Tag: Eurozone

In Europe: Euro zone economy shrinks despite German growth

14 August 2012

No need to get excited, “this could be the last positive piece of news out of Germany for some time.”

The euro zone’s debt-ravaged economy shrank in the second quarter, having flatlined in the first, despite continued German growth which economists said could soon be snuffed out. Read more…

The Weekly Report: A Summary of Europe’s Situation

11 June 2012

We mentioned in an earlier post that this coming ‘summer’ is going to be far from relaxed.

The global outlook continues to deteriorate daily. Within the last 4 days, economic data for the world’s key economies has been dismal, particularly employment and manufacturing data in China and the U.S. which have both been in a downtrend over the past 2 months. However, Europe is currently what is causing the most volatility and fear in markets globally.

The European crisis continues to rage unabated as the E.U. leadership does not take concrete action to resolve many of the underlying issues; partially because they have exhausted many of their options, and partially because the scale and scope of the multiple sovereign debt and banking crises is unprecedented. Read more…

Done Deal. What’s Next?

31 October 2011

October 27th, 2011 (Bloomberg)

“European leaders cajoled bondholders into accepting 50 percent writedowns on Greek debt and boosted their rescue fund’s capacity to 1 trillion euro (US$1.4 trillion) in a crisis-fighting package intended to shield the euro area.

The 17-nation euro and stocks climbed while bond spreads narrowed after leaders emerged early today from a 10-hour summit in Brussels armed with a plan they said points the way out of the quagmire, albeit with some details still to be ironed out.”

Ah yes, love is in the air it would seem! The S&P 500 has surged to its largest monthly rally since 1974, the Euro has risen, oil is up to $92, and European bank stocks are up. If you bought into a position just before the summit, I’d say the day after was your lucky day! Read more…