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

Tuesday, March 6, 2012

European recovery rocked by poor economic data; Dutch Freedom Party pushes for euro exit

European recovery rocked by poor economic data in Spain and Italy - Telegraph: "Hopes that Europe is on the road to recovery were undermined as poor data from Spain and Italy helped send stock markets lower. A key gauge of private sector activity across the eurozone suggested business activity contracted in February after showing tentative signs of growth a month earlier. Markit's eurozone composite PMI fell to 49.3 – revised down from an initial reading of 49.7 – from 50.4 in January, where anything below 50 shows a contraction. The poor data, which suggest the region is slipping back into recession, pushed markets lower, with the Ibex in Spain down 1.3pc and Italian markets 0.7pc lower. The data also heightened concerns that the austerity measures pushed by European policymakers are merely serving to cut off growth in already hard-hit countries. Markit said its reading for Spain's services sector, which accounts for 70pc of the economy, fell from 46.1 to 41.9, against forecasts for a decline to 45.9. The services sector in Italy fell from 44.8 to 44.1, with employment shrinking at its fastest rate since July 2009, while the Bank of Italy predicted the country's economy was set to shrink by 1.5pc this year. That compares with the Italian government's forecast of a 0.4pc contraction. . . "

Dutch Freedom Party pushes euro exit as €1.8 trillion rescue bill looms - TelegraphThe Dutch Freedom Party has called for a return to the Guilder, becoming the first political movement in the eurozone with a large popular base to opt for withdrawal from the single currency. . . .  Mr Wilders made his decision after receiving a report by London-based Lombard Street Research concluding that the Netherlands is badly handicapped by euro membership, and that it could cost EMU’s creditor core more than €1.8 trillion to hold monetary union together over the next four years. . . . The study said the eurozone cannot survive in its current form. The longer Europe’s politicians dither, the more costly it will become. "The euro can only survive if it becomes a fiscal transfer union with national sovereign debt subsumed in eurozone bonds," said co-author Charles Dumas. Greece will opt for a "negotiated exit" later this year, once the pain becomes excruciating. This will be after the French elections in May, but before the German electoral season begins in 2013. Portugal will follow in "short order" as markets focus on its struggling banks and nasty logic of recession for debt dynamics. "At that point, if not before, attention will turn to Spain and Italy, both likely by then to be much weakened by savage austerity programmes now being implemented," said Mr Dumas. That is the moment when the creditor core will face the decision they have "ducked" for the past two years: either accept an EMU reflation strategy, along with debt pooling, fiscal union, and transfers; or accept a break-up. . . . " 

Euro zone drags on world economy as services slide
Reuters
By Jonathan Cable | LONDON (Reuters) - The debt-ridden euro zone acted as a drag on the world economy at the start of the year and is seemingly destined to slide back into recession just as monetary policymakers are running out of ammunition.

Euro zone's private sector back in the doldrums in Feb: PMI
Reuters
LONDON (Reuters) - A sharp downturn among Italian and Spanish businesses dragged the euro zone's private sector back into decline last month, dashing hopes the region would avoid another recession, a survey showed on Monday.

Euro-Zone Business Activity Shrinks
Wall Street Journal
By ALEX BRITTAIN Euro-zone business activity fell back into contraction in February, raising the chances of a recession in the first quarter of the year, a survey of business activity showed Monday. Markit Economics, a data company, said its composite ...

GLOBAL ECONOMY-Eurozone drags on world economy as services slide
Reuters
Survey data shows euro zone likely in recession * Asian data slightly more upbeat * US data expected to show growth has weakened By Jonathan Cable LONDON, March 5 (Reuters) - The debt-ridden euro zone acted as a drag on the world economy at the start ...

Former Iceland Leader Goes on Trial in Financial Crisis
New York Times
LONDON — Iceland opened a criminal trial Monday against its former prime minister, Geir H. Haarde, becoming the first country to prosecute one of its leaders over the financial crisis of 2008. Mr. Haarde is charged, in effect, with doing too little to ...

