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

Wednesday, October 31, 2012

Weakening Euro Zone Economy

Spain sinks deeper into recession in third quarter - Telegraph: "Spain has slipped deeper into recession as the financial crisis and austerity weighs on the embattled country’s economy."

Data Show Weakening in Euro Zone Economy
New York Times
A collapse real estate prices after the 2008 financial crisis and austerity measures to balance the public sector budget have inflicted severe pain on the country, driving unemployment to 25 percent. In Nuremberg, the Federal Labor Agency ... More than ...

French minister urges euro zone to start pooling debt
Reuters
BERLIN (Reuters) - French Finance Minister Pierre Moscovici urged the euro zone on Tuesday to take a first step to mutualise its short-term debt, stopping short of jointly-issued "Eurobonds" which he recognized German Chancellor Angela Merkel's ...

Debt crisis: as it happened - October 30, 2012
Telegraph.co.uk
17.39 PIMCO chief executive Mohamed El-Erian has told Canadian television network BNN that there is a 60pc to 70pc chance Greece will leave the euro. 17.24 Meanwhile... The negative rating outlook "reflects increased uncertainty about Argentina's ...

Telegraph.co.uk

Debt crisis: Greece must have debt relief, leaders to tell Angela Merkel - Telegraph: "A delegation of leaders are to warn Angela Merkel that Germany must agree to Greek debt relief or risk plunging the eurozone into a fresh and more dangerous phase of the crisis."

German joblessness rises as euro zone crisis bites
Reuters
The global slowdown and the euro zone's three-year debt crisis are weighing on companies' readiness to invest and recent surveys have shown business confidence in Europe's powerhouse economy sagging badly, though few economists expect a ...

ECB Covered Bond Program Set To Wind Down
Wall Street Journal
The year-long program was initiated last November at the end of Jean-Claude Trichet's tenure as ECBpresident as a means of boosting funding for cash-strapped banks that were priced out of the bond market because the euro-zone debt crisis had pushed ...

Crisis Takes Toll on French Hospital
Wall Street Journal
LYON, France—The public hospital center in this southeastern French city is selling a century-old castle and its expansive grounds to help ease a funding squeeze, in a sign of how the euro zone's sovereign-debt crisis is also afflicting the bloc's ...
 
Wall Street Journal

Euro zone sentiment eases less than expected in October
Chicago Tribune
BRUSSELS (Reuters) - Euro zone economic sentiment fell less than expected in October, data showed on Tuesday, thanks to small improvements in optimism among consumers and in the retail sector, which helped limit the downward pull from industry, ...

German Unemployment Rose Twice as Much as Forecast in October
Bloomberg
German unemployment rose twice as much as economists forecast in October and the jobless rate increased for the first time in three years as the sovereign debt crisis damped economic growth and investment. The number of people out of work climbed a ...

UBS bankers in London head for the pub after being turned away at office door - Telegraph: "UBS bankers in London were turned away from their offices on Tuesday and handed a letter putting them on "special leave", just hours after the Swiss bank unveiled a radical restructuring to axe 10,000 jobs."

US, Euro-Zone News Set to Generate Volatility Today
Jutia Group
Today, euro traders will want to pay attention to several key news events. First up is a speech fromECB President Draghi, scheduled to take place at 8:00 GMT. Any positive statements from the ECBPresident with regards to the ongoing debt crisis in ...

Britain 'sorely needed' in EU, says German Finance Minister Wolfgang Schaeuble - Telegraph: "German Finance Minister Wolfgang Schaeuble has urged Britain to remain strongly engaged in the European Union, responding to a tide of Euroscepticism that Berlin fears could sweep London towards the exit."

Euro Zone Debt Crisis Leaves Millions in Germany Unemployed ...
By Harkamal Singh
Euro Zone Debt Crisis Leaves Millions in Germany Unemployed. Germany falling a victim into the hands of euro zone crisis has left several in the country without a job for seventh month in a series. Economists believe the situations to change ...
TopNews United States

Ability to Handle Crisis-hit Major Economies Crucial in Combating ...
Mr. Rogoff warned that, although sovereign debt crises had been in existence .... With the euro zone facing liability restructuring, lessons learned implied a focus ...
www.un.org/News/Press/docs//2012/gaef3347.doc.htm

Tuesday, October 30, 2012

Greece more risky for investors than Syria

Greece more risky for investors than Syria - Telegraph: "Greece is considered a riskier place to invest in and set up business than war-torn Syria and Libya, according to a survey of finance directors."

Euro Will Fall When Economics Come Into Focus
Wall Street Journal (blog)
Hopes that this decline will reduce high borrowing costs and ultimately provide a resolution to the euro-zone debt crisis have helped to stabilize support for the single currency. Ever since ECB President Mario Draghi announced his unlimited outright ...

Wall Street Journal (blog)

Spain's Rajoy rules out imminent request for help - Telegraph: "Spain has no immediate need to ask for outside aid to help deal with its debts, prime minister Mariano Rajoy insisted on Monday."

Debt crisis: Greece must have debt relief, leaders to tell Angela Merkel - Telegraph: "A delegation of leaders are to warn Angela Merkel that Germany must agree to Greek debt relief or risk plunging the eurozone into a fresh and more dangerous phase of the crisis."

