Econintersect Eurocrisis News Digest: Most do not understand that once an economic system looses equilibrium, the rate of degeneration can begin to accelerate. Evidence of the distress was first seen in the fall of interest rates paid by the strong economies such as Germany. Logically, this should be a positive dynamic for Germany – yet it appears now the financial and business planning is shifting to “hunkering down”. Per Spiegel:
…. The euro crisis and the higher capital requirements being imposed by regulators have adversely affected almost all European banks. And because of growing fears within the banks of a collapse of the euro zone, they are preparing for the worst by withdrawing to their home markets and winding down many investments.
This has serious consequences for the economy, not just along the periphery of the euro zone, but also in Germany, which had proved to be crisis-proof and was in fact booming until recently.
…. “Of course we sense the reluctance to spend money in the euro zone,” says Olaf Wortmann, an expert on the economy with the German Engineering Federation (VDMA). Some investors have become wary and are postponing contracts, Wortmann explains.
What follows is not cherry picked Eurozone headlines to correspond to the lead paragraphs – but a synopsis of global media headlines on the Europe.
Background article for this post:
‘Fear and Uncertainty’: The Euro Endangers German Economy
– http://www.spiegel.de/
Other Europe and Eurocrisis Headlines:
IMF economist blasts fund for ‘failure’
– http://cnn.com/
ECB’s Draghi says euro not in danger
– http://www.reuters.com/
Small-cap brokers are still bruised by euro
– http://www.standard.co.uk/business/
Nürburgring Nightmare: Fabled German Racetrack Faces Bankruptcy
– http://www.spiegel.de/
No renegotiation of Greek austerity cuts: Germany
– http://news.yahoo.com
German Foreign Minister Guido Westerwelle ruled out any renegotation of Greece’s budget austerity programme in an interview published on Saturday.Head of Greek privatisation fund resigns: source
– http://news.yahoo.com
The chief executive of Greece’s privatisation fund has resigned, his office said on Friday, citing a lack of government support, planning delays and forecasting paltry asset sales this year.ECB’s Coeure says negative bank deposit rate an option
– http://www.reuters.com/
Emerging markets: Dream on?
– http://www.economist.com/
FIFTEEN years ago this month, Thailand at last allowed its currency, the baht, to fall against the dollar, abandoning a long, losing battle with market forces. “I haven’t slept for two months,” said the governor of the central bank on the day of the devaluation. “I think that tonight I’ll be able to sleep at last…EIB to pump €1.4 bn into Greece
– http://news.yahoo.com
The European Investment Bank will pump 1.44 billion euros ($1.8 billion) into the struggling private sector in crisis-hit Greece by 2015, the ministers of finance and development said on Saturday.Euro Crisis Hits Emerging-Markets
– http://online.wsj.com/
Bank bailout fails to ease Spain concern – IBNLive.com
– news.google.com
IBNLive.comBank bailout fails to ease Spain concernIBNLive.comBrussels: Even as eurozone finance ministers unanimously approved a loan package of up to €100bn to repair its banks, a surge in the country’s bond yields suggested that doubts about its financial position were rapidly mounting.Euro nations seal $122 billion bail-out deal for Spanish banksThe HinduSpain’s In Trouble Again: But Is 7% The Danger Level?ForbesSpanish bailout go-ahead fails to ease fearsVictoria Times ColonistPhiladelphia Inquirer -Times of Omanall 3,127 news articles »SENER taps overseas markets
– http://cnn.com/
EU sets terms for Hutch’s Orange Austria bid: paper
– http://www.reuters.com/
BOE Repelled Libor Oversight
– http://online.wsj.com/
Low growth pushes UK Government deficit up 11.7% on last year
– http://www.markit.com/
Daily Economic Overview: Eurozone worries return to dominate market sentiment
– http://www.markit.com/
Falling UK retail sales add to second quarter growth worries
– http://www.markit.com/
Departing IMF economist rips fund’s leadership
– http://news.yahoo.com
A departing senior IMF economist has excoriated the fund, alleging it failed to address Europe’s crisis and “suppressed” its challenges, according to a letter published Friday.Global stocks, euro plummet on Spanish region’s aid request
– http://feeds.washingtonpost.com
Week ahead economic calendar [23 – 27 Jul]: GDP data to show second quarter growth trends in US and UK, while flash PMIs provide first clues at the start of the third quarter
– http://www.markit.com/
‘No Measurable Effect’: ECB Interest Rate Cut Inspires Little Hope
– http://www.spiegel.de/
The European Central Bank’s interest rate is now lower than ever before. But, even with the cut, few believe it will do much to energize the euro-zone’s flagging economy. The real problems are to be found elsewhere — and they aren’t getting better.OFT looking at US swoop for Clinton
– http://www.standard.co.uk/business/
Spain bailout fears peak after black Friday
– http://news.yahoo.com
A eurozone bailout for Spain’s banks and a tough batch of pay cuts and tax hikes have not been enough to save the country from the risk of a full-blown bailout, analysts warn.
