EC PRESIDENT CALLS URGENT MEETING FOR TOMORROW #2

I'm sure l've just heard on Radio 2's news about 'Greeces shock decision to leave the Euro' but can't see it anywhere??

margaret wrote:I'm sure l've just heard on Radio 2's news about 'Greeces shock decision to leave the Euro' but can't see it anywhere??

I posted yesterday on here Margaret that Greece was in talks with a Law Firm and said then it might be because the Country was defaulting. I"ll check out sky.

15 December 2011
Last updated at 12:01












Eurozone downturn slows slightly, PMI survey indicates











German manufacturing continued to contract in November, but at a slower pace


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The downturn in the 17 economies that share the euro eased slightly in December, according to a closely watched survey.

The composite survey of thousands of firms by Markit showed a continued contraction - but at a slower rate than in November.

Manufacturing in Germany - the eurozone's strongest economy - shrank for the third month in a row.

However, the figures were not as bad as many economists had expected.

"It's an encouraging sign that the index didn't fall any
further. Quite what will happen henceforth remains highly uncertain,"
said Markit's chief economist, Chris Williamson.

The composite Markit Purchasing Managers' Index (PMI) rose to
47.9 for December from 47 in November. A number below 50 indicates a
contraction.

However, economists say the slowdown in the rate of contraction is unlikely to be enough to avert a recession.

And a separate report from Ernst & Young has predicted a "bleak" winter for the currency bloc.

The firm says a "mild" recession is likely in the first half
of next year, leading to economic growth of just 0.1% for the whole of
2012.

Slowing contraction
The manufacturing index across the eurozone rose to 46.9 in December from 46.4 in November.


Continue reading the main story
“Start Quote

Banks all over the eurozone... are
only alive at the moment thanks to the sheer scale of the money they've
been able to borrow from the ECB and from their respective national
central banks”

Robert Peston Business editor

• Read more from Robert
  

Services, which account for the bulk of the eurozone economy, also rose to 48.3 from 47.5.

Markit said better figures for France and Germany accounted for much of the improvement.

France's service industry expanded slightly in December, whilst the contraction in the country's manufacturing sector slowed.

Germany's manufacturing survey improved slightly from 47.9 to 48.1.

A eurozone index measuring new orders also showed a rise.

Recession
However the survey still suggests the region is entering a recession.

"The eurozone suffered its worst quarter for two and a half
years in the final three months of 2011 with PMI data suggesting the
region's economy is likely to have contracted by 0.6%," said Mr
Williamson.

That would be a bigger fall in economic output than many economists currently expect.

Improvements in France and Germany are expected to be offset by deep recessions in troubled economies such as Spain and Italy.

"Brutal austerity measures and a lack of strategy to
regenerate growth indicates little prospect of the eurozone avoiding a
recession," said Altaz Dagha, an economist at Westpac.

Market uncertainty
The news comes as European money markets continue to digest the latest efforts to stabilise the single currency bloc.

Spain successfully raised 6.03bn euros ($7.84bn; £5.06bn) in
new funds on Thursday through a bond auction - more than it had
expected.

The average interest rate on 2.45bn euros of the five-year
bonds sold fell to 4.023% from 5.275% at a similar auction at the start
of the month.

However, the rate on nine and 10-year bonds rose slightly on sales in September and October.

"(The Treasury) has surpassed its target again on strong
demand. The result is surprisingly positive considering these times of
market volatility," said Jose Luis Martinez, a strategist at Citigroup's
Madrid office.

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Panda, they had a half hour phone in with Jeremy Vine about Greece leaving the euro complete with mock up news readers reporting it. I think l must have heard a snippet of that at 12pm, sorry!

margaret wrote:Panda, they had a half hour phone in with Jeremy Vine about Greece leaving the euro complete with mock up news readers reporting it. I think l must have heard a snippet of that at 12pm, sorry!

That"s O.K......if anyone defaults it will be Greece, no way can they manage that debt.

did i read here or somewhere else that greece is consulting lawyers about leaving the eu?

French banker says UK should be downgraded first
Christian Noyer, chairman of the French central bank, on a visit to Singapore, 30 November Christian Noyer heads France's central bank


Rating threat to European Union

The chairman of the French central bank, Christian Noyer, has said ratings agencies should downgrade the UK before France because its economy is weaker.

US agency Standard and Poor's recently warned France its rating could suffer over the eurozone crisis and downturn.

