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You can find the current article at its original source at http://www.guardian.co.uk/business/2012/jun/08/eurozone-crisis-germany-suffers-imports
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| Version 0 | Version 1 |
|---|---|
| Eurozone crisis live: Germany starts to suffer as imports slump | Eurozone crisis live: Germany starts to suffer as imports slump |
| (40 minutes later) | |
| 8.57am: Brent crude oil prices fell below $99 this morning, as the world's top oil consumer the United States held off from a third round of quantitative easing. Bernanke's testimony to congress on Thursday offered to clues that he was close to a new round of electronic money printing. Brent crude for July traded $2.09 lower at $97.84 a barrell just before 9:00 BST, and is poised to fall for a sixth week in a row, its biggest losing streak since December 1998. | |
| 8.48am: European stock markets have opened lower, retreating from a one-week high after Spain's savage credit rating downgrade yesterday evening and hopes of a new US stimulus round fading. | |
| FTSE 100: down 37 points to 5410, -0.7% German DAX: down 61 points to 6083, -0.99% French CAC: down 34 points to 3037, -1.12% Spanish IBEX: down 64 points to 6374, -0.99% Italian FTSE MIB: down 187 points to 13356, -1.38% | |
| The Eurozone's fourth-biggest economy moved a step closer to a financial bailout on Thursday evening as ratings agency Fitch downgraded Spain from A to BBB, a notch above junk status. | |
| Fitch blamed mistakes at a European level which had allowed the financial crisis to escalate. | |
| US Federal Reserve chairman Ben Bernanke disappointed investors during late European trading on Thursday when he declined to hint at a third round of quantitative easing to stimulate the economy. Koen De Leus, a strategist at KBC Securities, said: | |
| Bernanke disappointed investors who were looking for some hints about a third round of quantitative easing. Disappointment can also be deduced from a correction in gold prices. | |
| 8.19am: Mixed signals from France, where the budget deficit narrowed but the trade deficit for April came in wider than expected. | |
| The national overspend fell to €59.9bn for January to April, from €61.4bn for the same period last year. Government spending rose 4.2% to €133.6bn, outpacing higher tax receipts, which rose just 2.7% to €91bn. | |
| However, the trade deficit stands at €5.8bn, higher than the €5.5bn economists had predicted. | |
| As Marks & Spencer announces it is to open a bank in the UK, Reuters is reporting the European Commission wants to close one in Greece. The EU's sites are trained on Greece's fifth-largest lender, ATEbank, says a report citing EU sources. | |
| The EU has a say in the matter because under state aid rules it can refuse a request to rescue a bank if the Commission considers it too costly to save. The move would mark a more aggressive stance from Brussels, and the same rules would apply to Spanish and Portuguese banks. | |
| "We are moving into a new phase with Greece, Portugal and Spain," one source told Reuters anonymously. "Some banks are going to be squeezed. Some are going to be closed down." | |
| Banks central to a country's financial stability may need rescuing, said the source, but others may have to be let go. "ATEbank will have to be closed or wound down over time". | |
| The Greek finance ministry denied the report. No decision is likely until after the country holds elections on 17 June. | |
| 7.45am: Good morning, and welcome to our rolling coverage of the eurozone financial crisis. | 7.45am: Good morning, and welcome to our rolling coverage of the eurozone financial crisis. |
| Pressure is building on Angela Merkel act with signs this morning that the eurozone crisis is beginning to impact her electorate. German imports and exports fell sharply in April, according to data published this morning. | Pressure is building on Angela Merkel act with signs this morning that the eurozone crisis is beginning to impact her electorate. German imports and exports fell sharply in April, according to data published this morning. |
| Europe's largest economy is beginning to feel the pinch, with seasonally adjusted imports dropping 4.8%, their worst decline in two years according to Reuters. The numbers will have surprised German economists, who mostly expected the number to remain flat, having falled 0.9% in March. | Europe's largest economy is beginning to feel the pinch, with seasonally adjusted imports dropping 4.8%, their worst decline in two years according to Reuters. The numbers will have surprised German economists, who mostly expected the number to remain flat, having falled 0.9% in March. |
| The fall in exports also accelerated. These were down 1.7%, up from a 0.8% fall in March. | The fall in exports also accelerated. These were down 1.7%, up from a 0.8% fall in March. |
| The news will add fuel to the lively debate on the current edition of the Economist, whose front cover calls on Merkel to restart the engines of a u-boat named the World Economy. | The news will add fuel to the lively debate on the current edition of the Economist, whose front cover calls on Merkel to restart the engines of a u-boat named the World Economy. |
| Agenda | Agenda |
| • 7:45 BST French central government budget balance • 9:00 BST Italian industrial production update • 9:30 Bank of England inflation expectations • 9:30 Producer Prices Index • 12:30 US trade balance for April | • 7:45 BST French central government budget balance • 9:00 BST Italian industrial production update • 9:30 Bank of England inflation expectations • 9:30 Producer Prices Index • 12:30 US trade balance for April |