Ireland may need 48 billion euros "life-saving money

Greece had just stepped into the end of the debt crisis, debt re-Irish sounding "alarm." Bloomberg News reported on November 13, the EU is currently lobbying the Irish Government to accept from its International Monetary Fund (IMF), the joint assistance, aid has, or 480 million euros. Analysts expect the absence of assistance, the financial position of Ireland is difficult to get through 2011, the sovereign credit rating would have been lower. Suppressed by the above problems, the euro strength against the dollar last week, frustrated by 2.4%, the highest since August the biggest weekly decline. Analysts expect the Irish crisis, uncertainty will remain under pressure this week, the euro.

Helping Hand For further EU

Over the past three weeks, the Irish 10-year bond yields rose from 6% 9% jump. Irish government said the surge in borrowing costs in the country the situation has been "very serious." It is reported that Ireland now apply for assistance with the EU negotiations, is likely to become the second Greek euro-zone countries to receive assistance.

European Central Bank President Jean-Claude Trichet called for 13, a critical moment in the European economy, should take "bold" action to strengthen the fragile confidence of the public. European Commission President Jose Manuel Barroso made it clear that the European Union prepared to do the relief of Ireland. 13 IMF's Strauss-Kahn said that if the request received in Ireland, will provide assistance to them.

Although the Euro Group Chairman Juncker and Irish Finance Minister Lenihan 12, had both a statement, the Irish did not seek aid from the EU. However, in the final allocation of aid has to Greece before the EU level have also staged a scene turns denial debut, making analysts believe that history repeats itself, overwhelmed by the news of the Irish EU aid is not groundless.

Or come to the rescue by the EU to appease the message, 12, Ireland Treasury prices rebound, the yield decline. Achieving 10-year Treasury prices rose for the first time 14 days; 2-year yields dropped 81 basis points, the 10-year Treasury yields fell 76 basis points, the Irish 10-year Treasury bond yields and interest rates than Germany narrowed 86 basis points. Data provider CMA data show that the Irish government bonds on 12 credit default swaps (CDS) prices fell 57.5 basis points.

Sovereign rating at risk

Irish government expects the country's budget deficit will reach the 2010 gross domestic product (GDP) of 32%, the highest in the EU list. The country plans to fiscal year 2011 budget cuts six billion euros, 4 years, spending a total savings of 15 billion euros. Ireland Bond Authority data show that the total funds required in 2011 was 235 million euros, respectively, 2012 and 2013 to be 20.7 billion euros and 189 billion euros.

In addition to budget problems, the Irish economy by the banking industry is facing tremendous pressure relief. Ireland Bureau of Statistics said the country's banking sector to save the cost of at least 50 billion euros. Bank of Ireland, 12, said in October the Irish banking sector borrowing from the European Central Bank from the September level of 119.1 billion euros to increase to 1,300 million euros. Matthews said the bank economist, raised concerns about the Irish economy in the banking sector's financing activities are greatly affected.

In addition, the Irish Financial institutions also face the problem of outflow of deposits. 12, Bank of Ireland said the bank deposit and lending rates in October to 145% by the end of the month rose 6 to 160%.

International rating agency Moody's said it would release four years of financial planning in Ireland decide whether the country's sovereign rating lowered. HSBC Global Asset Management macroeconomic and Poole, global head of investment strategy that the EU implemented quickly to rescue the Irish will have a positive impact on the market. But he also pointed out that the experience of receiving assistance from Greece in the EU that aid may be required to make a very long time.

Fund managers bearish on the euro

Sovereign debt issues by suppressing the Irish last week, the euro fell against major currencies, including the euro against the Canadian dollar was down 1.5%, the highest since September the biggest weekly decline; euro fell against the yen and the cumulative 1%.

BNP Paribas currency strategist Kerry said, "Investors should consider the short euro multi-currency, we are particularly optimistic about the Canadian dollar."

The world's largest foreign exchange founder John Taylor, FX Concepts Fund, adjusted for exchange rate forecast in November, turned bearish on the euro dollar bullish, and recommended selling the euro. However, some agencies are optimistic about the euro. Head of FX strategy at Deutsche Bank, said Hafez 12, there is no signal display, the Irish crisis of the debt problem will be as spread as Greece, the euro will eventually beat the market concerned, and in the end of 2010 strong.