"The downgrade does not appear to me to be justified when considering economic fundamentals," Mr Noyer said.

The British Government responded by saying the UK had a credible plan for dealing with its deficit.

Speaking to French regional newspaper Le Telegramme, Mr Noyer said: "They should start by downgrading Britain, which has more deficits, as much debt, more inflation, less growth than us and where credit is slumping."

Britain was not identified as a credit risk by Standard and Poor's in its report earlier this month.

The spokesman for UK Prime Minister David Cameron said: "Credit ratings are a matter for credit rating agencies but we've put in place a credible deficit reduction plan and you can see that credibility in the UK's bond yields."


http://www.bbc.co.uk/news/world-europe-16207748

Hello Angelina. Well the powers that be in France seem to be going for our throats. What exactly did we do that has so antagonised them?

Whilst they do whatever they want for France and opt out of anything that does not suit them. They are used to Britain falling for the five card trick every time. Well this time we have said a big NO and now they really are throwing their toys out of the pram and are acting in a way that is totally disgraceful. With "friends" like these we certainly don't need enemies.

The new treaty is as yet a blank piece of paper. Who is going to sign up for that? We will be joined by others, no doubt in my mind. Plus they are pushing us more towards getting out of the EU altogether (hopefully) Then they will certainly miss our contributions in a big way. All IMO of course.

fuzeta wrote:Hello Angelina. Well the powers that be in France seem to be going for our throats. What exactly did we do that has so antagonised them?

Whilst they do whatever they want for France and opt out of anything that does not suit them. They are used to Britain falling for the five card trick every time. Well this time we have said a big NO and now they really are throwing their toys out of the pram and are acting in a way that is totally disgraceful. With "friends" like these we certainly don't need enemies.

The new treaty is as yet a blank piece of paper. Who is going to sign up for that? We will be joined by others, no doubt in my mind. Plus they are pushing us more towards getting out of the EU altogether (hopefully) Then they will certainly miss our contributions in a big way. All IMO of course.

Hi Fuzeta, they are always throwing their toys out. Anything doesn't suit them they go on strike and then they get their own way. Maybe it's time they learnt you can't always do that. Arrogance is going to get them nowhere.

I do hope not Angelina. I hope that our government stand firm and take no more nonsense. I am just worried about the tricks and plotting that is obviously going on with Merkel and Sarkozy. It's like going back to the Borgias!!!!

fuzeta wrote:I do hope not Angelina. I hope that our government stand firm and take no more nonsense. I am just worried about the tricks and plotting that is obviously going on with Merkel and Sarkozy. It's like going back to the Borgias!!!!

Merkel will be playing her own game....if Sarkozy goes against her she will drop him fast. He's only useful as long as he does as he's told. There's all this talk of a united Europe...mainly to try and get them out of the mess they've made....but when the chips are down it will be each man for his own.

Angelina wrote:

fuzeta wrote:I do hope not Angelina. I hope that our government stand firm and take no more nonsense. I am just worried about the tricks and plotting that is obviously going on with Merkel and Sarkozy. It's like going back to the Borgias!!!!

Merkel will be playing her own game....if Sarkozy goes against her she will drop him fast. He's only useful as long as he does as he's told. There's all this talk of a united Europe...mainly to try and get them out of the mess they've made....but when the chips are down it will be each man for his own.

That's exactly right Angelina. I am hoping we have a head start

5 December 2011
Last updated at 19:17



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Lagarde: No country's economy immune from rising risks






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IMF chief Christine Lagarde was speaking at the US State Department


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Global Economy

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  European anger at UK
  
• 
  How will the euro crisis end?
  
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  Crisis jargon buster
  
• 
  Germany's vision for Europe
  

IMF head Christine Lagarde has said the world economic outlook is "gloomy" and no country is immune from rising risks.

She said all nations, starting with Europe, needed to head off a crisis with risks of a global depression.

"There is no economy in the world immune from the crisis that we not only see unfolding but escalating," she said.

"It is going to be hopefully resolved by all countries, all regions actually taking action."

Meanwhile, ratings agency Standard and Poor's downgraded 10
Spanish banks by applying new ratings criteria. Spain and Italy have
been facing rising borrowing costs.

Many investors fear they will be the next eurozone members to need a bailout.

'Require efforts'

Speaking at the US State Department in Washington, she said
global economic leaders now needed to take a rounded approach towards
addressing monetary weaknesses, such as those underscored by the current
eurozone debt crisis.

