UK Pound Benefits as Euro Dumped Amid Fears for Banks!

• The UK pound isn’t any better as a fiat currency. (See: Forget Euro and US crisis, UK debt is near 1000% of GDP!) Do not be deceived. Got physical gold yet?
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  Pound benefits as euro dumped amid fears for banks! 
  By Louise Armitstead, http://www.telegraph.co.uk/ 
  The pound benefited as the euro plunged to its lowest level for 15 months amid fears that eurozone countries and their banks may be buckling under the weight of their debts.
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  Traders dumped the single currency and pushed sterling to 82.6p per euro as Italian and Spanish banks led a rout of financials that was driven by the anticipation of a hefty round of capital raisings.
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  The seemingly unstoppable debt crisis led economists at the International Monetary Fund (IMF) to urge Asian banks to brace for turbulence. In a blog, the economists called for Asia’s Chiang Mai Initiative, a $120bn (£77.5bn) agreement of pooled emergency resources, to be readied.
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  Shares in two Italian banks, including Unicredit, were suspended after sustaining heavy losses. Spanish banks were punished after the finance minister said the sector will need €50bn to recapitalise. French and German banks were also hit.
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  The concerns doused optimistic US economic data to push stockmarkets into the red for the second day in a row. Italy’s MIB fell 3.7pc, Spain’s Ibex 2.9pc, and France’s CAC 1.5pc. In London the FTSE slid 0.8pc. The yield on Italy’s 10-year bonds soared back over the 7pc bail-out level.
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  … for more click here!

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