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Eurozone crisis live: Dutch parliament to debate budget Eurozone crisis live: Dutch parliament to debate budget
(40 minutes later)
2.14pm: French president Nicolas Sarkozy has been reaching out to supporters of the far-right National Front party ahead of the second round of presidential elections on May 6.
The National Front has taken a prominent role after winning third place in the first round of elections with nearly one fifth of the vote, its best ever score. Today Sarkozy took up an idea from National Front leader Marine Le Pen today, calling for a change in the law to allow policemen who open fire on suspects to be presumed to have acted in "legitimate self-defence" unless proven otherwise.
He made the call after hundreds of officers demonstrated in police cars on the central Champs-Elysees avenue after a colleague who shot dead a fugitive in a Paris suburb was placed under judicial investigation for suspected murder. He said:
I am not prejudging the justice system ... but as head of state I must defend the honour of our officers when it is called into question.
1.58pm: The budget debate in the Dutch parliament has been postponed because the caretaker government needs more time to send a plan to the lower house, a parliament spokesman said. It is now scheduled to start at 5pm BST.
1.44pm: New US claimants for unemployment benefits fell last week, but the four-week moving average rose to its highest level since January, suggesting the job market is still struggling. Phil Flynn, analyst at PFG Best, said:
They came in a lot higher than expected, which probably is raising a bit of concern again. It seems to suggest what the Fed said yesterday, which is that the economy is growing but not as fast as we'd like. We'll be in the slog for a while and obviously stocks took a little tumble on it. this could take some momentum away.
1.26pm: Growth not austerity seems to be the focus at a business summit in Brussels today, where European Council president Herman Van Rompuy and Italy's prime minister Mario Monti are speaking. Van Rompuy said:
Today the growth debate is taking center stage all over Europe and rightly so. In fact, it was never absent, only less visible.
Monti pushed structural reforms and investment in infrastructure to boost demand.
If there is no demand, growth will not materialise. All the reforms we are putting in place now are deflationary.
But he rejected "the old style of intentional growth through expansionary deficits... ephemeral deficit spending". ECB president Mario Draghi also called for a "growth compact" yesterday, which was welcomed by French presidential front runner Francois Hollande and other European leaders.
Thanks to Matina Stevis of Dow Jones for her updates on the summit. As she notes, the rhetoric from European politicians appears to have shifted.
Draghi, Monti, Van Rompuy sharpen growth message in last 48 hrs. The times are a-changin'...
— Matina Stevis (@MatinaStevis) April 26, 2012
1.04pm: Spanish prime minister Mariano Rajoy said Spain's ability to fund itself is at risk, Bloomberg is reporting. He also said at a press conference in the Moncloa (his official residence):1.04pm: Spanish prime minister Mariano Rajoy said Spain's ability to fund itself is at risk, Bloomberg is reporting. He also said at a press conference in the Moncloa (his official residence):
Austerity is not Angela Merkel's policy. It is a policy of the EU, the euro, and a project we all chose to be part of.Austerity is not Angela Merkel's policy. It is a policy of the EU, the euro, and a project we all chose to be part of.
Rajoy's popularity has diminished as Spaniards are becoming more and more pessimistic about the economic situation, more skeptical about the actions of politicians and more opposed to the measures taken to combat the crisis.Rajoy's popularity has diminished as Spaniards are becoming more and more pessimistic about the economic situation, more skeptical about the actions of politicians and more opposed to the measures taken to combat the crisis.
The mood wasn't helped when both Barcelona and Real Madrid were knocked out of the Champions League. As one Spanish student tweeted: "With Aznar [in power] Madrid won; with Zapatero, Barça won; and with Rajoy it seems we lose everything."The mood wasn't helped when both Barcelona and Real Madrid were knocked out of the Champions League. As one Spanish student tweeted: "With Aznar [in power] Madrid won; with Zapatero, Barça won; and with Rajoy it seems we lose everything."
Con Aznar ganaba el Madrid, con Zapatero el Barça y con Rajoy está visto que perdemos todosCon Aznar ganaba el Madrid, con Zapatero el Barça y con Rajoy está visto que perdemos todos
— Carmen Jiménez (@CarJimenez) April 25, 2012— Carmen Jiménez (@CarJimenez) April 25, 2012
12.54pm: Quick look at some inflation data coming out of Germany, that could suggest the ECB will have more room for manoeuvre if the eurozone economy sinks further.12.54pm: Quick look at some inflation data coming out of Germany, that could suggest the ECB will have more room for manoeuvre if the eurozone economy sinks further.
