Fresh banking crisis fears send FTSE to lowest level since 2012

Health of the financial system and danger of negative central bank interest rates cause bank stocks to fall to lowest level in nearly four years

Markets wrap

The FTSE slumped to its lowest level since August 2012 and European equities sold off as markets endured another day of turmoil driven by worries a new banking crisis could erupt in a fragile global economy.
Britain's benchmark blue-chip index ended the day down 1pc to close at 5632 points, it lowest finish in more than three years.
In Europe, the pan-European FTSE Eurofirst endured its seventh consecutive day of declines, falling by as much as 2.6pc in intraday trading.
European banks were the biggest casualties with another 4.5pc wiped off the Euro Stoxx 600. The index has now fallen to its lowest point since the height of the eurozone turmoil in the summer of 2012 when investors were forced to take a "haircut" on Greek government debt.
Western markets were gripped by risk-off sentiment after Japan's Nikkei has closed down 5.5pc, and Asian banks declined by 7pc, in early morning trading.
Japan also became the first major world economy to see borrowing costs on its 10-year bonds fall into negative territory - effectively penalising investors for holding government debt.
The flight to safety was triggered by a heady mix of fears - including concerns that central banks were stoking a new crisis by embarking on an unprecedented experiment with negative interest rates.
"[Monetary policy] is trying to stimulate aggregate demand and the honest truth is that it's not capable of doing that in a sustainable way", said William White at the Organisation of Economic Cooperation and Development.
Perennial concerns about an oil glut also sent Brent crude down by 2.2pc to as low as $32 a barrel.
Evidence of a dramatic slowdown Germany only piled onto woes that the world would struggle to get out of an insipid growth trap this year. German industrial production fell by 1.2pc at the end of last year, it sharpest fall since August 2014.

http://www.telegraph.co.uk/finance/economics/12147540/stock-markets-europe-banks-recession-crisis-crash.html


Well, this could be fun.  Because of the huge debt Osborne has run up, we are in a must worse position that we were in 2010.  Hold on to your hats and buckle your seat belt.

Shell shares seem to be holding up OK at the moment.

of course its all labours fault.....

Lord Foul wrote:of course its all labours fault.....

Oh I'm sure they will try that lol

See my comments in the 'corbyn' thread...

i have...and i have come to teh conclusion that you are to political thought what a frontal lobotomy is to intelligent action.....

Lord Foul wrote:i have...and i have come to teh conclusion that you are to political thought what a frontal lobotomy is to intelligent action.....

I presume that was to Tommy lol.  You are really coming out with them tonight!   Absolutely on the button.

Economics is obviously beyond your level of understanding...

well it most certainly isnt yours....


the tories have had time a plenty to sort things...and yet they still get worse.....

Balance of Trade has always been the best figure to judge the economy on, and ours has just hit the deck again.

Mass immigration is the fuel to the fire...


I thought I had already explained this clearly enough...!?


Continuing to be in the EU and being forced to therby have open borders to 500 million people and govt propping up the increasing group of low earners with govt funded handouts through borrowing as the immigration continues to push up costs of living while holding down wages... means more of the same problems until we reach the tipping point of total collapse...!!!

My worry is in all that has transpired recently is who and what will be planted to cause even more unrest.

What goes up must come down, and vice versa.

Trouble is, it didn't go up a lot in the first place and now it's going way down, with a huge amount more debt behind it.  We could easily be heading to another banking crisis, in fact that's what a lot of financial experts are predicting, and not too far away.

Resist the temptation to do a bank run.

Wouldn't get much if I did lol