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

Tuesday, February 28, 2012

Merkel Against Boost To Eurozone Firewall

Merkel Rejects Pressure To Boost Euro Zone Firewall
Wall Street Journal
By William Boston BERLIN (Dow Jones)--Chancellor Angela Merkel on Monday stood firm against mounting international pressure on Germany to agree to significantly boost the euro zone's firewall against financial contagion.

What Ails Europe? - NYTimes.com: Paul Krugman: ". . . So what does ail Europe? The truth is that the story is mostly monetary. By introducing a single currency without the institutions needed to make that currency work, Europe effectively reinvented the defects of the gold standard — defects that played a major role in causing and perpetuating the Great Depression. More specifically, the creation of the euro fostered a false sense of security among private investors, unleashing huge, unsustainable flows of capital into nations all around Europe’s periphery. As a consequence of these inflows, costs and prices rose, manufacturing became uncompetitive, and nations that had roughly balanced trade in 1999 began running large trade deficits instead. Then the music stopped. If the peripheral nations still had their own currencies, they could and would use devaluation to quickly restore competitiveness. But they don’t, which means that they are in for a long period of mass unemployment and slow, grinding deflation. Their debt crises are mainly a byproduct of this sad prospect, because depressed economies lead to budget deficits and deflation magnifies the burden of debt. . . "

Euro-Zone Lending, M3 Data Positive Signs, But Risks Remain
Wall Street Journal
For example, Euro-zone bank lending to the private sector in January rose at a slightly faster pace in annual terms than the previous month, data from the European Central Bank showed Monday. Private sector lending increased 1.1% in January, ...

Eurozone bank lending stabilises
Financial Times
By James Wilson in Frankfurt Eurozone bank lending has shown signs of stabilisation after an abrupt fall, supporting the view that the European Central Bank's willingness to pump cheap money into the economy may help stave off a credit crunch.

G-20 to Euro Zone: Sort It Out
Wall Street Journal (blog)
By Matina Stevis Delegates from the world's 20 biggest economies, policy wonks and financiers all brought their diverse and at-times divergent agendas to Mexico City at the weekend, but one common theme emerged: they are fed up with the euro-zone ...

Eurozone crisis live: German parliament votes on Greek package
The Guardian
8.44am: Germany's interior minister has become the first member of Angela Merkel's cabinet to suggest Greece should leave the eurozone. Hans-Peter Friedrich broke ranks in an interview with Der Spiegel, in which he says: "Greece's chances of ...

The Guardian

Spectre of Eurozone credit squeeze looms
gulfnews.com
Frankfurt: Fears of a credit squeeze in the Eurozone refused to go away yesterday as data showed that bank lending to the private sector remains fragile, despite recent unprecedented injections of liquidity. The European Central Bank calculated in ...

Euro zone finance ministers to discuss Greece on March 1
Reuters
BRUSSELS (Reuters) - Euro zone finance ministers will meet to discuss Greece and its private sector debt restructuring in Brussels on Thursday, the president of the Eurogroup, Jean-Claude Juncker, said on Monday. The ministers are expected to assess ...

TABLE-Euro-zone M3 up, private loans stabilise in Jan
Reuters
FRANKFURT, Feb 27 (Reuters) - Money supply growth accelerated and loans to the private sector stabilised in January, the European Central Bank said on Monday. The ECB gave the following percentage changes in growth, seasonally adjusted: JAN 2012 DEC ...

Euro zone credit squeeze fears won't go away
RTE.ie
Fears of a credit squeeze in the euro zone refused to go away as bank lending to the private sector remains fragile. Fears of a credit squeeze in the euro zone refused to go away today as data showed that bank lending to the private sector remains ...

Did Germany approve bailout to force Greece out of eurozone?
RT
But political analyst William Engdahl believes this is part of Germany's strategy for getting “the weakest link out of the eurozone.” “The terms that Germany imposed – insisted on – for Greece's second bailout of €130 billion were so stringent that it ...

German Govt: Merkel Wants To Stabilize Greece Within Euro Zone
Wall Street Journal
BERLIN (Dow Jones)--German Chancellor Angela Merkel wants to keep Greece in the euro zone, with solidarity to be provided if Athens makes its own efforts to overcome its ballooning debt situation, her spokesman said Monday.

Euro Zone Won't Decide On Firewalls At Summit This Week-Barroso
Wall Street Journal
BRUSSELS (Dow Jones)--Euro-zone leaders will decide whether to boost the lending capacity of the regional bailout funds in March, but not at this week's heads of government meeting, European Commission President Jose Manuel Barroso said Monday.

