Aug. 7 - The latest scandal to hit the banking sector means investors should stay away from financial stocks, says Jane Foley of Rabobank
The market value standard chartered plunges by fifteen billion dollars New York regulators threatened that Arab and banking license. For allegedly hiding 250 billion dollars in transactions. Linked to a round. The hopes that Europe is inching towards a breakthrough in the debt crisis lift European stocks. And the Euro to that highest in nearly a month welcome to all look at the day ahead in Europe went for mountain standard chartered. -- us into weeks and into and not much trading session the effect comes of course in the wake of lacks money laundering controls and HSBC. I'm a libel fixing allegations send it on Barclays Brenda Kelly -- CMC markets as the message is clear stay away from bank stocks. I think the contagion effect that does seem to be driving a lot of banks found -- I would be tempted to stay away from the banking sector for a long time to come until we got a lot of these -- alongside of the way. And of course it does seem not to be there is no and these thoughts -- of course the library issue I think is something that's going to go on and on. But he had to Wednesday at a Bank of England said the slashes 2012 present information for costs. We Britain's recession dragging into a third quarter the bank is widely expected to unleash another round of economic stimulus just not yet says currency strategist Jane Foley a rabbit. We know that there isn't very unlikely to be any more action from the by giving them before November. And the reason I say November is that when the bank of independents -- the last stepped up its key target. At last month it suggested it would take four months for that targets to be met. Germany will sell up to four billion euros and ten year bonds with sentiment in the year resident improving since ECB president Mario Draghi. Laid out his road -- -- hoping is -- in Spain. We could see some softening in the -- from ultra safe haven German debt. Finally got the European corporate earnings season is tailing off -- year reports second quarter results Wednesday how we may get test some more deep -- On the sale of assets forced on the Dutch bank. In return for state help during the financial crisis the slowdown in China like you to be reflected in earnings from Rio Tinto. Earlier this month the miner announced it was closing its Sydney office and cutting jobs and response to falling commodity prices. That is all from Austin now there is more on Reuters dot com and the inside a pop Foreman -- each I'd stay throughout the week for Reuters today a snapshot of the latest world news. And market headlines. On some problems his process.