Egypt Independent: Business-Main news http://www.egyptindependent.com//enhome_channel/Economy/rss.xml en Germany's Merkel cannot afford to bail out Deutsche Bank: media http://www.egyptindependent.com//node/2473158 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2016/03/10/505021/merkel.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>German Chancellor Angela Merkel cannot afford to bail out Deutsche Bank (DBKGn.DE) given the hard line Berlin has taken against state aid in other European nations and the risk of a political backlash at home, German media wrote on Saturday.</p><div>The government denied a newspaper report on Wednesday that it was working on a rescue plan for Germany&#39;s biggest bank, as its shares went into a tailspin fueled by a demand for up to $14 billion from U.S. authorities for misselling mortgage-backed securities before the financial crisis.</div><div>&nbsp;</div><div>Germany, which has insisted Italy and others accept tough conditions in tackling their problem lenders, can ill afford to be seen to go soft on its flagship bank, the Frankfurter Allgemeine wrote.</div><div>&nbsp;</div><div>&quot;Of course Chancellor Merkel doesn&#39;t want to give Deutsche Bank any state aid,&quot; it wrote in a front-page editorial. &quot;She cannot afford it from the point of view of foreign policy because Berlin is taking a hard line in the Italian bank rescue.&quot;</div><div>&nbsp;</div><div>The Munich-based Sueddeutsche Zeitung wrote that Merkel would be breaking a promise to taxpayers if she were to bail the bank out, which could spell disaster for her re-election bid next year as the anti-immigration AfD party gains ground.</div><div>&nbsp;</div><div>The AfD is already benefiting from a backlash against Merkel&#39;s open-door refugee policy, making huge gains in two regional elections last month and hitting an all-time high of 16 percent support in an opinion poll last week.</div><div>&nbsp;</div><div>&quot;A state aid package would drive voters into the arms of the AfD,&quot; the Sueddeutsche wrote in an editorial.</div><div>&nbsp;</div><div>&quot;Domestic political considerations make it unlikely that Berlin would play this joker. Even more unlikely is that the European Commission would agree. The political risk would be simply too high.&quot;</div><div>&nbsp;</div><div>Shares in Deutsche Bank recovered somewhat on Friday from a record low early in the day after a report that it was close to a cut-price settlement of $5.4 billion instead of $14 billion.</div><div>&nbsp;</div><div>The bank, the U.S. Department of Justice and the German finance ministry all declined to comment on the report.</div><div>&nbsp;</div><div>The crisis also prompted Deutsche Bank&#39;s normally reticent Chief Executive John Cryan to publish a letter seeking to reassure staff the bank was stable and hitting out at &quot;forces&quot; that wanted to weaken trust in the bank.</div><div>&nbsp;</div><div>The Stuttgarter Zeitung wrote on Saturday: &quot;Deutsche Bank has to win back ground here because as exaggerated as the reports of an existential danger to the bank may have been, just as obvious are its continuing difficulties.&quot;</div><div>&nbsp;</div><div>&quot;Trust is a bank&#39;s most important currency.&quot;</div> Sat, 01 Oct 2016 16:38:00 +0000 Reuters 2473158 at http://www.egyptindependent.com sites/default/files/photo/2016/03/10/505021/merkel.jpg German government believes Trump would ravage U.S. economy: Spiegel http://www.egyptindependent.com//node/2473154 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2016/08/19/504802/trump_rally.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>Germany&#39;s economy ministry believes a Donald Trump presidency would severely damage the U.S. economy, according to an internal memorandum reported by Der Spiegel magazine on Saturday.</div><div>&nbsp;</div><div>The ministry expects &quot;shrinking gross domestic product, fewer jobs and higher unemployment,&quot; in the United States if the Republican candidate were to implement his campaign pledges, the magazine cited the memo as saying.</div><div>&nbsp;</div><div>Trump, a billionaire businessman seeking his first public office, has proposed tax cuts worth $4.4 trillion and wants to curb government regulation and take a tougher stance on negotiating trade deals.</div><div>&nbsp;</div><div>He says his economic plan would produce annual economic growth of 3.5 percent and create 25 million jobs over a decade. But some economists have questioned the assumptions underpinning the plan.</div><div>&nbsp;</div><div>Trump&#39;s pledges are &quot;not feasible&quot;, Spiegel cited the memorandum as saying. Moreover, the plans would violate international or U.S. law and could be &quot;no basis for a realistic economic policy.&quot;</div><div>&nbsp;</div><div>A spokeswoman for the German Economy Ministry declined to comment on the Spiegel report.</div><div>&nbsp;</div><div>Last month, economic research firm Oxford Economics projected the U.S. economy could be $1 trillion smaller than otherwise expected in 2021 if Trump becomes president.</div><div>&nbsp;</div><div>&nbsp;</div><div>Trump faces Democrat Hillary Clinton in the Nov. 8 election.</div> Sat, 01 Oct 2016 13:33:00 +0000 Reuters 2473154 at http://www.egyptindependent.com sites/default/files/photo/2016/08/19/504802/trump_rally.jpg Jordanians protest multi-billion dollar gas deal with Israel http://www.egyptindependent.com//node/2473153 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/10/17/499612/jordanian_protesters_wave_the_national_and_palestinian_flags_during_a_demonstration.