11 Jul 2014
Jitters on BES still hovering over markets – Danske Bank
FXStreet (Edinburgh) - Concerns regarding the Portuguese Banco Espirito Santo (BES) are far from over, observed Fleming Nielsen, Senior Analyst at Danske Bank.
Key Quotes
“Global stock markets yesterday sold off on the back of concerns about the health of Portugal’s second largest bank, Banco Espirito Santo (BES)”.
“The concern is related to BES’s potential exposure to the troubled Espirito Santo’s group that BES is part of”.
“Trading in the BES stock was suspended yesterday. The concerns about BES have spilled over to other euro-area peripheral banks. Ten-year government bond spreads to Germany widened by 24bp for Portugal and 9bp and 10bp for Italy and Spain, respectively”.
“BES last night issued a statement in which it said that loans to the troubled Espirito Santo conglomerate will not put BES at risk of running short of capital”.
“The statement gave a detailed breakdown of its exposure to the Espirito Santo group that was somewhat higher than has been previously reported”.
“BES said that it is waiting for the release of the restructuring plan for Espirito Santo’s Group before it can access the potential losses from its exposure to the troubled conglomerate”.
“The statement from BES is expected to pave the way for resumption of trading in the BES stock today”.
Key Quotes
“Global stock markets yesterday sold off on the back of concerns about the health of Portugal’s second largest bank, Banco Espirito Santo (BES)”.
“The concern is related to BES’s potential exposure to the troubled Espirito Santo’s group that BES is part of”.
“Trading in the BES stock was suspended yesterday. The concerns about BES have spilled over to other euro-area peripheral banks. Ten-year government bond spreads to Germany widened by 24bp for Portugal and 9bp and 10bp for Italy and Spain, respectively”.
“BES last night issued a statement in which it said that loans to the troubled Espirito Santo conglomerate will not put BES at risk of running short of capital”.
“The statement gave a detailed breakdown of its exposure to the Espirito Santo group that was somewhat higher than has been previously reported”.
“BES said that it is waiting for the release of the restructuring plan for Espirito Santo’s Group before it can access the potential losses from its exposure to the troubled conglomerate”.
“The statement from BES is expected to pave the way for resumption of trading in the BES stock today”.