"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Wednesday, January 18, 2012

Analysis: Rescue fund downgrade raises pressure on euro zone

Analysis: Rescue fund downgrade raises pressure on euro zone
Reuters
By Jan Strupczewski | BRUSSELS (Reuters) - Political resistance is clashing with financial imperatives as the euro zone tries to strengthen its capacity to rescue debt-stricken member states after Europe's temporary bailout fund lost its top-notch ...

Euro-Zone Inflation Eases
Wall Street Journal
By ILONA BILLINGTON And MARGIT FEHER LONDON—Consumer prices in the euro zone in December rose at the slowest pace since August, while German economic expectations improved far more in January than predicted bringing welcome news for the area's policy ...

Wall Street Journal

Treasurys Rebound On Euro Zone Concerns, Fed Buying
Wall Street Journal
But buyers, fretting over the lack of a definitive solution to the two-year-old euro-zone sovereign debt crisis, emerged to scoop up bonds as a safe place to park cash at cheaper levels. The price turnaround was the latest evidence of how the murky ...

TEXT-S&P: How rtg actions on Eurozone could affect other issuers
Reuters
Jan 17 - Standard & Poor's Ratings Services said today that the rating actions that it took on 16 European Economic and Monetary Union (EMU or eurozone) sovereigns on Jan. 13, 2012, could lead to rating actions on other issuers in Europe over the next ...

Investors grab euro zone debt despite downgrades
Sydney Morning Herald
Cash-flush investors snapped up eurozone debt Tuesday despite a slew of sovereign downgrades, pouring money into the region's bailout fund as well as into Spanish and Greek paper. Buyers lined up for the debt auctions, showing a new appetite for risk ...

German ZEW index shows record jump in January
Reuters
* Largest single monthly rise since survey began * ECB action and upbeat data cited as main drivers * Greece, euro zone still main risks for German GDP By Sakari Suoninen and Kirsti Knolle MANNHEIM, Germany, Jan 17 (Reuters) - German analyst and ...

Markets offer eurozone some respite
Financial Times
European borrowing costs fell, equities climbed and the euro strengthened on Tuesday, offering some respite to the eurozone despite fresh warnings that Greece was poised to default on its debt. The embattled single currency rose by 0.4 per cent to ...

Brent dips as euro zone worry counters China data, dollar
Reuters India
"Brent looks to be reflecting the euro zone concerns. The China GDP was good, but exports were down and that highlights the slowdown in Europe." China's economy grew at 8.9 percent in the fourth quarter of 2011 and though this was better than the ...

Eurozone: The Greek Haircut is Worse Than You Thought
Forbes
In fact it's possibly worse than you can imagine. We've been reading in all the newspapers all the time that the private sector bondholders were being asked to take a 50% haircut. It turns out that this is not quite true. ...

UK 'planning for eurozone collapse'
The Press Association
The Government is undertaking "extensive contingency planning" in the event of a eurozone collapse, peers have been told. Treasury minister Lord Sassoon said the planning was aimed at dealing with "all potential outcomes of the eurozone crisis". ...

Financial Crisis May Kill in Congo as Global Health Aid Stalls
BusinessWeek
“You've got donor states in financial crisis and there is increased competition for funds.” Medical aid has increased less than 4 percent a year since 2009, after an average annual gain of 13 percent between 2002 and 2008, and reached $27.7 billion ...

Mario Monti
Financial Times
If there is anyone who should be angered by Standard & Poor's raft of eurozonedowngrades, it would seemingly be the prime minister of Italy, whose debt was cut two notches with a warning of more to come. But on the first trading day after the credit ...

Financial Times

Eurozone once again whipped by Greek winds
New Europe
Just as well, because if the negotiations fail to produce results, Greece will enter uncharted waters and, along with Athens, the rest of the Eurozone will have a very tough time over the coming months or even years.

New Europe

3 Stocks to Beat the Eurozone Downgrades
DailyFinance
By Sean Williams , The Motley Fool Posted 1:19PM 01/17/12 Investing Standard & Poor's gave theeurozone a beating last week and it isn't apologizing one bit for it. The ratings agency downgraded nine eurozone countries -- including France, Austria, ...

ODOT Outlines Looming Financial Crisis
WTAP-TV
COLUMBUS (Tuesday, January 17, 2012) – After a year of discussing the looming transportationfinancial crisis facing Ohio, the Ohio Department of Transportation (ODOT) today released funding projections that could result in pushing back by decades some ...

