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

Saturday, May 26, 2012

Eurozone dragging world economies down

Euro crisis concerns push markets lower
Boston.com
''The threat from Greece remains real and an exit would possibly have contagion effects that the euro area would need to tackle,'' said Laurence Boone, analyst at Bank of America Merrill Lynch. Britain's FTSE 100 was down 0.4 percent at 5329.57 by ...

Eurozone Rattled by Possibility of Greek Exit
Fox Business
Greece accounts for little more than two percent of the euro zone economy but could pose a profound contagion threat if it quit the currency area, throwing the spotlight on Portugal, Spain and even Italy. "There is no organized discussion at the ...

Europe debt crisis dragging world economies down
Los Angeles Times
New data show the Eurozone woes intensifying a global slowdown, with signs that even Germany, China and other pillars of growth are in trouble. Customers browse through the goods at a discount store in Athens. Analysts in the US fear that if Greece...

Los Angeles Times

FOREX-Euro slumps vs dollar on Greek, Spain worries
Reuters
* Euro posts worst week in five months * Spain's Catalonia asks for help, raises contagion fears * Uncertainty in Greece keeps sentiment bearish By Gertrude Chavez-Dreyfuss NEW YORK, May 25 (Reuters) - The euro tumbled to nearly two-year lows against ...

Forecasters Flying Blind When Predicting Repercussions of Greek Exit
Wall Street Journal (blog)
The possibility of Greece leaving the euro zone is an exception to the rule because no nation has exited before. Certainly, the Greek and European economies would take a big hit. But the impact from the unprecedented event on the US economy is harder ...

Euro zone must head toward banking union-ECB's Praet
Reuters
By Valentina Za and Silvia Aloisi MILAN May 25 (Reuters) - The euro zone needs to push ahead with its financial sector reform plans and create a centrally managed and funded body to handle troubled banks, a European Central Bank policymaker said on ...

CANADA STOCKS-TSX dips on financials as euro zone fears weigh
Reuters
Worries about a potential Greek exit from the euro zone and its impact on the global banking community were compounded by comments on Friday from Belgium's deputy prime minister, Didier Reynders, about the need to prepare for a possible Greek exit from ...

Markets edge higher but euro crisis limits gains
San Francisco Chronicle
(05-25) 04:15 PDT LONDON, United Kingdom (AP) -- European markets edged higher on Friday, though gains were limited by concerns over the lack of a concrete plan to keep Greece in the currency union. A survey showing a rise in consumer confidence in ...

Steinbock: The Euro Zone Endgame Begins
CNBC.com (blog)
Meanwhile, finance ministers in the Eurozone are smiling optimistically but preparing contingency plans for the Greek exit. With the onset of the Euro crisis in spring 2010, it was clear that the Greek challenges could not be resolved without debt ...

Eurozone financial system needs “urgent overhaul,” including banking regulator
Washington Post
Peter Praet said in a speech Friday in Milan that the eurozone crisis has been undermining much of the crossborder financial markets' integration brought about by the euro. In particular, bond and money markets now charge some countries much higher ...

EU running out of time as Greece nears the exit
CBS News
(AP) ATHENS, Greece - European leaders insist they want to keep Greece in the eurozone, but are putting off any agreement on how they hope to accomplish that. Greece says it, too, wants to stay in the eurozone, but until after elections it's uncertain ...

Euro-zone countries appear far from compromise
Washington Post
Amid more signs that Europe's economy is sputtering, supporters of dramatic steps to join together the euro zone's financial system may yet get their wish, but only under the very circumstances they seek to avoid. “At this juncture, it's hard to see ...

Euro Crisis Calls for a Mix of Solutions
Wall Street Journal
By STEPHEN FIDLER As the euro crisis intensifies amid mounting anxieties about a possible Greek departure from the common currency, the clamor grows for initiatives that will decisively shift expectations in the financial markets.

Eurozone Rattled by Huge Slump in Output
HispanicBusiness.com
Financial information firm Markit's latest survey revealed that the eurozonesuffered its worst downturn since June 2009 in May. Its activity index -- where a score under 50 signals economic contraction -- sank to 45.9. The single currency bloc avoided ...

HispanicBusiness.com

Asian Shares Mostly Lower as European Concerns Resurface
Wall Street Journal
The Italian Prime Minister Mario Monti said he believes Greece will remain in the euro zone, although it isn't a certainty. Speaking on an Italian talk show, he also said that it is in Germany's interests to ensure that no member leaves the euro, ...