German inflation slowed to 2% year-on-year in April from 2.1% in March. On a monthly basis, it lsowed to 0.1% in April from 0.3% in March.German inflation slowed to 2% year-on-year in April from 2.1% in March. On a monthly basis, it lsowed to 0.1% in April from 0.3% in March.
The ECB has suggested concerns about inflation will hold back any attempts to pump more money into the system, through the long-term refinancing operation.The ECB has suggested concerns about inflation will hold back any attempts to pump more money into the system, through the long-term refinancing operation.
12.10pm: The European Commission is threatening to take Greece to the European Court of Justice over concerns that it has too much say in the Hellenic Telecommunications Organisation (OTE), Dow Jones reports. The Commission has given Greece two months to respond to its concerns, released in a statement today:12.10pm: The European Commission is threatening to take Greece to the European Court of Justice over concerns that it has too much say in the Hellenic Telecommunications Organisation (OTE), Dow Jones reports. The Commission has given Greece two months to respond to its concerns, released in a statement today:
The Commission considers that the national law enables the Greek government to participate in OTE's governing bodies in a more significant manner than its shareholder status would normally allow.The Commission considers that the national law enables the Greek government to participate in OTE's governing bodies in a more significant manner than its shareholder status would normally allow.
11.49am: The Czech government is facing a vote of confidence in parliament tomorrow, in the latest test for a European government struggling to stay in office in the age of austerity, my colleague Ian Traynor reports.11.49am: The Czech government is facing a vote of confidence in parliament tomorrow, in the latest test for a European government struggling to stay in office in the age of austerity, my colleague Ian Traynor reports.
Although the Czech Republic is not part of the eurozone, he writes that the EU's strict new fiscal regime is at the root of problems for prime minister, Petr Necas, who "is hanging on by the most slender of margins, battered by large street protests over spending cuts, tax increases, job losses and corruption, and the splintering of his smallest coalition partner, after less than two years in power".Although the Czech Republic is not part of the eurozone, he writes that the EU's strict new fiscal regime is at the root of problems for prime minister, Petr Necas, who "is hanging on by the most slender of margins, battered by large street protests over spending cuts, tax increases, job losses and corruption, and the splintering of his smallest coalition partner, after less than two years in power".
Last weekend about 100,000 demonstrators marched to demand the government's resignation in the biggest street scenes since the rallies that brought down communism at the end of 1989. At the same time, the centre-right coalition in the Netherlands collapsed over its failure to agree on swingeing budget cuts, while Nicolas Sarkozy also lost the first round of France's presidential election.Last weekend about 100,000 demonstrators marched to demand the government's resignation in the biggest street scenes since the rallies that brought down communism at the end of 1989. At the same time, the centre-right coalition in the Netherlands collapsed over its failure to agree on swingeing budget cuts, while Nicolas Sarkozy also lost the first round of France's presidential election.
11.39am: The Eurozone crisis has all the highs and lows, the plot twists, and the frankly unbelievable characters of a trashy soap opera. Comedian Colm O'Regan imagines the script over on the BBC website. He writes:11.39am: The Eurozone crisis has all the highs and lows, the plot twists, and the frankly unbelievable characters of a trashy soap opera. Comedian Colm O'Regan imagines the script over on the BBC website. He writes:
Greece is the almost archetypal villain, who returns every six months when audience figures need a boost and the writers can't be bothered to introduce a new, more layered plot. Greece then turns up at a family get-together. "Remember me? Thought you could get rid of me didn't you? Well I'm going nowhere. As you always say, 'We're family.'"Greece is the almost archetypal villain, who returns every six months when audience figures need a boost and the writers can't be bothered to introduce a new, more layered plot. Greece then turns up at a family get-together. "Remember me? Thought you could get rid of me didn't you? Well I'm going nowhere. As you always say, 'We're family.'"
Comic relief was provided for a time by Italy, a lecherous grandfather uttering inappropriate comments from his favourite chair, but the actor playing Italy had to leave and it's just not quite the same.Comic relief was provided for a time by Italy, a lecherous grandfather uttering inappropriate comments from his favourite chair, but the actor playing Italy had to leave and it's just not quite the same.