Germany's Schaeuble: Europe Will Emerge from Crisis More Unified
Wall Street Journal
OXFORD, U.K.--The euro zone's debt crisis isn't over, but Europe will emerge "stronger and more unified than before," German Finance Minister Wolfgang Schaeuble said Monday. In a wide-ranging speech and question-and-answer session, Schaeuble said ...

Debt crisis: as it happened - 29 October, 2012 - Telegraph: "Mario Monti and Mariano Rajoy were both cool on German plans to allow the EU to intervene in countries' budgets and propose changes before they are agreed in parliaments."

Euro zone banks rally falters on earnings outlook
Reuters
LONDON (Reuters) - A big rally in euro zone bank shares on the back of central bank action to fix the region's debt crisis may have run its course as doubts over the sector's earnings outlook keep many long-term investors sidelined. While stock ... But ...

Analysis: Euro zone ponders best path to "GEMU"
Chicago Tribune
It also signals that Europe's leaders are starting to shift their focus from fingers-in-the-dike crisismanagement to save the euro to a longer-term process of building a more robust, storm-resistant architecture for the currency area. ... Merkel has ...

Hollande to Meet OECD, WTO, IMF Heads on Debt Crisis
NASDAQ
PARIS -- French President Francois Hollande is due to hold talks on Monday with the heads of the World Bank and other top economic bodies to discuss the euro-zone debt crisis and ways to kick start growth. The meeting will start at 11:00 a.m. (1000 GMT ...

S.Africa's rand weakens on euro fears and local budget
Reuters Africa
Print | Single Page. [-] Text [+]. JOHANNESBURG Oct 29 (Reuters) - The rand weakened against the dollar on Monday, pressured by debt crisis concerns in the euro zone, South Africa's biggest trading bloc, and worries about a wider domestic budget deficit.

Politics puts Italy, Spain back in market focus
Chicago Tribune
MADRID/ROME (Reuters) - Spanish Prime Minister Mariano Rajoy kept financial markets guessing on Monday over whether he will seek a credit line from the euro zone's rescue fund but said he would do so "when I think it is in the interests of Spain". At a ...

Dutch Liberals, Labour vow austerity in coalition deal
Reuters
Under Rutte and De Jager, a Christian Democrat whose party lost heavily in the election, the Netherlands had been at the forefront of countries calling for tight fiscal policies to tackle the euro zone's debt crisis. In their agreement, the parties did ...

Blair Warns Euro-Area Crisis Could Lead to Whole EU Breaking Up
Businessweek
Former U.K. Prime Minister Tony Blair said the European Union's political community could break up if the financial crisis in the euro area is not resolved. The EU cannot fix the single-currency region'sdebt crisis through the sort of “incremental ...

Analysis: Long-term battle for euro hinges on growth reforms
Chicago Tribune
For that, growth and convergence are needed -- the reverse of the divergent north-south economic, fiscal and financial trends still balkanizing the euro zone and preventing the ECB from delivering a single monetary policy for the entire area. A recent ...

Monday, October 29, 2012

Germany rattled as taxpayer losses loom in Greece

Germany rattled as taxpayer losses loom in Greece - Telegraph: "The EU-IMF Troika of inspectors in Greece has called on European bodies and official creditors to write off a chunk of their loans, opening the way for first taxpayer losses since the sovereign debt crisis began. . . . Hans-Werner Sinn, head of Germany’s IFO Institute, said it is becoming cruel to keep Greece in EMU. "The austerity needed to restore wage and price competitiveness will break society first. We are sacrificing a generation of young people who cannot find work, and all in the name of the euro. It is irresponsible. A euro exit would offer hope at last," he said. Dr Sinn said Europe should craft a controlled return to the drachma with help to shore up the Greek banking system and to provide trade credits. "There is no need for catastrophe scenarios," he said."

Mario Draghi backs Wolfgang Schaeuble's 'super commissioner' plan - Telegraph: "The head of the European Central Bank has thrown his weight behind a German scheme to allow the EU to intervene in countries' budgets and propose changes before they are agreed in parliaments."

Munich Re CEO: Renewed Greek Debt Writedown Must Be Avoided -Report
Fox Business
A renewed writedown of debt owed by financially ailing Greece must be avoided or capital markets will lose all trust in governments' capability to resolve the persistent sovereign debt crisis in the euro zone, said Nikolaus von Bomhard, chief executive ...

ECB's Nowotny: Giving Greece More Time Makes Sense, But is Political Decision
NASDAQ
FRANKFURT--Greece has good chances to overcome its debt crisis provided it tackles its structural problems and receives support from its partners in the European Union, European Central Bank Governing Council Member Ewald Nowotny said Sunday.

Draghi Backs Creation of EU 'Currency Commissioner'
CNBC.com
Schaeuble said earlier this month that the EU needed a commissioner who wielded power over member states' budgets together with reform of the European Parliament's decision-making process, changes he said could help ease the debt crisis. ... support...

CNBC.com

US & Chinese Markets Advance Slightly; Euro Woes Intensify
Avauncer
Euro Woes. In Europe, a fall that started with a potential debt crisis in Greece region had extended across the seventeen country euro zone as manufacturing output in Germany, the European zone's largest economy and leading exporter, dropped ...