Euro Zone Retail Sales Rebound in January
CNBC.com
Euro zone retail sales were stronger than expected in January, defying expectations of a fall and rebounding month-on-month after four consecutive months of falls, data showed on Monday. The European Union's statistics office said retail sales in the ...

CNBC.com

Euro-Zone Business Activity Shrinks: Market Morning Update
ValueWalk
Euro-Zone business activity shrinks in February: Markit Economics' Eurozone Composite PMI, which measures the activity of manufacturing and services companies, fell to 49.3 in February, as against 50.4 in January. A reading below 50 indicates the ...

Eurozone crisis live: Greek debt swap fears grow as China cuts growth targets
The Guardian
Eurozone services PMI - 9am GMT / 10am CET • UK Service PMI for February - 9.30am • Eurozone retail sales for January 10am - GMT / 11am CET • US factory orders and non-manufacturing PMI data - 3pm GMT / 10am EST 8.00am: Good morning, and welcome to our ...

The Guardian

Dollar Gains on Eurozone Concerns
TheStreet.com
By BBH FX Strategy 03/05/12 - 09:00 AM EST The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. NEW YORK (BBH FX Strategy) ...

TheStreet.com

Eurozone private sector slips: PMI survey
AFP
BRUSSELS — Eurozone private sector activity fell back in February after returning to growth in January, a key survey showed on Monday, underlining predictions of recession. The composite purchasing managers' index (PMI) for services and industry...

AFP

Euro-Zone Growth Fears Stall Peripheral Bond Rally
Wall Street Journal
By Tommy Stubbington Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Bund futures hit a new record high and peripheral bond yields edged upwards early Monday as signs that the euro zone may be slipping back into recession curbed last week's liquidity-driven ...

Euro Zone Debt Crisis Only Latest Chapter of Greek Hostility to Germany-Part 1
International Business Times
By Palash R. Ghosh: Subscribe to Palash's RSS feed Mired in a deep and prolonged economic crisis, the much beleaguered people of Greece have apparently turned the bulk of their anger upon Germany, the most powerful economy in Europe.

International Business Times

Euro Zone Debt Crisis Only Latest Chapter of Greek Hostility to Germany-Part 2
International Business Times
IB TIMES: Prior to the euro zone debt crisis, what kind of diplomatic-political-economic relations did Greece have with Germany? LEONTIS: I don't think there were major tensions in Greece-Germany diplomatic relations prior to the debt crisis.

International Business Times

Euro zone retail sales post surprise rise
CNBC.com
BRUSSELS (Reuters) - Euro zone shoppers increased spending in January, a surprise after four months of falls but economists said a quarterly reading that smoothes over the data still showed a large decline. The European Union's statistics office said ...

Iceland's ex-PM faces trial over financial crisis
Atlanta Journal Constitution
By ANNA ANDERSEN AP REYKJAVIK, Iceland — Iceland's former prime minister went on trial Monday as the first world leader to face criminal charges over the 2008financial crisis that affected much of the world economy. Former Prime Minister of Iceland ...

Atlanta Journal Constitution

Germany's Merkel: No Alternative To Euro Zone Respecting Rules
Wall Street Journal
HANNOVER, Germany (Dow Jones)--The euro zone has to ensure member states follow tough budget rules if the area wants to survive globally, German Chancellor Angela Merkel said Monday. In comments at the CeBIT information and consumer product fair here, ...

Financial crisis puts Iceland's ex-PM in the dock
Himalayan Times
Iceland's former prime minister went on trial Monay as the first world leader to face criminal charges over the 2008 financial crisis that affected much of the world economy. Geir Haarde became a symbol of the bubble economy for Icelanders who lost ...

London midday: China, Eurozone worries weigh on stocks
ShareCast
Stocks continued to fall by lunchtime on Monday, as the combination of disappointing economic data from the UK and Eurozone and some conservative growth forecasts from China weighed on sentiment. Wen Jiabao, the Premier of the world's second-largest ...

Eurozone Faces Long Recovery
The Fiscal Times
By PAUL TAYLOR, Reuters The euro zone is out of the emergency ward, but it may face a chronic debilitating illness rather than a rapid convalescence. The challenges confronting Europe now are to avoid complacency, rekindle economic growth while cutting ...