"It is going to require efforts, it is going to require
adjustment, and clearly it is going to have to start from the core of
the crisis at the moment, which is obviously the European countries and
in particular the countries of the eurozone."

Ms Lagarde mentioned economic bright spots in Asia and Latin
America, which she said had taken, with IMF help, steps during crises in
the 1980s and 1990s to address weaknesses in their banking systems and
their financial frameworks.

"All those challenges that they faced in the days of the
Asian crisis, of the Latin American crisis, have now served them well,"
Ms Lagarde said.

On Thursday, a closely-watched survey suggested the downturn
in the 17 economies that share the euro had eased slightly in December.

The composite survey of thousands of firms by Markit showed a continued contraction - but at a slower rate than in November.




Your comments (203)

French Prime Minister criticizes why Britain is not downgraded because it"s financial situation is worse than that of France. The reason is Britain is not
in the EURO.

Van Rumpuy will attend a meeting in January to discuss method of implementing fiscal policy.

France braces for AAA rating downgrade .

FSA to meet Bankers to discuss possible EURO decline

Olive branch being held out to Cameron asking him to attend Meeting of 27 Countries.

15 December 2011
Last updated at 22:37











Fitch downgrades six global banks











Fitch cut the "issuer default ratings" at the banks



Continue reading the main story Related Stories

• French bank ratings cut further
  
• S&P reduces bank credit ratings
  
• Fitch cuts credit outlook for US
  

Fitch has downgraded six of the world's largest banks, citing the challenging financial markets.

The banks include Bank of America and Goldman Sachs in the US, the UK's Barclays and France's BNP Paribas.

Germany's Deutsche Bank and Switzerland's Credit Suisse were also cut.

Fitch cut the "issuer default ratings" at the banks, which
"reflect the ability of an entity to meet financial commitments on a
timely basis".

Banks and credit markets have been squeezed by fear over the
eurozone debt crisis, which has seen several nations in the 17-nation
single currency bailed out and fears that the euro could collapse.

Banks that hold eurozone soverign debt have taken massive
charges on the debt, and it has increased fears about banks lending to
each other.

Last week, ratings agency Moody's downgraded France's three big banks due to their difficulty borrowing money.

'Increased challenges'

In a statement, Fitch said that these US and European banks
"are particularly sensitive to the increased challenges the financial
markets face".

The downgrades "reflected challenges faced by the sector as a
whole, rather than negative developments in idiosyncratic fundamental
creditworthiness," Fitch said.

Fitch also cut the so-called "viability ratings" at the six
banks, which represent Fitch's view as to the "intrinsic
creditworthiness of an issuer".

It also cut the viability ratings at Morgan Stanley of the US and French bank Societe Generale.

On 30 November, Standard & Poor's downgraded the
long-term credit grades of a string of major financial firms, include
Wall Street titans Bank of America and Goldman Sachs, Barclays, and
HSBC.









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• 
  French bank ratings cut further
  09 DECEMBER 2011,
  BUSINESS
  
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  S&P reduces bank credit ratings
  30 NOVEMBER 2011,
  BUSINESS
  
• 
  Fitch cuts credit outlook for US
  28 NOVEMBER 2011,
  BUSINESS
  

Relate

France is officially in Recession .

Fitch cuts ratings of 7 Banks including some across the Atlantic

One analyst says a run on the Banks is already happening and the Sovereign debt crisis must be resolved before the EU can recover.

The yield on Italian and Spanish Bonds is slightly lower .

Mario Monti due to speak on the current position of Italy.

Credit Agricole starts asset disposal.

Christine LaGarde says we could be facing a Great Depression.

Goldman Sachs, Bank of America, Citygroup, Barclays, Deutchebank , BNP Baribas and Credit Agricole were those downgraded.

The cost of the Euro breaking up would be so disastrous that the alternative of keeping it afloat is much more appealing say Analysts.

If a test on the new proposal for the Euro Countries to have a debt of no more than 3% of GDP were taken now, 12 of the 17 Countries would flunk it.


It"s all gloom and doom this morning folks.

Mario Monti faces a big test today to win a confidence vote on his new austerity package, it appears some changes will be made.Most measures include tax
increases which many dispute. He has sais structural reform is needed.

