. The unemployment rate reached 14% in Portugal
. President of the European Commission called bailout to agree
. Why stock markets may soon go>
. Moody 114 European banks may disqualify
If you are interested in the machinations of debt negotiations (and I know many of you), you Reuters should see this play:
Aa expertsdefault: Greek gods sovereign debt
It explains what happens when countries default, and indicates that the process is actually quite blurred. As a teacher Emilios Avgouleas
University of Edinburgh said:
(This is) the chaotic structure (a) process that is life or death to whole nations.
The history of modern debt renegotiation dates back to 1907 and the second Hague Convention, which prohibits countries from conducting the war on each other loans outstanding ( Limit use of debt collection contractual force
Before that, they pull their armed forces, as an insolvency of Mexico learned in 1861. The default value, then was invaded by France.
2:13 p.m.: President of Greece The European Commission today proposed an olive branch, praising the "courage "who have shown in recent months.
Jose Manuel Durao Barroso your concilliatory Parliament today. Rather than castigate Athens, has urged European leaders to accept commitments to Greece, and give the second rescue.
Barroso told MEPs that:
I salute the courage of the Greek government and the Greek people in these very demanding.
And I hope that Member States, members of the European Union accepts the commitments made by Greece.
comments after the Netherlands
Jan Kees de Jagerbecame the first finance minister to officially break cover and called to the rescue delayed. In an interview with Dutch daily Financieele Dagblad , De Jager pointed out that Europe should wait until Greece has held a general election, then you know exactly to whom you do business:
should wait after the election. They may negotiate commitments with the new government.
1:39 p.m.: encouraging economic news from the United States - the latest unemployment data shows that the number of new people to sign in the unemployment benefit fell to its lowest level in nearly four years.
Stark shift with Portugal, whose unemployment rate is 14% today. While the U.S. has been following a recovery plan that provides for a GDP growth of 0.6% last quarter, Lisbon has been reduced.
initial claims for unemployment insurance (a closely guarded piece of economic data) fell by 13,000 last week to 348,000. This is the third consecutive week, and encourage optimism that the U.S. economic recovery is gaining momentum.
A foreign minister of the United Kingdom has requested a solution to the Greek crisis will not end "completely destroy" the country.
Lord Howell of Guildford comments came as the House of Lords began a debate on the euro area debt crisis.Mr. Howell told the upper house of the British Parliament that the crisis was having a "chilling effect" on the global economy. Opening the discussion, said:
Clearly the immediate interest of Britain to see resolved problems of our neighbors, especially the nodes in the euro area."tangled" might be a kind of British understatement .... He continued:
They have a negative effect not only in the euro area, but in our own economy and the global economy, including even major new markets in emerging countries where there is increasing use of more .
quote through the Press Association.
Mr. Howell also requested a bonfire of bureaucracy in the European Union on competitiveness Bost. This is a question that David Cameron, explores the last EU summit.
The euro continued to lose ground today, hit a new term three weeks against the weak U.S. dollar $ 1.2975 in the final minutes.
European stock markets have not recovered from previous losses, with 46 |
low points in 5845. Stock markets on both sides of the Atlantic have rallied sharply in recent months. The FTSE 100, for example, only surpassed the 5,000 in October.
However, the volumes of shares were surprisingly low. This plot:
It shows customers today:
The graph shows the volume of trade on the FTSE 100 shares is very similar to the above, with a huge drop in volumes in 2012 and less than a quarter of trading volume from the time pre -crisis. Both the DAX and the CAC have also seen light years of negotiations to date suggests evidence of little things by demonstration.
the stock market volatility
United States and Europe has fallen a long way since the terrible moments of last fall, but has recently increased, suggesting the concern to come back.
So what's the conclusion? I think there is a real possibility now that Greece has a default hard and complicated, and that financial markets could suffer serious if an earthquake occurs.
11:55: disturbances are wreaking havoc on Sunday in Athens
Helen Smith reports :
turns out that almost every single traffic light in downtown Athens, was destroyed in an orgy of violence that erupted during the parliamentary vote on the spectacular loan agreement .