Greek exit would 'destabilize' world economy: IIF
MarketWatch
By MarketWatch MILAN -- The head of the global banking lobby that handled the private debt write-off for Greece warned on Friday that if the country leaves the euro zone, the world economy would suffer badly. The head of the Institute of International ...

EU De Gucht: Prepared For All Eventualities In Euro-Zone Situation
Wall Street Journal
BRUSSELS (Dow Jones)--The European Union wants to ensure Greece stays in the euro zone, but it would be irresponsible of politicians not to plan for the worst case scenario, EU Trade Commissioner Karel de Gucht said Friday. "What I have been saying is ...

Asian stock markets muted as Europe financial crisis festers, China economy slows
Washington Post
Despite potentially disastrous outcomes, European leaders failed to find an agreement on how to fix the financial crisis at their latest summit Thursday. Among unresolved issues was whether euro countries should issue a collective bond.

After European debt summit, still no resolution
Philadelphia Inquirer
YVES LOGGHE / Associated Press ATHENS, Greece — European leaders insist that they want to keep Greece in the eurozone but are putting off any agreement on how to accomplish that. Greece says that it, too, wants to stay in the eurozone, but whether it ...

Why fragile eurozone nations may want to lose Eurovision
CNN (blog)
London (CNN) – Much of the beleaguered eurozone will grind to a halt Saturday for the Eurovision Song Contest, that continent-wide musical tussle of campness and political bickering watched by 120 million-plus TV viewers worldwide, which has launched ...

Euro zone strains intensify as shock looms
Oman Daily Observer
BRUSSELS — Euro zone tensions have intensified after grim news on the economic outlook and as investors sought safety in Germany on growing doubts over Greece's future in the currency union. Shortly after an EU summit failed to produce a remedy, ...

Oman Daily Observer

RPT-WRAPUP 1-Europe slowdown adds more tension to Greek drama
Reuters
So far, the 17-nation euro zone's downturn has been confined mainly to its periphery, but an index measuring broad economic activity across the monetary union in May showed its weakest outcome since mid-2009, du r ing the global financial crisis.

Greek Euro Exit By Numbers: What Economists Expect
Wall Street Journal
"We would expect the contagion from implied FX risk to be considerable. In the absence of bold policy moves...it's likely that financial turbulence would lead to a further, or complete, breakdown of the euro." The bank believes the most promising ...

HSBC CEO: Sees Euro-Zone Deposit Insurance; Pay Yes-Vote Near 90%
Wall Street Journal
By Max Colchester Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The euro zone will likely hold together, but continuing volatility could result in a deposit-guarantee scheme being created for the members of the monetary union, HSBC Holdings PLC (HBC) ...

The fear factor and the eurozone
Financial Times
The eurozone's take on problem-solving is to drag its feet along the precipice and only pull back from the edge when it has almost fallen over. If the past few weeks did not offer enough vertigo for Europe's leaders to find a lasting solution, ...

Eurozone debt crisis: France and Germany hit as Euro plunges to lowest level ...
Daily Mail
By Daily Mail Reporter The eurozone's engine-room of France and Germany is now being hit by Europe's economic slowdown, gloomy new indicators have revealed. So far, the 17-nation bloc's downturn has been confined mainly to its periphery - with Greece, ...

Daily Mail

Euro Zone Outlook Murky
International Business Times
The fund would be backed by gold reserves of euro zone member countries, making those funding countries "jointly and severally liable." The Germans seem more open to the type of structure proposed with the redemption fund, as Merkel and the leader of ...

Defensives push European shares up against bleak backdrop
Reuters
Drugmaker Elan Corporation, up 9 percent, was the top gainer as the euro zone debt crisis weighs on sentiment with investors scrambling for protection in so called safe havens. Aggreko, the temporary power provider liked for its international exposure, ...

UK's Clegg warns of Greek euro zone exit "chain reaction"
Reuters
LONDON (Reuters) - A Greek exit from the euro zone would set off a "chain reaction of uncertainty" that would be strongly felt in Britain's banking sector, British Deputy Prime Minister Nick Clegg said. He warned that a possible Greek exit would not ...

