Us Debt Ceiling: Why It Could Cost Europe

Europe has to accept the idea that the price for services, for new technology, for mobile broadband, for fiber will need to increase a little bit. If not, I dont see how we could manage; there is no more money in Europe. Carriers are rebelling against proposals by European Union Commissioner Neelie Kroes to eliminate roaming charges while standardizing some regulation, such as the allocation of spectrum. Her goal is to encourage data use, increase investment and make Europe more like a single market. Carriers say theyre being deprived of an important revenue source in a difficult market amid price wars and weak economies in several EU countries. Bringing down barriers is ultimately good for the sector, Kroes said in a keynote speech yesterday in Brussels at a conference hosted by the European Telecommunications Network Operators association. But you cant do that without removing roaming surcharges, without removing the arbitrary high charges for calling across borders. European telecommunications companies have invested 2 percent less annually on infrastructure in the last five years, meaning 3.5 billion euros ($4.7 billion) less was spent in 2012 than 2008, according to a survey by Boston Consulting Group commissioned by ETNO. Consolidation Freedom Carriers revenue is also expected to fall as much as 2 percent a year in the industry until 2020, for a cumulative decline of as much as 190 billion euros, according to the report. Carriers want more freedom to consolidate and less regulatory oversight over aspects of their networks, such as what technology they can run on their networks or how much they can charge other companies to use their infrastructure, executives said yesterday. They say they need the freedom to consolidate within markets to stabilize prices. There is very little in the proposals that concretely allow us to drive further consolidation, Philipp Humm , Vodafone Group Plcs head of Europe, said at the conference. Even so, the industrys frustration with regulators may be driving an increase in share valuations as mergers and acquisitions pick up for the industry across Europe, said Robin Bienenstock , an analyst with Sanford C. Bernstein. In Spite The regulation event has proven to be so inordinately time-wasting and frustrating and dead-end that youre starting to see companies act, Bienenstock said at the event. The regulations are so lousy that people are starting to act in spite of it. Oranges Richard said that while he previously wouldnt pursue deals because he was convinced regulators would reject them, hes decided the best strategy is to test the market with deals to find out what regulators will tolerate. We cannot compete in our environment anymore, said Timotheus Hoettges, deputy CEO of Deutsche Telekom.

ICE Clear Europe Announces Successful Launch of European CDS Client Clearing; Five Clients Active on Day One

France is expected to see token improvement in 2013 and 2014; Germany should grow 0.5 percent this year; and the British economy is forecast to grow 1.4 percent in 2013 and 1.9 percent in 2014. But that would certainly change if House Republicans and the White House fail to reach an agreement by Oct. 17 on raising the debt ceiling, and the US Treasury becomes unable to raise more cash. More on world impact of US debt default: US debt ceiling: the wary view from Mexico The European economy is inherently exposed to effects from across the Atlantic, because is financial sector and that of the US are closely intertwined. The US is Europes second biggest trading partner,” says Mr. Wall, and “there is a strong degree of correlation with US financial sector.” But additionally, a US default would strike at the engine of the European recovery: European exports to the US. A weakened US dollar makes European exports more expensive, undermining the regions competitiveness, just as year of painful adjustments are starting to pay off. If it comes to a default, however unlikely, for sure the recovery would be at stake. It would be such a huge shock that European risk premiums would rise again massively, says Matteo Cominetta, a London-based European economist with HSBC. Periphery Europe The effects in southern Europe Spain , Italy , Greece, and Portugal could be worse, as its economic recovery is underway at a much slower pace than northern Europe. The two giants of the periphery, Spain and Italy, are gaining traction, although both remain in a precarious position due to political uncertainty and unpopular governments. Analysts say that Spain in particular is showing signs of recovering from the southern economic malaise.

Markets closed ICE Clear Europe Announces Successful Launch of European CDS Client Clearing; Five Clients Active on Day One Press Release: IntercontinentalExchange 8 hours ago 189.66 -3.3400 LONDON, Oct.8, 2013 /PRNewswire/ –ICE Clear Europe, a wholly-owned subsidiary of IntercontinentalExchange ( ICE ), a leading operator of global markets and clearing houses, today announced that ICE Clear Europe successfully introduced client clearing for European credit default swaps (CDS) on October 7, 2013, with five clients actively clearing trades. ICE’s client clearing solution for European CDS covers 47 European index and 121 corporate single name CDS instruments. The following clearing members and clients have cleared CDS instruments through ICE Clear Europe: Clearing Members: Credit Suisse Securities (Europe) Limited Goldman Sachs International Liontrust Investment Partners LLP Lombard Odier Investment Managers Paul Swann, President, ICE Clear Europe, said: “ICE Clear Europe is pleased to extend its proven CDS clearing solution and risk management expertise to clients across Europe and is appreciative of the extensive commitment and efforts of the buy-side and dealer communities.” “The client clearing launch yesterday complements ICE’s European CDS clearing business for the dealer community which launched in 2009 and which has cleared 13 trillion gross notional value since inception,” added Swann. “BlueBay is delighted to be one of the first cohort of firms to be clearing CDS at ICE Clear Europe. The introduction of ICE’s European client clearing solution for CDS will help reduce systemic risk and familiarise clients with central clearing ahead of the implementation stage of regulatory reform in Europe. ICE’s portfolio margining for index and single name CDS is a welcome initiative, providing important margin efficiencies for participants,” said Spencer Woodward, Partner and Co Head of Operations, BlueBay Asset Management LLP. “As the regulatory landscape evolves to reduce systemic risk, ECM Asset Management is pleased to have reached an important milestone with regards to clearing European credit default swaps. There has been a large concentrated effort to ensure ECM keeps abreast of regulatory developments which will benefit our clients over the long-term, particularly, when clearing becomes a mandatory requirement in Europe,” said Andy Li, Portfolio Manager, ECM Asset Management. “Goldman Sachs is committed to working with our clients and ICE to provide access to a robust, scalable CDS clearing solution which will help market participants complete an important step towards implementing European regulatory reform requirements. We are pleased to be one of the first day participants and to be launching with Liontrust Investment Partners LLP, and look forward to continuing to partner with the industry,” said Stuart Connolly, Goldman Sachs International. “Credit Suisse welcomes the expansion of OTC clearing in Europe. The ICE Clear Europe clearing platform offers our clients additional choice for clearing OTC products, which is especially important given the impending introduction of mandatory clearing requirements, and we’re very pleased, therefore, to have cleared one of the first customer CDS trades through ICE Clear Europe,” said Alex Lenhart, European Head of Prime Services Listed Derivatives, OTC Clearing and FXPB Credit Suisse Securities (Europe) Limited. “Citi is very pleased to have partnered with Lombard Odier Investment Managers today in clearing some of the first client iTraxx positions at ICE Clear Europe. Citi is dedicated to offering the latest in OTC clearing solutions to our clients, and we look forward to continuing to work with ICE as mandatory clearing is rolled out in Europe,” said Silas Findley, Managing Director, Head of OTC Clearing for Europe, Middle East, and Africa at Citi. “J.P. Morgan is pleased to be one of the first clearing members to complete a client cleared trade on ICE Clear Europe’s CDS platform. This is a significant step forward for providing access to client clearing of credit default swaps in the European Market and a template as we build towards mandatory clearing under EMIR,” said Hester Serafini, global co-head of OTC Clearing at J.P. Morgan.