11.32am: Back to the UK, where we've got some reaction to the CBI distributive trades survey. Chris Williamson of Markit said:11.32am: Back to the UK, where we've got some reaction to the CBI distributive trades survey. Chris Williamson of Markit said:
There's no avoiding the fact that survey points to ongoing weak spending at the start of the second quarter, and is a reminder of the low wage growth, high inflation and high unemployment back-drop to the high street.

Retailers were upbeat about the coming month's sales, however, with 19% more firms anticipating a rise in sales in May than expect a decline. That suggests retailers are the most optimistic since February of last year, and respresents a big swing in confidence from the low seen in January, when the net balance sank to -18. Perhaps if retailers had seen yesterday's GDP numbers showing a new recession they would have been less upbeat, but the improvement nevertheless provides hope that retail spending will show at least a modest upturn in May.		There's no avoiding the fact that survey points to ongoing weak spending at the start of the second quarter, and is a reminder of the low wage growth, high inflation and high unemployment back-drop to the high street.

Retailers were upbeat about the coming month's sales, however, with 19% more firms anticipating a rise in sales in May than expect a decline. That suggests retailers are the most optimistic since February of last year, and respresents a big swing in confidence from the low seen in January, when the net balance sank to -18. Perhaps if retailers had seen yesterday's GDP numbers showing a new recession they would have been less upbeat, but the improvement nevertheless provides hope that retail spending will show at least a modest upturn in May.
Howard Archer said the survey was "far from disastrous" but is concerned about the potential impact of yesterday's GDP figures.Howard Archer said the survey was "far from disastrous" but is concerned about the potential impact of yesterday's GDP figures.
There is also the very real worry that already low and brittle consumer confidence will take a significant hit from the news that the UK is apparently back in recession, and this will lead to increased caution in spending.

Hopefully, inflation will eventually fall back appreciably further and support consumer spending, but this may well be delayed until the second half of this year. Even if consumer price inflation does eventually fall back appreciably further, unemployment is likely to remain high and wage growth muted so the overall environment will likely still be pretty tough for consumers.		There is also the very real worry that already low and brittle consumer confidence will take a significant hit from the news that the UK is apparently back in recession, and this will lead to increased caution in spending.

Hopefully, inflation will eventually fall back appreciably further and support consumer spending, but this may well be delayed until the second half of this year. Even if consumer price inflation does eventually fall back appreciably further, unemployment is likely to remain high and wage growth muted so the overall environment will likely still be pretty tough for consumers.
11.26am: After a torrent of troubled tweets, she gives the following summary of the speech by Antonis Samaras, the front-runner in the Greek elections.11.26am: After a torrent of troubled tweets, she gives the following summary of the speech by Antonis Samaras, the front-runner in the Greek elections.
in short, samaras is asking greeks to vote for a police statein short, samaras is asking greeks to vote for a police state
— Diane Shugart (@dianalizia) April 26, 2012— Diane Shugart (@dianalizia) April 26, 2012
11.18am: Some Greeks at least are finding his proposals a little scary.11.18am: Some Greeks at least are finding his proposals a little scary.
listening to samaras's speech i've begun to feel like i'm marion crane and have just let norman bates into the showerlistening to samaras's speech i've begun to feel like i'm marion crane and have just let norman bates into the shower
— Diane Shugart (@dianalizia) April 26, 2012— Diane Shugart (@dianalizia) April 26, 2012
And there's plenty more where that came from, if you check out Diane Shugart's Twitter feed.And there's plenty more where that came from, if you check out Diane Shugart's Twitter feed.
11.10am: Over to Greece, where our correspondent Helena Smith says Antonis Samaras, the man tipped to win upcoming general elections, is unveiling his political policies.

Barely 10 days before Greeks go to the polls, the conservative leader Antonis Samaras racheted up the rhetoric telling the crisis-hit nation it should overcome the "taboos" that have flourished with what he described as "a leftwing stranglehold" of the country's political life.		11.10am: Over to Greece, where our correspondent Helena Smith says Antonis Samaras, the man tipped to win upcoming general elections, is unveiling his political policies.

