are insolvent and there is the credit default swap risk all of the counter party risk and we see unicredit they've had their suspending or their trading in their share suspended the second day in a row this is an elisa largest bank by assets are any banks in your crosshairs in terms of they could potentially cause serious problems sure unicredit you have companies like b.m.p. perry in spain there aren't any that are in the hot seat yet because the two largest ones the. b.c.s. . and forgetting the third or they actually have done fairly well compared to their competitors but you know the large french banks the large italian banks and the german lead. banks are all in big trouble particularly the italian the french banks they have lots of counter party risk and i talian and french banks that's our sovereign that's italy and spain they really have your eyes on it let's look at i know you're not a currency expert per se but you follow europe closely and i'm sure you have your eyes on it and today we saw that the euro is trading at a dollar twenty eight which is lower than it really actually th

this also has to do with unicredit. the bank offered shareholders dividends to take part in a capital increase. shares of unicredit lost 14% on wednesday. people here are bracing to hear more negative news like this in the course of this year, 2012. >> let's get a closer look at the market numbers now. will stick in frankfurt where the dax closed lower. the eurostoxx 50 also laura. in new york, trading still under way for the dow jones industrial average. it looks like it is paring those losses at 12,411. the euro declining against the dollar, trading for $1.29. investors are losing confidence in hungary. the nation's currency fell to its lowest level ever against the euro. budapest is trying to borrow 20 billion euros for its high sovereign debt. concerns sent the euro to 320 florence on wednesday -- florins on wed.. a new rule requiring chevron to pay $18 billion in damages for pollution in the amazon jungle. chevron failed to make a public apology. the oil giant has slammed the decision saying it is further evidence

. >> and unicredit? >> this is a very sticky situation. unicredit, one of europe's biggest banks, last week it went and announced it's doing a rights issue. basically it said we're going to sell shares to our current investors. you're going to buy them if you want them, and of course, we'll offer a good rate, but we need to raise money. they wanted to raise about 9.5 billion euros. the reason is because europe has basically dictated that they have to put more capital aside. they've had more money in the banks to cater for bad loans, the set. well, that share issue wasn't picked up as well as thought, and it bodes a real problem, or doesn't bode well, i should say, for the banks in general around europe that have to raise money. i'll explain and talk more on the "world business report" in a minute and a half, in about 20 minutes' time. awe thanks. iranian news outlets are reporting a u.s. citizen has been sentenced to death in tehran for spying. they say amir mirzaei hekmati, found guilty of membership of the central intelligence agency and

that data offset early losses driven by worry over european bank shares, particularly unicredit, italy's largest bank, which is down 30% for the week. the debt crisis is spreading, hungary was forced to pay 10% on its 12-month debt. nevertheless, bank stocks here led the drive back upward. advancing for a third day led by bank of america. techs made the nasdaq, the leading index led by marvel and seagate technology. target, jcpenney and gap were among the s&p's worst but macy's rose strongly. barnes & noble tumbled after saying it might break off the nook reader. bmw beat out mercedes benz for tops in 2011 luxury car sales. hbo will no longer sell dvds to netflix. a florida man threatened by foreclosure by bank of america for being 80 cents less after paying the wrong number on the phone, finally got a human to listen to him. he won't be losing his home. >>> bill clinton looks hockey. the nba team that got fired up after their coach got fired. plus, two of the big three miami millionaires sit the game out but the one who played was key. your early morning sports headlines are straight ah

that data offsets the early losses driven by worry over european bank shares, particularly unicredit,taly's largest bank, down 30%. and also the debt crisis, hungary forced to pay the unsustainable interest rate of 10% on 12-month debt. nevertheless, bank stocks led the drive up. advancing a third day, led by bank of america. techs made the nasdaq the leading index, ned by marve and cnet technologies. jp penny and gap were among the s&p's worst. macy's rose strongly and barnes & noble tumbled after saying it may break off its nook. and bmw was top in luxury car sales. finally, a florida man, threatened with foreclosure by bank of america for being 80 cents short on his monthly mortgage payment after he hit the wrong numbers paying over the phone, finally got a human at the bank to listen to him. he won't be losing his home. >>> and bill clinton likes hockey, the nba team got fired up after their coach got fired, plus two of the big three miami millionaires sit the game out, but the one who played was key. your early morning sports headlines, straight ahead. >>> as we head into the wee