Deloitte: Euro-Zone Crisis Weighs On CFO Optimism
Wall Street Journal
Uncertainty over the euro-zone sovereign debt crisis continued to weigh on financial chiefs' economic outlooks in the latest quarter, financial adviser Deloitte LLP said. Deloitte's quarterly CFO Signals Survey reported that only 6% of financial chiefs ...

Will debt downgrades doom the eurozone recovery?
The Week Magazine
French President Nicolas Sarkozy says S&P's credit downgrade of his country "changes nothing," though critics say it foreshadows disaster for the eurozone. Photo: Thierry Tronnel/Corbis SEE ALL 45 PHOTOS In the last few days, S&P has docked the credit ...

Eurozone will shed a member this year, investors say
Citywire.co.uk
Investors are optimistic about the global economy but fearful of a eurozone collapse, Bank of America Merrill Lynch survey reveals. by Caelainn Barr on Jan 17, 2012 at 15:54 Investors are more hopeful about the global economy this year, ...

How would Mitt Romney prevent the next financial crisis? It's not clear.
Washington Post (blog)
Last night, Kelly Evans managed to sneak in the GOP presidential debate's only question about theeuro zone crisis, asking Romney what would happen if the United States faced another financial catastrophe as a result. “This is not some imaginary event ...

HSBC boss: eurozone crisis will be solved by second half
Citywire.co.uk
by Alex Plough on Jan 17, 2012 at 10:17 The eurozone debt crisis will be over by the second half of this year once markets recognise the 'firm action' taken by European leaders, according to HSBC boss Douglas Flint (pictured). 'The crisis will end when ...

China sees upside of eurozone crisis
Financial Times (blog)
The old adage of China using the same word for crisis and opportunity may seem particularly apt when looking at the eurozone. Chinese companies are eager to use Europe's debt woes to boost their clout in the world's biggest single market. ...

ECB cannot fix euro zone problems-BoE's King
Reuters
LONDON Jan 17 (Reuters) - The European Central Bank has already done a lot to ease the crisis in the euro zone and providing more liquidity will not fix the underlying problems, the Bank of England's governor Mervyn King said on Tuesday. ...

Can the eurozone's centre hold?
Telegraph.co.uk (blog)
But you have to applaud Mr Yeats's prescience in sharing with us his poetic yet trenchant thoughts on the eurozone, and in particular the idea that “the centre cannot hold". Indeed, some people are now wondering whether the eurozone will go the same...

Telegraph.co.uk (blog)

Eurozone annual inflation was 2.7% in December 2011 down from 3.0% in November
FinFacts Ireland
By Finfacts Team Eurozone annual inflation was 2.7% in December 2011 down from 3.0% in November. A year earlier the rate was 2.2%. Monthly inflation was 0.3% in December 2011. EU27 annual inflation was 3.0% in December 2011, down from 3.4% in November. ...

FinFacts Ireland

FTSE CLOSE: China growth offsets eurozone fears; Burberry and Dixons Xmas updates
This is Money
The optimism on markets came despite Standard & Poor's decision to downgrade the credit ratings of several eurozone countries, including France, and a similar downgrade to the European Financial Stability Fund (EFSF). Meanwhile, resource stocks gave ...

This is Money

Dow higher on eurozone optimism, RIM, Citigroup in focus
Proactive Investors USA & Canada
US equity markets gained along with the euro Tuesday after two peripheral eurozonenations' borrowing costs declined at bond auctions, denting worries about debt issues. As at 2.20pm EDT, the Dow Jones Industrial Average was up 0.77% to 12518.02, ...

Proactive Investors USA & Canada

Impact of eurozone on EM slowdown is overstated, says HSBC
Citywire.co.uk
by Chris Sloley on Jan 17, 2012 at 12:30 The impact of the crisis in the eurozone on emerging market growth is being over-stated by market commentators and global trade actually looks to have peaked at the start of 2011, according to HSBC's top ...

Eurozone inflation drops back further in December
Newsday
Click here Eurozone inflation drops back further in December Originally published: January 17, 2012 6:22 AM Updated: January 17, 2012 8:34 AM By The Associated Press (AP) -- Inflation in the 17 countries that use the euro eased by more than expected ...

TEXT-Fitch:Southern Eurozone banks could miss covered bond benefits
Reuters
This is reflected in covered bond supply in the first two weeks of 2012, which totals over EUR20bn but has not included any placed issuance from banks in the eurozone periphery. As we highlighted at our European Credit Outlook 2012 conferences last ...