About 200 traffic policemen took place in the city to put order on the roads. But four days later, chaos still reigns traffic. Apparently, the liquidity problems of the Ministry of Transport did not have the funds to replace the lights.
Here is a photo of passengers standing around traffic lights vandalized Tuesday in Athens.
11:35: buffetted Portugal remains on both sides today - its economy is weakening the austerity moves, and Economists fear it will be dragged deeper into crisis by Greece.
first economy: The unemployment rate rose to 14% of the Portuguese in the last three months of 2011 compared to 12.4% in the previous three months. This is the highest rate since the 1980s.Portugal is less than one year in a restructuring plan for three years, according to Troika IMFG / EU / ECB, which includes tax increases for most workers and cut wages and bonus for civil servants. In return, Portugal gets a ? 78bn rescue plan.
This has helped reduce economic growth - the data this week showed that GDP fell 1.3% over the last three months of 2011
This brings us to the Greek connection. Martin Koehring, an economist at the Economist Intelligence Unit, said today:
Although the risk of contagion to the rest of Greece in the euro area has actually declined over the past year (eg, through the intervention of the ECB policy deleveraging of banks themselves, progress in Italy and Ireland) do not remain the main risks. Allow values ??of Greece could still cause great losses among European banks and may increase investors' fears that Portugal could be next, raising the need for additional bailouts of Portugal, and possibly other countries too heavily indebted. Allow Greece to exit the euro may have more dramatic consequences
It should be remembered that Portugal was to hit the targets set by the troika. However, its bonds are trading at distressed levels because it is hard to believe he could return to international markets soon.
11:16: The prospect of a greater presence in Athens of the troika - to ensure the implementation of reforms - is also driving protests in Greece today
public anger against the International Monetary Fund, the European Union and the European Central Bank is already high.
officials said that the troika could not leave their hotel - the Hilton - through the front door for the last month due to mass of leftists recalcitrant, and outside the protest day.
"My biggest fear is that Greece is becoming a communist state," said Karatzaferis right-wing newspapers, referring to the rise and rise of the left in the back of the opposition whipped all policies of the EU / IMF. "I'm worried about what will happen after the elections in April."
In Greece today, Finance Minister Evangelos Venizelos attempts to rally support for the bailout of controversial political leaders
is a big question, says Helen Smith
, our correspondent in Athens. With the exception of George Papandreou, PASOK and the Socialist leader Antonis Samaras, the conservative New Democracy party leader - the main supporters of the ruling coalition - the opposition to this latest round of austerity is at record levels
Helena reports:bracing themselves, Venizelos first met Dora Bakoyiannis, the former foreign minister who heads a small centrist party Democratic Alliance, and is also an advocate of measures.
"message of Greece should be clear. Corrective changes will happen. Greece is determined to remain in the euro area," said Bakoyiannis. "We expect Europe to show respect for the Greek people and at the same time ensuring that the sacrifices will not lose."
But his subsequent meeting with Georgios Karatzaferis, leader of the populist Laos and the secondary part of the government is unlikely to be so easy. Karatzaferis lambasted the loan agreement, this morning, as "essentially irrelevant".
10:51: The cost of insuring European government debt against default rose this morning, as investors calculated that there was more risk that the euro crisis will end messily. five Italian credit default swaps [a contract that pays if the lack of public debt] increased by 26 basis points in the day at 445 basis points, according to Markit. This means it costs ? 445 000 per year to ensure ? 10 million Italian debt in default.
10:31: a curious development in Greece. The Secretary General of NATO, Anders Fogh Rasmussen said that the strategy of the military alliance of "intelligent defense" which can help rebuild its economy.
Rasmussen made his point today during a visit to Athens to mark the 60th anniversary of Greece to NATO. He said on Twitter, the new NATO strategy - which includes new technologies such as unmanned advanced capabilities of satellite Earth observation and monitoring battlefield - could help fight nations
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