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"Super storm" Sandy shuts markets, Monti meets Rajoy

posted 29 Oct 2012, 06:58 by Mpelembe   [ updated 29 Oct 2012, 07:01 ]

U.S. stock markets will be closed on Monday for the first time since the September 11 terrorist attacks as New York braces for the arrival of Hurricane Sandy. Mike Ingram, market commentator at BGC Partners, argues this will be a real test of leadership ahead of next week's presidential election.

 LONDON, ENGLAND, UK (OCTOBER 29, 2012) (REUTERS) - "European volumes are pretty much at 10-year lows anyway and New York's closure is going to exacerbate this. 

(QUESTION: Big one as well for Obama and Romney on how Obama handles this?) 

Well absolutely. It's going to be a real test of leadership, but I guess in many respects, it's a gift to Obama it's his time to look presidential. But looking at it seriously, let's hope that there's no further loss of human life. 

(QUESTION: We're going to talk about Europe. Monti is meeting Rajoy, Hollande is meeting Lagarde, Lamy and Gurria. Let's talk about Monti and Rajoy. It's going to be quite heated?) 

Yeah pretty prickly. I mean you had Monti a few days ago basically saying Spain needs to take a bailout. Of course, he's talking his own book because Italy knows that they're next in the firing line if things really go badly for Spain. But of course, Rajoy dragging his feet - and let's be honest, bond markets at the moment, giving both countries the benefit of the doubt and I think it's only when the bond markets put a gun to Rajoy's head that he is actually going to move and take this bailout. 

(QUESTION: I mean ECB policymakerNowotny says Madrid fully financed until the end of the year. Is it?) 

Pretty much so. I mean pretty heavy issuance in - well, current month, they've sailed through that courtesy of Mario Draghi, I would have to say. So in terms of cash flow, yeah, I think they are actually pretty much done but of course we're only a few weeks before the end of the year now, really. So it's not in any way a permanent solution."