ALL EYES ON BARROSO PROPOSALS FOR EURO ZONE BANKS - The failure of the parliament in Slovakia to ratify the expanded European Financial Stability Facility put an end to four days of gains in Asia trading while the euro also fell against the dollar. Putting more firepower into the fund is seen as a vital security blanket for investors searching for certainty that the euro zone debt crisis will not turn into a full scale banking crisis.
The chief economist at NCB Stockbrokers, Brian Devine, says that out of the three big stories in Europe today - Slovakia, Jean-Claude Trichet's systemic risk comments and Jose Manuel Barroso's banking proposals, Mr Barroso's statement on recapitalisation is the most important. He says it strikes him as a very rushed announcement after the weekend vow by Angela Merkel and Nicolas Sarkozy to have a comprehensive plan to end the euro zone crisis by the end of the month, and then the decision to delay the next European summit. He says the markets are concerned the recapitalisation proposals will fall short of expectations and will really just be a ''patchwork'' solution.
On Slovakia, the economist says the government of the tiny euro zone state will eventually approve the bail-out changes. He says that while complicated, the euro zone authorities can get the changes through even without Slovakian approval. On the surge in Irish bond yields yesterday, Mr Devine says that the move was a market mark down by dealers. He says the bonds have had a good run of late as Irish borrowing costs came down and yesterday appeared to be a good opportunity to sell.
***
GENZYME COMMITTED TO WATERFORD - The employment front in the south east has been heavily battered in recent weeks. However, yesterday the formal opening of a new facility at one of the city's biggest multi national employers - biopharmaceutical company, Genzyme - was held. The company has a workforce of 450. Genzyme was recently taken over by Sanofi and its chief executive, Christopher Veebacher flew in to mark the €150m expansion of the company's manufacturing facilities. Sanofi has 100,000 employees in 100 countries.
Sanofi chief executive Christopher Veebacher says the Waterford site has some of the most sophisticated technologies in any of its plants worldwide and said the technical achievements of a site keeps it on its toes. He confirmed that Waterford has a strategic presence in Sanofi's plans for the long term.
***
MORNING BRIEFS - The US aluminium producer Alcoa is traditionally the first big Dow Jones listed corporates to report quarterly earnings. Last night the company reported third quarter profits below already lowered Wall Street expectations. Its CEO Klaus Kleinfeld warned of weak economic conditions through the year, especially in Europe. Kleinfeld said that battered confidence was the biggest problem.
*** The US Senate has defeated President Barack Obama's job-creation package in what is seen as an indication of political gridlock in Washington that will stall initiatives ahead of next year's elections. The $447 billion package of tax cuts and new spending failed by a vote of 50 to 48. Mr Obama said the vote was not the end of the fight for the measure.
*** 500 of the Occupy Wall Street protesters marched on the district last night where many of Wall Street's top executives live chanting: "Hey you billionaires, pay your fare share." One of their targets was Upper East Side resident and billionaire hedge fund manager, Henry Paulson. He took home $5 billion in 2010, his sector's biggest ever paycheck. Last night his firm issued a a statement saying: "The top 1% of New Yorkers pay over 40% of all income taxes, providing huge benefits to everyone in our city and state," adding that New York has the highest income taxes of any US states.
*** The annual conference of the Irish Banking Federation gets underway in Dublin this morning under the rather elaborate title: "The New Banking Architecture". The EU's Economic and Financial Affairs Commissioner Olli Rehn will address the assembled gathering via a pre-recorded speech.
*** On the currency markets, the euro is worth $1.3624 cents and 87.46 pence sterling.
