Mark Grant, managing director at Southwest Securities Inc., talks with Bloomberg's David Wilson and contributing editor William Cohan about the choices facing Ireland's government as it asks the European Union to bail out its banking system, and the potential for failures in other EU countries.
Following are comments about Ireland’s 85 billion-euro ($113 billion) emergency-aid package from the European Union and the International Monetary Fund. The three-year package, aimed at propping up the country’s battered banking industry and to help service its sovereign debts, will require Ireland to repay the money at an average interest rate of 5.8 percent.
Among his supporters in the southwest of Ireland, lawmaker Jackie Healy-Rae is known as the “Sugar Daddy” for championing his region. Now Irish Prime Minister Brian Cowen may depend on his former political ally to pass next year’s budget and keep international patrons sweet.
Germany failed to get bids for 35 percent of the 10-year bonds offered for sale today, propelling borrowing costs in Europe higher and the euro lower on concern the region’s debt crisis is driving away investors.
U.S. stocks slipped, capping the worst Thanksgiving-week loss since 1932, and commodities fell as a reduction in Belgium’s credit rating and reports that Greece is demanding bondholders accept larger losses fueled concern Europe’s debt crisis is worsening. Treasuries fell.