Barely 10 days before Greeks go to the polls, the conservative leader Antonis Samaras racheted up the rhetoric telling the crisis-hit nation it should overcome the "taboos" that have flourished with what he described as "a leftwing stranglehold" of the country's political life.
Samaras said the Greek state had all but "collapsed" not only because of the country's financial crisis but "lawlessness" that had been allowed to run riot in recent years.Samaras said the Greek state had all but "collapsed" not only because of the country's financial crisis but "lawlessness" that had been allowed to run riot in recent years.
Samaras, whose New Democracy party is poised to emerge as the poll's winner – although is unlikely to win an overall majority – said the first taboo was identifying the people who have high-jacked anti-austerity protests, torching buildings, destroying businesses, shops and banks whenever demonstrators have taken en masse to the streets.Samaras, whose New Democracy party is poised to emerge as the poll's winner – although is unlikely to win an overall majority – said the first taboo was identifying the people who have high-jacked anti-austerity protests, torching buildings, destroying businesses, shops and banks whenever demonstrators have taken en masse to the streets.
"I have said it before and I will say it again we will remove the masks from these hoodies," he said, taking a hardline stance on soaring crime and flagrant drug abuse – social ills that have flourished with the meltdown of the debt-stricken Greek economy."I have said it before and I will say it again we will remove the masks from these hoodies," he said, taking a hardline stance on soaring crime and flagrant drug abuse – social ills that have flourished with the meltdown of the debt-stricken Greek economy.
"Terror and fear rules in neighbourhoods [in Athens] and this has to stop," he insisted. Following the May 6 poll, the new government would step up its fight against illegal immigration that has further piled the pressure on an infrastructure barely able to cope because of Greece's parlous public finances."Terror and fear rules in neighbourhoods [in Athens] and this has to stop," he insisted. Following the May 6 poll, the new government would step up its fight against illegal immigration that has further piled the pressure on an infrastructure barely able to cope because of Greece's parlous public finances.
"Our borders on European borders and we will work through diplomatic channels, we will work in every way to stop this," he said emphasizing that the new government will also strive to improve the pay-packets of police officers who, like all civil servants, have seen their wages drop because of the crisis."Our borders on European borders and we will work through diplomatic channels, we will work in every way to stop this," he said emphasizing that the new government will also strive to improve the pay-packets of police officers who, like all civil servants, have seen their wages drop because of the crisis.
Samaras, who is likely to be forced into a coalition government with the centre-left Pasok party, reiterrated that it was vital Athens curb "wasteful public spending" – a theme he highlighted when he unveiled his economic policies over the weekend. "The era of privileges for politicians of driving around in limousines is over," he said.Samaras, who is likely to be forced into a coalition government with the centre-left Pasok party, reiterrated that it was vital Athens curb "wasteful public spending" – a theme he highlighted when he unveiled his economic policies over the weekend. "The era of privileges for politicians of driving around in limousines is over," he said.
11.07am: Judith McKenna, chair of the CBI distributive trades panel and Asda chief operating officer, said:11.07am: Judith McKenna, chair of the CBI distributive trades panel and Asda chief operating officer, said:
The situation on our high streets remains fragile. Consumers are still holding off from buying bigger ticket items, and opting to spend on smaller 'treat' purchases that give them a lift without breaking the budget.The situation on our high streets remains fragile. Consumers are still holding off from buying bigger ticket items, and opting to spend on smaller 'treat' purchases that give them a lift without breaking the budget.
If as expected, inflation falls further later this year, we may see some growth in retail sales, but as long as high unemployment and sluggish wage growth dampen confidence, spending will remain tight.If as expected, inflation falls further later this year, we may see some growth in retail sales, but as long as high unemployment and sluggish wage growth dampen confidence, spending will remain tight.
11.01am: UK retail sales fell more than expected in April, but shops have the brightest outlook they have had for more than a year.11.01am: UK retail sales fell more than expected in April, but shops have the brightest outlook they have had for more than a year.
The CBI distributive trades survey sales balance dropped to -6 (from 0 last month), compared with forecasts of a dip to -4. Still, the balance of expected sales for May rose sharply to +19, its highest since February last year. The CBI distributive trades survey sales balance dropped to -6 (from 0 last month), compared with forecasts of a dip to -4. Still, the balance of expected sales for May rose sharply to +19, its highest since February last year.
