Fears grow over second EU debt crisis

first_img Fears grow over second EU debt crisis whatsapp Thursday 23 September 2010 8:33 pm FEARS of a second European Sovereign debt crisis grew yesterday as economic data showed Ireland’s second quarter GDP fell while uncertainty over how the country will support its banking sector triggered a sell-off in its bond markets that sent gilt yields to a record high.The sell-off came after the Irish government signalled that holders of Anglo-Irish bank’s €2.4bn worth of subordinate debt may have to accept a “haircut”, as it confirmed it would extend its bank guarantee scheme for three months.The spread on five-year Irish sovereign credit default swaps (CDS) widened to as much as 490 basis points (bps) yesterday, meaning the cost of insuring $10m of debt over five years jumped to $490,000. Meanwhile, the spread on five year Portuguese CDS widened to 419 bps from 391 bps and Italy widened to 204 bps from 195 bps. The Spain five-year CDS spread was at 242 bps versus 234 bps on Wednesday, while Greece widened to 828 bps from 813 bps. Spanish telecommunications giant Telefonica also cancelled a bond sale on concerns about the creditworthiness of the Eurozone’s most indebted nations.Official figures showed Ireland’s GDP fell 1.2 per cent in the second quarter as imports grew unexpectedly.More broadly, economic data showed the manufacturing and services sectors in the Eurozone slowed more than expected in September.The Eurozone Purchasing Managers Index (PMI), compiled from surveys of around 2,000 businesses ranging from banks to restaurants, showed sentiment fell to 53.8 in September from 55.9 in August, its lowest reading since February. The index also indicated Ireland, Spain and Italy were in danger of falling back into recession. Tags: NULL Sharecenter_img KCS-content Show Comments ▼ whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily Prooflast_img read more