German and European Union officials are working on plans, it has emerged, to inject cash into the stricken sector, perhaps using the bail-out funds, the EFSF and ESM. Officials in Brussels said the contingency strategy to support Spain could be "austerity-lite", rather than tied with conditions like the Greek and Portuguese bail-outs, to restore confidence more quickly. The bail out could be as much as €80bn(£65bn) rather than €40bn Madrid reckons its banks need. Mario Draghi, president of the European Central Bank (ECB), said the ESM's current treaty "forbids direct recapitisation of the banks", but a shift in political rhetoric injected hope into fraught financial markets. Shares jumped as traders bet that the Federal Reserve and even the Bank of England, were poised to act to stem the crisis and boost the global economy. Both Ben Bernanke, chairman of the Fed, and his deputy, are set to give speeches this week and could change tact in the wake of poor economic data. In London, the FTSE 100 rose 2.4pc, its biggest one-day gain in six months. The Eurostoxx 600 jumped 2.3pc; the French CAC rose 2.4pc; and in Germany the DAX closed up 2.1pc. Oil rose above $100 a barrel for the first time in a week.
Posts
0 comments:
Post a Comment