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

Thursday, November 29, 2012

None Dare Call It Default

The First World's struggle for fiscal sustainability--

Jenkins: None Dare Call It Default - WSJ.com: "Greece has defaulted once already, and it is only a matter of time until Greece defaults again. Welcome to default-o-rama, the next chapter in the First World's struggle for fiscal sustainability. Japan is piling up debt in the manner of a nation beyond hope. France, Belgium, Spain and Italy are defaults waiting to happen unless Europe can somehow generate the kind of growth that has eluded it for decades. America's fiscal cliff is an artificial crisis. We have no trouble borrowing in the short term. But at some point the market will demand evidence that long-term balance is being restored. President Obama said in his first post-election press conference that he doesn't want any proposals that "sock it to the middle class." He knows better. A long-term socking is exactly what's coming to the middle class, which must pay for the benefits it consumes."

more news below

Wednesday, November 28, 2012

Venez à Londres, mes amis

Francois Hollande shows true colours with threat to nationalise ArcelorMittal - Telegraph: " . . . The International Monetary Fund warned earlier this month that rising taxes are undermining the country as a place “ to work and invest”, and said France risks being left behind as Italy and Spain grasp the nettle of reform. The French state’s share of GDP has risen to 56pc, creeping higher than Sweden and Denmark, without their labour flexibility. French industry has been losing 60,000 jobs a year for the past decade. The current account has swung from a surplus of 2.5pc of GDP to a deficit of 2.4pc since the launch of the euro. The country has lost 20pc labour cost competitiveness against Germany. It has a 50pc “tax wedge” – the tax share of labour costs – among the highest in the world. What France needs as unemployment rises by over 40,000 a month to modern era highs and the economy slides deeper into perma-slump is a radical assault on the state. Instead, Mr Hollande talks of nationalisation. Is London big enough to take the refugees?"

European debt crisis a bigger global threat than US fiscal cliff, says OECD
The Guardian
Europe's debt crisis remains a far bigger threat to the world's economy than the "fiscal cliff", according to the Organisation for Economic Co-operation and Development (OECD). In its latest twice ... "We don't think the euro-zone crisis is over yet ...

The Guardian

OIL FUTURES: Crude Flat as Euro-Zone Optimism Fades
Fox Business
However, the positive sentiment faded as some traders and analysts became weary of what they saw as an another temporary fix that didn't move the euro zone toward a substantial solution. Theeuro-zone debt crisis has "been so long and drawn out," said ...

OECD slashes global growth forecasts over euro zone risk
... as inappropriate. Loading... Alert icon. Sign in or sign up now! Alert icon. Loading... Published on Nov 27, 2012 by ReutersVideo. The economic organisation warns the debt crisis in the recession-hiteuro zone poses the greatest threat to the world ...

Euro zone, IMF agree on Greece debt deal
SYDNEY (MarketWatch) — Greece's institutional lenders reached a deal early Tuesday in Brussels that is expected to pave the way for the country to receive almost 44 billion euros of financial aid, while bringing its debt down to a sustainable level ...


OECD Slices World Economic Forecast
Fox Business
OECD Slices World Economic Forecast. Published November 27, 2012. Reuters. The OECD slashed its global growth forecasts on Tuesday, warning that the debt crisis in the recession-hiteuro zone is the greatest threat to the world economy. In light of the ...

Euro zone debt forgiveness lies ahead in Greek mire
Reuters India
But while a degree of can-kicking may be going on, there was a critical element in Monday night's deal that goes a lot further than any other step taken so far in the debt crisis to get Greece back on its feet. Implicit was an ... The EU official said ...

UPDATE 8-Euro zone, IMF secure deal on cutting Greek debt
Deal to include Greek debt buy-back, ECB profits returned. * Euro ... Greece, where the euro zone's debt crisis erupted in late 2009, is the currency area's most heavily indebted country, despite a big "haircut" this year on privately-held bonds. Its ...

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Tuesday, November 27, 2012

Time-bomb at the heart of Europe

France and the euro: The time-bomb at the heart of Europe | The Economist: "THE threat of the euro’s collapse has abated for the moment, but putting the single currency right will involve years of pain. The pressure for reform and budget cuts is fiercest in Greece, Portugal, Spain and Italy, which all saw mass strikes and clashes with police this week (see article). But ahead looms a bigger problem that could dwarf any of these: France. The country has always been at the heart of the euro, as of the European Union. President François Mitterrand argued for the single currency because he hoped to bolster French influence in an EU that would otherwise fall under the sway of a unified Germany. France has gained from the euro: it is borrowing at record low rates and has avoided the troubles of the Mediterranean. Yet even before May, when François Hollande became the country’s first Socialist president since Mitterrand, France had ceded leadership in the euro crisis to Germany. And now its economy looks increasingly vulnerable as well." As our special report in this issue explains, France still has many strengths, but its weaknesses have been laid bare by the euro crisis. . . "


more news below:

Monday, November 26, 2012

European Leaders Fail to Agree on Greek Aid

European Leaders Fail to Agree on Greek Aid - NYTimes.com
Euro zone finance ministers and international officials ended marathon talks on Greece's intractable debt ... afloat to contain contagion in the euro zone even as the country's debt prospects worsen. ...European Sovereign Debt Crisis (2010- ) ...

