Authored by Mike Shedlock via MishTalk.com,
Bank of America says 9% of European firms have subpar interest coverage. Bloomberg covers the story in its report Zombie Companies Littering Europe May Tie the ECB’s Hands for Years.
Watch out for the zombies.
Time flies when you are printing money.
As Citi's FX desk is kind enough to remind us, it was five years ago today that Donald Trump was a businessman and TV personality, and ECB President Mario Draghi vowed that:
“The ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”
He then compared the common currency to an insect:
Speaking earlier on Monday, ECB governing council member Ewald Nowotny said that despite growing market concerns, the ECB "sees no need to set a timetable to end bond buying" adding that "the question is not when but how to continue. That will depend on the economic projections for 2018, which we will have in the fall [...] It’s not about an abrupt halt, but about registering that we are no longer confronted by such an acute crisis as we were when we implemented the measures. I consider it wise to step off the gas slowly."
After sliding to 3 month lows on "car cartel" concerns yesterday, European stocks have rebounded after three days of declines, while oil extended gains after Saudi export cuts, with Brent rising above $49 and WTI just shy of $47. Asian stocks fell while S&P futures rose 0.2% to 2,473, putting yesterday's GOOGL drop on plunging Costs-Per-Click in the rearview mirror.
In a mixed session, which has seen Asian stocks ex-Japan broadly higher, the European Stoxx 600 index dropped as much as 0.6% after data Markit PMI data signalled euro-area economy grew in July at its slowest pace in six months while carmakers extended declines on continued concern about antitrust collusion in the industry. Germany’s DAX Index was hardest-hit euro-area benchmark, down as much as 0.8%. Autos continued to be the worst-performing sector on the Stoxx Europe 600 after EU and German regulators said they are studying possible collusion among German automakers.