China loves the dollar: Izzy looks at the frantic dash to secure dollars in China and wonders if the Chinese central bank, now selling dollar liquidity in the market, might soon be forced to turn to unconventional means to raise dollar liquidity. Grexit fears overdone: Kate reports that the Greeks aren't necessarily as keen to leave the euro as many are implying, and that these factors might lead to a more centrist government being elected in forthcoming elections. Don't call it a backtrack... meanwhile the situation is so bad in Greece, Joseph says the bailout might have to be renegotiated anyway, especially since the facts on the ground make the current timeframe and pace of reforms out of date. Tracking those JPM trades: Lisa is still on the JPM case. Her latest whale watching tour investigates what other losses the bank's CIO position may have been masking. German and French leaders to discuss revised euro plan: The meeting comes after the G8 exposed disagreement on a rescue strategy. The May 23 EU leaders" summit will see proposals previously rejected by Germany raised again, which could include empowering the eurozone's €500bn rescue fund to directly recapitalise faltering European banks and commonly backed eurozone bonds. Bloomberg, FT. Pan-EU deposit guarantee plan under consideration: Such a plan would complement national guarantees already in place, though it is unclear how developed the plans are. The high proportion of deposits in Spain, Italy and Portugal that could be withdrawn on demand are feeding concerns of investors and analysts. Chinese default fears in commodities: Chinese consumers of thermal coal and iron ore are asking traders to defer cargoes and - in some cases - defaulting on their contracts, citing unnamed executives from two global trading houses. Nasdaq embarrassed by Facebook IPO: Nasdaq OMX's chief executive admitted he was "embarrassed" by the delay in the opening trade of Facebook's initial public offering and revealed that the exchange was in talks with regulators over potentially millions of dollars of customer claims. Chinese Premier Wen Jiabao raises stimulus hopes .He talked about "putting stabilising growth in a more important position" and didn't mention inflation in remarks published on Sunday by the official Xinhua News Agency. Yahoo agrees deal to exit Alibaba stake: The move will bring an end to long-running and often bitter negotiations between Yahoo and theChinese ecommerce company. Too big to fail contingency efforts under way: The BoE, the FSA and FDIC in the US are working on "resolution plans" if any of seven cross-border banks collapse and are focusing on "bail-in" measures to force bondholders and equity holders to take losses. Hedge funds to buy stricken European loans: Hedge funds and private equity firms have amassed almost €60bn to buy loans from stricken European banks in coming years as many of the continent's lenders seek to shrink their way to health, according to a PwC survey. Ryanair says profit to decline: Ryanair, Europe's biggest discount airline, predicted earnings would fall this year as a slowing European economy prevented it from increasing fares sufficiently to make up for surging jet-fuel costs, this as annual net income rose 25 per cent to €503m (Bloomberg.) Markets: Indices started the week on a more stable footing than of late, though lingering concerns about the eurozone crisis and its potential impact on global growth left many risk asset benchmarks only just above multi-month lows. The FTSE All-World equity index was up 0.3 per cent, while commodities were mostly firmer - copper was adding 0.9 per cent to $3.50 a pound - and havens, such as US Treasuries, were marginally weaker. S&P 500 futures suggest Wall Street will advance 0.6 per cent. This entry was posted by Izabella Kaminska on Monday, May 21st, 2012 at 10:29 and is filed under Uncategorised.