Eurozone services sector weakness poses new recession risk
FinFacts Ireland
By Finfacts Team The Eurozone services economy slid back into decline in February, having briefly returned to growth in January. The decline poses a new recession risk as the Markit Eurozone Services Business Activity Index fell from 50.4 in January to ...

FinFacts Ireland

Port in a Euro-Zone Storm
Wall Street Journal
By GORAN MIJUK Cash-rich foreigners, keen to protect their assets from euro-zoneturmoil, are snapping up luxury properties for record sums on the shores of Lake Geneva in Switzerland. One villa recently sold for 74.4 million Swiss francs.

Wall Street Journal

Iceland's ex-PM becomes first world leader to face trial over financial crisis
msnbc.com (blog)
By msnbc.com and news services REYKJAVIK, Iceland -- Iceland's former prime minister went on trial Monday as the first world leader to face criminal charges over the 2008 financial crisis that affected much of the world economy.

Russian Economy hit by Eurozone contraction
RT
The Eurozone economy is edging towards recession as business activity slows. The February shadow came from Italy and Spain. The Russian economy performed better last month, but is expected to be pressed by the Eurozone doom and gloom in the future.

RT

Dollar Holds Recent Gains As Euro Zone PMI Disappoints
NASDAQ
(RTTNews.com) - The dollar edged slighly higher versus the euro and sterling Monday morning, following disappointing euro zone economic data. The Markit euro-zone composite purchasing managers index fell to 49.3 in February from 50.4 in January, ...

Surprise increase for eurozone retail sales in January
BBC News
Retail sales across the eurozone rose unexpectedly in January, figures show, but a separate survey has indicated economic activity remains weak. EU figures showed retail sales in the 17 countries that use the euro rose a stronger-than-expected 0.3% in...

BBC News

Iceland's ex-PM Geir Haarde tell court he is innocent as historic financial ...
Washington Post
... A former prime minister of Iceland on Monday rejected charges he failed to adequately protect his country's economy from financial shocks, as he took the stand in the first criminal trial of a world leader to result from the 2008 financial crisis.

Iceland's former PM on trial for role in financial crisis
Channel 4 News
The former prime minister of Iceland appears in court as the first world leader charged over the 2008 financial crisis - but the country remains divided on whether he should be held accountable. Geir Haarde is charged with negligence in failing to ...

Channel 4 News

Eurozone PMI services returns to recessionary levels
IFA Magazine
The Eurozone's Purchase Managers' Index (PMI) for the services sector has revealed that the economic slowdown continued its course in February. The economy's main sector, along with manufacturing, has entered recessionary levels once again.

Euro Zone Crisis Not a Big Deal for Long: Analyst
CNBC.com
The euro zone debt crisis will not be a big deal for the markets within the next few months, Larry Kantor, managing director and head of research at Barclays Capital, told CNBC. Investors will focus on other issues in the future, he added.

Alexander Hamilton's Eurozone Tour - Harold James - Project ...
By Harold James
For many Europeans, Alexander Hamilton's negotiation in 1790 of the new US federal government's assumption of the states' large debts like a tempting model. But, as Hamilton knew well – and as subsequent US history showed – debt ...
Project Syndicate

Euro-Zone Composite PMI Drops To 49.3 In February | Benzinga
By Monica Gerson
The Markit euro-zone composite purchasing managers index declined to 49.3 in February, versus 50.4 in January, down from preliminary estimate of 49.7. (c) 2011 Benzinga.com. All rights reserved. This material may not be published in its ...
Benzinga - Stock Market Quotes,...