Avauncer

Left in Lithuania eyes vote win after austerity pain
Reuters
The government's failure at the ballot box comes despite widespread praise abroad for a more resolute course on cutbacks than that taken by Greece and other euro zone countries struggling with debt. But many voters say they have had enough. "Everything ...
ECB words may hasten Portugal bond market return
gulfnews.com
Since ECB President Mario Draghi pledged in late July to do whatever it takes to save the euro, including curbing borrowing costs, Portuguese bonds have outperformed all euro zone debt but Greece's. Yields, while still viewed as unsustainable, have ...

Germany says no to new Greek debt haircut
Livemint
He also argued that a new haircut would raise questions over whether other governments in the 17-nation euro zone could continue helping Greece. “You don't give a debtor who doesn't service your debt claims new money,” he said. “We would be prevented ...

Livemint

Despite gloom, global equity performance at 5-year high
Moneycontrol.com
Investors have been bombarded with reasons to be pessimistic this year. The euro zone crisis, the U.S. fiscal cliff, fears of a China slowdown: all seem designed to hamper stock market performance.

Moneycontrol.com

Many large Indian cos to focus more on cost reduction: E&Y
Zee News
New Delhi: Many large Indian companies are expected to focus more on cost reduction and risk management in the next 12 months, with European debt crisis putting pressure on their financials, an E&Y survey has said. Global consultancy frim Ernst & Young ...

Zee News

Saturday, October 27, 2012

Sharp rise in government spending in US

US growth quickens as fight for the White House enters final stretch - Telegraph: "The stronger-than-expected expansion was driven by a pick-up in consumer spending, a sharp rise in government spending and a rare contribution from the housing sector, figures from the Commerce Department showed."

US growth quickens as fight for the White House enters final stretch - Yahoo! Finance UK: "The stronger-than-expected expansion was driven by a pick-up in consumer spending, a sharp rise in government spending and a rare contribution from the housing sector, figures from the Commerce Department showed . The third-quarter's pace is up from the 1.3pc pace in the second and slightly better than the 1.8pc that economists had forecast."

Treasurys Rally on Anxiety over Global Growth Outlook
Wall Street Journal
The Fed has highlighted two risks facing the U.S. growth--the euro zone's debt crisis and the prospects of tax increases and government spending cuts in the U.S. in early 2013, known as a "fiscal cliff." "The bigger picture is still one of a divided ...

Greek debt to badly miss target: euro zone official
Reuters
"New prior actions will be needed, on top of the existing 89," the official said, referring to a list of already agreed reforms that need to be in place before any new tranches of euro zone and IMF emergency loans to Greece can be paid. Apart from the ...

IMF's Lagarde urges action on unfinished financial reforms
Chicago Tribune
... Toronto, IMF Managing Director Christine Lagarde urged world leaders to "do whatever it takes" to rebuild the world's financial system, which is still recovering from the 2007-2009 financial crisisand has been further weakened by the euro zone ...

ECB words may hasten Portugal bond market return
Reuters
But crisis still far from over in Portugal, euro zone. By Marius Zaharia. LONDON, Oct 26 (Reuters) - The prospect of the European Central Bank buying bonds of highly indebted euro zone countries is accelerating Portugal's return to debt markets and ...

Euro-Zone Data Hint at Resilience
Wall Street Journal
Signs of confidence among consumers in Germany, the euro zone's biggest economy, contrast sharply with a worsening mood in France and Italy, and a rise in joblessness in Spain that means one in four people in the crisis-ridden country is now out of ...

Euro flat after three days of losses; yen fares best
Reuters
A request by Spain, the euro zone's fourth largest economy, for help would be considered a positive for the euro because it would allow the European Central Bank to start buying its bonds. That would lower borrowing costs of the highly indebted country.

Spain's banks cut sovereign debt holdings for first time since May
Reuters
At the same time, foreign investors increased their holdings of Spanish sovereign debt for the first time since October after ECB chief Mario Draghi pledged early last month to buy bonds of strugglingeuro zone members. ... finances put the country at ...

Euro Area Crisis Firewalls Should Be Used, G-20 Host Mexico Says
Bloomberg
Euro-area governments can reduce market uncertainty by tapping into financial firewalls established to ease the region's debt crisis, a Mexican finance official said ahead of a meeting of Group of 20 policy makers. Mexico's Deputy Finance Minister ...

France should welcome euro zone subordination
GlobalPost
On Thursday, ratings agency Standard & Poor's cut the credit ratings of several French banks including its biggest, BNP Paribas, over worries about their exposure to the euro zone crisis. “The only strategy for France is to become immersed like a tea ...

Friday, October 26, 2012

FISCAL CLIFF: Debt crisis looms in Presidential race

THE RACE: Debt crisis looms in race's home stretch
CBS News
Some $100 billion will be sliced from federal budgets and taxes will rise by $400 billion if the government goes over the so-called "fiscal cliff" in early January. Eighty top U.S. business executives just put out a joint statement advocating bipartisan action to avoid going over that cliff by embracing both spending cuts and higher taxes — despite persistent GOP rhetoric against tax hikes.advocating ...

Lending to euro zone private sector falls in September: ECB
Reuters
FRANKFURT (Reuters) - Loans to euro zone companies dropped significantly in September as theeuro debt crisis and a darkening economic outlook dampened their appetite to borrow, while ECBefforts to encourage lending showed little impact. Loans to ...

In Finland, a Euroskeptic Party Strengthens
Wall Street Journal
Finland, with only 5.4 million citizens, has accumulated outsize influence in discussions about tackling the euro-zone debt crisis because of its strong finances and its hard-line stance on bailouts. Prime Minister Jyrki Katainen has been an advocate ...

