. Sir Mervyn King, the euro area face a solvency crisis
ECB head Mario Draghi: situation has worsened manufacturing output beaten China . Stocks rally after the auction Spanish debt
14:32:Back to business, and Italy, we hear the details of the new austerity measures to be provided by
Mario Monti Government the technocratic. Minister Monti and just announced the new "contribution-based pensions" were taken, and with a plan to accelerate the increase in the retirement age for women.interesting Monti government also plans to bring a minimum wage.
today, the Minister of Industry Corrado Passera said that Italy could fall into recession next year.
is difficult to know the real state of the Italian economy, as the country has taken the curious decision not to publish preliminary data ODG last month.
You know that the close relationship betweenand
Bild the pair has been called "Merkozy." However, German tabloid
created an image of the Chancellor, President of the average child.
can be seen in the flesh in the Bild website.
And it is here. Frankly, I can not imagine anyone arguing with Merkozy - if they actually existed, this crisis would have been solved long ago
despite warnings that there are only nine days to save the euro, Germany is refusing to budge on their opposition to the euro
Minister of Economy Philipp Rösler
, who also heads the Liberal Democratic Party (the government of the day), told reporters in Berlin he had discussed the matter with Angela Merkel and Horst Seehofer, who are the other two coalition parties.
The trio maintained their refusal to accept the loan group -. Although the European Commission insists that "the stability of connections" can help you
We are not willing to buy at changes in the Treaty (EU) to change the rules as other European countries like, for example, Eurobonds. The three of us clearly and expressly reject it.
Greece , unions claimed victory after call a general strike to protest against austerity measures imposed in the country. unions say clearly that mass participation has brought the country to a dead end - and Athens correspondent
confirms what is right. She noted that:
The stop 24-hour national closed schools, archaeological sites closed, flights and boats to land, bus and rail services, was killed on the radio, closed all taxes and government offices in the country and said that hospitals work only on minimum staffing levels.
A general strike has to hit Greece this year. He was called to protest against the 2012 austerity budget, which should be approved by the Greek parliament next week.
last month's budget, Finance Minister Evangelos Venizelos admitted that contained cuts that were strong, but said that the main priority the country was indebted to avoid bankruptcy.
"The important thing is obviously not to create a credit event does not go bankrupt, avoiding default, keep the country in the euro," said Venizelos.
The budget, which foresees an increase of belt tightening for a nation that has experienced successive waves of wage cuts and tax increases, aimed at the budget deficit to less than 6.7 per cent of GDP next year - after the budget targets were missed this year - drawing thousands of people in the public sector, the abolition of collective agreements and the enactment of new spending cuts
The strike is the first test of the atmosphere in the streets of the newly installed Prime Minister, Mr Lucas Papademos, the transitional government in coalition with the sole purpose of implementing the measures in exchange for bailout loans additional EU and the IMF. Once these policies are implemented, early elections are held next year.
Although still early in the day - with the demonstrators poured into the central square of Athens to participate in rallies organized by the powerful unions of Greece - the anger is almost palpable. Two years after the crisis in the country is the cradle of European theater of debt, union officials said their salaries were reduced by up to 70 percent.
"Currently there are over 500,000 families do not receive a salary does not work as an MP," lias Iliopoulos, general secretary of ADEDY, which represents 800 000 employees in the public sector has just said. "This means that about two million people are in dire straits. If you include the half a million and also in line for bread, which seeks to nearly three million people. The situation will get out of control, the fight will not be huge, huge social eruption, because these measures do not provide for growth, do not provide investment, not to serve the Greek people. It leads nowhere. Our creditors should be aware that this is a time bomb. "
Back in the euro zone crisis Joaquin Almunia, the head of the European Union antitrust, suggested that governments EU should have "shares at a price" in exchange for promises that lenders afloat.
My colleagueDavid Gow
EU summit to be held December 9 is "extremely important, crucial."
Almunia comments at a time when the European Commission has announced new rules on state aid to banks benefiting from State guarantees. The proposals include a reduction in costs for banks exposed to the weakness of sovereign states.
11:42:. British bank shares fell after the warning from the Bank of England to increase capital reserves
Lloyds Banking Group fell 2.6% to 24.1pRoyal Bank of Scotland
fromBarclays are 1.4% lower than 177p.
This reflects advice, Mervyn King, who must give "serious consideration of raising external capital in the coming months."The Bank of England press conference is over.
11:33: It's official. The credit crisis is nearly back in Britain
Kingtold the press conference:
think you can see signs of a crisis already in the euro area. I do not think it has started yet, but you can see how they have gone through here, if funding costs continue to be so high.
Jill Treanor interviewed
on the issue of bankers' bonuses. Surely, if the banks should give priority to capital levels should be checked for compensation?
In response, the king seems to call for the payroll deduction. He says that if you have to choose between paying retention bonuses and capital to strengthen the resistance, "our recommendation is to preserve capital."
Hector Sants , head of the Financial Services Authority, then weighed in his answer is (Reuters via the terminal):
"We are absolutely convinced they can make the distribution (including shareholders and employees) is consistent with the recommendation of the FPC that capital levels should be high.now have an established process, which begins its second
years, which means that banks ahead of us equity financing and distribution plans ... They have to preset the FSA plansbefore distributing bonds. "
Maybe (euro zone) will not break, you can continue in various forms, but may still be issues by default. None of us really knows. "
even by his usual standards, Sir Mervyn King, is gloomy. On the issue of liquidity boost yesterday by the Bank and five other central banks, the governor explained that only temporary relief.
King addresses the key issue of this crisis: "It's not a liquidity crisis is a solvency crisis."
is a step forward and will help, but can not solve the underlying problem.
10:42:Should we fear that British banks are at risk from the threat of a credit crisis news
King said that the recommendations today - for UK banks to increase capital reserves
now- are designed to "maintain the strength of the UK banking sector. "
"The funding follows the absence of concerns about solvency."
10:40: First question for Mr. Mervyn King, the media, to what extent the Bank of England prepares for a country lacking in the area euro? King refused to speculate on the chances of a defect, but he openly states that "we are making contingency plans."can read the full report here
In FPC press conference
Mervyn King warns that crisis area Euro British financial system grows in a spiral that is "characteristic of a systemic crisis."
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