G20 finance ministers ask eurozone to boost rescue fund
BBC News
Eurozone countries need to put more money in their rescue fund before G20 nations can step in to help them, the G20 finance ministers have said. They said such a move was "essential" to their decision to provide more resources to the International ...

BBC News

Eurozone under pressure to boost bail-out fund
European Voice
By Simon Taylor - Today, 10:29 CET G20 tells eurozone to increase the 'firewall' in order to secure more help from the IMF. Eurozone countries came under pressure to increase the size of their bail-out fund at a meeting of finance ministers from the ...

Merkel scrapes win on Greek bailout, rebels grow
Reuters
Seventeen coalition rebels voted "No" this time, compared to 13 who defied her last September in a vote to boost the euro zone rescue fund. Analysts said the outcome could weaken her politically and make it harder for her to agree to strengthen ...

US Stock Futures Decline On Concerns Over Euro-Zone Bailout Plan
Wall Street Journal
For one, Germany has been reluctant to quickly increase the capacity of a euro-zone rescue fund to make it large enough to assure financial markets that the region's debt troubles won't spread. Separately, Moody's Investors Service said while the ...

G20 inches toward $2 trillion in bailout funds for euro zone crisis
Times of Oman
MEXICO CITY: Germany is easing its opposition to a bigger European bailout fund, officials said, smoothing the way for the world's leading economies to secure nearly $2 trillion in firepower to prevent further fallout from the euro-zone'ssovereign ...

Times of Oman

Why Germany can't save the eurozone
MoneyWeek
And it's true that Germany is in a better position than other eurozone countries. Unemployment stands at 5.5%, while the deficit is just 0.1% of GDP. But you shouldn't over-estimate Germany's strength. The economy shrunk by 0.2% in the last quarter.

Merkel Resists Push to Increase Euro Zone “Firewall”
International Business Times
By Staff Reporter: Subscribe to Staff's RSS feed Angela Merkel, the German Chancellor, told her Parliament, the Bundestag, that her country will agree to increase the euro zone's “firewall” – ie, a protection against financial contagion – only if other ...

International Business Times

G20 working on $2-trillion eurozone rescue package
Montreal Gazette
The world's leading economies worked Sunday to line up a deal on a second global rescue package worth nearly $2 trillion to stop the eurozone sovereign debt crisis from spreading and putting at risk a tentative economic recovery.

Bigger eurozone firewall needed - G20
Herald Sun
THE eurozone will have to put in place a bigger financial firewall to combat the crisis before other countries will pour more cash into the IMF, the G20 top and developing economies say. In a statement released after a meeting of the group of 20 ...

Eurozone Finance Ministers To Meet On Thursday To Discuss Greek Bailout Deal
RTT News
Eurogroup President Jean-Claude Juncker has convened a meeting of the Eurozone finance ministers on Thursday to discuss progress with Greece's second bailout package. In a statement on Monday, Juncker said ministers are expected to take stock of the ...

Stocks fall after eurozone debt crisis unresolved
Canada.com
By Gordon Isfeld, Postmedia News February 27, 2012 9:54 AM Markets fell after G20 finance officials said Europe must provide extra funding to protect the eurozone from the debt fallout from Greece. North American markets were lower early Monday as ...

G20 Demands Euro Zone to Increase Its Rescue Fund
FXstreet.com
by Dean Popplewell , Scott Boyd - OANDA Corporation | View company's profile The world's leading economic powers said they would not allocate more money to fight euro zone debt crisis until the European members increase their own contributions.

Merkel playing for time on eurozone firewall deal
EurActiv
Eurozone officials said they do not expect a decision at a European leaders' 1-2 March summit on combining the resources of two European rescue funds – the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM).

EurActiv

S&P Indices Launches UK, Eurozone Versions of its High Yield Dividend ...
MarketWatch (press release)
The S&P UK High Yield Dividend Aristocrats and S&P Euro High Yield Dividend Aristocrats indices measure the performance of the highest dividend-yielding UK and Eurozone companies, respectively, within the S&P Europe Broad Market Index.

G20 leaders insist no more IMF cash unless eurozone boosts financial firewall
Irish Independent
Photo: Reuters By Richard Blackden, and Louise Armitstead THE world's leading economic powers said they would not stump up more cash to fight Europe's debt crisis until the eurozone members increase their own contributions, in a move that piles ...