Euro zone seeks to give Greece more time to cut, find more money
Reuters
BRUSSELS Oct 25 (Reuters) - Euro zone officials are expected to press ahead on Thursday with plans to give Athens two more years to meet its budget goals as well as examine ways of closing the yawning gap in Greece's finances. Representatives of the ...

End The Euro Zone Crisis Now: Let PIIGS Borrow Against Their Gold
Forbes
The euro zone's biggest gold-owner as well as its biggest economy, Germany, now has public debt equal to 83% of GDP. But the crisis hasn't improved since November 2011. And it is a German idea. Second, however, and because the euro zone crisis is due ...

UPDATE 2-Swedish c.bank switches tack on rates on euro worries
Reuters
Sweden withstood the euro zone debt crisis well in the first half of 2012, but growth faded along with demand for the exports that account for half of the country's economic output - and 50 percent of which go to Europe. Key exporters like Volvo, SKF ...

Sanofi and Unilever nudge European shares higher
Reuters
However, the euro zone's blue-chip Euro STOXX 50 index fell 0.3 percent to 2,483.43 points asfinancial stocks declined. Sanofi rose 1.4 percent, adding the most points to the FTSEurofirst 300 index, after the French company forecast that 2012 earnings ...

The Real Way to Save the Euro
CNBC.com (blog)
And without the problems of southern euro-members, western and northern members would be able to overcome their banking woes and the other roots of the euro crisis would have much lower relevance." Food for thought. Tracking Currencies. EUR=X ...

Spain speeds up 2013 funding, will cover regional needs
Reuters
Investors and analysts believe such a program would help stabilize Spain's recession-hit economy, drawing a line under the three-year-old euro zone debt crisis. "As we speak, my funding needs for this year are almost covered, at 95 percent, and my ...

Debt crisis: as it happened - 25 October, 2012
Telegraph.co.uk
The IMF said that "after a strong start, the program has entered a more challenging phase" for Lisbon to overcome its debt crisis. In its staff report on the fifth review of Portugal's €78 bailout, which was approved, the IMF said: "The risks to the ...

Telegraph.co.uk

It’s still a hard toil to the sunlit uplands of recovery - Telegraph: "The Coalition has been vindicated by the GDP figures, but tough times will be with us for years"

Eurozone nears Japan-style trap as money and credit contract again - Telegraph: "All key measures of the eurozone money supply contracted in September and private credit fell at an accelerating pace, dashing hopes of a quick recovery from recession."

FACTBOX-Euro zone debt crisis: upcoming events - Yahoo! News ...
'FACTBOX-Euro zone debt crisis: upcoming events' on Yahoo! News Maktoob. Oct 25 (Reuters) - Following are forthcoming events relatedto the debt crisis in ...
en-maktoob.news.yahoo.com/factbox-euro-zone-debt-crisis-u...

Euro zone Debt Crisis and EUR/USD Outlook – What's New?
EUR/USD had a strong fall, which as of now we will avoid to term as “free fall”. The pair had gone to 1.3139 but could not retest the previous high of 1.3172.
www.forexabode.com/.../euro-zone-debt-crisis-and-eurusd-out...

Thursday, October 25, 2012

Euro zone is sinking ever deeper into crisis

Euro crisis deepens as debt hits 90% of GDP
Globe and Mail
Euro woes mount. The embattled euro zone is sinking ever deeper into crisis, as new reports highlight the debt and broader economic troubles plaguing the 17-member monetary union.

Draghi defends bond-buying plan in lion's den
Reuters
BERLIN (Reuters) - European Central Bank President Mario Draghi gave a robust defense of his bond-buying plan to ease the euro zone's debt crisis, telling skeptical German lawmakers that fears of illegal funding of governments or stoking inflation are ...

Debt crisis: as it happened - October 24, 2012
Telegraph.co.uk
... defended his bond-buying plans, and David Cameron may have landed himself in hot water over tomorrow's GDP figures. For all the latest developments you can follow them here and we'll be back in the morning with the next installment of Debt Crisis Live.

Telegraph.co.uk

Bundesbank slashed London gold holdings in mystery move - Telegraph: "Germany withdrew two thirds of its vast holdings of gold from Bank of England vaults shortly after the launch of the euro more than a decade ago, according to a confidential report that emerged on Wednesday."

Euro-Zone Activity Declines Further
Wall Street Journal
The euro-zone economy declined further at the start of the fourth quarter, business surveys suggest, with sentiment in Germany—the euro zone's biggest economy and key source of financial support—worsening markedly. A survey of manufacturing and...

Wall Street Journal

Greece plans to cut wages and pensions - Telegraph: "Greece is set to cut public sector wages and pensions, as it agrees terms with its international lenders to release the next tranche of its bailout to avoid defaulting."

Euro zone debt jumps to 90 pct/GDP in Q2 -Eurostat
Reuters
By Jan Strupczewski BRUSSELS, Oct 24 (Reuters) - Euro zone government debt rose to 90 percent of the single currency area's gross domestic product in the second quarter of 2012 from 88.2 percent in the first three months, data from the European ...

Analysis: Poland leans towards euro entry despite crisis
Reuters
"Poland, which is outside the euro zone, is affected by it (through the financial markets) and is paying a price for the crisis. Yet it has no influence over the decision-making process inside the bloc," Roman Kuzniar, an adviser to Polish President ...