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>Thousands of protesters staged a protest in Amman on Friday to demonstrate against a US$10 billion gas deal between Jordan and Israel.</div><div>&nbsp;</div><div>The deal will supply 1.6 trillion feet (tcf) of gas to Jordan&#39;s National Electric Power Company and marks a significant step forward in Israel&#39;s efforts to exploit its offshore gas reserves.</div><div>&nbsp;</div><div>But protesters said they didn&#39;t want a deal with Israel, saying the government had other energy alternatives.</div><div>&nbsp;</div><div>Israeli Prime Minister Benjamin Netanyahu has often played up Israel&#39;s potential as an economic partner with Sunni Arab countries in the region.</div><div>&nbsp;</div><div>In that respect, the deal with Jordan represents a breakthrough. While Israel and Jordan signed a peace deal in 1994, relations are not always good, but as economic ties deepen, Israel hopes they will become firmer.</div><div>&nbsp;</div><div>Talks on the contract began more than two years ago.</div><div>&nbsp;</div><div>The 15-year deal for the massive Leviathan natural gas field, which holds an estimated 22 tcf of gas, should help the U.S.-Israeli group secure funds to bring it online.</div><div>&nbsp;</div><div>Production is expected to begin around 2019 or 2020.</div><div>&nbsp;</div><div>&nbsp;</div> Sat, 01 Oct 2016 13:26:00 +0000 Reuters 2473153 at http://www.egyptindependent.com sites/default/files/photo/2015/10/17/499612/jordanian_protesters_wave_the_national_and_palestinian_flags_during_a_demonstration.jpg Euro hits two-month low vs Swiss franc on Deutsche Bank jitters http://www.egyptindependent.com//node/2473108 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2016/09/30/43/currencies.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>The euro dropped to a two-month low against the safe-haven Swiss franc and lost ground broadly on Friday, as concerns about the health of Deutsche Bank weighed on the single currency and undermined risk appetite across global markets.</p><div>The Swiss franc was also bolstered by expectations that Middle Eastern investment houses could pull out money from the United States and into alternative safe-haven liquid currencies like the franc.</div><div>&nbsp;</div><div>Those expectations were raised after the U.S. Congress voted overwhelmingly on Wednesday to approve legislation that will allow the families of those killed in the Sept. 11, 2001 attacks on the United States to seek damages from the Saudi government.</div><div>&nbsp;</div><div>&quot;Risk appetite seems to be backtracking as European banking concerns mount,&quot; said Hans Redeker, head of currency strategy at Morgan Stanley, adding that Swiss franc strength was not just a reflection of the European banking problems.</div><div>&nbsp;</div><div>&quot;It could also be seen in the context of Middle Eastern accounts possibly starting to pull out of the U.S.,&quot; he said.</div><div>&nbsp;</div><div>The Swiss franc hit an eight-week high against the euro at 1.08125 franc EURCHF= in the London session. The euro EUR= fell 0.4 percent to $1.11775 EUR=, while it lost 0.6 percent against the yen to trade at 112.77 yen EURJPY=.</div><div>&nbsp;</div><div>The yen, also seen as a safe-haven currency, has rebounded from Thursday&#39;s trough versus the dollar as global share prices slipped on worries about Deutsche Bank (DBKGn.DE), under pressure from a massive fine imposed by the United States over its sales of mortgage-backed securities.</div><div>&nbsp;</div><div>The latest lurch came after Bloomberg reported that a number of hedge funds that clear derivatives trades with Deutsche had withdrawn some excess cash held at the lender, which has dropped to fourth in overall rankings as a currency trader.</div><div>&nbsp;</div><div>YEN FIRMER</div><div>&nbsp;</div><div>The Japanese yen looked set for its third straight quarter of gains. It has gained about 2 percent so far this quarter, on course to log its third consecutive quarter of gains, as investors suspect the Bank of Japan has reached a practical limit in stimulus and has lost clout in cheapening the yen.</div><div>&nbsp;</div><div>Earlier, the dollar rose from around 101.15 yen to 101.80 yen in just a few minutes, a move traders said appeared to be linked to month-end or quarter-end flows.</div><div>&nbsp;</div><div>The dollar later pared some of its gains and was last trading at 100.80 yen JPY=, down 0.2 percent on the day.</div><div>&nbsp;</div><div>Focus will be on U.S. data and a better-than-expected personal consumption expenditure (PCE) deflator -- the Federal Reserve&#39;s favourite inflation gauge -- could offer support to the dollar. ECONUS</div><div>&nbsp;</div><div>&quot;The Fed seems more focused on employment than on inflation,&quot; said Marshall Gittler, head of investment research at FXPrimus.</div><div>&nbsp;</div><div>&quot;Nonetheless it could help to persuade the holdouts on the Fed that a rate hike in December -- currently seen as only a 58 percent probability -- is justified and therefore be dollar-positive.&quot;</div> Fri, 30 Sep 2016 09:07:00 +0000 Reuters 2473108 at http://www.egyptindependent.com sites/default/files/photo/2016/09/30/43/currencies.jpg