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

Thursday, May 17, 2012

Euro Zone 'Tearing Itself Apart'

Euro Zone 'Tearing Itself Apart': Bank of England
CNBC.com
The governor of the Bank of England said on Wednesday that the euro zone is “tearing itself apart without any obvious solution" as he admitted that the UK central bank, the Financial Services Authority (FSA) and the government have been discussing ...

CNBC.com

What would a Greek exit from the eurozone look like?
Christian Science Monitor
Rumors are rife of a Greek exit from the eurozone. While no country has yet dropped the common currency, there are some indications of what will transpire if Greece does. By Michael Steininger, Correspondent / May 16, 2012 A foreign beggar walks ...

Christian Science Monitor

Eurozone at turning point, says Flaherty, and Canada exposed to aftershock
Winnipeg Free Press
OTTAWA - Finance Minister Jim Flaherty says the eurozone is reaching a turning point but that the departure of Greece is not yet inevitable. Flaherty says he's concerned failure to resolve the issue could have serious rebound effects on the Canadian ...

Stocks end lower on euro zone concerns
msnbc.com (blog)
By msnbc.com news services Stocks fell in choppy trade on Wednesday, as concerns about theeuro zone continue to be at the forefront of investors' focus. German Chancellor Angela Merkel attempted to quell some fears by saying the euro zone was ...

Euro crisis leaves door open for more BoE easing
Reuters
By David Milliken and Fiona Shaikh | LONDON (Reuters) - The escalating danger from the neighboring euro zone debt crisis prompted the Bank of England on Wednesday to keep alive the prospect of more help for an ailing British economy it said was growing ...

Wall Street falls on euro zone concerns
Reuters
By Chuck Mikolajczak | NEW YORK (Reuters) - Stocks fell in choppy trade on Wednesday, putting the S&P 500 on track for its fourth consecutive decline as concerns about the euro zone continue to be at the forefront of investors' focus.

UK PM: Euro Zone Must Make Up Or Face Potential Break-Up
Wall Street Journal
By Nicholas Winning Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The euro zonemust build a suitable firewall and secure its weakest member states or face a potential break-up, UK Prime Minister David Cameron warned Wednesday, in an unusually strong ...

Banks drag European shares down on euro zone worries
Reuters
Failure by Greek political parties to form a government after an inconclusive election earlier this month has left investors fretting Athens might leave the euro zone and about possible contagionto other larger economies. Clemente De Lucia, euro zone ...

Canada Fin Min Says Euro Zone Has Reached "Turning Point"
Wall Street Journal
By Paul Vieira Of DOW JONES NEWSWIRES OTTAWA (Dow Jones)--The euro zone has reached a "turning point," Canadian Finance Minister Jim Flaherty said Wednesday, and leaders of the currency bloc's wealthier states have to decide whether they are prepared ...

Greece Leaving the Eurozone Would Be a Disaster
U.S. News & World Report
The eurozone is equivalent to a Catholic marriage (no divorce or a very messy and costly one) and an attempted Greek exit now will do more damage to global financial markets. On June 17 the Greeks will try to form a new government again.

ECB 'Strongly' Wants Greece To Stay In Euro Zone
Wall Street Journal
By MARGIT FEHER FRANKFURT (Dow Jones)--The European Central Bank wants Greece to remain in the euro zone while the decision for Greece's possible exit from the currency union isn't an issue that the ECB would need to decide on, ECB President Mario ...

Euro Zone, a Solvency Not a Liquidity Crisis
Wall Street Journal (blog)
By Alen Mattich Whatever happens to Greece, whether it continues to use the euro or decides to give it up, the fundamental problem of imbalances within the euro zone still needs to be addressed. Bank of England Governor Mervyn King reiterated the point ...

Greece's Influence on the Eurozone Is Ludicrous
U.S. News & World Report
One consequence of a Eurozone departure will be real hardship for the people of Greece. Their short-term expectations of lifestyle and affluence will be significantly reduced. And although the spending power of their money will be dramatically lower ...