EU summit over, eurozone ills are not
Washington Times
Greece, which has been mired in a financial crisis for 2 1/2 years, has avoided bankruptcy by receiving loans. (Associated Press) BRUSSELS — European Union leaders concluded their latest summit early Thursday with few ways to cure the continent's ...

Washington Times

Germany develops plan for eurozone growth - The Local
Germany is developing a six-point plan to boost growth in Europe, a magazine reported on Friday, amid a heated debate among EU leaders on how to best help indebted eurozone states.
The Local - Germany's news in English

Eurozone strains intensify as 'massive shock' looms | The Raw Story
By Agence France-Presse
Shortly after an EU summit failed to produce a remedy, a May survey of eurozone business confidence on Thursday showed the sharpest monthly fall for nearly three years while the data for Germany was the worst for six months and a survey ...
The Raw Story

Stimulus Is the Worst Option for Euro Zone: Schiff | Breakout - Yahoo ...
From the blog Breakout: Even as a meeting of the leaders of all 27 members of the European Union concluded without any consensus, data released Thursday raised grave concerns. Germany now looks to be getting dragged into a recession ...
Yahoo! Finance: Breakout

NewsDaily: Spain region, Greek exit warnings rattle euro zone
By Fiona Ortiz and Nicholas Vinocur
Central banks and companies not bracing for a possible Greek euro exit would be making a grave error, Belgium's foreign minister said on Friday, rattling markets already alarmed by Spain's deteriorating finances.
NewsDaily: Top Headlines

Eurozone Banking Crisis - Business Insider
By Max Nisen
Interbank lending rates between countries converged quickly after the euro was introduced Bond yields were almost the same across the Eurozone, despite fiscal differences Interest rates on private sector loans converged as well Cross ...
Business Insider

French Politics: Has the Eurozone Already Fragmented?
By Art Goldhammer
Has the Eurozone Already Fragmented? The invaluable Gillian Tett raises an interesting question. Despite the enormous concern about the possible breakup of the euro, divorce proceedings may already be under way in the dark recesses of ...
French Politics

EUROZONE PMI'S POINT TO DECLINING GDP DATA ...
By Sober Look
European officials keep insisting that the euro area as a whole is not yet in a recession. That's wishful thinking because the latest PMI numbers say otherwise. PMI tends to be a leading indicator for GDP growth. PMI of 50 means no change.
PRAGMATIC CAPITALISM

Open Europe blog: Anti-austerity inside the eurozone: Greek voters ...
By Open Europe blog team
Anti-austerity inside the eurozone: Greek voters stick to their potentially false choice. The key trend in Greek opinion polls keeps steady: voters back anti-austerity parties in great numbers but remain committed to staying in the euro in equally ...
Open Europe blog

Eurozone clock ticking - Spokesman.com - May 25, 2012
ATHENS, Greece – European leaders insist they want to keep Greece in the eurozone but are putting off any agreement on how they hope to accomplish that. Greece says it, too, wants to stay in the eurozone, but until after elections it's ...
Spokesman.com: Business stories

France, Germany at Odds Over Eurozone Crisis | FDL News Desk
By David Dayen
European leaders met in Brussels yesterday, and even going in it was clear that the countervailing forces, exemplified most by Germany and France, would.
Firedoglake

Euro crisis: “Rome wasn't built in a day and it didn't fall in a day ...
By Pete Baker
The British historian Gildas (c 500-570) in his diatribe against contemporary rulers in the early 500s, looking back over the story of the Fall of Roman Britain, lists the military failures, but behind them he speaks bitterly of a loss of nerve and ...
Slugger O'Toole

Global contagion: Europe's next export? | Vanguard Blog
By Joe Davis
In the summer at the beach as a boy, I used to dig in the sand and dream of finding pirate treasure. Old silver and gold coins from Spain and other parts of.
Vanguard Blog

Evan Soltas: Eurocrisis = NGDP Crisis
By esoltas
Paul Krugman wrote a post a while back in which he looked at the data for debt-to-GDP ratios and government spending as a percentage GDP and effectively no explanatory relationship there for what's happening in the Eurozone, contrary to ...
Evan Soltas

Eurozone crisis: high-stakes gamble as David Cameron warns ...
PM says Greeks have choice in June election between voting to stay in euro and ' effectively voting to leave'
www.guardian.co.uk/.../eurozone-crisis-david-cameron-greek

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