This is an assault on living standards set to run and run - Telegraph: "Close to the start of the economic crisis, someone I've always considered one of the City's more astute practitioners privately ventured what seemed a somewhat startling prediction – by the time it was all over, average living standards in Britain and many of other advanced economies would have fallen in real terms by 20pc or more."

Euro dips on German data, shares up as Fed eyed
Reuters
"A lot of companies are saying they exited the quarter weaker than where they entered," he added. "A lot are resetting expectations ahead of the fiscal cliff." The euro fell against the dollar and yen on unexpectedly weak German data. But the euro's ...

Copper steady on China optimism, euro zone weighs
Reuters
German business sentiment dropped for the sixth successive month in October, in a surprise fall that was bigger than even the lowest forecasts, signaling that the debt crisis is hitting home in Europe's largest economy. Benchmark three-month copper on ...

Morning Briefing: ECB's Makuch Speaks in Bratislava
Wall Street Journal (blog)
The outlooks for the euro-zone debt crisis and for the Slovak economy came into focus Wednesday when the country's representative on the European Central Bank's governing council led a conference in Bratislava. Jozef Makuch, also the governor of the...

Wall Street Journal (blog)

Euro edges lower after German data; Fed decision looms
Reuters
European Central Bank President Mario Draghi made a robust defense of his bond-buying plan to ease the euro zone's debt crisis, telling German lawmakers their fears of illegal funding of governments or stoking inflation are misplaced. The euro also hit ...

Buffett resumes travel, says economy is 'inching ahead'
Omaha World-Herald
Warren Buffett was back on the road Wednesday, making his first cable TV appearance since finishing radiation treatments for prostate cancer. “It got tiring after awhile,” he told CNBC interviewer Becky Quick, noting that he gets “hot flashes” from ...

Wednesday, October 24, 2012

Markets slide as corporates report results

Debt crisis: Markets slide as corporates report results - live
Telegraph.co.uk
We had gone through a period starting with (European Central Bank President) Draghi's announcement from the ECB that he would stand behind the sovereign debt where Spain situation had kind of faded from people's view and it's bubbling up again. ... 12 ...

Telegraph.co.uk

Debt crisis: Europe ratchets up grip on Madrid - Telegraph: "The EU-IMF Troika in charge of Spain's €60bn (£48bn) bank rescue is to demand much tougher action by the country's authorities to clean up toxic debts, risking a clash that could deter Madrid from requesting a full sovereign bail-out."

Debt crisis no longer driving euro: Commerzbank
MarketWatch (blog)
The euro-zone debt crisis — specifically as measured by Spanish government bond yields — is no longer the main driving factor behind moves by the euro, Commerzbank currency strategist Ulrich Leuchtmann argued in a research note Tuesday. ... At the ...

RBS under pressure to offload US business - Telegraph: "Royal Bank of Scotland has come under pressure to sell its US business and shrink its investment banking arm by the body charged with managing the taxpayers’ 82pc holding in the lender."

GLOBAL MARKETS-Lacklustre earnings, pain in Spain hit shares, euro
Reuters
The euro zone's debt crisis and the damage it is doing to worldwide economic health remains a top concern with investors still looking for firm proof that recent support measures from leading central banks are being felt. Data on Tuesday showed ...

EU Commission backs 10 euro zone states' financial transaction tax
Reuters
... 23 (Reuters) - The European Commission backed on Tuesday an initiative by 10 euro zonecountries to introduce a harmonised financial transaction tax (FTT) among themselves to make thefinancial sector contribute to the costs of the sovereign debt ...

EU to mull plan to bring non-euro states into bank union
Reuters
BRUSSELS (Reuters) - European Union countries will examine a plan this week to allow the ECB to supervise banks in states outside the euro zone alongside those within the currency area, according to an EU document that lays down limits on the central ...

UK Businesses Wary of Spending
Wall Street Journal
Consumers are also struggling as government austerity measures and the unresolved euro-zone debt crisis take their toll, with mortgage lending still subdued as national incomes have suffered a steeper drop than previous data indicated. The British ...

Where Has the Volatility Gone?
Wall Street Journal (blog)
There are demonstrations on the streets of Athens, the two major euro-zone nations, France and Germany, disagreed on how to resolve the debt crisis at the latest summit, and it's likely that Spain will miss its 2012 budget-deficit target. Yet ...

XE.com - PREVIEW-German economy to show effects of euro zone ...
Germany, Europe's growth engine and paymaster, fended off for a long time the debt and financial crisis engulfing much of the euro zone. But growth slowed to ...
www.xe.com/news/2012-10-19%2012:45:00.../3003953.htm

Tuesday, October 23, 2012

EU faces two tough months of bargaining

EU faces two tough months of bargaining to boost euro confidence
Chicago Tribune
The European Central Bank's pledge to buy the bonds of struggling euro zone countries in unlimited amounts has changed the terms of Europe's debt crisis. Yet French President Francois Hollande may have been a little premature in declaring a turning ...

Debt crisis: as it happened - October 22, 2012 - Telegraph: "The eurozone and European Union's debt hit a high in 2011, according to Eurostat, but the deficit has decreased. However 17 members of the EU had public deficits higher than the 3pc permitted by EU law."

