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| Version 2 | Version 3 |
|---|---|
| Portugal denies it will need EU-led bail-out | Portugal denies it will need EU-led bail-out |
| (40 minutes later) | |
| Portugal's government has reiterated that it will not need financial support from the European Union. | Portugal's government has reiterated that it will not need financial support from the European Union. |
| The Portuguese Prime Minister, Jose Socrates, said that what the country needed instead was more confidence in its economy. | The Portuguese Prime Minister, Jose Socrates, said that what the country needed instead was more confidence in its economy. |
| His comments come before a new bond auction by the government, with analysts waiting to see the extent of market interest. | His comments come before a new bond auction by the government, with analysts waiting to see the extent of market interest. |
| Despite concern at Portugal's debts, the euro rose in early trading. | Despite concern at Portugal's debts, the euro rose in early trading. |
| Against the dollar, the euro was up slightly to $1.3020 from its Tuesday low of $1.2969 - its lowest level since 15 September. | Against the dollar, the euro was up slightly to $1.3020 from its Tuesday low of $1.2969 - its lowest level since 15 September. |
| Against the pound, the euro was at 0.8377 pence, compared with Tuesday's close of 0.8366. | Against the pound, the euro was at 0.8377 pence, compared with Tuesday's close of 0.8366. |
| Bank concern | Bank concern |
| In a Portuguese radio interview, Mr Socrates said: "I do not see any reason to change the position of the Portuguese government which is very clear: we do not need any help, what we need is confidence in the Portuguese economy. | In a Portuguese radio interview, Mr Socrates said: "I do not see any reason to change the position of the Portuguese government which is very clear: we do not need any help, what we need is confidence in the Portuguese economy. |
| "And we need to do what we can do and should do." | "And we need to do what we can do and should do." |
| Lisbon's 500m euros ($651m; £418m) bond auction comes a day after ratings agency Standard & Poor's placed Portugal on credit watch because of the country's huge debts. | Lisbon's 500m euros ($651m; £418m) bond auction comes a day after ratings agency Standard & Poor's placed Portugal on credit watch because of the country's huge debts. |
| Portugal's central bank has also warned of the risks facing its banks. | Portugal's central bank has also warned of the risks facing its banks. |
| On Tuesday, the central bank said they faced an "intolerable risk" if the government in Lisbon failed to consolidate public finances. | On Tuesday, the central bank said they faced an "intolerable risk" if the government in Lisbon failed to consolidate public finances. |
| Standard & Poor's said Lisbon may not be doing enough to enact "growth-enhancing reforms", adding that it had done "little to boost labour flexibility and productivity". | Standard & Poor's said Lisbon may not be doing enough to enact "growth-enhancing reforms", adding that it had done "little to boost labour flexibility and productivity". |
| Portugal, which approved an austerity budget for 2011 last week, is struggling to meet its targets for deficit reduction. | Portugal, which approved an austerity budget for 2011 last week, is struggling to meet its targets for deficit reduction. |
| With the Irish Republic getting a European Union-led bail-out last week, the concern in some quarters is that Portugal may be the next country that needs assistance. | With the Irish Republic getting a European Union-led bail-out last week, the concern in some quarters is that Portugal may be the next country that needs assistance. |
| "The general feeling is that this is a mess that is not going to be easily escaped," said analyst Robert Ryan of BNP Paribas in Singapore. | "The general feeling is that this is a mess that is not going to be easily escaped," said analyst Robert Ryan of BNP Paribas in Singapore. |
| 'Determination' | 'Determination' |
| On the bond markets, the yield on Portuguese bonds was stable at 6.97%. | On the bond markets, the yield on Portuguese bonds was stable at 6.97%. |
| The higher the yield, the less confidence investors have in the bond. | The higher the yield, the less confidence investors have in the bond. |
| The yield on German bonds - which are considered the safest - remained about 2.67%. | The yield on German bonds - which are considered the safest - remained about 2.67%. |
| On Tuesday, the president of the European Central Bank (ECB), Jean-Claude Trichet, tried to calm nerves over high eurozone debt levels. | |
| He said that both Greece and the Irish Republic were solvent, insisting that the eurozone economy was "functioning" and had grown by more than expected this year. | He said that both Greece and the Irish Republic were solvent, insisting that the eurozone economy was "functioning" and had grown by more than expected this year. |
| Mr Trichet said that "observers are tending to underestimate the determination of the (eurozone) governments and the EU as a whole". | Mr Trichet said that "observers are tending to underestimate the determination of the (eurozone) governments and the EU as a whole". |
| His comments have raised speculation that the ECB will expand its government bond purchase scheme. | |
| The ECB has spent 67bn euros on purchases so far, and markets are now waiting to see if the governing council announces that it is expanding the programme following its rate-setting meeting on Thursday. |