No Greek debt writedown in next rescue package: ECB's Asmussen
BERLIN (Reuters) - A write-down on Greek debt should not be part of the country's next rescue package, European Central Bank board member Joerg Asmussen told Germany's Bild newspaper ahead of Monday's euro zone group meeting. "We need a package of ...

Copper falls as euro zone growth fears return [Khaleej Times (United Arab ...
Copper fell on Tuesday after a downgrade of France's credit rating reminded investors of the festeringeuro zone debt crisis and took the steam out of a Monday rally built on optimism over positive announcements from Europe and the United States ...

more news below

Saturday, November 24, 2012

Euro zone debt crisis: upcoming events

Factbox: Euro zone debt crisis: upcoming events
(Reuters) - Following are forthcoming events related to the debt crisis in the euro zone: GERMANY... November 23 - ECB President Mario Draghi and German Finance Minister Schaeuble speak at Banking Congress in Frankfurt on the future of the Euro Zone.

Euro zone in deep downturn as China, US tick up
PMI compiler Markit said the surveys were consistent with the euro zone economy shrinking 0.5 percent this quarter, which would be the worst reading since the first quarter of 2009, when the economy hit its lowest ebb during the financial crisis ...

Euro-Area Slump Persists as Chinese Factories Recover: Economy
San Francisco Chronicle
(See TOP CRIS for more on the sovereign-debt crisis.) Nov. 22 (Bloomberg) -- Euro-area services and manufacturing output shrank for a 10th month in November as the debt crisis hurt confidence, underscoring divergences in the global economy as China's ...

Euro zone consumer confidence falls in November
Chicago Tribune
Consumer spending accounts for more than half of euro zone economic output, but with the effects of the debt crisis cutting disposable income, households have been in no position to contribute much to economic recovery. In the wider 27-member European ...

EU Spars Over Budget as Chiefs Float Prospect of Summit Deadlock
San Francisco Chronicle
22 (Bloomberg) -- European Union leaders fought to protect national interests in setting the bloc's next seven-year budget, dogged by the debt crisis in the euro zone, tensions between rich and poor countries and Britain's insistence on keeping its ...

Poland Is 'Hostage to Europe': Finance Minister
... 6:51 AM ET. Text Size. By: Shai Ahmed CNBC Associate Editor. Despite bucking the economic gloom of the euro zone in recent years, Poland's Finance Minister warned that the region's debt crisis could derail the economic strides made by the country.


Ireland's Debt Office: Progress Made to Resecure Market Access
Wall Street Journal
DUBLIN--Ireland is making "considerable" progress to resecure full access to markets, but it still fears the wider euro-zone debt crisis could upset its plans, the head of the national debt office said Thursday. John Corrigan, chief executive of the ...

After Euro zone Q3 2012 contracts, KFH expects further decline
The latest recession will make it challenging to control financial statuses in the Euro zone, as the total GDP will shrink by 0.4% in 2012, added the report issued within a statement. However, there are medium term ... In line with our expectations ...

more news below

Thursday, November 22, 2012

Dangerous Euro Zone-IMF Split Persists over Greek Debt

Dangerous Euro Zone-IMF Split Persists over Greek Debt
Spiegel Online
Euro-zone finance ministers meeting in Brussels this week have been unable to reach an agreement with the International Monetary Fund on how to ensure that Greece'sdebt load comes down to manageable levels. Germany and other European ... In contrast ...

Spiegel Online

Deutsche Bank expects euro zone to remain intact
Fears of a so-called peripheral euro zone state such as Greece leaving the currency union have haunted both markets and politicians as the region's debt crisis has unfolded. "Fundamentally, we believe the euro zone will remain intact," Mr ... He also ...

Premarket: Stocks steady as euro-zone fears percolate
Globe and Mail
Amid the latest efforts to pull the region out of its debt crisis, the euro is weaker against the U.S. dollar, but is well off its lows for the day, trading down 0.1 per cent at about $1.2803. Asian markets gained latitude overnight, even though the ...

Globe and Mail

Euro zone, IMF fail to strike Greek debt deal
After nearly 12 hours of talks through the night during which myriad options were discussed, euro zone finance ministers, the International Monetary Fund and the European Central Bank failed to reach a consensus, without which emergency aid cannot be ...

Debt crisis sends euro zone back into recession - Financial Mirror
World equity markets fell for a seventh day on Thursday, hit by evidence that Europe's debt crisishas stalled economic growth and by persistent concern over the ...

Euro zone aims at 120 pct/GDP Greek debt in 2020, ponders buyback
BRUSSELS Nov 20 (Reuters) - Euro zone finance ministers are aiming to bring Greek debt down to 120 percent of GDP in 2020, rowing back from an idea last week to shift the deadline to 2022, and discussing details of measures that would help achieve that ...

Euro zone meeting to focus on Greek crisis
Most Greeks want their country to stay in the euro zone but disapprove of the coalition government's handling of the debt crisis, a poll showed today. The survey, the first conducted by GPO pollsters since a June 17 election, comes ahead of a meeting ...

METALS-Copper slips as euro zone growth concerns resurface
... Thomas LONDON, Nov 20 (Reuters) - Copper dipped on Tuesday on worries over demand prospects after a downgrade of France's credit rating reminded investors of the festering euro zone debt crisis and overshadowed optimism that euro zone ministers ...

