Subject: Re: China frets about spreading EU debt - SCMP
From: "Michael Andrews" <[email-masked]>
To: <[email-masked]>
Cc: "'Devon Archer'" <[email-masked]>, "'Curtis Hastings'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>
Date: Wed, 22 Dec 2010 11:49:05 -0500

It is interesting and I think it is directionally correct but I  
suspect the German banks are in a very similar place since they were  
competing for the same markets as the French and they have customers  
in each of the markets mentioned.
On Dec 22, 2010, at 10:16 AM, Neil Callahan wrote:

> I heard a great quote at a Christmas party – We know the crisis is  
> over when the French banks fail . . . they own a tremendous amount  
> of the bad debt of Greece, Ireland, Portugal and Spain.  The Street  
> is waiting for them to write it all down.
>
> I wonder what the chatter is about BNP Paribas, Credit Agricole and  
> SocGen?
>
> ------------------------------------------------------------------------------------------
> Neil Callahan
> Rosemont Seneca
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>
> From: Michael Andrews [mailto:[email-masked]]
> Sent: Tuesday, December 21, 2010 11:37 AM
> To: Devon Archer; Curtis Hastings; Hunter Biden; Eric Schwerin; Neil  
> Callahan
> Subject: China frets about spreading EU debt - SCMP
>
> China frets about spreading EU debt
>
> Reuters in Beijing
> 1:21pm, Dec 21, 2010
>
> China urged European authorities to back their tough talk with  
> action on Tuesday by showing they can contain the euro zone’s  
> simmering debt problems and pull the bloc out of its crisis soon.
> China, which has invested an undisclosed portion of its US$2.65  
> trillion reserves in the euro, said it backed steps taken by  
> European authorities so far to tackle the region’s debt problems,  
> but made clear it would like to see the measures having more effect.
>
> “We are very concerned about whether the European debt crisis can be  
> controlled,” Chinese Commerce Minister Chen Deming said at a trade  
> dialogue between China and the European Union.
>
> “We want to see if the EU is able to control sovereign debt risks  
> and whether consensus can be translated into real action to enable  
> Europe to emerge from the financial crisis soon and in a good  
> shape,” he said.
>
> Concerns that Europe’s debt problems will spread beyond euro zone’s  
> periphery to engulf bigger economies such as Spain and Italy have  
> weighed on global financial markets this year and taken a toll on  
> the euro.
>
> In part to protect its investments, China has repeatedly expressed  
> its support for the single currency.
>
> In October, Premier Wen Jiabao promised to buy Greek government  
> bonds once Greece returned to debt markets, in a show of support for  
> the country whose debt burden pushed the euro zone into a crisis and  
> required an international bailout.
>
> China’s Vice Premier Wang Qishan said on Tuesday Beijing has done  
> its part to help ease Europe’s problems and held out hope that the  
> crisis could soon be resolved.
>
> “China supports the slew of measures by EU and IMF to stabilise  
> financial markets, and China has taken concrete actions to help some  
> European countries deal with their sovereign debt crisis,” Wang said  
> at the opening of the trade dialogue.
>
> “The EU has taken active measures to deal with the debt crisis, and  
> we hope the measures can achieve some results as soon as possible,”  
> he said.
>
> But he noted risks abound, given weak global demand and volatile  
> financial markets that are awash in excessive liquidity.
>
> On its part, Wang said China would pursue a prudent monetary policy  
> and active fiscal policy to ensure the world’s second-largest  
> economy can continue to grow at a solid and a sustainable pace.
>
> The annual trade talks between China and the European Union is a  
> chance for the two major economies to seek compromise on a number of  
> issues that have raised tensions in recent months.
>
> China, for one, is concerned by what it sees as growing European  
> protectionism and trade tariffs.
>
> Minister Chen said Beijing hoped the European Union could recognise  
> China as a market economy as soon as possible.
>
> China is keen for that recognition as that would make it less  
> vulnerable to anti-dumping charges under rules of the World Trade  
> Organisation.
>
> Separately, Wang said China also hoped Europe would lift its  
> restrictions on hi-tech exports to China.
>
> Europe, in exchange, urged China to keep its markets open for  
> European firms.
>
> “China brought European consumers a large array of affordable  
> products. This has benefited both of us. But now it is essential for  
> both our economies that China has an open and welcoming business  
> climate,” said European Commission Vice-President Joaquin Almunia.
>
>