Euro zone Sentix investor confidence improves less-than-expected ...
By Forexpros
Forexpros – Investor confidence in the euro zone for March improved less-than-expected, remaining in negative territory for the eighth consecutive month, data showed on Monday. In a report, market research group, Sentix said its index of ...
Forex Pros RSS News Feed | Forex News

Iceland Blames Former PM for Financial Crisis | Wall St. Cheat Sheet
By info@wallstcheatsheet.com (Damien Hoffman)
The trial of Iceland's former prime minister for negligence leading to the 2008 financial crisis began today in the capital city of Reykjavic.
Wall St. Cheat Sheet

People Turned Slimmer Amidst Financial Crisis, Say Researchers ...
By Neeraj Shahane
People Turned Slimmer Amidst Financial Crisis, Say Researchers A recent study conducted by the Arizona State University has found that recession although had a bad impact over the world's economy, it had had a good impact over those ...
TopNews New Zealand

Forex Trading: Eurozone Services PMI (Feb) 48.8 Vs 49.4 Expected ...
By Greg Michalowski
Forex Trading: Eurozone Services PMI (Feb) 48.8 Vs 49.4 Expected (50.4 Prior). By Greg Michalowski on March 5, 2012 | More Posts By Greg Michalowski | Forex News By FXDD · Subscribe by RSS · Email/Share Page · Tweet ...
DailyMarkets.com

Euro crisis: “The expectation, however, must be for a fudge ...
By Pete Baker
…the euro zone will not be stabilised without putting some such new economic architecture in place. A new political structure will also be required to ensure the accountability of such large-scale economic arrangements. It should reassert the ...
Slugger O'Toole

Eurozone Services PMI (Feb) 48.8 vs 49.4 expected (50.4 prior ...
By John Teister
Euro is trading slightly lower following the worse than expected release. Categories: Forex Trading |. No Responses to “Eurozone Services PMI (Feb) 48.8 vs 49.4 expected (50.4 prior).” Add a comment. Name (required). Email Address ...
Forex News and Commentary by FXDD

Eurozone March Sentix index -8.2 from -11.1 in February | ForexLive
By Joe Brown
Median was -6.0, so a little worse than expected, but EUR's going nowhere at 1.3168.
ForexLive

Market Preview - 5 March 2012; Eurozone retail sales on tap ...
By SaxoBankUK, Saxo Capital Markets UK
European markets are expected to open lower Monday following concerns about the Greek bailout. Additionally, China's Premier Wen Jiabao indicated a lower economic growth target of 7.5 percent for 2012. On the data front is Eurozone ...
Feed for all blogs

Fiscal austerity in the eurozone: Spain dissents and Italy delivers ...
By claus
Greece is in default and Ireland and Portugal are in limbo with the market pricing in a Greek outcome in both economies. However, the situation has changed in Spain and Italy and on this measure alone, the ECB's LTRO has been successful.
Variant Perception

Gold slips as euro zone worries lift dollar – forex.ch
By Forex.ch
Gold slipped on Monday as concerns over Greece's progress on completing a debt restructuring deal and poor euro zone data lifted the dollar versus the euro, and as appetite for assets seen as higher risk, … Link: Gold slips as euro zone ...
forex.ch

Is Germany's Euro Crisis Strategy Actually Working? - Wall Street ...
I have been guilty, on many occasions, of eviscerating the strategy taken by the leaders of the euro zone to combat its dangerous debt crisis. They have routinely acted too late with too little, causingcontagion to spread through the zone, ...
eWallstreeter

Market day ahead l Euro zone fears back on the radar... | Stuff.co.nz
By Jason Krupp
Less than a week after risk markets were celebrating the European Central Bank's €530 billion funding spree, sentiment has turned sour on the monetary union again with Spain and Greece back in the headlines.
Stuff.co.nz - Business

Financial Crisis | euronews
euronews - Financial Crisis | the latest international news as video on demand.
www.euronews.com/tag/financial-crisis/

RealClearPolitics - The Eurozone: Cured or About to Relapse?
They barely dare say it, but the doctors are strangely confident: after a long illness, the euro may be recovering. This week's all-night surgery by finance ministers ...
www.realclearpolitics.com/.../the_eurozone_cured_or_about_t...

Euro Crisis - Google News

Fiscal Cliff - Google News

Economics, interest rates, house prices, inflation, Bank of England

Markets News - Global Financial Market News

Financial Crisis

Jeremy Warner - Finance and business comments

Ambrose Evans-Pritchard - Finance and business comments

Jeff Randall - Business and politics comments

New Normal News

Views under the Palm

johnyah