Global shares falter, oil slips on Gaza cease-fire
The Gaza conflict had supported crude oil prices over the past week and added to worries in the equity market about the U.S. "fiscal cliff" and the festering euro zone debt crisis. "Yesterday's big rally was all about fears of a wider conflict stemming ...

European shares retreat on euro zone worries
Buenos Aires Herald
European shares fell and the euro dipped today after France lost its top-notch credit rating from Moody's, reminding investors of the risks from the euro zone debt crisis. The FTSEurofirst 300 index of top European shares fell 0.2 percent to 1,089.50 ...

Poland drafting timetable for joining euro - president
Reuters UK
The comments by Komorowski were the strongest indication yet that policymakers in Poland, eastern Europe's biggest economy, were seriously considering a swift entry to the euro even though the euro zone is in the grip of a debt crisis. "(Poland) is ...

EURO GOVT-French yields edge up after downgrade
Although French bond yields have been reasonably steady and are at historically low levels, helped by safe-haven flows spurred by the euro zone debt crisis, the cost of insuring against a default reflects growing investor caution. Five-year credit ...

Tuesday, November 20, 2012

"In this global race you are either quick or you're dead"

Cameron says Britain in economic 'war' - CBI conference: debt crisis live
... crisis. Leading Democratic and Republican lawmakers voiced confidence over the weekend that a deal would be reached to avoid the so-called "fiscal cliff" ... Greece and the European Commission would sign a revised memorandum of understanding on...


Euro zone crisis firefighters begin to fight each other
Acting with the International Monetary Fund (IMF) and European Central Bank (ECB), they have bailed out Greece, Ireland and Portugal and set in place mechanisms to do the same for Spain in exchange for severe cuts to government spending and deep ...

ECB's Praet - deposit guarantee not key for bank union
Germany has resisted the idea of a Europe-wide deposit guarantee as part of a banking union, andECB President Mario Draghi said earlier this month "financial union does not have to imply the pooling of deposit guarantee schemes". After three ... The ...

TREASURIES-Prices dip on hopes budget crisis can be avoided
Lawmakers confident "fiscal cliff" will be avoided * Investors also keep an eye on Europe's debtwoes * Volumes light ahead of Thanksgiving holiday By Chris Reese NEW YORK, Nov 19 (Reuters) - U.S. bond prices fell on Monday as signs of progress in ...

Why We Don't Need QE or Euro: Czech Republic
Staff Writer, CNBC.com. As countries with much larger economies try to contest slowing growth by pumping more cheap money into their financial systems, the Czech Republic is planning to avoid similar actions – and may put off its euro joining date as ...


Euro breakup would mean short-term pain for long-term gain
Bangkok Post
The unravelling euro crisis will soon result in some countries leaving the currencyzone, but this should not unduly worry Asia, except for companies with a business presence in countries that exit the euro, according to the independent macroeconomic...

Bangkok Post

The euro zone's new migraine: Spanish politics
Globe and Mail
A serious secession attempt by the economically powerful region would trigger a political crisis that could easily scare off sovereign bond investors, raising Spain's financing costs and perhaps prompting a costly bailout of the euro area's fourth ...

Globe and Mail

fiscal cliff would give US an austerity crisis
Economic Times
Going over the fiscal cliff would give US an austerity crisis, not a debt crisis. Story; Comments ... WASHINGTON: Come January, the United States might careen off thefiscal cliff. Or start rolling ... But what is wrong with the plain old name "fiscal ...

Economic Times

SNB can keep 1.20 cap as long as needed- Danthine
The SNB set the cap of 1.20 francs to the euro in Sept. 2011 to stave off deflation and recession after investors seeking refuge from the euro zone debt crisis pushed the franc to record highs. In response to a question about how long the central bank ...

Monday, November 19, 2012

ECB's Asmussen sees Greek aid deal covering 2 years

ECB's Asmussen sees Greek aid deal covering 2 years
BERLIN (Reuters) - European Central Bank policymaker Joerg Asmussen said on Sunday the euro zone should agree next week on two years of funding for Greece and leave further help to be decided later, a view likely to irk the IMF, which wants a permanent ...

GLOBAL ECONOMY-Looking hard for reasons to give thanks
Euro zone in fresh crisis talks over Greece. * Budget wrangling ... In Europe, another week brings another meeting of finance ministers to try to 'save' Greece as well as another set of surveys likely to show the euro zone heading for another quarter ...

Italy austerity saved euro zone claims Mario Monti
Gulf Daily News
Monti, a former economics professor and high-flying European commissioner, was voted in by parliament as the head of a technocratic government on November 16 last year as Italy came under fire from the euro zone debt crisis. "This government was born ...

Gold to consolidate, rise
Hindu Business Line
The euro zone debt crisis dragged the block into its second recession since 2009 in the third quarter despite modest growth in Germany and France, data showed on Thursday. The markets are on their toes due to the looming “fiscal cliff” phenomenon, as ...

Business Insider
Little or none of these will happen as Washington will once again defer any serious deficit cutting, as it did when faced with 2011's debt ceiling crisis (which set up the current fiscal cliff crisis). The pain is deferred, but at a cost of further ...