10.32am: Economic sentiment in the eurozone deteriorated further in April. The economic sentiment index dropped to 92.8 in April from 94.5 in March. Economists expected a reading of 94.2. Howard Archer of IHS Global Insight said:10.32am: Economic sentiment in the eurozone deteriorated further in April. The economic sentiment index dropped to 92.8 in April from 94.5 in March. Economists expected a reading of 94.2. Howard Archer of IHS Global Insight said:
The second successive and substantial dip in overall Eurozone business and consumer confidence in April is a further blow to already dwindling Eurozone recovery hopes, especially as it follows on from a marked weakening in both the services and manufacturing purchasing managers' surveys.The second successive and substantial dip in overall Eurozone business and consumer confidence in April is a further blow to already dwindling Eurozone recovery hopes, especially as it follows on from a marked weakening in both the services and manufacturing purchasing managers' surveys.
Indeed, April's marked drop in Eurozone consumer and business confidence means that the gains in sentiment made in the first two months of the year have been wiped out and confidence is now back down to December's equal lowest level since November 2009.Indeed, April's marked drop in Eurozone consumer and business confidence means that the gains in sentiment made in the first two months of the year have been wiped out and confidence is now back down to December's equal lowest level since November 2009.
He said the survey reinforced his belief that the Eurozone economy, which is already in recession, is likely to shrink for a third consecutive quarter, in the second quarter of 2012. It also puts pressure on the ECB to take interest rates lower, but Archer still expects them to hold at 1% at the policy meeting on May 3.He said the survey reinforced his belief that the Eurozone economy, which is already in recession, is likely to shrink for a third consecutive quarter, in the second quarter of 2012. It also puts pressure on the ECB to take interest rates lower, but Archer still expects them to hold at 1% at the policy meeting on May 3.
10.27am: Italy's borrowing costs have risen again. The average yield (the interest paid on the debt) at the six-month bill auction rose to 1.77%, compared with 1.12% at the end of March, the highest yield since January. 10.27am: Italy's borrowing costs have risen again. The average yield (the interest paid on the debt) at the six-month bill auction rose to 1.77%, compared with 1.12% at the end of March, the highest yield since January.
10.06am: China's prime minister Wen Jiabao said this morning that China was ready to reduce trade imbalances with eastern and southern European countries and would set up a dedicated fund as well as a credit line to achieve it.10.06am: China's prime minister Wen Jiabao said this morning that China was ready to reduce trade imbalances with eastern and southern European countries and would set up a dedicated fund as well as a credit line to achieve it.
Reuters is reporting that he proposed a $500m fund dedicated to central and eastern Europe, and a $10bn credit line.Reuters is reporting that he proposed a $500m fund dedicated to central and eastern Europe, and a $10bn credit line.
The idea is that the Chinese central bank will lend yuan to the central bank in an eastern European country, so that companies in that country can borrow in yuan in order to import goods from China, rather than do the trade in dollars. That both promotes trade with China and drives the internationalisation of the yuan.The idea is that the Chinese central bank will lend yuan to the central bank in an eastern European country, so that companies in that country can borrow in yuan in order to import goods from China, rather than do the trade in dollars. That both promotes trade with China and drives the internationalisation of the yuan.
Wen is finishing his four-nation European tour in Poland, his first trip to the country in more than two decades.Wen is finishing his four-nation European tour in Poland, his first trip to the country in more than two decades.
State-owned news agency Xinhua reports that bilateral trade between China and Poland was estimated to be worth about $13bn (£8bn) in 2011, a jump of nearly 17% on the previous year. Yesterday, the two countries said they aim to double it over the next five years.State-owned news agency Xinhua reports that bilateral trade between China and Poland was estimated to be worth about $13bn (£8bn) in 2011, a jump of nearly 17% on the previous year. Yesterday, the two countries said they aim to double it over the next five years.
9.25am: While we're on topic, a quick look at the Budapest Stock Exchange, which is not something we do often.9.25am: While we're on topic, a quick look at the Budapest Stock Exchange, which is not something we do often.
Basking in the glow of a potential bail-out, Hungary's BUX share index rallied 4.2% yesterday. But, it appears the exuberance was short-lived and the index is currently up by just 0.1%.Basking in the glow of a potential bail-out, Hungary's BUX share index rallied 4.2% yesterday. But, it appears the exuberance was short-lived and the index is currently up by just 0.1%.
