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Thursday, February 23, 2012

Eurozone teetering on brink of recession; Germany resists moves to increase the financial "firewall"

Euro zone teetering on brink of recession
By Jonathan Cable | LONDON (Reuters) - The euro zone economy is in danger of tipping into recession, with the services sector shrinking this month along with manufacturing, tempering a wave of optimism after a new bailout deal for Greece struck this ... 

Germany fights eurozone firewall moves
Financial Times
The German government is set to resist or delay increasing the size of the eurozone's financial “firewall” against contagion from the Greek debt crisis, in the face of mounting pressure from its partners, the International Monetary Fund and the US ...

Euro Zone Ready To Support Greece Beyond 2015 - Greek Fin Min
Wall Street Journal
Speaking on the privately owned MEGA television channel, Evangelos Venizelos added that the latest loan and debt deal for the country, agreed to by euro-zone finance ministers in Brussels this week, guaranteed Greece's future inside the euro zone.

Triple-A eurozone group frays over firewall
Financial Times
The Finnish government – which strongly backed the hardline stance in Greek negotiations – has been less public than the Dutch, but it has also signalled support for a €750bn ceiling as long as it comes with simultaneous commitments by non-eurozone ...

Financial Times

Euro zone jitters force Greeks to slash swiftly
Sydney Morning Herald
Germany could cause the deal to unravel if it continues to oppose the euro zone creating a €750 billion ($A930 billion)fund to act as a firewall against spreading of financial woes. At a G20 summit of finance ministers in Mexico that starts on Saturday ...

Euro-Zone Business Activity Shrinks Unexpectedly
Wall Street Journal
By ALEX BRITTAIN and ILONA BILLINGTON LONDON—Business activity in the euro zone contracted unexpectedly in February, reviving fears that the region is heading for recession. Instead of pushing ahead, the euro zone's composite PMI, or purchasing ...

Wall Street Journal

Eurozone crisis live: Greece braced for bailout protests
The Guardian
As we reported this morning, European diplomats believe that next week's EU summit would be asked to endorse proposals to merge the lending capacity of the existing eurozone bailout fund, the EFSF, with that of the new European Stabilisation Mechanism ...

The Guardian
Weak euro zone data weighs on European shares
By Joanne Frearson | LONDON (Reuters) - European shares fell on Wednesday for the second consecutive session as euro zone purchasing managers data suggested the region could tip into recession and potentially have a knock-on effect to company profits.

Germany at odds with Dutch and IMF boss over eurozone bailout fund
The Guardian
Germany threatened to undermine this week's €130bn (£110bn) deal to bail out Greece by refusing to bolster the firewalls set up to prevent the eurozone debt crisis from spreading. As markets dipped all over Europe amid fears that Greece would never be ...
The Guardian

Germany Gives in, But for How Long?
Wall Street Journal (blog)
It blinked when the European Central Bank found a way round the problem of not being allowed to monetize euro-zone sovereign debt by offering unlimited funds backed by the most suspect collateral to euro-zone banks so that they could buy the debt ...

Stocks capped by growth worry, oil at 9-month high
By Caroline Valetkevitch | NEW YORK (Reuters) - Global stocks eased and the euro was little changed on Wednesday after data showed the euro zone may be sliding toward recession and China's new export orders shrank in February.

Gold eases on euro zone worries as optimism fades
By Frank Tang and Jan Harvey | NEW YORK/LONDON (Reuters) - Gold eased on Wednesday, declining after Tuesday's rally as a rise in the dollar, worries over a euro zone recession and doubts over the bailout of Greece prompted investors to take profits.

PMI data show eurozone closer to recession
Financial Times
By Ralph Atkins in Frankfurt The eurozone moved closer to a recession this month, as private sector economic activity fell back into contraction territory, according to a closely watched indicator. The unexpected weakness of the purchasing managers' ...

European stocks downbeat, euro falls amid eurozone concerns
Economic Times
LONDON: European stock markets fell and the euro slipped against the dollar in cautious trade on Wednesday amid lingering eurozone debt concerns despite Greece's new huge bailout. In late morning deals, London's FTSE 100 retreated 0.34 percent to ...

Data Suggests Euro Zone May Slide Back Into Recession
The euro zone's service sector shrank unexpectedly this month, reviving fears that the economy risks sinking into recession, a business survey showed on Wednesday. A reading below 50 signifies a contraction. "There is a possibility GDP [cnbc explains] ...

Eurozone on brink of recession
The eurozone economy is in danger of tipping into recession as the services sector shrank this month along with manufacturing. Surveys of company purchasing managers (PMI) published on Wednesday showed unexpectedly weak activity in the region's most ...


Eurozone bailout keeps Greece afloat
News & Observer
Agreement on the bailout, reached early Tuesday after an all-night summit of finance ministers seven months after it was first proposed, will give Greece 130 billion euros in loans through 2014 from other eurozone governments and the International ...

News & Observer

GLOBAL MARKETS-Growth concerns hit stocks, oil at 9-month high
* World stocks lower, while bond prices rise * Euro zone PMI data raises question over economic recovery * Brent crude oil prices jump on Iran supply worries By Caroline Valetkevitch NEW YORK, Feb 22 (Reuters) - Global stocks slipped and the euro was ...

Greek lawmakers rush to clear promised austerity
San Jose Mercury News
Papademos briefed Papoulias on the results of Tuesday's eurozone meeting in Brussels that approved a new bailout for Greece, accompanied by a 107 billion euro debt relief program. "The decisions that have been made and those that will be made create ...

Eurozone Private Sector Contracts Unexpectedly In February
(RTTNews.com) - Eurozone private sector activity unexpectedly slipped back to contraction in February, fueling concerns that the economy may be sliding into a recession amid the region's prolonged debt crisis. The composite output index fell to 49.7 in ...