Pick up key stocks on market weakness
The Nation
... SET Index rose on Monday after the US consumer confidence touched a five-year high, it dropped by 20.48 points from the middle to late last week (the SET Index hit a low of 1,263.05 points) on concerns over the US "fiscal cliff") and the European ...

Rajoy Still Has a Debt Mountain to Climb
Wall Street Journal
Even without requesting the euro-zone aid that would pave the way for the European Central Bank to start buying Spanish bonds, the presence of an implicit ECB backstop has led to a sharp fall in bond yields and allowed Madrid to complete its 2012 ...

Asian Stock Markets Week Ahead: Investors To Focus On US Data
International Business Times
Asian stock markets ended lower last week as concerns about the U.S. fiscal cliff andeuro zone debt crisis continued to weigh on the sentiment. Stock markets in Asia are expected to move along with the global markets in the coming week in the absence ...

International Business Times

Dollar creeps higher in cautious trade
The Nation
NEW YORK - The dollar edged higher as traders grew more cautious amid rising Middle East tensions, which added to worries about the eurozone debt crisis and the US fiscal cliff. The eurofetched $1.2741 at 2200 GMT, ... The euro managed to trim its ...

Gold falls as buck rises; Greece funding delayed
... olgax name jpmorgan large cap growth fund a realtimechannel channel quotes zigman 369776 id quote_1904397 open 2 days ago markets financials shed morning woe reits highlight us financial stocks recover earlier losses on tuesday afternoon and rise ...


Saturday, November 17, 2012

US fiscal policy and Euro debt crisis (video)

Nov. 16 (Bloomberg) -- Kyle Bass, chief managing partner and principal of Hayman Capital Management LP, talks about his firm's investment strategy, U.S. fiscal policy and Europe's debt crisis. He speaks with Stephanie Ruhle on Bloomberg (Source: Bloomberg)

How Long Would the Shock to the Economy Last? - Nov. 16 (Bloomberg) -- Cumberland Advisors' Robert Eisenbeis and David Kotok discuss President Obama's meeting with congressional leaders about the fiscal cliff. They speak on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Debt crisis: as it happened, November 16, 2012
Have a great weekend, and don't forget to log on to our financial crisis page for more news and analysis over the weekend. Enjoy! 16.55 David .... this aim," he said. Mr Weidmann also said that comparisons between the ECB, Bank of England and Federal...


METALS-Copper falls on dollar rise, worry over US and euro zone
A pick-up in growth from China would provide welcome news in the West, where industrialised economies are struggling following the debts built up during the global financial crisis. But bulging metal inventories in China, expectations of a modest rise ...
Debt crisis sends euro zone back into recession [Financial Mirror (Cyprus)]
Some analysts said investors were wary of selling the euro heavily in case policymakers surprised markets with decisive action to tackle the euro zone debt crisis. "They don't want to sell into it too aggressively in case there's a policy response from ...
Fitch Says Weaker Euro-Zone Countries Face Challenges
Wall Street Journal
Fitch raised its outlook on Ireland to stable from negative, the first positive credit rating action on aeuro-zone sovereign from the geographic periphery since the onset of the debt crisis. The move reflected "country-specific considerations, rather ...
Gulf Daily News
EURO ZONE IN RECESSION. Posted on » Friday, November 16, 2012. BRUSSELS: The euro zone debt crisis dragged the bloc into its second recession since 2009 in the third quarter despite modest growth in Germany and France, data showed yesterday.
Moody's Says Euro Crisis May Lurch Back into Shock
The rating agency said that positive developments since summer have reassured investors that a resolution to the ongoing euro-zone crisis will be forthcoming. But Moody's said that progress on what needs to be accomplished to provide a fix--economic ...
EURO GOVT-Greek, US worries keep Bunds near highs
LONDON, Nov 16 (Reuters) - German government bonds traded close to two-month highs on Friday, with anxiety over Greece's debt sustainability and the U.S. "fiscal cliff" pushing investors towards the safety of low-risk assets. Greece has taken centre ...
Europe's Lingering Crisis Augurs Badly for Its Clout
Wall Street Journal
In the early phases of the euro-zone debt crisis, many of them dismissed its significance, arguing it was a transitory financial and economic phenomenon that would have little or no lasting geopolitical impact. Now, the crisis has dragged on for so ...
European shares slip for third session
PARIS, Nov 16 (Reuters) - European stocks slipped further on Friday as brewing worries over U.S. budget negotiations and the continuing euro zone debt crisis unsettled some investors, with banking stocks featuring among the top fallers. The euro zone ...

Euro-Zone Economy Shrinks Again
Wall Street Journal
While most economists in the November Wall Street Journal forecasting survey don't expect the U.S. to follow Europe into recession in the next 12 months, an escalation in the euro-zone crisis is the second-most-cited potential trigger for a U.S ...

