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| Version 7 | Version 8 |
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| European markets rise in early trading | European markets rise in early trading |
| (40 minutes later) | |
| European shares have risen in early trading, with another day of market volatility expected amid continuing concerns about the high levels of eurozone debt. | European shares have risen in early trading, with another day of market volatility expected amid continuing concerns about the high levels of eurozone debt. |
| The FTSE 100 was up 1.3%, France's Cac 1% and Germany's Dax 0.5%. | |
| Shares had earlier also fallen in Asia, with Japan's Nikkei 225 index down 2%. | |
| World Bank President Robert Zoellick told the BBC that eurozone leaders had to do more than simply continue to bail out struggling member states. | |
| 'European disease' | 'European disease' |
| A core concern over the high levels of government debt in the eurozone is how it will affect the banking sector. | A core concern over the high levels of government debt in the eurozone is how it will affect the banking sector. |
| Greece is continuing with plans to ask banks and other private holders of its government bonds to swap them for others that pay a lower rate of interest over a longer period. | Greece is continuing with plans to ask banks and other private holders of its government bonds to swap them for others that pay a lower rate of interest over a longer period. |
| The fear is that other nations, such as Spain and Italy, may ultimately be forced to follow the Greek lead. | The fear is that other nations, such as Spain and Italy, may ultimately be forced to follow the Greek lead. |
| On Monday, Deutsche Bank's outgoing chief executive, Josef Ackermann, said on Monday that some European banks would go bust if they were forced to recognise in their accounts the existing losses on government debts they own, based on current market prices for government bonds. | On Monday, Deutsche Bank's outgoing chief executive, Josef Ackermann, said on Monday that some European banks would go bust if they were forced to recognise in their accounts the existing losses on government debts they own, based on current market prices for government bonds. |
| Banking stocks were among the early fallers, with Commerzbank 2.5% lower, Credit Agricole down 1.1% and Barclays losing 0.8%. | Banking stocks were among the early fallers, with Commerzbank 2.5% lower, Credit Agricole down 1.1% and Barclays losing 0.8%. |
| However, other banks saw their shares rise, with Deutsche Bank adding 1.4%. | However, other banks saw their shares rise, with Deutsche Bank adding 1.4%. |
| "It's the European disease that is infecting markets all around the world at the moment," said Michael Heffernan of Austock Group. | "It's the European disease that is infecting markets all around the world at the moment," said Michael Heffernan of Austock Group. |
| Commentators say the markets are also concerned about whether European politicians are really getting to grips with the debt problem. | |
| The World Bank's Mr Zoellick told the BBC's Asia Business Report: "Particularly in the case of the eurozone, we are now at a point where the muddling-through policies of providing additional finance and liquidity will not be sufficient to deal with the fundamental choices that Europe has to make. | |
| "Europe now faces a key change of whether it has a fiscal union or to change the nature of the eurozone. Decision time is coming." | |
| Both the German and French parliaments are due shortly to debate the extent of their country's contribution to the European Financial Stability Facility, the fund set up to bail out any eurozone nations struggling with their debt obligations. | |
| Economy fears | Economy fears |
| Concerns are also growing over the state of both the European and US economies. | Concerns are also growing over the state of both the European and US economies. |
| Data on Monday by research group Markit showed that service sector activity in the UK fell by its largest amount in more than 10 years in August, while business confidence in the eurozone fell at its fastest rate last month since the 2008 collapse of Lehman Brothers. | |
| Revised eurozone economic growth data is due out later. | Revised eurozone economic growth data is due out later. |
| In the US, fears have been gathering pace that the world's biggest economy could slip into a recession. | In the US, fears have been gathering pace that the world's biggest economy could slip into a recession. |
| Data out last week showed that no new jobs were added to the US economy in August. To make matters worse, the White House warned that the unemployment rate in the US was likely to stay at about 9% till the end of 2012. | Data out last week showed that no new jobs were added to the US economy in August. To make matters worse, the White House warned that the unemployment rate in the US was likely to stay at about 9% till the end of 2012. |
| President Obama is scheduled to deliver a key speech on 8 September to outline his much-anticipated jobs creation plan. | President Obama is scheduled to deliver a key speech on 8 September to outline his much-anticipated jobs creation plan. |
| Issues 'interlinked' | Issues 'interlinked' |
| Richard Jeffrey, chief investment officer at Cazenove Capital Management, told BBC Radio 5 live's Wake Up To Money that the key worry for the markets was the health of the world economy. | Richard Jeffrey, chief investment officer at Cazenove Capital Management, told BBC Radio 5 live's Wake Up To Money that the key worry for the markets was the health of the world economy. |
| "If the world economy is slowing down or perhaps even moving into recession - I think that is less likely but that is what people fear - then that has negative implications for the financial system and the banking sector," he said. | "If the world economy is slowing down or perhaps even moving into recession - I think that is less likely but that is what people fear - then that has negative implications for the financial system and the banking sector," he said. |
| "The debt problems in the peripheral European economies rumble on, of course, but again their debt problems are helped if there is growth. | "The debt problems in the peripheral European economies rumble on, of course, but again their debt problems are helped if there is growth. |
| "If there isn't growth in the economies, then their debt problems become more difficult to support, so this is all interlinked." | "If there isn't growth in the economies, then their debt problems become more difficult to support, so this is all interlinked." |