9.16am: After yesterday's news that relations had warmed between Hungary and the EU, politicians are now talking about the potential size of any loan from the EU and IMF. And the suggestion is it's going to be smaller than the €20bn bail-out Hungary received in 2008. Antal Rogan, head of the Hungarian parliament's economic committee said:9.16am: After yesterday's news that relations had warmed between Hungary and the EU, politicians are now talking about the potential size of any loan from the EU and IMF. And the suggestion is it's going to be smaller than the €20bn bail-out Hungary received in 2008. Antal Rogan, head of the Hungarian parliament's economic committee said:
In 2008 the government thought it would take out a €7bn-€10bn loan, whereas whereas the IMF experts decided on double that amount. In contrast to that this will be definitely smaller.In 2008 the government thought it would take out a €7bn-€10bn loan, whereas whereas the IMF experts decided on double that amount. In contrast to that this will be definitely smaller.
9.01am: Dutch politicians are sounding more positive this morning about passing a budget before an early general election in September.9.01am: Dutch politicians are sounding more positive this morning about passing a budget before an early general election in September.
Finance minister Jan Kees de Jager said talks have been constructive so far and discussions would continue with at least three opposition parties. He said on Dutch TV:Finance minister Jan Kees de Jager said talks have been constructive so far and discussions would continue with at least three opposition parties. He said on Dutch TV:
I have had good, constructive talks with a number of factions.I have had good, constructive talks with a number of factions.
Kees de Jager is part of the outgoing government, which is struggling to strike a deal to make spending cuts and bring the deficit down to the EU limit of 3% of GDP. The current challenge facing the politicians is to win support for cuts so they can submit plans to Brussels by April 30. The Dutch parliament will debate the plans later today.Kees de Jager is part of the outgoing government, which is struggling to strike a deal to make spending cuts and bring the deficit down to the EU limit of 3% of GDP. The current challenge facing the politicians is to win support for cuts so they can submit plans to Brussels by April 30. The Dutch parliament will debate the plans later today.
8.42am: It's a bit of a rollercoaster on European stock markets today, although shares are largely flat. The Dax and the CAC are back in positive territory again.8.42am: It's a bit of a rollercoaster on European stock markets today, although shares are largely flat. The Dax and the CAC are back in positive territory again.
8.33am: The Dax in Frankfurt and the CAC in Paris have turned negative, trading both down about 0.2%. The FTSE is still positive and has risen further, up nearly 38 points, or 0.7%, at 5756.8.33am: The Dax in Frankfurt and the CAC in Paris have turned negative, trading both down about 0.2%. The FTSE is still positive and has risen further, up nearly 38 points, or 0.7%, at 5756.
8.17am: European shares are supported by a crop of strong corporate results, although gains are limited. The FTSE 100 index in London is up nearly 20 points at 5737, a 0.3% increase. Germany's Dax and France's CAC have also edged higher.8.17am: European shares are supported by a crop of strong corporate results, although gains are limited. The FTSE 100 index in London is up nearly 20 points at 5737, a 0.3% increase. Germany's Dax and France's CAC have also edged higher.
8.09am: Right here is a quick round-up of today's company results across Europe. German chemical giant Bayer saw net profit jump 53% to €1.05bn in the first quarter, with sales surging to a record €10.05bn.8.09am: Right here is a quick round-up of today's company results across Europe. German chemical giant Bayer saw net profit jump 53% to €1.05bn in the first quarter, with sales surging to a record €10.05bn.
Deutsche Bank fared less well: lower investment banking revenues amid the European debt crisis and a onetime writedown reduced its net profit by a third to €1.4bn. Spanish bank Santander posted a 24% drop in first-quarter net profit after it set aside money to cover rising loan defaults.Deutsche Bank fared less well: lower investment banking revenues amid the European debt crisis and a onetime writedown reduced its net profit by a third to €1.4bn. Spanish bank Santander posted a 24% drop in first-quarter net profit after it set aside money to cover rising loan defaults.