Wall Street Journal

Friday, November 16, 2012

Surprise, surprise--AFTER the election, the TRUTH comes out

Surprise, surprise--AFTER the election, the TRUTH comes out--

1. Poverty is up;
2. Jobless claims are up;
3. Inflation up;
4. Eurozone already in recession--

Euro zone falls into second recession since 2009 | Reuters: (Reuters) - The euro zone debt crisis dragged the bloc into its second recession since 2009 in the third quarter despite modest growth in Germany andFrance, data showed on Thursday. The French and German economies both managed 0.2 percent growth in the July-to-September period but their resilience could not save the 17-nation bloc from contraction as the likes of The Netherlands, Spain, Italy and Austria shrank. Economic output in the euro zone fell 0.1 percent in the quarter, following a 0.2 percent drop in the second quarter. Those two quarters of contraction put the euro zone's 9.4 trillion euro ($12 trillion) economy back into recession, although Italy and Spain have been contracting for a year already and Greece is suffering an outright depression. A rebound in Europe is still far off. . . . . "

GLOBAL MARKETS-Shares sink on 'fiscal cliff,' Europe recession
NEW YORK, Nov 15 (Reuters) - Global stocks fell for a seventh day on Thursday after data showed the euro zone entered a recession in the third quarter and on fear of the U.S. "fiscal cliff," while oil prices gained on growing concerns about violence in ...

Euro Zone Q3 GDP To Contract On Worsening Debt Crisis
Action Forex
The Euro Zone falls under the spotlight as financial markets are waiting for the first Euro ZoneGDP reading for the third quarter 2012 with expectations the economy contracted amid the worsening sovereign debt crisis. The first GDP reading for the 3 ...

European shares dip as euro zone sinks into recession
LONDON, Nov 15 (Reuters) - European shares fell for the second day running on Thursday as investors fretted over waning growth due to the euro zone debt crisis and doubts about the U.S. fiscal situation. By 1112 GMT, the FTSEurofirst 300 had shed 4.86 ...

Euro zone double dips back into recession
FRANKFURT (MarketWatch) — Europe's long-running debt crisis dragged the 17-nation euro zoneback into recession in the third quarter, data showed Thursday, offering a negative counterpoint to growing optimism among U.S. and global investors over ...

UPDATE 2-Top euro policymakers at odds over Greek debt fix
ECB's Coene says writedown probable eventually. * IMF pressing for ... The euro zone's debt crisisbegan in Greece three years ago when a newly elected government disclosed that the country had knowingly understated its budget deficit. Athens managed ...

PRECIOUS-Gold slips as weak euro zone data hurts stocks
Stocks hurt by weak euro zone growth data. * World gold demand slides in Q3 - WGC. * South Africa mine strikes end, tensions remain. By David Brough. LONDON, Nov 15 (Reuters) - Gold eased on Thursday as evidence that Europe's debt crisis has hurt ...

Euro zone falls into recession
The euro zone fell into a recession in July-September, the second since the global financial crisisin 2009, as French resilience could not make up for a slump across Europe and the three-year debt crisis slowed Germany to a crawl. Economic output in ...

Fiscal Cliff Crisis; Will Lawmakers Reach Some Sort of Deal?
While the fiscal cliff issue has been at the back of investors' mind for over a year now, focus completely turned to the impending threat following the U.S. Presidential election on November 6. The fiscal cliff refers to the implementation of automatic ...

Euro zone falls into second recession since 2009 | Economy | GMA ...
The euro zone debt crisis dragged the bloc into its second recession since 2009 in the third quarter despite modest growth in Germany and France, data showed on Thursday.
GMA News Online

Euro-zone limps into recession – Debt crisis hits growth, outlook ...
By Kuwait Times
BRUSSELS: The 17-nation euro-zone was in recession for the second time in three years in the third quarter, official data showed yesterday, as the debt crisis exacts a heavy toll and the outlook darkens steadily. The euro-zone economy ... France meanwhile also managed 0.2 percent but Spain shrank 0.3 percent and Italy 0.2 percent, boding ill as the euro-zone struggles to put its financialaffairs in order through the austerity policies which are proving so unpopular. Non-euro Britain ...
Kuwait Times

Euro zone dodges disaster but doesn't rebound - Analysis & Opinion ...
By Edward Hadas
If politicians and central bankers had responded less well to the 2008 financial crisis and the on going euro crisis, the euro zone would be stuck in a vicious cycle of debt deflation and economic decline – Greece writ large. Despite foreign ...

Euro zone slips into second recession since 2009 - World - IBNLive
The euro zone fell into a recession in July-September, the second since the global financial crisis in 2009, as French resilience could not make up for a slump across Europe and the three-year debt crisis slowed Germany to a crawl.
IBN Top Headlines

Euro-Zone Woes Fuel Immigration to Germany - Spiegel Online
Experts immediately began pointing their fingers at the euro zone's reliance on austerity measures as it struggles to emerge from the ongoing debt crisis.

Europe stocks drop 1.7% on week, Greece weighs - MarketWatch
LONDON (MarketWatch)—European stocks closed the week 1.7% lower with banking shares under pressure Friday, as upbeat Chinese economic data failed to ...

CEPR: Euro-Zone Economy Suffers Recession Since 3Q 2012 - The ...
The euro-zone economy has been in recession since the third quarter of last year , following the ...Real-time updates and analysis of Europe's debt crisis ...

Euro zone falls into second recession since 2009 - Yahoo! Finance
Finance: The debt crisis dragged the euro zone into its second recession since 2009 in the third quarter despite modest growth in Germany and France, data ...