that data offset early losses driven by worry over european bank shares, particularly unicredit, italy'sst bank, which is down 30% for the week. also stoke fear the debt crisis is spreading, hungary was forced to pay 10% on its 12-month debt. nevertheless, bank stocks here led the drive back upward. advancing for a third day led by bank of america. techs made the nasdaq, the the day's leading index led by marvel and seagate technology. retailers were mixed by december sales. target, jcpenney and gap were among the s&p's worst but macy's rose strongly. barnes & noble tumbled after saying it might break off the nook reader business and cut itself full-year forecast. bmw beat out mercedes benz for tops in 2011 luxury car sales. hbo will no longer sell dvds to netflix. and finally a florida man threatened by foreclosure by bank of america for being 80 cents short on his mortgage payment after he hit the wrong numbers paying on the phone finally got a human to listen to him and he won't be losing his home. >>> last night, richard cordray, who president obama just installed using his appoint.

i've got a different message. >> i come back to the unicredit deal. why? unicredit raised capital. when they raised capital, you got the home run. any time i see one of these raise capital home run, i'm reminlded of the 2009 period in this country where, david, we talked about this earlier when a lot of banks did equity. it turned out to be a pretty darn good thing to be in. i'm saying stay tuned. the banks that bite the bullet and raise equity which, of course, dilutes management, they take the hard medicine, it's a buy. >> there was a time when citi was 99 cents in march of '09. bank of america didn't have nearly the move many anticipated it would. only $7. >> i'm just saying don't -- >> don't be blind to -- i think we've all sat here and said the impact from the ltro, long term refansing operation, was far greater perhaps than we appreciated when it was first announced. it really did stave off what might have been a significant banking crisis in europe. it hasn't added a bid for these sovereign bonds. italy's yields fell below 6% yesterday on the 10-year. back above it a bit. al

banks like unicredit and the united bank integrated garnishing that they did they were. allowed by the e.c.b. to collect a very large sum of money with which to purchase the in bonds in order to reduce the pressure on the telly and that and in the process to benefit from the calibrate that is some the difference in the interstate that those banks would be basically for the money that they're being lent by the e.c.b. right. now they're charging the italian debt right now that was at the that was what was that they were supposed to be doing so what is unique that and other italian banks and some portuguese banks in some spain spanish banks something astonishing in the annals of financial history they've created their own bonds the issued new private bonds of their own backs which of course nobody wants to buy because these banks are insolvent more or less so what they did was they went to the government of the technocrat with them wanting and they said prime minister we've got these bonds on our behalf so mr monti said yes interestingly and bustling lee so certainly there

duration of the loan it's one percent but more than a dozen italian banks including top lenders unicredit and test the sound paolo tapped one hundred sixteen billion euros of that their figure includes forty point four billion euros of state backed bonds which were used as collateral for the loans so they're issuing debt. in italy to send over to the e.c.b. in exchange for more loans which they can leverage up is this banking or the kama sutra. like this economists of a giant banking positions. this is how they're basing their economy going forward. into slot b. you figure it out i actually make a prediction from your statement there max that silvio berlusconi who is now out of a job well you've just given him a job for two thousand and twelve to write the book the karma sutra of finance silvio's bunga bunga finance just look at the pictures and they'll throw up the never try this type of leverage or hickory hypothecation at home. ok well the biggest amount twelve billion euro is a state backed bonds is taken up by in tests of some power which confirmed it had used them as collateral for

discuss this i'm joined by a lot of people for he is head of macro economic analysis and research at unicredit bank russia been heiress he is the editor in chief of business new europe we also have david cranfield he is a partner in c.m.s. and simon thank him for fletcher he is a portfolio manager with renaissance asset managers ok out of time i want to go to you first in china it's the year of the dragon will this be the year of the ball for russian equities with excel we expect quite a significant growth rate of russian equities for this year at the bar you had with twenty five percent or something like that of. these here can be quite strong in terms of autonomy others as well ok then when he said i agree. market is extremely cheap why is it cheap well because it was only a december ok right a cheap it's cheap i mean for a number of reasons i mean of course we were doing our outlook and never has been so confusing i mean you've got a potential meltdown in europe and at the same time domestically this sort of resurgence of political risk such as it is consequently the investors have all step