FRANCE: French shares and the euro come under pressure as uncertainty over the shape of Cyprus' bailout plan spooks markets

Record ID: 863573

  • Title: FRANCE: French shares and the euro come under pressure as uncertainty over the shape of Cyprus' bailout plan spooks markets
  • Date: 18th March 2013
  • Summary: COPY OF FINANCIAL TIMES LEADING ON CYPRUS TAX
  • Embargoed: 2nd April 2013 13:00
  • Keywords:
  • Location: France
  • City:
  • Country: France
  • Topics: Economy,Politics
  • Reuters ID: LVADAF5GNVBDKVR2RH1FDRA99DWQ
  • Aspect Ratio:
  • Story Text: French stocks and the euro were under pressure at the midsession on Monday (March 18), mirroring other financial centres in Europe, where worries about the timing and extent of the Cyprus bailout were depressing prices across the board.
    By 1030 GMT, the CAC 40 index of leading shares stood at 3789.66, a fall of 1.41 percent -- less than in Milan and Madrid, where stocks were down 2.3 and 2.22 percent respectively -- hit by worries as Cyprus tried to re-work a divisive bank tax as part of a 10-billion-euro bailout.
    The weekend announcement that Cyprus would impose the bank account tax broke with previous practise that depositors' savings were sacrosanct and sent a shiver across the currency bloc, causing the euro to tumble.
    "On the scale of Europe, the stakes in Cyprus are particularly low," said Francois Chaulet, an asset manager with Montsegur Finance in Paris.
    "The problem is one of image: the signal that is being sent to the rest of the world is that there are eurozone countries that, despite pressure from the European Central Bank, have found a slightly brutal means of taking money on the accounts of savers. It's a bit of a stain on the reputation of the European banking system, even if it concerns a very small amount of capital and people. Once again, on the scale of Europe, it's a very small contributor," he added.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2013. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: Video restrictions: parts of this video may require additional clearances. Please see ‘Business Notes’ for more information.
Register