On Sunday, the leaders of France and Germany vowed to strengthen Europe’s banks to help them better weather the region’s debt crisis.German Chancellor Angela Merkel and French President Nicolas Sarkozy said a “comprehensive response” to the debt crisis would be finalized by the end of the month, including a plan to make sure that banks have adequate capital.Dow Jones industrial average, five trading days
In midday European trading, Britain’s FTSE 100 rose 1%. Germany’s DAX gained 0.3% and France’s CAC-40 climbed 0.7%.Shares in Asia were higher after a tentative start. Hong Kong’s Hang Seng pared early losses to edge up marginally at 17,711.06. South Korea’s Kospi rose 0.4% to 1,766.44 and Australia’s S&P/ASX 200 gained 0.9% to 4,201.The Shanghai Composite Index was down 0.6% at 2,344.79 and the Shenzhen Composite Index for China’s smaller second stock market was 0.6% lower at 997.84.Stocks in the Philippines, Singapore, Indonesia and India rose. Markets in Japan and Taiwan were closed for national holidays. yeezy 2 Investors were wary of banking stocks after a move by the Belgian government to buy the national subsidiary of embattled bank Dexia for 4 billion euro ($5.4 billion) and provide tens of billions of euros in new guarantees as part of a wider bailout of the lender, the first banking victim of a new squeeze in European credit markets. Dexia is the first large European bank to need a government rescue since the financial crisis of 2008. It has struggled because it is heavily exposed to the government bonds of indebted countries like Greece and Italy.
The part-nationalization of Franco-Belgian Dexia was triggered by other banks’ increasing reluctance to lend to it due to its exposure to highly indebted eurozone states like Greece and Italy and to struggling municipalities in the United States.
On top of the nationalization, the governments of Belgium, France and Luxembourg together will provide an additional 90 billion euro ($121 billion) in funding guarantees for the bank for up to 10 years. air yeezy 2 Investors were treading carefully as Greece continued to struggle with its finances to qualify for the next installment of an international bailout loan needed to avoid bankruptcy. A Greek government default would cause the value of Greek bonds held by European and U.S. banks to plunge in value with possible global repercussions.
“After so many months, it still is not clear how leaders are going to resolve” the European debt crisis, said Lee Kok Joo, head of research at Phillip Securities in Singapore. “I think a lot of investors are just waiting to see what the next step is that some of these leaders will take.”
Analysts have urged European officials to identify all the banks in the region that need to replenish their capital reserves, then decide whether to compel them to raise that money from markets and to provide government financing to the ones that can’t.
Many experts say the capital cushions of many European banks must be strengthened in order to withstand a Greek default.
“Discussions over the weekend between German Chancellor Merkel and French President Sarkozy delivered little in substance,” Credit Agricole CIB said in a research note.
“In the meantime, markets may give eurozone officials the benefit of the doubt, but patience will run thin if no progress is made on these fronts,” it said.
In energy trading, benchmark crude for November delivery was up $1.04 to $84.02 per barrel in electronic trading on the New York Mercantile Exchange. The contract climbed 39 cents to end Friday at $82.98 a barrel in New York.There’s much excitement in VIP circles about Friday’s reopening of the fabled Hotel Bel-Air in L.A. after a two-year, top-to-bottom renovation.
This is the hotel where Nancy Reagan regularly lunched, Tom Cruise and Nicole Kidman hashed out their divorce agreement away from prying eyes and where celebs from Grace Kelly to Britney Spears have stayed. It is known for cushy digs and superb service. yeezy shoes But some aren’t celebrating the reopening. Many former employees of the once-unionized luxury lodging, where rates now will start at $565 a day for least expensive digs, are surprised and angered that they have not been rehired and are planning a march through the tony residential neighborhood where the hotel is located and say they’ll demonstrate outside the hotel Friday. UNITE HERE plans a press conference today in L.A. to announce details.
Leigh Shelton, a spokeswoman for UNITE HERE, got in touch to say that the Bel-Air has been a union hotel “for decades” and that “people with 20 years of service are being thrown away like old furniture.” She told me about an apparently well-regarded Bel-Air housekeeper and a room-service waiter whom she says were both told there were better-qualified candidates. The waiter, who now works at a downtown L.A. hotel, found out that a similar job at the revamped Bel-Air went to a current colleague of his with far less experience and no tenure at the Bel-Air, Shelton says. air yeezy shoes A story in Saturday’s Los Angeles Times said that the pink palace, owned by the government of oil-rich Brunei, will open ” with only about a dozen of its former union workers on the staff of 275, dealing a blow to the hotel workers union and its members. The protest will be organized by the hospitality workers union Unite Here Local 11, which contends the hotel used the construction project to oust the union from the hotel.”
Hotel management told the L.A. Times that it laid off its workers in 2009, offered severance packages that they nixed and said they could reapply for their jobs again. Workers “now have the right to vote to unionize again, hotel officials say,” the Times reported.”It’s up to the employees if they want to be a union,” Alisha Mahon, a spokeswoman for the hotel, told the newspaper.