Here in the UK, AstraZeneca's chief executive David Brennan quit after six years in the post, a victory for shareholders unhappy with the drugmaker's threadbare drugs pipeline. He will be replaced by finance chief Simon Lowth as interim CEO from 1 June. And the new chairman-designate, former Volvo boss Leif Johansson, will take over from Louis Schweitzer on the same day - three months earlier than planned. The pharma group's underlying profits fell 19% in the first quarter.Here in the UK, AstraZeneca's chief executive David Brennan quit after six years in the post, a victory for shareholders unhappy with the drugmaker's threadbare drugs pipeline. He will be replaced by finance chief Simon Lowth as interim CEO from 1 June. And the new chairman-designate, former Volvo boss Leif Johansson, will take over from Louis Schweitzer on the same day - three months earlier than planned. The pharma group's underlying profits fell 19% in the first quarter.
Barclays set aside more money to cover compensation for mis-sold payment protection insurance, which pushed it to a statutory loss before tax of £475m. Royal Dutch Shell unveiled an 11% increase in first quarter earnings to $7.3bn. And consumer goods giant Unilever said it had a good start to the year and was on track to hit its full year targets.Barclays set aside more money to cover compensation for mis-sold payment protection insurance, which pushed it to a statutory loss before tax of £475m. Royal Dutch Shell unveiled an 11% increase in first quarter earnings to $7.3bn. And consumer goods giant Unilever said it had a good start to the year and was on track to hit its full year targets.
Swedish carmaker Volvo reported record sales for a first quarter, of SEK 78.8bn. In the US, Chrysler enjoyed its best first quarter in 103 years, making a net profit of $473m.Swedish carmaker Volvo reported record sales for a first quarter, of SEK 78.8bn. In the US, Chrysler enjoyed its best first quarter in 103 years, making a net profit of $473m.
Markus Huber at ETX Capital says:Markus Huber at ETX Capital says:
Yesterday, European equities managed to extend their rebound off Monday's low to a second day with solid US corporate earnings outweighing much weaker than expected US durable goods orders and pushing aside while most like only temporary concerns about the upcoming second round of French election in early May.Yesterday, European equities managed to extend their rebound off Monday's low to a second day with solid US corporate earnings outweighing much weaker than expected US durable goods orders and pushing aside while most like only temporary concerns about the upcoming second round of French election in early May.
Early on today, equities in Europe are little changed to slightly higher with the FOMC meeting turning pretty much out to be a non-event. Today it is Europe's turn, with several top tier companies reporting earnings today. So far Barclays, AstraZeneca, Bayer and Shell all beat expectations while Deutsche Bank posted a miss for the first quarter. It will be very interesting to see if markets are able to build on yesterday's gains again. Of interest today will also be the Italian 6 month T-Bill auction which should not pose too much of a problem and the eurozone consumer and company confidence figures with traders waiting to see if resurfacing worries about Spain and weaker stock markets have managed to filter through to consumer and companies already.Early on today, equities in Europe are little changed to slightly higher with the FOMC meeting turning pretty much out to be a non-event. Today it is Europe's turn, with several top tier companies reporting earnings today. So far Barclays, AstraZeneca, Bayer and Shell all beat expectations while Deutsche Bank posted a miss for the first quarter. It will be very interesting to see if markets are able to build on yesterday's gains again. Of interest today will also be the Italian 6 month T-Bill auction which should not pose too much of a problem and the eurozone consumer and company confidence figures with traders waiting to see if resurfacing worries about Spain and weaker stock markets have managed to filter through to consumer and companies already.
7.51am: Cut and grow? Here are some morning musings from Gary Jenkins of Swordfish Rearch.7.51am: Cut and grow? Here are some morning musings from Gary Jenkins of Swordfish Rearch.
Mr Draghi said that "We've had the fiscal compact, what is most present in my mind now is to have a growth compact…" Fine words and in line with the thinking with the likes of François Hollande and some other European politicians who have had enough of austerity.Mr Draghi said that "We've had the fiscal compact, what is most present in my mind now is to have a growth compact…" Fine words and in line with the thinking with the likes of François Hollande and some other European politicians who have had enough of austerity.