Weak PMI fans euro-zone recession fears
“A retreat back below the 50.0 no-change level for the euro-zone PMI is a disappointment, and highlights the ongoing risk that the region may be sliding back into recession,” said Chris Williamson, chief economist at Markit. Euro-zone gross domestic ...

Unions call protest as Greece is hit by Fitch downgrade
ATHENS, Greece — Greece braced for fresh protests on Wednesday as officials began drafting legislation tied to a unprecedented eurozone bailout and debt swap needed to secure the deal. Athens suffered a setback however when the international ratings ...


Eurozone Data Drive Markets Down
Despite the fact that, according to Markit Economics, February figures were “the second-highest of the past six months, and [suggest] that the eurozone economy has stabilized over the first two months of the year having contracted in the final quarter ...


Call for contagion 'firewall' as Greece bailed out again
This is Cornwall
The Prime Minister said Europe must focus on creating a firewall capable of preventingcontagion within the eurozone after a second massive rescue package for the debt-laden country was finally delivered. European ministers cautiously welcomed the deal ...

Euro-Zone Break Up is Risk Scenario for France Télécom
Wall Street Journal
By GERALDINE AMIEL PARIS—France Télécom has included the possibility of a breakup of theeuro zone in its risks assessment, its chairman and chief executive said Wednesday. "In our financial models, indeed, we took the potential breakup of the euro ...

Bailout bought eurozone more time
Boston Globe
BRUSSELS - A second huge bailout in two years may have staved off bankruptcy for Greece, but for Europe's finance ministers it did something even more important: bought the eurozone valuable time. During all-night talks that ran until yesterday morning ...

Boston Globe

GLOBAL MARKETS-Growth concerns hit stocks, oil at 9-mo high
* World stocks lower, while US stocks down slightly * Euro zone PMI data raises question over recovery * Brent crude oil prices edge higher By Caroline Valetkevitch NEW YORK, Feb 22 (Reuters) - World stocks edged lower on Wednesday after data showing ...

Eurozone in deal to avert Greek default
Times of Oman
BRUSSELS: Eurozone finance ministers sealed a €130-billion ($172 billion) bailout for Greece yesterday to avert a chaotic default next month after forcing it to commit to unpopular cuts and private bondholders to accept deeper losses.

Times of Oman

Eurozone service sector contracts in February
BBC News
The eurozone's service sector shrank unexpectedly in February, a new survey suggests, increasing fears of a recession. Markit's eurozone Services Purchasing Managers' Index (PMI) initial data fell to 49.4 from January's 50.4.

BBC News

The Capital Spectator: Strategic Briefing | 2.22.12 | Eurozone ...
By jp
The euro zone's service sector shrank unexpectedly this month, reviving fears that the economy risks sinking into recession, a business survey showed. Markit's Eurozone Services Purchasing Managers' Index (PMI) fell to 49.4 from January's ...
The Capital Spectator

Euro Falls as Eurozone Economic Data Points to Possible ...
By MMarquit
The latest economic data out of the eurozone is pointing to a possible recession, and that has the euro losing ground to the US dollar today. Business activity in the eurozone showed an unexpected contraction for the month of February, and ...
Forex News

Understanding the Financial Crisis: Inside “the secret laboratory of ...
By Alejandro Nadal
The current global crisis presents itself as a financial crisis, but this can be misleading for our understanding of the nature of the crisis. The fact that the crisis exploded in a segment of the financial sector (i.e., the subprime mortgages) and then ...

Euro Zone Economies Shrink Unexpectedly in ... - Benzinga.com
By Daniel Hayden IV
The euro zone unexpectedly shrank in February, adding to fears that Europe might be about to fall back in to recession. The latest survey results from Markit Economics' purchasing managers' index (PMI) showed that the index fell back to 49.7 ...
Benzinga - Stock Market Quotes,...

The three Crises of the Eurozone
By Henning Meyer
The eurozone finance ministers agreed a new bailout for Greece last night; but this will not end the eurozone crisis. Over recent months, it has become increasingly challenging to keep track of what is going on, but as far as I can see we are ...
Social Europe Journal

Sober Look: Cloudy picture for the Eurozone economy
By Walter Kurtz
With Greece's bailout package now supposedly out of the way, the markets are once again focusing on the Eurozone economy. And the picture there is quite cloudy. The Eurozone PMI miss today is driving down European stock markets.
Sober Look

The Coming Crisis: Euro zone teeters on brink of recession
By Lynsey
The Markit Eurozone Composite Flash PMI, a good leading indicator of overall economic growth, fell to 49.7 in February from 50.4 last month, below expectations for a rise to 50.6 and under the 50 line that divides growth from contraction.
The Coming Crisis

Data Suggest Euro Zone May Slide Back Into Recession | Brèves ...
The euro zone's service sector shrank unexpectedly this month, reviving fears that the economy risks sinking into recession, a business survey showed on Wednesday...Read.
LEAP 2020

3 numbers to watch: Eurozone PMI, US Existing Home Sales, HP 1Q ...
By Mads Koefoed, Macro Strategist, Saxo Bank
We step up it up a notch today in terms of economic data, with Eurozone PMI, US Existing Home Sales and earnings from Hewlett-Packard after market among the events to watch out for.
Feed for all blogs

As euro crisis continues, Van Rompuy looks set to get 2nd term as ...
By i on europe Brussels blog
As euro crisis continues, Van Rompuy looks set to get 2nd term as European Council president. By DON MELVIN. BRUSSELS — Herman Van Rompuy, who has attempted to guide the European Union through severe financial turmoil, will ...
i on europe

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