Amongst European Leaders

Research Note: G20/IMF Meetings The International Monetary Fund (IMF) and the G20 hold their spring round of meetings from the 19th - 22nd April in Washington. This is where the world's most powerful leaders meet with the top players in the IMF. The agenda for this meeting includes the Eurozone debt crisis, the Middle East and the size of the IMF's resources to address global financial stress. Prior to the meetings the focus has been on the size of the IMF's rescue fund to help fight the Eurozone crisis. We have had some progress on this front. Japan pledged another $60bn, while Sweden and Denmark pledged $17 bn between them. However, this is nowhere near the $400bn that IMF chief Lagarde has said she would like to raise at this meeting. Lagarde has already had to reduce her target for ...

This past weekend, the G-20 meeting in Mexico City seemed to have a common refrain: The eurozone needs to get its act together. Concerns about the eurozone were top of the list at the meeting, with delegates asking questions about the way the entire sovereign debt crisis has been handled. With the world’s uncertainty about the eurozone on display, the euro is much lower today against its major counterparts. Complaints from members of the G-20 centered a great deal around the handling of the Greek debt crisis. The fact that it took so long for European leaders to come to agreement, and to take any action, has irked many. Additionally, some have criticized the eurozone’s inability to erect a ”firewall” to protect the rest of the eurozone countries. If the Greek crisis is a sampling of what ...

Unrest in Greece and uncertainty about a Greek bailout deal are weighing on the euro today. Euro is lower as concerns about an incomplete Greek debt deal rise. Additionally, continued strikes in Greece, and general unrest in the country, are adding to worries that the Greek parliament won’t vote to accept new measures stipulated by Eurogroup leaders. It is little surprise, then, that euro is falling against the US dollar. Eurogroup leaders expressed doubt that Greece’s proposed austerity package would go far enough, and stipulated for even more austerity. Additionally, European leaders also asked that Greece’s parliament approve the measures, and that an agreement be worked out to guarantee that Greece will adhere to the measures no matter the outcome of upcoming elections. All of these ...

(Reuters) - European shares rose on Thursday as investors bet on a positive outcome to Greek reform talks needed for a fresh bailout and that European Central Bank policy would remain supportive for the region, while strong results also helped. Investor sentiment improved after Greek leaders agreed on most of the austerity measures to secure a rescue fund needed to avoid a messy default which could have a contagion effect to other debt-laden countries like Portugal. Traders were also betting the European Central Bank's interest rate meeting would give hints of future rate cuts as well as a fresh steer on the expected take-up rate at its second auction of cheap three-year loans (LTROs). "The next thing to focus on is the second LTROs and we are getting evidence that financials are being ...

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) USD The price action overnight was largely driven by a better-than-expected China PMI which gave AUD a modest but temporary boost. The euro meanwhile remained under downward pressure as investors digested yesterday’s news reports suggestingGreeceis resisting further austerity measures to bring debt down to sustainable levels, and that negotiations on this front are likely to make slow progress. This is a timely reminder that the proposed bond swap is just one element in a broader deal that must be agreed in full ifGreeceis to secure fresh funding through a second rescue package. Despite the latest headlines – which are undoubtedly a cause for concern – there is still time for a grand deal to be forged and this could eventually precipitate a ...

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) USD Risk continues to enjoy a healthy recovery as today’s Eurozone Finance Ministers look to approve Greece receiving the 6th tranche of aid today. More importantly, the details for EFSF leveraging are expected to receive the official go-ahead, though the marginal impact of these bits of ‘good news’ should be limited at best and investors will still cast a nervous eye towards this week’s bond auctions and Eurozone yields in general may not find too much respite. Our European economists have significantly lowered their 2012 growth forecasts to -0.7% y/y from +0.2% y/y previously, reflecting heightened concerns about Europe. Knock-on effects to other economies means UBS now forecasts 2012 global growth forecast at only +2.7% y/y (prev. 3.1%). A ...

Euro continues to tumble in Forex trading, dropping as the news out of Europe continues to disappoint traders everywhere. Yesterday, euro showed some spunk, but, once again, the 17-nation currency has been able to hold on to any gains. As nearly everyone is becoming accustomed to, the news is of a failure to come to an agreement about how to handle sovereign debt in the eurozone. Once again, talks amongst European leaders have resulted in nothing substantial. Not only are eurozone leaders unable to come with a plan to contain the sovereign debt crisis, but now Germany is under scrutiny. The French have already received their bond warning, and today, while there wasn’t a debt warning issued for Germany, the latest bund auction failed. Germany is the economic leader of the eurozone, and ...

Morning Briefing : EU plan taken positively; Credit event avoided What's new: Asia: Sentiment looks positive as equities registering gains this morning EZ summit: Private bond holders to bear a 50% “voluntary” write off EZ Summit: EFSF firepower to be elevated to at least 1 trillion euro EZ Summit: Bank recapitalization expected to be at EUR106.45 BoJ: Policy rates on hold, increases ceiling for JGB buying program RBNZ: Interest rates on hold, maintains its tightening stance Forex rates in Asia and Indices: EURUSD: 1.4022 - 1.3864. USDCHF: 0.8825 – 0.8738. GBPUSD: 1.6035- 1.5954. EURJPY: 106.51 – 105.67. USDJPY: 76.28 – 75.83 DowJones: 11’869.04 +1.39% NASDAQ: 2’650.67 +0.46% S & P 500: 1’242.00 +1.05% Nikkei: 8’926.54 +2.04% Shanghai: 2429.63 +0.09% Gold: $ 1'724.40 Crude Oil: $ 92.13 ...

(Reuters) - European shares rose on Thursday after German and French leaders said they were determined to keep Greece in the euro zone, though Swiss bank UBS (UBSN.VX) dropped sharply after it said a trader had lost around $2 billion in unauthorized dealing. The rally was seen only as a short-term technical bounce, however, with Greece still needing to implement reform processes to meet fiscal goals and other peripheral euro zone nations also facing market ire. Spain was the latest peripheral country to tap markets, in a bond auction on Thursday, and although its debt funding costs remain high, the auction was well bid at the top of the expected range, in contrast to the Italian auction earlier in the week. "It is a strong statement that France and Germany has made of trying to keep ...