Euro zone cut fiscal deficit in 2011, debt up
Reuters
Eurostat said the aggregate budget deficit in the 17 countries using the euro fell to 4.1 percent of gross domestic product in 2011 from 6.2 percent in 2010 - the first year of the sovereign debt crisis.Euro zone public debt, however, rose to 87.3 ...

Global shares fall on corporate outlooks, euro gains
Reuters
NEW YORK (Reuters) - Global stocks fell on Monday on weak corporate results and outlooks, while the euro gained after a regional vote in Spain was seen as moving a solution to the euro zone debt crisis one step closer. U.S. stocks slipped after heavy ...

Fitch Owner Hopeful Euro Zone Will Survive Crisis -Report
Wall Street Journal
The euro zone will survive the current sovereign debt crisis even though sizeable risks still exist, the owner of ratings agency Fitch Ratings said in an interview with French daily Le Monde published Monday. Forming a single supervisor for the ...

Bundesbank: ECB actions delay adjustment process
MarketWatch
The ECB has launched a range of special measures during the debt crisis, including two massive allotments of three-year loans to banks and large-scale purchases of the bonds of strugglingeuro-zone governments. Given that level of central bank support ...

Germany Warns of Slowdown
Wall Street Journal
"Germany will see a significant economic slowdown in the last quarter of 2012," the Ministry said in its monthly report on Monday, blaming Germany's slow growth on the weak economies of euro-zonemember states as the cause. Both exports and industrial ...

Forex: Euro-zone crisis far from over; GDP to collapse 2.5% in 2013 - Capital ...
NASDAQ
FXstreet.com (San Francisco) - "In the euro-zone, the worst of the crisis is probably yet to come," states the Capital Economic's research team in a recent report. The forecast is dark for the area, "With politicians unable to accelerate progress ...

Weak Euro Hurts Copper Prices
AllAfrica.com
THE copper prices on the international market slipped on Friday, hurt by a weak euro on concerns about the euro zone debt crisis. Reuters reports that the prices of three-month copper on the London Metal Exchange (LME) traded at US$8,124 a tonne in ...

PM Cameron Parliment Address on Euro Zone | C-SPAN
Last Thursday and Friday, British Prime Minister Cameron and other European leaders met in Brussels to discuss the future of the euro zone but left with no firm solutions on solving the crisis. Monday, British Prime Minister delivered a report ...
C-SPAN Recent Events

Euro zone doesn't need Disziplin union | Hugo Dixon
By Hugo Dixon
The consensus among the euro zone political elite is that fiscal union is needed to complete thecrisis-ridden monetary union. There are two rival views of what this should consist of: a panoply of rules to prevent and punish irresponsible ...
Hugo Dixon

Euro zone cut fiscal deficit in 2011, debt up - Yahoo! Finance
Its debt inched higher to 120.7 percent from 119.2 percent. Portugal, already on a euro zone financial lifeline after being cut off from market borrowing, more than ...
finance.yahoo.com/.../euro-zone-cut-fiscal-deficit-090231492....

Euro-zone crisis far from over; GDP to collapse 2.5% in 2013 Alex ...
In the euro-zone, the worst of the crisis is probably yet to come,” states the Capital ... Debt CrisisEscalates · Greek Referendum Threatens New Euro Zone Crisis ...
www.infowars.com/euro-zone-crisis-far-from-over-gdp-to-col...

The euro-zone debt crisis - Britannica
The sovereign debt crisis that rocked the euro zone beginning in 2009 was the biggest challenge yet faced by the members of the EU and, in particular, ...
www.britannica.com/EBchecked/.../The-euro-zone-debt-crisis

Monday, October 22, 2012

IMF plan to conjure away debt and dethrone bankers

IMF's epic plan to conjure away debt and dethrone bankers - Telegraph: "So there is a magic wand after all. A revolutionary paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan."

Spanish elections could mark step toward bail-out - Telegraph: "Many believe elections held in Spain on Sunday represent a crucial step towards the recession-hit nation’s sovereign bail-out."

Don't Blame the Euro Mess for Britain's Plight
Wall Street Journal
It is also a catch-all excuse for continuing underperformance: Yes, four years into thefinancial crisis, Britain's economy is still shrinking, but what do you expect with the mess in the euro zone on our doorstep? Yet this misplaced smugness has ...

Wall Street Journal

GLOBAL ECONOMY-Fork in the road as US outstrips Europe
Reuters
ECB stance helping euro zone, but PMIs still grim. * Chinese PMI ... LONDON, Oct 21 (Reuters) - Slowly but surely, the global economy is witnessing a modest parting of the ways as the United States pulls ahead of a euro zone still shell-shocked by its ...

ECB's Knot backs call for EU commissioner - Telegraph: "European Central Bank policymaker Klaas Knot has thrown his support behind German finance minister Wolfgang Schaeuble's call for a euro zone commissioner with power over European Union nations' budgets."

Add Carrots; Go Easier on the Sticks
New York Times
The consensus among the euro zone political elite is that fiscal union is needed to complete the crisis-ridden monetary union. There are two rival views on what this should consist of: a panoply of rules to prevent and punish irresponsible behavior, or ...

Ireland Is Concerned by Merkel Comments
Wall Street Journal
Ms. Merkel took a hard line Friday at the end of a European leaders' summit in Brussels on Spain's hopes that the euro zone would finance the debts the country incurred in recapitalizing its lenders during the euro-debt crisis, telling reporters ...

