Europe’s plan to address weak banks risks unraveling

Wolfgang Buechele, currently chief executive officer of Europes largest supplier of water-treatment chemicals, will take over as CEO of Linde AG. He will remain at Kemira until April 30, 2014. Vestas Jumps Vestas added 4.5 percent to 139.10 kroner, paring earlier gains of as much as 13 percent. Mitsubishi Heavy and the Danish turbine maker agreed to establish a venture to develop offshore wind energy. The partnership, to be formed in March 2014 and equally owned by the two companies, will design, procure, build and sell offshore wind power plants, Mitsubishi Heavy said in a statement to the Tokyo Stock Exchange. SEB SA (SK) climbed 3.5 percent to 65.20 euros. The maker of Tefal pans and Rowenta household appliances was lifted to buy from hold at Societe Generale SA, which cited a recovery of sales in Europe, operating margin expansion in 2014 and an attractive valuation relative to competitors. Telekom Austria AG (TKA) advanced 2.7 percent to 6.09 euros. The phone company part-owned by Carlos Slim s America Movil SAB is heading for its biggest weekly gain since 2009 amid speculation that the Mexican billionaire may take full control. To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net 7:44 Sept. 27 (Bloomberg) — Alexander Friedman, chief investment officer at UBS AG, talks about his recommendations for the U.S.

UBS Cuts Dollar Recommendation to Neutral on Fed

The Swedish Postcode Lottery, the Liberty Wildlife Fund and ARK Nature granted the resources to enable this giant project to be completed. The group have chosen to describe the details of 18 species of mammal and 19 prominent birds. They used the Living Planet Database and need to be updated already, but their graphs and descriptive genius portray a rosy picture. That reminds me that their photographs alone, from some of the most prominent nature photographers are worth reading this document for ! The mammals begin with large species and don’t descend to the small brown jobs, while the birds also follow popular taste, as is correct in a document that should and does attract. Ursus arctos is the brown bear , an icon in several continents. As large herbivores such as bison and carnivores like the European lion became extinct, bears, too, disappeared – from as early as the 12th century in Britain. They are now stabilised in the populations living nowadays in northern and eastern mountains and forests, far from human interference. Four of the ten European populations are small and localised. The most widespread bear in the world, bruin has been driven out of most of Europe for centuries. At present, here are 17,000 wandering in reserves mainly, or in distant wilderness areas, where their populations are less fragmented. The Siberian population in Asia is of course connected to the Russian and hence the Baltic and Karelian populations The world’s second largest rodent is the beaver, Castor fiber.

Emerging Europe poised for modest economic upturn

“This good time is over,” said Zbigniew Jagiello, chief executive of PKO BP PKO.WA, Poland’s biggest bank. “Now Poland is faced with a new reality.” Poland has been a rare bright spot in an otherwise bleak European economic landscape, sustaining growth of around 2 percent last year in contrast to recession elsewhere. But such run-of-the-mill growth rates now expose the country to budget deficit and debt woes, Jagiello said. Mateusz Morawiecki, head of Polish bank BZ WBK BZW.WA, took a more upbeat line for the region’s top economy. “We noticed a breakthrough in the economy over the summer months,” when credit demand suddenly emerged, he said. “Maybe it will not be a V-shaped recovery but we are seeing a turn towards investments.” With signs that the worst may be over in the euro zone that absorbs a lot of emerging Europe’s exports, much hinges on whether sentiment in the region picks up again, officials said. “Consumption is still at a very low level because people do not have confidence in the recovery,” said Levon Hampartzoumian, head of UniCredit’s (CRDI.MI) Bulgarian unit Bulbank. EYES ON THE FED That can also be seen in the shopping habits of Czechs, said Marek Switajewski, chief executive at Unipetrol (UNPE.PR), the country’s biggest petrol station operator. “Czech people in the past were stopping at (pricey) petrol stations buying food, drinks, … now people are very careful where they buy, they are much more focused on discounts,” he said. “We are still in recession and the recovery will be long and painful.” A big hurdle for the region is how investors react when the U.S. central bank finally starts scaling back its $85 billion in monthly bond purchases. This has been a flood of liquidity that had helped fuel market rallies in higher-risk markets. Even though the Fed surprised markets this month by keeping the stimulus in place for now, concerns that the monetary fire hose may soon start losing its power have triggered an exodus of short-term investments from many emerging markets. Central and eastern Europe is especially vulnerable to this given the region’s relatively high levels of short-term debt compared with foreign currency reserves.

“We see a problem primarily in Spain and Italy, because that’s where you have a housing market that’s still in freefall,” said Jon Peace, an analyst with Nomura. “The small banks have bigger problems than the large ones.” OUT ON A LIMB Germany, the euro zone’s strongest economy, which has shouldered much of the burden for country bailouts, does not want a scheme that leaves it on the hook. That aversion is unlikely to change, whatever the outcome of current government coalition talks. Berlin has suggested that a bank resolution agency should only have power over the euro zone’s largest lenders. That would reduce any potential bill to be shared by the 17 euro zone countries, but such a deal could mean that small risky banks, at the heart of the current crisis, slip through the net. The absence of a financial backstop to help banks once their problems are laid bare may prompt the ECB to delay the tests of banks altogether, a move that could postpone supervision and damage the euro zone’s image internationally. The situation would be even worse if haggling between EU governments delays agreement – now penciled in for December – on the ‘resolution’ framework to cope with laggard banks. That would have a knock-on effect on talks to finalize the regime with the European Parliament, potentially leaving the ECB out on a limb when it takes on supervision, as now planned, towards the end of next year. “We will not start before governments have agreed on a backstop – emergency funding for capital holes – which we might find in the balance sheets,” Yves Mersch, the member of the ECB’s executive board in charge of supervision, said on Monday, referring to the bank balance sheet checks. “This has nothing to do with sitting something out, but with responsibility,” he said. “This assessment could throw us back into crisis, without clarifying the financing beforehand.” Putting off the day of reckoning could make the months ahead easier but would likely come at a heavy cost for the ECB, which has already lent the banks over a trillion euros in cheap funding, mostly now repaid, and is expected to open the taps again, possibly by the end of this year. Most agree there cannot be a repeat of the two earlier stress tests, widely considered flops for a series of blunders, including giving Irish banks a clean bill of health months before their problems pushed the country into an international bailout. Ex-ECB man Papadia warned of the consequences should “the ECB get scared” and soften its assessment of banks.