Gazprom Price Retreat Offers EON Hope as Euro Crisis Cuts Demand
BusinessWeek
By Anna Shiryaevskaya and Ben Farey Jan. 18 (Bloomberg) -- OAO Gazprom's decision to cut prices for five customers signals a weakening position for Russia in Europe's gas market as the economic crisis erodes energy demand. Russia's gas-export monopoly ...

UK 'planning for eurozone collapse' - BlackListedNews.com
The Best in Uncensored News Information and Analysis.
BlackListedNews.com

Forex – Dollar Broadly Lower After Euro Zone, China Data
By Forexpros
The euro strengthened after the ZEW Centre said that its index of German business sentiment recorded its largest ever monthly increase in January, indicating that the euro zone's largest economy is performing strongly despite the effects of ...
DailyMarkets.com

Study the Global Financial Crisis at Suffolk
By Douglas French
Mike in the Finance Department is teaching a course on the financial crisis at Suffolk this spring. Study materials include lots of Rothbard and articles from mises.org. The syllabus is here.
Mises Economics Blog

More apathy, less austerity - faith in Eurozone dissipating fast ...
By Steen Jakobsen
Voters have lost the faith and willingness needed to repair the current EU and Eurozone construct. The only thing possibly left is to take the loss. The world simply will not see enough growth in 2012 to service the massive debt.
TradingFloor.com

Fuel Fix » Markets offer eurozone some respite
By FT.com - Energy
Markets offer eurozone some respite. ... Tweet. Share share E-mail. European borrowing costs fall, equities climb and the euro strengthens offering some respite to the eurozone despite fresh warnings over Greece. 2. |. Tweet. Share share E- ...
Fuel Fix

The Bipartisan Blame for the Financial Crisis | Dispatches from the ...
By Ed Brayton
I'm reading Larry Lessig's book Republic Lost and it has a whole section that does a brilliant job of explaining how the financial crisis came about -- that is,
Dispatches from the Culture Wars

The Only 3 Ways the Euro Crisis Can End | InvestorPlace
By Jeff Reeves
They would all cause widespread pain, and investors need to consider the ramifications of each of them before adjusting their portfolios.
InvestorPlace

Forex - U.S. dollar lower on positive euro zone numbers, risk ...
By Forexpros
Forex - U.S. dollar lower on positive euro zone numbers, risk embrace.
Forex Pros RSS News Feed | Forex News

Downgrade Blitz Continues as Eurozone's Bailout Facility Hit Hard ...
By Barbara Zigah
(eToro Blog) Operating under the credo “there's no time like the present,” S&P yesterday downgraded the European Financial Stability Facility (EFSF)
eToro Blog

Analysis: Rescue fund downgrade raises pressure on euro zone
By Jan Strupczewski
Political resistance is clashing with financial imperatives as the euro zone tries to strengthen its capacity to rescue debt-stricken member states after Europe's temporary bailout fund lost its top-notch credit rating.
NewsDaily: Top Headlines

Eurozone inflation drops back further in December | Washington ...
By The Associated Press
Inflation in the 17 countries that use the euro eased by more than expected during December, official figures showed Tuesday in a welcome development for a currency union struggling in the face of a raging debt crisis.
Examiner AP RSS

Eurozone's recovery fund latest ratings casualty | Bryan/College ...
If replicated by other rating agencies, S&P's move complicates the eurozone's efforts to emerge from a debt crisis that has dragged on for more than two years. It also underlines how reliant states and financial firms still are on the opinion of ...
World News | The Bryan College...

EUR Continues to Tumble amid Fresh Euro-Zone Worries
By ForexYard
Source: ForexYard EUR Continues to Tumble amid Fresh Euro-Zone Worries The euro started off the week by extending its bearish run, as traders.
Jutia Group

Blue Chip Companies Bailing Out Weak Eurozone Banks - Home ...
By DailyBail
Blue Chip Companies Bailing Out Weak Eurozone Banks. Role reversal Euro-style. With 2% yields in the cash markets, this makes sense intuitively for cash-rich lenders, but with the possibility of default looming large, the loans are now ...
The Daily Bail

Euro-Zone Fears Grow on New Data - WSJ.com
A wave of poor euro-zone economic data Friday underpinned the grim economic outlook for the currency bloc in 2012, and added to evidence that much of the ...
online.wsj.com/.../SB10001424052970203471004577144253...

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