Thursday, November 15, 2012

Murmurs and Rumors

Oil ends below $86; fiscal cliff, euro zone weigh - MarketWatch: " . . . Crude-oil futures settled lower Monday, slipping back below $86 a barrel as investors watched risks to oil demand against a backdrop of concerns about the U.S. fiscal cliff and ongoing debt crisis in the euro zone. Tension in the Middle East region, however, limited oil’s losses. . . . Prices sold off Monday “due to the ongoing woes surrounding the [U.S.] fiscal cliff and the euro debt crisis,” said Matt Smith, a commodity analyst at Schneider Electric. . . . News reports say that Israel and Syria have exchanged fire, a development which is being referred to by BBC News as the most serious episode between the two countries since the Arab-Israeli war of 1973. In Nigeria, Royal Dutch Shell (US:RDS.A) has shut down a pipeline, blaming leaks caused by oil thieves. Meanwhile, worries persisted Monday over whether the United States will be able to avoid falling off the so-called fiscal cliff of tax hikes and spending cuts that will take place in January, unless politicians are able to strike a deal. “The crude complex remains at the mercy of developments and nondevelopments in two distinct ‘doozies,’ which are dictating focus at the moment: the impending ‘fiscal cliff’ and the euro debt crisis,” said Smith. “We have had murmurs and rumors of developments for both over the weekend, as Greece passes its austerity budget for next year.”. . . "

more news below

Wednesday, November 14, 2012

EU and IMF clash over Greece revives debt crisis fears

EU, IMF clash over Greece revives debt crisis fears
Euro zone finance ministers suggested Greece, where the euro zone debt crisis began, should be given until 2022 to lower its debt to GDP ratio to 120 percent but International Monetary Fund chief Christine Lagarde insisted the existing target of 2020 ...

PRECIOUS-Gold dips as euro zone debt fears hurt stocks, euro
LONDON, Nov 13 (Reuters) - Gold eased for a second day on Tuesday, tracking losses in stocks and other commodities as worries over the euro zone's handling of its debt crisis knocked the euroto a two-month low against the dollar. Appetite for European ...

Futures Fall on Euro, Fiscal Cliff Worries
Fox Business
There have been worries brewing that the eurozone's debt crisis, coupled with other global headwinds, are beginning to take a toll on Europe's biggest economy that has so far been fairly resilient. Eurozone finance ministers also gave Greece an extra ...

Large European Banks Stash Cash
Wall Street Journal
Worries about the euro-zone debt crisis, economy and regulatory uncertainty mean that European banks still prefer to hoard cash with their central banks rather than lend it out. WSJ's David Enrich has been crunching the figures that show little change ...

Wall Street Journal

Sinking German investor morale fuels recession talk
Seeking to calm unease on markets about the spreading crisis on the euro zone's periphery, ECBPresident Mario Draghi unveiled a new bond-buying programme in September allowing for potentially unlimited interventions for struggling states. No country ...

Gold Edges Up, but Rattled By Euro Zone Debt Turmoil
Text Size. By: Reuters. Gold edged modestly higher on Tuesday, tracking losses in stocks and other commodities as worries over the euro zone's handling of its debt crisis knocked the euro to a two-month low against the dollar. ... In the longer term ...

BASE METALS: LME Metals Lower On Euro-zone Debt Concerns
Wall Street Journal (India)
Base metals are lower on the London Metal Exchange Tuesday, falling in tandem with stock markets and the euro amid persistent concerns over the euro-zone debt crisis. At 1129 GMT, LME three-month copper was down 0.6% at $7,589.50 a metric ton.

Up to Greece and its lenders to sort crisis: ECB's Honohan
... bring its debts down to a sustainable level reignited fears this week that Europe's troubles could flare up anew. Honohan, who also heads Ireland's central bank, told an audience at an event in Edinburgh that there was a need for solidarity in the ...

Canada has contingency for fiscal cliff, Europe crisis: Flaherty
Reuters Canada
TORONTO (Reuters) - Canada has a contingency plan should the United States not reach an agreement with respect to a series of tax hikes and spending cuts set to kick in next year or if theeuro zone's debt crisis worsens, the country's finance minister ...

Tuesday, November 13, 2012

Oil slips below $86; fiscal cliff, euro zone weigh

Oil slips below $86; fiscal cliff, euro zone weigh
SAN FRANCISCO (MarketWatch) — Crude-oil futures traded mostly lower Monday, slipping back below $86 a barrel as investors watched risks to oil demand against a backdrop of concerns about the U.S. fiscal cliff and ongoing debt crisis in the euro zone.

Debt Crisis: No more money for Greece despite vote - European, Business - Independent.ie: "THE euro zone will not authorise more money for Greece, despite the country approving a tough 2013 budget, because there is still no agreement on how to make its debts sustainable. Finance ministers meeting in Brussels should, however, give Athens two more years to meet its goals in talks about unfreezing lending to Greece."

E.ON Questions Mid-Term Profit Targets As Euro-Crisis Weighs
Fox Business
XE) late Monday warned its medium-term profit and dividend targets may no longer be achievable, blaming the unresolved sovereign debt crisis in the euro zone as well as knock-on effects on industrial energy demand in a faltering European economy.