Irish Independent

Turning the eurozone lending trends
FX-MM
Again, as Draghi has admitted, this probably served to stave-off a credit crunch in the eurozone, as he noted in comments at the January Davos meeting. But it's going to be a big change for banks to start to lend out further cash borrowed this week.

Eurozone Economic Indicators Rose in January
HispanicBusiness.com
Leading indicators for Europe's 17-member eurozone rose 1 percent in January, the Conference Board said Monday. The index that tracks a variety of business activities rose to 104.1 in the month after rising 0.4 percent in December and falling 0.1 ...

Euro Drops after Eurozone Bashing at the G-20 — Forex News
By MMarquit
This past weekend, the G-20 meeting in Mexico City seemed to have a common refrain: Theeurozone needs to get its act together. Concerns about the eurozone were top of the list at the meeting, with delegates asking questions about the ...
Forex News

Euro zone M3 money supply grows more-than-expected By Forexpros
By Forexpros
Euro zone M3 money supply grows more-than-expected.
Forex Pros RSS News Feed | Forex News

Why Germany doesn't want euro zone bonds | MacroScope
By Jeremy Gaunt
Ever wanted to know why Germany is not keen on single euro zone bonds? Look no further.
MacroScope

Eurozone: How to Drive an Economy in Reverse
By Admin
Global Economic Intersection's Opinion Blog - Econintersect.com blogs news, analysis and opinion.
Global Economic Intersection...

Eurozone countries must not be forced to meet deficit targets | The A ...
By Jean Pisani-Ferry
The A-List from the Financial Times provides timely, insightful comment on the topics that matter, from globally renowned leaders, policymakers and commentators.
The A-List

Reasons for Euro crisis – Republican story, the German story, and ...
By Amol Agrawal
Even though people may not agree to Paul Krugman most of the time, they have to agree that no one matches him in econ writing…He really is gifted when it comes to making a point… In his recent post he looks at reasons for Euro crisis.
Mostly Economics

Euro zone unemployment figures out this week | Olive Press ...
By Smart Currency Spain
Data out of Europe this week also includes German retail sales and the Consumer Price Index (CPI)
Olive Press Newspaper Spain

Frontier Post :: Business :: Brazil wants IMF power for extra eurozone ...
By shimran
BRASILIA (Agencies): Brazil has said that developing nations would be happy to provide more money to ease the eurozone's debt crisis, in return for more power within the International Monetary Fund (IMF).The comments were made by ...
Frontier Post

Eurozone economic indicators rose in January » Latin Business Today
By Latest News - UPI.com
BRUSSELS, Feb. 27 (UPI) — Leading indicators for Europe's 17-member eurozone rose 1 percent in January, the Conference Board said Monday. The index that tracks a variety of business activities rose to 104.1 in the month after rising 0.4 ...
Latin Business Today

G-20 answers how large are the losses hidden in Eurozone financial ...
By Richard
Regular readers know that under the Japanese model for handling a bank solvency based financial crisis banks, with regulatory approval, hide the true extent of their on and off balance sheet losses (see RBS's Stephen Hester confession).
Trust Your Instincts

Euro zone January M3 annual growth 2.5% | ForexLive
By Gerry Davies
Stronger than Reuter's median forecast of 1.8%. M3 moving average Nov-Jan 2.0% vs 2.1% Oct-Dec.
ForexLive

Mike Norman Economics: Warren Mosler on the Eurozone
By Tom Hickey
The views expressed may contain certain forward-looking statements. Although they are forecasts, actual results may be meaningfully different. This material represents an assessment of the market and conditions at a particular time and is not ...
Mike Norman Economics

XE.com - TABLE-Euro-zone M3 up, private loans stabilise in Jan
2012-02-27 09:34 (UTC). FRANKFURT, Feb 27 (Reuters) - Money supply growth. accelerated and loans to the private sector stabilised in. January, the European Central Bank said on Monday. The ECB gave the following percentage changes ...
XE Forex News

Euro zone economic train hopes to recouple | Video | Reuters.com
But -- today's show the eurozone economy shrank by zero point 2% in the three months to December. That was in line with expectations. But beyond the ...
www.reuters.com/.../euro-zone-economic-train-hopes-to-recou...

Euro zone will break up, Prasarn predicts - The Nation
Euro zone will break up, Prasarn predicts. Central bank chief believes strong economies will distance themselves from common currency.
www.nationmultimedia.com/.../Euro-zone-will-break-up-Prasa...

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