agreed to give more financial backing to the 440bn euro rescue fund
2. they also agreed to a plan to buy sovereign bonds from struggling governments when they are initially auctioned, with one stipulation "they must enter into a fiscal austerity program along similar lines to the bail-out terms laid out previously.

• this would allow participating governments the ability to finance their debt much lower interests rates in comparison to what they would get on the open markets.

Not to get to carried away with the success of this deal, Angela Merkel was quick to point out "It wont make a huge difference".

The only part of the deal not agreed was a cut in interest payments been paid by the Irish government. The reason for this was because the newly elected Irish government refuse to cede ground on a hike in their corporate tax rate. This has been a been a major source of contention between the Irish on one side and France & Germany on the other. (see previous post earlier this week for details)


Although the total size of the fund is 440bn euros, in order to maintain funds AAA credit rating it can only lend out 250bn of the 440bn euros.


On a positive end note Herman van Rompuy said "everything will come together at the European Council at the end of March". Adding "this should finally allow us to turn a corner".


http://www.ft.com/cms/s/0/bf3ef3c8-4c49-11e0-82df-00144feab49a.html?ftcamp=rss#axzz1GLhS481l