Italy Has The Resources To Serve Its Debt And Repay Creditors For Next 10 Years - Goldman Sachs

on , from efxnews.com

At the end of October 2012, Italian general government debt was €2.01tr and government securities outstanding were €1.69tr. In that regard, Goldman Sachs forecasts that Italy general government debt will peak at 127.5% of GDP in 2013 and decline to 123.2% by 2016 (or €2.07tr). Thus, over 10 years, GS expects Italy's government deficit/GDP to decline to 0.05% in 2023 and the debt ratio to decline to 105% of GDP by the end of 2023. "A 20% reduction of the stock of public debt over a 10-year horizon could be achieved with a different, perhaps more feasible, combination of nominal growth, ... (Read the full story)

Top 8 coming week market movers, 2013’s biggest question and risk

on , from thesensibleguidetoforex.com

For financial markets, this week really doesn’t get going until Wednesday, when both the calendar and trading volume start to return to full strength, so we’ll try to keep this weekly preview brief. We covered the first three listed below in our recent review of last week’s lessons for this week. See here for details on these. 1. US DEBT CRISIS ISSUES: FISCAL CLIFF AND DEBT CEILING EXTENSION For Western markets fiscal cliff and debt ceiling headlines should continue to be prime market movers, with risk asset markets rising on headlines that suggest deficit cutting austerity moves will be avoided, ... (Read the full story)

France's 75% 'supertax' thrown out as unfair and unconstitutional

on , from guardian.co.uk

Blow for François Hollande as constitutional council vetoes Socialist policy at the 11th hour. France's constitutional council has dealt a blow to beleaguered Socialist president François Hollande by rejecting the new 75% rate of income tax due to come into effect on Tuesday. It declared the measure, the backbone of the French leader's successful presidential election campaign earlier this year, to be unfair and therefore unconstitutional. Immediately after the surprise legal ruling on Saturday, the French government pledged to redraft and resubmit the proposal. The so-called ... (Read the full story)

Currency Positioning and Technical Outlook: Weak Signals, Lots of Noise

on , from marctomarket.com

The holiday week saw the dollar consolidate against most of the major currencies. The yen was the main exception as its losses were extended under the aggressive signals coming from the new Japanese government. At the end of the week, the other key consideration, the US fiscal cliff made its presence felt. The recent pattern remained intact. News that gives the participants a sense that the cliff may be averted encourages risk taking, which means in the foreign exchange market, the sale of dollars and yen. News that makes participants more fearful that the political dysfunction failed to ... (Read the full story)

Stocks brace for fiscal cliff reckoning

on , from cnn.com

The deadline to avert a looming fiscal crisis is fast approaching. Investors are hoping for the best, but bracing for the worst. Can the stock market shake off yet another punt by Congress? It just might. For weeks, many have worried that no resolution to the fiscal cliff would lead to the kind of brutal sell-off that followed the voting down of the TARP bailout and the downgrade of America's credit rating. "I don't know how the market is going to react," said Ben Schwartz, chief market strategist at Lightspeed Financial. "But I do know that people are upset with what's going on in ... (Read the full story)

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