Euro zone leaders praise Greek austerity efforts
The Sofia Globe
Eurozone leaders are praising the efforts of debt-ridden Greece to resolve its financialwoes and resume its cost-cutting austerity. Some of the 16 other countries in the eurocurrency bloc have often attacked Athens for its slow pace in adopting ...

The Sofia Globe

ECB's Knot backs German call for EU budget commissioner
Reuters
BERLIN (Reuters) - European Central Bank policymaker Klaas Knot has thrown his support behind German finance minister Wolfgang Schaeuble's call for a euro zone commissioner with power over European Union nations' budgets. The EU needs not only ...

German Finance Ministry mulls debt buy-back for Greece-report
MSN Money
The Greek government could borrow money from the euro zone's permanent bailout fund and use this to buy back its own debt, which at present trades at around 25 percent of its face value. Buying just 10 million euros worth of Greek bonds could reduce ...

Spain expected to ask for Eurozone aid
eGov monitor
Spain has become the most recent focus of attention in the Eurozone debt crisis, as concerns are raised that Madrid cannot control its finances in the midst of a recession. Spain's funding costs have fallen at auction on Thursday as markets ... They ...

eGov monitor

Austerity measures cannot be avoided: ECB's Coene
Business Recorder (blog)
He said governments in the euro zone region, which has been mired in a debt crisis for almost three years, should have enacted structural reforms at the same time as pushing through austerity measures. "We should have done that earlier. It could have ...

Gold steady after China data and euro zone summit eyed
SteelGuru
European leaders will gather for 2 day meeting amid talk that Spain will seek a bailout next month as the bloc continues to struggle with its debt crisis. Gold has closely followed moves in the currency market with improving sentiment around the euro ...

Saturday, October 20, 2012

Merkel blocks eurozone support efforts

Debt crisis: Merkel blocks eurozone support efforts - Telegraph: "Angela Merkel reasserted German control over European strategy by insisting that the bail-out machinery would not pay for the past banking debts while also dismissing French plans to spread wealth."

Merkel wins major victory over Hollande - Telegraph: "Angela Merkel has won a major victory over Francois Hollande by overturning a European Union decision to use the euro's bailout fund to directly recapitalise struggling eurozone banks for the foreseeable future."

Debt crisis: as it happened - October 19, 2012 - Telegraph: "EU leaders in Brussels have agreed to have the legal framework for the eurozone banking regulator in place by the end of the year, and it will be implemented through the course of 2013."

Investor fears of euro-zone catastrophe fading
MarketWatch
FRANKFURT (MarketWatch) — Despite nearly three years of dithering, infighting and backtracking by European leaders, some strategists now say the euro-zone debt crisis no longer poses the immediate danger that has kept investors on the lookout for the ...

MarketWatch

Copper pressured by weak euro, Chinese demand uncertainty
Reuters
LONDON (Reuters) - Copper slipped on Friday, hurt by a weak euro on concerns about the euro zone debt crisis and uncertainty about the outlook for demand from top user China. Three-month copper on the London Metal Exchange (LME) closed at $8,015 a ...

UPDATE 7-Europe pushes ahead towards ECB bank supervision
Reuters
Creating an effective banking union, for which this deal was a first step, is regarded by the International Monetary Fund and market economists as a key component in overcoming the euro zone's three-year-old debt crisis. Hollande said the leaders did ...

The worst is over for the euro zone? Shh! Stop saying that!
Reuters Blogs (blog)
And in the 21st century there is the euro zone debt crisis, conjured repeatedly by the phrase from Europe's leaders, “The worst is over,” and variations thereof. French President Francois Hollande was the latest to tempt the crisis apparition on ...

Reuters Blogs (blog)

Euro leaders might soon release second cache of Greece funds
Economic Times
BERLIN: The euro zone leaders have commended the progress made by Greece in implementing far-reaching reforms to overcome its three-year-old debt crisis and hinted at the possibility of releasing 31.5 billion euros (USD 41 billion) bailout funds ...

A Golden Solution for Europe's Sovereign-Debt Crisis
Wall Street Journal
A Golden Solution for Europe's Sovereign-Debt Crisis ... Here's an idea that almost certainly wasn't discussed at Thursday night's European summit: using countries' gold reserves to lower the borrowing costs of euro-zone governments. Central banks of ...

Euro zone mulls splitting cost of bank aid with states
Reuters
BRUSSELS (Reuters) - Euro zone officials are exploring ways to solve one of the thorniest issues they face: how to ensure distressed banking assets are dealt with at a national level while also breaking the link between indebted governments and their ...

GLOBAL MARKETS-GE focus for Wall Street, Spanish, Italian bond yields fall
Reuters
"There is more of a general understanding that the ECB backstop is actually effective," UniCredit chief euro zone economist Marco Valli said of the central bank pledge to buy sovereign bonds on the secondary market. "The market has brought ... Global ...

Bloomberg View: A Solvency Test for the Euro Zone's Ailing Economies
Businessweek
... deepen the recessions in the euro zone's most vulnerable countries. Three years after the first rumblings of sovereign-debt troubles in the euro area, its leaders are beginning to get a grip on what has become a defining crisis for the entire ...