UK shares gain in thin volumes, await euro zone progress
Greece passes budget but debt crisis rumbles on. * Investors hedge uncertainty with defensives. By Alistair Smout. LONDON, Nov 12 (Reuters) - Britain's FTSE 100 edged higher on Monday in thin volumes after the passage of a crucial Greek budget vote on ...

Stock Market Today: Stocks End Flat Amid Worries over Fiscal Cliff, Euro Zone ...
Stocks pared their modest gains in late trading to finish flat as concerns over the looming fiscal cliffand the euro zone debt crisis continued to weigh down investors' sentiment. » Track Premarket Stocks and Today's Top Stocks. The Dow Jones ended ...

Euro zone number one worry for WEF delegates in Dubai
The National
"Such a shift in priorities among members surveyed suggests that experts now contemplate a considerable political as well as financial fallout from the crisis, as euro-zone countries struggle to keep public debt levels in check," said the WEF. The ...

Loss Clauses May Not Dent Demand for New Euro Government Bonds
Wall Street Journal (blog)
Euro-zone governments are set to start selling bonds with clauses that make it easier for countries to impose losses on bondholders, but analysts doubt that these provisions alone will make this new slice of government debt trade at a sharply lower ...

After Crisis, Benelux Banks Head Toward Light
Wall Street Journal
AMSTERDAM—Banks in Belgium and the Netherlands were hit hard by the financial crisis but a couple of the lenders are now starting to emerge as among the best bets in the European banking sector, according to some analysts. To be sure, the banking ...

Greece Passes 2013 Austerity Budget
Wall Street Journal
Euro-zone finance ministers will meet Monday in Brussels, where they had been expected to approve Greece's next aid payment of €31.5 billion ($40 billion), but no decision is now expected until they are assured the country's overhauls are on track ...

Wall Street Journal

Italy - Factors to watch on Nov 12
EURO ZONE DEBT CRISIS. Investors are returning to Italy, allowing it to comfortably service its large debt and avoid seeking help from the euro zone's bailout fund, the head of the country's debt agency said on Friday. The euro zone will not release a ...

Fiscal Cliff In US - Debt Crisis In Europe - Both Favor Gold -- Morgan ...
Fiscal Cliff In US - Debt Crisis In Europe - Both Favor Gold. November 9, 2012. By James O'Dell. November 9, 2012, Los Angeles – Precious metals prices ...
Euro zone sales fall in September as motorists cut back - MSNBC.com
Despite tepid global demand for oil as economies worldwide feel the impact of the euro zone debt crisis, Brent crude rose to near $120 a barrel in August and ...

Sunday, November 11, 2012

The Week Ahead (Bloomberg video)

Nov. 9 (Bloomberg) -- Gigi Stone forecasts tomorrow's news, highlighting the big stories to be on the look for in the next trading week. She speaks on Bloomberg Television's "Bloomberg Rewind." (Source: Bloomberg)

more news below

Saturday, November 10, 2012

Euro falls to 2-month low vs dollar as core Europe slows

Euro falls to 2-month low vs dollar as core Europe slows
NEW YORK (Reuters) - The euro dropped to a two-month low against the U.S. dollar on Friday and could extend losses as fears mounted that the euro zone's debt crisis and deteriorating economic conditions could drag down global economic growth.

Slovenia presidential vote comes amid debt crisis
Atlanta Journal Constitution
Three candidates are vying for the presidency this weekend in crisis-stricken Euro zone member Slovenia where deep political divisions have threatened efforts at reforms needed to avoid possible bailout. (AP Photo/Darko Bandic). View Larger · Slovenia ...

Soros Says Euro Crisis Threatening Europe's Cohesion, EU Ideals
Billionaire investor George Soros said the euro zone's debt crisis is harming the forces that have held the currency bloc together as well as the vision that led to the creation of the European Union. “The euro crisis is threatening Europe's cohesion ...

Europe stocks drop 1.7% on week, Greece weighs
LONDON (MarketWatch)—European stocks closed the week 1.7% lower with banking shares under pressure Friday, as upbeat Chinese economic data failed to spur investor optimism amid worries over the euro-zone debt crisis. The Stoxx Europe 600 index ...

Euro zone crisis: Worst seems to be over
That's important because a major cause of the crisis was Greece's overspending during the calm years after the euro's introduction in 1999, and Italy's failure to cut the high levels of debt it joined with. Other governments — such as Spain and ...

FOREX-Euro hits two-month low vs dollar after ECB holds on rates
German exports slid at their fastest pace since late last year, figures showed on Thursday, adding to evidence that the euro zone's debt crisis has begun to inflict a heavy toll on Europe's largest economy. The dollar index, which measures its ...

Euro dips below 1.2700, risks skewed to the downside
FXstreet.com (Córdoba) - The euro fell to a fresh 2-month low beneath 1.2700 against the dollar on Friday amid mounting concerns over the euro zone debt crisis and the global economic growth. Even though the European session was marked by a strong ...

Debt Crisis: Germany plans limit on 2013 borrowing to reach balanced budget
Irish Independent
A German parliamentary committee set a limit on new borrowing in 2013 on Friday that puts theeuro zone's largest economy on track to honour its own demands for balanced budgets across the region. The German parliament's budget committee set a cap for ...