Whilst growth is most certainly required the only problem the politicians have is that if they want to spend in order to obtain it then someone has to fund them and I am not sure how the market would respond to a change of strategy at this time. Ms Merkel did say that she supported Mr Draghi's concept as he has proposed it, which is very much "cut and grow". That works well on rose bushes (so I am told) but not convinced it will work in Europe. Methinks the ECB might well continue to be very closely involved which might go against Mr Draghi's instincts but is in line with the gradual creep of the ECB into the hands of the politicians…Whilst growth is most certainly required the only problem the politicians have is that if they want to spend in order to obtain it then someone has to fund them and I am not sure how the market would respond to a change of strategy at this time. Ms Merkel did say that she supported Mr Draghi's concept as he has proposed it, which is very much "cut and grow". That works well on rose bushes (so I am told) but not convinced it will work in Europe. Methinks the ECB might well continue to be very closely involved which might go against Mr Draghi's instincts but is in line with the gradual creep of the ECB into the hands of the politicians…
7.48am: Here is today's agenda:7.48am: Here is today's agenda:
Dutch parliament meets to debate budget
Italian 6 month T-Bill auction
11.00 CBI retail sales (UK)
10.00 Eurozone consumer confidence
13.30 US jobless claims		Dutch parliament meets to debate budget
Italian 6 month T-Bill auction
11.00 CBI retail sales (UK)
10.00 Eurozone consumer confidence
13.30 US jobless claims
All times are BSTAll times are BST
7.30am: Good morning and welcome back to our rolling coverage of the world economy and eurozone debt crisis. For once positive company earnings have displaced concerns about Europe, at least for the moment. Results from Apple helped sentiment yesterday, while Credit Suisse, BBVA, Electrolux and Boeing also beat analysts' estimates.7.30am: Good morning and welcome back to our rolling coverage of the world economy and eurozone debt crisis. For once positive company earnings have displaced concerns about Europe, at least for the moment. Results from Apple helped sentiment yesterday, while Credit Suisse, BBVA, Electrolux and Boeing also beat analysts' estimates.
Last night's statement from the Fed also painted a slightly more positive picture of the American economy. The Fed upgraded its forecasts for economic growth and revised down its unemployment projections. Concerns about rising prices crept into the statement, making more quantitative easing less likely, which could give the dollar a boost.Last night's statement from the Fed also painted a slightly more positive picture of the American economy. The Fed upgraded its forecasts for economic growth and revised down its unemployment projections. Concerns about rising prices crept into the statement, making more quantitative easing less likely, which could give the dollar a boost.
Company results take centre stage again today in the absence of major economic data. The Dutch parliament meets to try and pass a budget ahead of the EU deadline on 30 April.Company results take centre stage again today in the absence of major economic data. The Dutch parliament meets to try and pass a budget ahead of the EU deadline on 30 April.
As far as data goes, the latest weekly US jobless claims numbers are expected to show a small decline from last week's surprise rise to 386,000, dropping back to 375,000, says Michael Hewson, senior market analyst at CMC Markets UK.As far as data goes, the latest weekly US jobless claims numbers are expected to show a small decline from last week's surprise rise to 386,000, dropping back to 375,000, says Michael Hewson, senior market analyst at CMC Markets UK.
In the UK, CBI retail sales for April are expected to show a slight fall from March's flat reading to -4.In the UK, CBI retail sales for April are expected to show a slight fall from March's flat reading to -4.
Hewson adds:Hewson adds:
With political divisions opening up across Europe pressure is building on Germany and the ECB to do more and rein back on the current austerity based approach. While this does appear to have prompted a slight shift in tone from Germany's Angela Merkel, she pointedly ruled out any form of stimulus spending to boost economic growth, due to concerns about inflationary pressures.With political divisions opening up across Europe pressure is building on Germany and the ECB to do more and rein back on the current austerity based approach. While this does appear to have prompted a slight shift in tone from Germany's Angela Merkel, she pointedly ruled out any form of stimulus spending to boost economic growth, due to concerns about inflationary pressures.
Yesterday's surprise news that the UK economy contracted by 0.2% in Q1 appears to have been shrugged off by investors as a statistical quirk which will get ironed out in the coming weeks, judging by how the news was received across the markets yesterday. The pound initially dropped back but soon recovered its poise.Yesterday's surprise news that the UK economy contracted by 0.2% in Q1 appears to have been shrugged off by investors as a statistical quirk which will get ironed out in the coming weeks, judging by how the news was received across the markets yesterday. The pound initially dropped back but soon recovered its poise.