Euro zone debt crisis could happen in Canada: report - BNN News
The current debt crisis wreaking havoc in the euro zone could one day repeat itself in Canada, according to a new study. Finances in a number of provinces will ...
www.bnn.ca/.../Euro-zone-debt-crisis-could-happen-in-Canad...

Euro zone crisis weighs on Mideast investment: IMF - Business ...
TOKYO (Reuters) - Uncertainty over the euro zone debt crisis is now showing signs of restraining business and household spending in the Middle East, a top ...
www.msnbc.msn.com/.../euro-zone-crisis-weighs-mideast-inve...

EU's Rehn: Latvia could join euro zone in 2014 - chicagotribune.com
Despite the sovereign debt crisis that has spread through the euro zone's weaker economies over the past 3 years, Latvia sees the euro as a more stable ...
www.chicagotribune.com/.../sns-rt-us-eurozone-latvia-rehnbre...

Friday, October 19, 2012

Merkel moves to block Hollande bank union deadline

EU Summit: Angela Merkel moves to block Hollande bank union deadline - Telegraph: "Angela Merkel refused to commit to Francois Hollande’s deadline for the banking union, frustrating one of the key aims of a summit paralysed by indecision."

Man dies outside Greek parliament during clashes - Telegraph: "A 65-year-old man has died, reportedly of a heart attack, during violent clashes in front of the Greek parliament in Athens."

Euro zone bets lift stocks, Spain yields fall
Reuters
NEW YORK (Reuters) - Global shares were little changed in choppy trading on Thursday with a European benchmark at a 15-month closing high as tension surrounding the euro zone's debt crisiscontinued to ease. But U.S. stocks fell after Google (GOOG ...

Germany's Would-Be Leaders Spar Over EU
Wall Street Journal
Mr. Steinbrück sought to dispel Ms. Merkel's claim that there is no alternative to her policies of austerity to resolve the euro-zone debt crisis. Mr. Steinbrück, a maverick known for his wit and sometimes offensive humor, must first convince German ...

World's oldest bank Monte dei Paschi di Siena cut to 'junk' by Moody's - Telegraph: "The world's oldest bank has been cut to "junk" by Moody's, as the rating agency warned that there was a "material probability" that the lender may need another cash injection from the Italian government."

UPDATE 1-EU's Rehn: Latvia could join euro zone in 2014
Reuters
Despite the sovereign debt crisis that has spread through the euro zone's weaker economies over the past 3 years, Latvia sees the euro as a more stable currency than its lat. Public opinion is firmly opposed to euro entry, but the government does not ...

Gold drops on euro uncertainty, commods weakness
Reuters
NEW YORK (Reuters) - Gold fell on Thursday as commodity weakness and uncertainty over the commitment of Germany and France to battle the euro zone debt crisis prompted the bullion market to consolidate gains after its recent rally. The metal declined ...

Spanish Borrowing Costs Ease
Wall Street Journal
Ten-year bond yields rose to euro-era highs near 7.58% late July when Spain's deepening fiscal problems pushed it to the forefront of the euro-zone debt crisis. Spain raised €4.614 billion ($6.05 billion) from the sale of its 4% July 2015, 4.25 ...

EU summit to tackle banking union; Spain on watch
Chicago Tribune
BRUSSELS (Reuters) - European leaders will try to bridge deep differences over plans for a banking union at a summit on Thursday but no substantial decisions are expected, reviving concerns about complacency in tackling the three-year-old debt crisis ...

EU Commission dismisses problems with ECB oversight
Reuters
The remarks came as European leaders meet for a two-day summit where they will try to bridge division over a banking union, including plans for a single banking supervisor, a move to resolve one of core problems fuelling the debt crisis. They will ...

PRECIOUS-Gold steady after China data, euro zone summit eyed
Reuters
... bloc continues to struggle with its debt crisis. Gold has closely followed moves in the currency market, with improving sentiment around the euro zone giving support to the euro and weighing on the dollar, making dollar-priced commodities more ...

Ikea Keeps Billy Cheapest in Euros as Shoppers Retrench
Businessweek
Ikea's Billy bookshelves will remain cheapest to buy in the euro zone next year as the region's debt crisis weakens its currency and hurts consumer spending. Bloomberg's annual global index tracking the dollar cost of the signature bookcase sold by the ...

Fitch May Soon Remove Ireland's Negative Outlook
Wall Street Journal
Other negative factors include fears the euro-zone debt crisis could intensify. "We could observe the cycle repeating: that markets push the policy makers to measures to deal with the crisis. After the new measures, markets relax a bit and policymakers ...

Debt crisis weighing down on euro zone more than on US -> 17.10 ...
“Restoring government budgets will continue to occupy capital markets. Nonetheless, volatility has decreased significantly,” said Fritz Mostböck, Head of ...
www.erstegroup.com/de/Presse/.../2012/.../Global-Strategy-en

Crisis: Euro zone mulls new ways to cut Greek huge debt - Greece ...
(ANSAmed) - ATHENS, OCTOBER 15 - Euro zone officials are considering new ways to reduce Greece's huge debt because delays in reforms by Athens and ...
www.ansa.it/.../Crisis-Euro-zone-mulls-new-ways-cut-Greek-h...

ECB's Legal View on Bank Oversight Design Due Early November
Businessweek
The European Central Bank aims to complete its view on how to design a euro-area bank supervisor in the first half of November, a spokesman said today. ECB lawyers are studying how the Frankfurt-based central bank could take on bank oversight for the ...

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