FTSE100 falling fast!

mr_fishbulb

Ark_Welder wrote: »

Better drown your sorrows...

Haha :beer:

Graham_Devon

Ark_Welder wrote: »

Have you got a link for this story?

No, sorry, no link.

sabretoothtigger

StevieJ wrote: »

France shouldn't be AAA anyway, it can't even print its own currency, also CDS rates are high.

Moodys confirmed AAA but maybe people think S&P would not. The main thing is France has alot of gold (taken from USA prior to 1971 I think ), its why I'd also doubt any proper run on Italy also.

They need to cut spending but with such a strong gold price these countries are well backed, hence a bail out or whatever is redundant

Graham_Devon wrote: »

Reported on bloomberg that the rumour is that a major french bank is selling off its gold reserves and is about to announce it's insolvent.

Socgen gold delivery was listed as below present cost apparently. People not trusting they'd still be around in 12 months

purch wrote: »

It would only be a surprise if a Bank announced that it was solvent.

There aren't many around nowadays :eek:

Fair point


Socgen is only likely to go under if French debt does I guess because they probably hold alot of it



Essar pluments 13% to new lows, people really dont think this company is profitable at all


The Socgen story is quite similar to HBOS March 2008. Those evil short sellers scaremongering :mad:

StevieJ

sabretoothtigger wrote: »

Moodys confirmed AAA but maybe people think S&P would not. The main thing is France has alot of gold (taken from USA prior to 1971 I think ), its why I'd also doubt any proper run on Italy also.

S&P confirmed AAA for France this morning, SocGen reckon they have a 105billion defence fund, glad I got out of Essar

sabretoothtigger

Whats all the worry about then, its not like S&P have ever got it wrong Seriously though, they have less reason to be biased to France then USA, slightly more reliable judgement possibly

What is the process whereby euro is 'delisted' and France goes back to francs. Is that similar to our ERM exit maybe.
I guess we never issued debt in anything but sterling but if france did that its a default so waaay more serious unless they paid it back via gold to euro exchange rate or someway


I topped up Essar, Im a fricking genius :laugh: Results 22nd Aug ? I need to do some more reading on them, Im missing why they would be so awful compared to 6 months ago
Im bullish on India growth being genuine but price will take time to reflect even if thats true


I was shorting the market today as it was a classic over reaction to the upside however I lost faith and closed before it fell.



Sell Bonds to buy Aviva

The yield, or implied interest rate, on benchmark 10-year gilts sank 20 basis points to 2.475%, after touching a record low of 2.465%, following a statement from the Bank of England that inflation was likely to moderate as economic growth deteriorates.

http://www.citywire.co.uk/money/ftse-drops-3-as-bank-shares-fall-on-france-fears/a515079/2

Maybe if dollar were strong to which we are tied. Many costs are imported for UK so inflation will not greatly follow GDP downwards

Thrugelmir

StevieJ wrote: »

SocGen have just categorically denied any rumours, whatever that means Share price stronger.

SocGEn closed down 15% on the day.
Credit Agricole down 12%
BNP Paribas 10%

So not a good time to be holding stock.

Seem to be getting closer and closer to the day that some of the UK banks come under real pressure.

Ark_Welder

sabretoothtigger wrote: »

Whats all the worry about then, its not like S&P have ever got it wrong Seriously though, they have less reason to be biased to France then USA, slightly more reliable judgement possibly

The problem is a rumour that started which people wanted to believe. Easier for it to take hold when it's something believable.

BBC: Robert Peston:

But the problem with at least one of those semi-rational explanations is that all three ratings agencies have today said they're not going to downgrade France from AAA, and also that the price of French government bonds has actually risen today, which would be a good thing for French banks.
So the more probable reason for the rout in European banks, which has depressed European stock markets and led to contagion on Wall Street, is simply those very basic emotions that afflict investors from time to time (especially recently): fear and capitulation.

sabretoothtigger wrote: »

What is the process whereby euro is 'delisted' and France goes back to francs. Is that similar to our ERM exit maybe.
I guess we never issued debt in anything but sterling but if france did that its a default so waaay more serious unless they paid it back via gold to euro exchange rate or someway

Substantially more complicated for any eurozone country to stop using the Euro, nothing like the UK's exit from ERM which was a fixed exchange rate between different currencies.

http://www.bbc.co.uk/news/business-11830532
http://www.economicshelp.org/blog/economics/should-greece-leave-the-euro/

sabretoothtigger wrote: »

Maybe if dollar were strong to which we are tied.

We ain't tied...

purch

Is that similar to our ERM exit maybe

Not remotely.

The Exchange Rate Mechanism was as it said on the tin, a Mechanism that kept exchange rates within fixed bands.

The unit that all the participants tied their currency to, was the ECU (European Currency Unit) which was a weighted average of the participating currencies.

Currencies were allowed to move by 2 1/4% either side of their ECU value (apart from the ITL which had a more generous 6% band)

In 1998 the EUR was established, and all the currencies were effectively "frozen" at the level they were at the time against the ECU.

worldtraveller

Some pretty aggressive selling going on this afternoon.

FTSE 100 down nearly 4%; Dow 4.5%; NAS 5%; S&P 5%.

edinburgher

I noticed that - and there was me feeling bad that I didn't buy last time round

Still planning on holding off - ILSC look a likely bet at the moment.