Euro-Zone Inflation Rises
Wall Street Journal
By ILONA BILLINGTON LONDON—Euro-zone inflation slowed too little in April to dispel concerns consumer prices will damage the region's growth prospects in coming months. Prices increased 0.5% last month compared with March and were 2.6% higher than in ...

Greeks vote with wallets in fear of euro zone exit
Reuters
As financial markets shuddered over the deepening turmoil in Athens on Wednesday, governments of other troubled euro zone states from Spain to Ireland voiced concern about the impact on their own shaky finances. Spanish Prime Minister Mariano Rajoy ...

Should Greece Leave the Eurozone?
U.S. News & World Report
If Greece reneges and international bailout funds are withdrawn, Greece will begin to run out of money as early as late June and may have to return to its old currency, the drachma, and exit the eurozone. Austerity measures have been wildly unpopular ...

U.S. News & World Report

GLOBAL MARKETS-Greek contagion fears send euro, shares lower
Reuters
Euro touches 4-month low of $1.2681 on Greek exitfears * Worldwide share sell-off led by emerging markets * Spanish and Italian bond default insurance rises By Richard Hubbard LONDON, May 16 (Reuters) - Fears that a Greek exit from the euro zone will ...

If Greece Stays in the Eurozone, It Has No Future
U.S. News & World Report
Greece has to leave the eurozone; stop payment on any loans until it recovers and pay only a moderate interest rate on loans, similar to that of other sovereign nations; go back to the drachma (at an initial exchange rate 1 Dr/€); and to use its public ...

Draghi: Greece Should Stay In Euro Zone
Wall Street Journal
By MARGIT FEHER FRANKFURT—European Central Bank chief Mario Draghi said he wants Greece to remain in the euro zone, in his first remarks on the country since inconclusive elections unseated the government leading to worries that it may exit the ...

Euro crisis a threat to slow UK recovery - BoE's King
Reuters
LONDON May 16 (Reuters) - Britain's economy still looks set for a gradual recovery but the turmoil in the euro zone poses a risk, Bank of England Governor Mervyn King said on Wednesday. "We don't know when the storm clouds will move away.

Greek contagion fears send euro, shares lower
CNBC.com
LONDON (Reuters) - Fears that a Greek exit from the euro zone will worsen the debt crisis facing other European nations gripped financial markets on Wednesday, sending shares and other riskier assets lower as investors shifted funds into safe havens ...

Oil falls on euro zone, WTI at six-month low
Reuters
The possibility a political crisis in Greece may force the country's exit from the euro zone and send the region into deeper financial turmoil is fanning concerns about a slowdown in global demand for oil. "One element contributing to the decline in ...

Markets recover as eurozone dodges recession
BusinessWeek
By CARLO PIOVANO European markets bounced back from early losses on news that the 17-country eurozone has narrowly dodged recession, thanks mainly to strong growth in Germany, though concerns persisted that Greece's political impasse could eventually ...

Greece Must Reform Its Economy and Stay in the Eurozone
U.S. News & World Report
By Michael Arghyrou Greece leaving the eurozone would be catastrophic for Greece and very dangerous for the global economy. For Greece, a reintroduced drachma would be devalued against the euro by at least 50 percent. This would cause imported ...

Eurozone crisis drags rupee, Sensex down
The Hindu
The rupee's previous historical low was recorded in mid-December 2011 at 54.30 on eurozone debt crisis. The issue is looming large again as the European nations are scrambling to resolve debt issues of their member-nation, Greece, which is gearing up ...

The Hindu

Euro-Zone Worries Prompt Asian Intervention
Wall Street Journal
By MARTIN VAUGHAN SINGAPORE—Asian currencies sold off sharply Wednesday as concerns about financial contagion from the crisis-hit euro zone swept through the region, prompting South Korean and Indonesian authorities to intervene to temper the declines.

