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

Thursday, July 26, 2012

Eurozone break-up is the shock the UK needs?

Why a eurozone break-up is just the sort of shock the UK needs - Telegraph: " . . even assuming the figures are a reasonable reflection of underlying realities, there’s something faintly irrelevant about this moment-in-time snapshot of UK economic activity given the hurricane about to sweep in from the Continent. To his credit, George Osborne, the Chancellor, didn’t attempt to cite the eurozone crisis by way of excuse, even though it is at least some part of the problem. One of the many reasons businesses won’t invest and consumers won’t spend is because they think, almost certainly rightly, that a nuclear bomb is about to go off in the heart of Europe that will cause a Lehman-style collapse in trade and economic activity. Curiously, Britain seems to be more affected by anticipation of this disaster than the eurozone itself, which in aggregate isn’t contracting as fast. That’s partly because of our oversized banking sector, which remains joined at the hip to Europe’s deepening banking crisis . . ."

Spanish two-year yields hit euro-era high - Telegraph: "Spanish two-year bond yields spiked above 7pc for the first time in the euro era, but later retreated on hopes that the ECB will boost the region's bailout fund."

Debt crisis: Greece's bondholders could face more losses, says Berlin - Telegraph: "One of Angela Merkel's close allies has raised the prospect of another round of write-offs on Greece's debt obligations."

Euro crisis weighs on German business morale
Reuters
BERLIN (Reuters) - German business sentiment dropped in July to its lowest level in more than two years, adding to signs that Europe's largest economy is losing momentum along with its immunity to fallout from the region's deepening debt crisis.

George Osborne under attack as Britain's recession deepens - Telegraph: "George Osborne faced calls from business leaders to do more to kick-start Britain’s economy on Wednesday after official figures showed that the country has fallen into the worst double-dip recession for more than 50 years."

Euro exit beats begging bowl, says Spanish elder statesman - Telegraph: "The regional leader of Asturias in Spain has become the country’s first major figure to call for a radical change of strategy and exit from the euro, unless monetary union is fundamentally reformed."

Sentiment Data Point to Weakness at Euro Zone Core
Wall Street Journal
Data published Wednesday suggest economic weakness in the euro zone are penetrating the currency bloc's "core" of stronger countries at a time when these same states could be called upon to provide more aid to the euro-zone's weaker states. Germany's ...

Euro crisis brings world to brink of depression
MarketWatch
Euro crisis brings world to brink of depression. Darrell Delamaide's Political Capital. Commentary: Parallels to 1930s' missteps unmistakable. July 24, 2012|Darrell Delamaide. WASHINGTON (MarketWatch) — Europe is a tinderbox waiting for a spark.

German Ultra-Long Funding Cost at Record Low
Wall Street Journal
Germany locked in record-low borrowing costs at an ultra-long debt sale Wednesday, its first auction since Moody's Investors Service lowered its ratings outlook on the euro-zone'sbenchmark issuer, as German debt still remains the safest bet for many ...

EURO GOVT-Bunds fall on talk of stronger ESM, poor auction
Reuters
LONDON, July 25 (Reuters) - German government bonds fell on Wednesday after an auction of long-term debt drew weak demand and on signs that euro zone policymakers may be opening up to the idea of giving the bloc's permanent rescue fund a banking ...

A Euro-Zone Firefighter Downgraded (and other Woes)
National Review Online (blog)
The new Spanish woes coincided with an announcement from Moody's Investors Service on Tuesday night that it was cutting the outlook on its triple-A long-term rating for the EU's temporary bailout fund, the European Financial Stability Facility (EFSF) to ...

FELDSTEIN: The Best Solution For The Eurozone Is A Super Cheap Euro
Business Insider
A lower value of the euro would reduce the prices of eurozone exports and raise the cost of imports, reducing or eliminating the current account deficits of the peripheral European countries, since about half of their trade is with countries outside theeurozone.

Business Insider

European economic downturn gathers pace
Huffington Post
Meanwhile, surveys showed demand for loans remained weak across the 17-country eurozone, suggesting no economic recovery is imminent, and business confidence continued to fall in Germany, Europe's largest economy and its pillar of growth – so far.

Gold rallies on guarded euro-zone optimism
MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rallied 2% on Wednesday as some optimism regarding the euro zone's debt crisis emerged. Gold for August delivery (CNS:GCQ2) rose $31.90 to settle at $1608.10 an ounce on the Comex division of the New ...

Eurozone's crisis and property bubble threaten China's economy ...
By RT
China's economic growth faces significant risks due to the worsening situation in the eurozoneand the country's reliance on investment, the International Monetary Fund warned in a report.
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Euro Crisis – No More Safe Havens | The Big Picture
By Josh Rosner
Euro Crisis – No More Safe Havens · Email this post · Print this post. By Josh Rosner - July 25th,... Euro Crisis – No More Safe Havens · Will the ESM to be granted a banking licence? ECB open to a bank license? 10 Tuesday PM Reads · Fed ...
The Big Picture

End of the Euro Crisis? Don't Bet on it | PRAGMATIC CAPITALISM
By Guest
The EZ crisis is once again on the march; Spain and Italy are under pressure. This column argues that policymakers are likely to fall back once again on a failed approach to avoid admitting past errors. Ultimately, however, EZ leaders will ...
PRAGMATIC CAPITALISM

How A Country Rationally Exits The Eurozone - Wall Street ...
Is there a real chance of Spain getting rid of the Euro, and introducing the new pesetas? Gonzalo Lira on the subject. We are about to experience the Euro Exit Crisis. The whole point of exiting the eurozone is because a country no longer has ...
eWallstreeter

German fears over eurozone sharpen as confidence falls- Full Story ...
By Newswires
German fears over eurozone sharpen as confidence falls (via AFP) Storm clouds gathered over Europe's top economy Wedn...
The Wall Street Examiner

How Finland keeps its head above eurozone crisis | Business | The ...
Finland's economy is dominated by services but it is competitive in manufacturing – and its revenues are bigger than its debt.
www.guardian.co.uk/.../finland-triple-aaa-rating-moodys-euro...

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