A Russian Analyst says the Euro is overvalued and must decline and that a weak Euro will hurt Russia,

Michael Marcussen , Head of Economics at Sociate Generale says the EU will muddle through if nothing is done to create confidence. Italy and Spain need
1 Trillion Euros over the next 3 years to survive and it will be a Political Decision, not Monetary, for this to be secured.

Stocks across Europe opened slightly up this morning.

16 December 2011
Last updated at 06:11



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Italy's Monti faces confidence vote over austerity











Mario Monti says plans for growth will follow the austerity measures


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Global Economy

• 
  European anger at UK
  
• 
  How will the euro crisis end?
  
• 
  Crisis jargon buster
  
• 
  Germany's vision for Europe
  

The
government of Italian Prime Minister Mario Monti faces a confidence
vote in parliament as it seeks to pass crucial austerity measures.

His government needs approval for a 33bn euro ($43bn; £27bn)
package of cuts and reforms intended to restore confidence in Italy's
economy.

The vote, to be held in the Chamber of Deputies in the afternoon, should be passed easily, analysts say.

Mr Monti, appointed in November, heads a government of unelected technocrats.

They are trying to tackle a collapse in market confidence that put Italy at the heart of the eurozone debt crisis.

Crucial to the government's plans is a package of tax
increases, spending cuts and pension reforms aimed at balancing Italy's
budget by 2013.

However, analysts say rising borrowing costs and the prospect
of a deepening recession still threaten to undermine the government's
efforts.

On Thursday, Mr Monti said his government would move on to
growth-boosting measures after the austerity bill is passed, Ansa news
agency reported.

Mr Monti, a former EU commissioner, has broad support in parliament.

Although the two main parties - the centre-right PDL and the
centre-left Democratic Party - have misgivings over parts of the bill,
they cannot sabotage it for fear of unleashing economic catastrophe,
analysts say.

Mr Monti's predecessor, Silvio Berlusconi, said his PDL party
would back the government out of a sense of responsibility, not because
it agrees with the sacrifices being asked of Italians.

The BBC's Alan Johnston in Rome says there are many on the
left who feel that the proposed austerity measures are unfair and that
the poorest in society are being asked to bear too much.

He says Mr Monti has softened the edges of the austerity
package but more opposition can be expected as the sacrifices bite
deeper.

Angel Gurria, a respected Secretary of the OECD has said in an interview that with regard to the EU crisis, "you cannot fight a War if you keep all your
major weapons in the closet. He says it is time to bring out the big bazooka and stop fiddling around.

Fiscal Policy is all very good but it must be accompanied by a Firewall around Italy and Spain and Greece, which could be the biggest threat to stability.

He foresees slow growth in the first quarter of 2012 and it will be very difficult. Countries must get their act together by the end of 2012. G20 Countries
IMF and ECB have to get together and non European Countries have to be on board to save the Euro. Must reassure Markets today.

The Bundesbank sees no urgent need for IMF Loans.

Monti wins the Italian vote on his austerity measures with the exception of some of the smaller Political parties.......the problem will be trying to get the
Italian people to accept them.

Ireland loses it"s "Poster Boy" image as it"s economy shrinks to 2009 level.

The French Finance Minister says the British Economy is worse than that of France.

The European Stock Market ended the week slightly down.

The new European agreement on closer fiscal integration will come into force after just nine of the 26 participating countries ratify it, according to a draft of the text.

Nine? Oh well, desperate times and all that!

http://uk.news.yahoo.com/cameron-agrees-uk-role-eu-pact-talks-104253325.html

Angelina wrote:The new European agreement on closer fiscal integration will come into force after just nine of the 26 participating countries ratify it, according to a draft of the text.

Nine? Oh well, desperate times and all that!

http://uk.news.yahoo.com/cameron-agrees-uk-role-eu-pact-talks-104253325.html

Thanks for this Article Angelina, the whole thing is a bl***y mess. France is in recession and in danger of losing it"s AAArating which would mean only
Britain and Germany have a AAA rating.!!!! Have you read some of the earlier opinions from Analysts etc ? without exception they are saying the ECB
must act as a Central Bank which of course would mean the Treaty would have to be altered. I wouldn"t be surprised if Greece defaults in the New Year.
Ireland could have a referendum and vote "No" to a dictatorship which Merkel wants.

IF YOU THINK THIS BANKING INDUCED RECESSION IS BAD,THERE MIGHT BE SOMETHING WORSE,I THINK I WILL PUT IT IN DAILY NEWS WHAT THE NEXT PROBLEM MIGHT BE.