METALS-Copper hits 2-month low on US fiscal, euro zone concern
... U.S. "fiscal cliff", euro zone debt crisis weigh * China data upbeat, congress eyed for stimulus hints By Maytaal Angel LONDON, Nov 9 (Reuters) - Copper hit its lowest in more than two months on Friday as a stronger dollar, a looming U.S. fiscal ...

Germany Is Getting Worried That France Is Dragging It Down
Business Insider
Schaeuble has been a close ally of France and has argued firm ties are key to achieving more European integration, a persistent German demand to solve the problems of the euro zone debt crisis. In August, he and his French counterpart Pierre Moscovici ...

more news below

Friday, November 9, 2012

Greek books are still being cooked

The Greek books are still being cooked - Telegraph: "This week saw yet more austerity measures voted by the Greek parliament for yet another bail-out that won’t be repaid"

Debt Crisis: ECB's Mario Draghi leaves door open to interest rate cut
Irish Independent
THE eurozone economy shows little sign of recovering before the year-end despite easing financialmarket conditions, European Central Bank President Mario Draghi said today, leaving open the possibility of an interest rate cut in the months ahead. But ...

PRECIOUS-Gold holds near $1715/oz, focus on euro zone
The euro zone debt crisis was back in focus, with the euro under pressure from fresh speculation that Spain is not in a hurry to request financial aid. Greece's government voted by a razor thin margin on Thursday to approve an austerity package needed ...

German Exports Suffer Euro-Zone Fatigue
Wall Street Journal
German exports fell sharply in September on weak orders from inside the euro zone in the latest sign that the sovereign-debt crisis has finally reached Germany's borders. Exports fell 2.5% in September from August, reversing the previous month's gains ...

Debt crisis: live
It's about 45 seconds long and shows a lot of random euro-related buildings swirling around. At the end of the presentation, the floor remains silent. Any questions? "I have one," says Mr Draghi: "What is the sense of this movie?" Vítor Constâncio, the ...


ADR Report: Euro-Zone, US Political Fears Send Shares Lower
Wall Street Journal
Separately, European Central Bank President Mario Draghi said in remarks prepared for delivery in Frankfurt that the euro-zone debt crisis is beginning to have an impact on the German economy. Adding to the euro-zone concerns were investor fears of a ...

Bond Market Buoyant for Europe's East
Wall Street Journal (blog)
Slovenia, Romania, and Bulgaria all saw strong demand for their papers in the international bond market over the last month as investors were happy to increase their exposure outside the center of the euro zone's debt crisis. Slovakia followed with a ...

ECB holds rates, sees no economy bounce until 2013
Chicago Tribune
FRANKFURT (Reuters) - The euro zone economy shows little sign of recovering before the year-end despite an easing of financial market conditions, European Central Bank Mario Draghi said on Thursday after interest rates were left at a record low. The ...

Fiscal Cliff Concerns Lead to Risk Aversion
While fiscal cliff concerns are likely to remain on investors minds for the foreseeable future, the more immediate cause for worry appears to be the ongoing euro-zone debt crisis. While the common-currency received a moderate boost yesterday following ...


US Set to Restage Greek Tragedy
Spiegel Online
That and more is looming just over the horizon according to the White House if the country is allowed to plunge off the "fiscal cliff" at the beginning of next year. Coined by Federal Reserve head Ben Bernanke, it refers to the vast array of cuts and ...

Spiegel Online

ECB's Draghi: Euro Zone Slowdown Hurting Germany — EU ...
The slowdown in the euro zone is now impacting Germany,European Central ... biggest economy is no longer shielded from the effects of the euro zone debt crisis.

Thursday, November 8, 2012

German recession and US fiscal cliff fears; Greeks riot (video)

Greeks clash with riot police as politicans pass austerity measures - Telegraph: "Greek parliament on Wednesday narrowly approved a new austerity package demanded by EU-IMF creditors to keep the country's economy afloat."

Angst returns on German recession fears and US fiscal cliff - Telegraph: "Stock markets skidded across the world and investors retreated to safe-haven assets on fears that Europe’s festering crisis has spread to Germany and a bitterly-divided Washington may struggle to avert a fiscal crisis."

Debt crisis: UK will miss debt target if its new measures are not introduced ...
"By returning a divided government to Washington, the electorate has given neither party a clear mandate to address the lackluster recovery, the fiscal cliff, and the looming debt crisis," said Brian Kessler at Moody's Analytics. 15.00 Looking at the ...


EU slashes eurozone growth forecasts - Telegraph: "The European Commission slashed its eurozone economic growth forecast for next year to just 0.1 pc, six months after tipping a much stronger recovery of 1.0pc."

Euro zone debt crisis comes to boil | Oman Observer
BRUSSELS — The euro zone debt crisis comes to the boil as Greece votes on new austerity measures in return for a bailout just as the EU is expected to ...

Euro drops; Draghi says debt crisis hits Germany - MarketWatch
FRANKFURT (MarketWatch) -- The euro dropped versus the dollar and other major ... Bank President Mario Draghi said the euro-zone debt crisis is beginning to ...

Euro zone growth 'to pick up in 2014' - The Irish Times - Wed, Nov ...
The euro zone economy will barely grow next year but pick up in 2014, the ... " The aggravation of the sovereign debt crisis in the first half of the year, with rising ...

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