By Polya Lesova, MarketWatch
LONDON (MarketWatch) — European stock markets soared Thursday, with bank shares posting huge gains, as investors cheered a wide-ranging plan that lays the groundwork for lowering Greece’s sovereign debt, strengthening the financial sector and preventing contagion.
EU summit debt crisis deal analysis
Market reaction to the EU summit deal and a look into what this means for banks, bondholders and the possible involvement of the Chinese.
Bank shares — which had taken a beating recently on escalating debt worries — registered double-digit percentage gains.
[snip]Private investors will take a “voluntary” 50% write-down on Greek bonds, while international lenders will arrange a new financing program for Greece by the end of the year. Also, the leaders in Brussels agreed to leverage the euro zone’s rescue fund, thereby increasing its firepower to around $1.4 trillion, and reached a deal on a recapitalization plan for European banks. Read more about the European plan.
“These are very positive steps in the right direction which re-enforces our view that European politicians are willing to take unprecedented action to keep the European Monetary Union together,” said Azad Zangana, European economist at Schroders, in emailed comments.
Pivotal development
While many details are missing from the plan, the deal should help reduce volatility in financial markets, Zangana noted.
“We expect the euro-zone economy to slow significantly by the end of the year, though the deal done may have helped avoid a second global credit crunch and a very deep recession,” he said.
In Athens, the ASE Composite index GR:GD +4.82% gained 4.8% to 811.11, with shares of National Bank of Greece GR:ETE +6.11% /quotes/zigman/250383/quotes/nls/nbg NBG +12.62% trading up 6.1%.
"...As co-chairman of the Senate Veteran's Affairs Committee and as a member of both Senate public safety committees, I call on Citty to provide the data that shows these types of weapons are used extensively in crime and pose a greater threat statistically than any other commonly held and legally purchased type of firearm.
There is simply no empirical evidence to support his claim. According to the FBI, crime has dropped 14 percent since 2004, the period he cites as when the so-called ban on military weapons expired. The fact is these weapons were never banned but only certain modifications to them were.
Citty's proposal of registration or titling of such weapons violates Oklahoma's constitution. Furthermore, being able to protect ourselves with the type of firearm we feel most comfortable with is a part of our federal constitutional freedoms. These are basic rights — not privileges bestowed on us by benevolent politicians. His views are something one might hear in San Francisco but are not welcome in Oklahoma. Citty also needs to be mindful that Section 2, Article 26 of the Oklahoma Constitution prohibits any such actions as he proposes..."The whole article is great, and can be found here.