Oil drives euro zone prices in April, exports cool
Reuters
Euro zone inflation at 2.6 percent in April yr/yr * Oil prices, clothing keep it above ECB's target * Flat imports growth underscores stagnant economy By Robin Emmott BRUSSELS, May 16 (Reuters) - Costlier fuel and clothing kept euro zone inflation well ...

Treasurys Weaken as Euro Zone Tries to Keep Greece
CNBC.com
US Treasury debt prices slipped slightly on Wednesday as perceptions that key European nations would try to keep Greece in the euro zone lessened the bid for safe-haven US government debt. Losses widened after German Chancellor Angela Merkel voiced her ...

CNBC.com

King Says BOE Braced for Euro Crisis Risk as Growth Forecast Cut
San Francisco Chronicle
Financial Crisis Ten-year gilts extended their advance after the release of the inflation report. The yield fell five basis points to 1.855 percent as of 11:39 am in London. The pound fell 0.4 percent today and traded at $1.5925.

Dollar rallies against euro, pound on fears Greece may leave the euro zone
Washington Post
Traders are worried that if those parties win in June the country may drop out of euro zone, which could hurt the euro's credibility. With Greece's political future still uncertain, traders are more comfortable holding the dollar, says Geoffrey Yu, ...

Economist's View: James Galbraith on the Euro Crisis
By Mark Thoma
Here's the third part (German version) of an interview of Jamie Galbraith conducted a few weeks ago by Roger Strassburg and Jens Berger of the German blog NachDenkSeiten (first part, second part). This is on the Euro crisis: NDS: You've...
Economist's View

Euro-zone crisis spurs Exim's export-credit insurance sales - The ...
Euro-zone crisis spurs Exim's export-credit insurance sales. Surge of 36% from January-April as firms rush for protection.
NationMultimedia.com - Business

Joffe: Germany makes for nice eurozone 'whipping boy' – Global ...
By Amy Cox
Can a president who's elected on a promise to be normal deal with Europe in the throes of a crisis of abnormality? With France's Francois Hollande taking office, an all-star panel debates "Mr.
Global Public Square

BOE's King: Euro zone is tearing itself apart without any obvious ...
By Gerry Davies
Damning words indeed. EUR/USD back down at 1.2700. If there were to be major developments in euro zone, BOE would have to respond in many ways, not.
ForexLive

Marc Faber Blog: If Greece Exits The Eurozone, Markets Will Rally
By Admin
"Markets are down because of the economic slowdown in China; they will rally if Greece exits the Eurozone" - in NDTV Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around ...
Marc Faber Blog
MoreLiver's Daily: 16th May - US Open: Eurocrisis Holiday
By MoreLiver
The slide of Spanish bond markets was halted – either because of Hollande's and Merkel's statement that they will go easier on Greece, if it just sticks to the basic austerity program, or because ECB was supporting the markets. It could be both ...
MoreLiver's Daily

XE.com - Oil drives euro zone prices in April, exports cool
Costlier fuel and clothing kept euro zone inflation well above the European Central Bank's target in April, giving policymakers little room to stimulate growth even as Germany signals it may be ready to tolerate more price rises at home.
XE Forex News

Eurozone shocked by 'O' percent economic growth | StratRisks
By MichaelVail
“There's a growing divergence in the eurozone, with particularly sharp contractions in the peripheral countries that need to do the most structural reforms, while Germany is the outperformer,” said Joost Beaumont at ABN Amro in Amsterdam.
StratRisks

The Eurozone train crash heads for the buffers (Chemicals & The ...
For 25 years, Western policymakers coasted to electoral success on the back of an economic Supercycle. The BabyBoomers' arrival in the Wealth Creator 25 - 54 age group meant there was just 16 months of recession between 1982-2007.
Chemicals & The Economy

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