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Monday, January 02, 2012

Europe Update

by Calculated Risk on 1/02/2012 09:01:00 AM

Europe is probably already in a new recession and the next meeting between Merkel and Sarkozy is on Jan 9th.

From the WSJ: Euro-Zone Manufacturing Activity Falls for Fifth Month

Manufacturing activity in the euro zone declined for the fifth straight month in December, although less sharply than earlier in the fourth quarter, according to a survey of purchasing managers released Monday.

The survey is consistent with other indicators of recent activity, and together the numbers suggest the euro-zone economy contracted during the final three months of the year.

Markit Economics said its Purchasing Managers Index for the sector rose to 46.9 from 46.4 in November ...
And from Bloomberg: Germany Says Greek Debt Talks Near End
Germany’s government declined to comment on a report that it may push for creditors to accept bigger losses on Greek debt than previously agreed upon, saying only that talks on lowering Greece’s debt level may end soon.

Germany is studying a proposal to write down 75 percent of Greek government bonds held by private creditors as part of a planned debt swap to ensure greater debt sustainability, Greek news website reported today ...
And the next key dates from the NY Times: Austerity Reigns Over Euro Zone as Crisis Deepens
The Continent’s economic outlook will take center stage on Jan. 9, when Mrs. Merkel and President Nicolas Sarkozy of France will discuss a new fiscal treaty intended to impose stringent budget requirements on European Union nations. Then on Jan. 30, European Union leaders will gather in Brussels to discuss ways to spur growth.
The first test for the Continent will come this Thursday, when France is expected to raise as much as 8 billion euros. On Jan. 12, Spain plans to auction 3 billion euros worth of euro debt, followed by Italy the next day with 9 billion euros.
Summary for Week Ending December 30th
Schedule for Week of Jan 1, 2012