Stoxx Europe 600 fell down today, as Commerzbank and Credit Agricole have new problems

Stoxx Europe 600 approached the red zone today

In brief: Pan-European Stoxx Europe 600 index fell against the background of new fears of investors and bearish trend.

European stocks fell amid concern over the economic outlook. Trading volume was quite low due to the fact that the U.S. now trades do not take place because of the holiday on the occasion of Independence Day. Pan-European Stoxx Europe 600 index fell 0.2% to 236.88 points, the British FTSE 100 – on 0,3% to 4,823.53 points, Germany’s DAX – on 0,3% to 5,816.20 points, the French CAC-40 – by 0,5% to 3,332.46 points.

Chief Economist Jim O’Neill, Goldman Sachs (Jim O’Neill) has warned that the data obtained from China and the U.S., showed that economic recovery will have a challenging period. O’Neill, who heads Goldman of Global Economic Analysis, said Sunday Telegraph: “Clearly, the continued efforts of the United States, coupled with frustration, which brought China, will not be good news for anyone of us.” O’Neill, who first described the economy of Brazil, Russia, India and China (BRIC), the future engine of global economic growth, points to the growth of Chinese economy as the main concern for the global economy. “If we are wrong in the estimates of economic growth in China, the world will be a very difficult place, especially for those who voluntarily imposed a cost to their domestic markets – he said. – It seems there are new signs that growth in China slows.

Last week, Goldman lowered its forecast for China’s GDP growth this year from 11,4% to 10,1%.

Economic growth in the eurozone in 2010 is likely to be close to zero, since the stormy second quarter jeopardized the previous forecast of 1%, says U.S. economist Nouriel Roubini (Nouriel Roubini).

Block does not threaten the double recession, despite the weakening of the faith of financial markets in economic growth in an era of austerity, Rubin said, speaking on Sunday at a conference in the A-en-Provence.

“Given the turmoil the last few months, the end of the year can be expected from the euro-zone economic growth close to zero”, – said Roubini, known for his pessimistic forecasts.

Persisting for the last three months of stock market correction, rising credit spreads and interbank lending market is nervous raise serious concerns about economic growth at the global level, “said Rubin. U.S. economic growth during the second half may slow to 1.5% compared to 3% in the first half, he added.

Economic recovery in Europe is confident, however, additional measures are needed to ensure the restoration of the region, said the representative of the European Central Bank Gertrude Tumpel-Gugerell (Gertrude Tumpel-Gugerell).

“I think that the recovery in Europe is confident enough and we have chosen the right policy to ensure a return to growth rates that were before the crisis,” – said Tumpel-Gugerell at the financial seminar organized by the European Union at the World Expo in Shanghai.

The volume of retail sales in the euro zone in May compared with April increased by 0.2% while annualized rate rose to 0.3%. It was informed by the statistical agency Eurostat. Analysts predicted that retail sales will grow by 0,3% in monthly terms and decreased by 0.3% annualized. In the revised data, in April retail sales fell by 0,9% in the month and by 0,5% in annual terms.

Retail sales in Germany in May rose by 0,4% compared to April, while in annual terms this figure has increased by 2,4%. Such data led the Federal Statistical Office of the country.

The cost of British oil company BP Plc, related to the accident Deepwater Horizon drilling platform in Gulf of Mexico, increased to $ 3.12 billion in the costs included costs for eliminating leakage from the emergency wells, collect spilled oil, as well as payments for lawsuits, and federal reimbursement U.S. government’s crash.

BP said that it begins to search for a strategic investor, which would help ensure its independence in relation to high costs and falling shares on the exchange. In this way the company intends to defend itself from attempts to absorption.

Counselors BP are trying to convince competing oil companies and state funds to buy a share of up to 10% of 6 billion pounds ($ 8.8 billion), reported the publication of Sunday Times unnamed sources. This is because that the company feared hostile takeovers as soon as BP cope with the accident in the Gulf of Mexico, which is projected to happen in the next few weeks.

BP shares have risen in price by 3,5%.

Results of tests designed to show that European banks can cope with new economic shocks, will be published July 23, said Economy Minister Christine Lagarde.

European banking regulators are currently conducting stress tests to build confidence in the sector. “You will soon be seen in banks, which are subjected to stress tests and to better understand the criteria used by us and then, on July 23, will be published the result – Lagarde told reporters on the sidelines of a conference in the A-en-Provence. – You will see that European banks are healthy.”

Tests conducted by analysts, showed that the situation in the banks KBC, National Bank of Greece, Commerzbank, Credit Agricole, and Dexia is worse than their competitors, but none of them is at a dangerous level.

Ministries of the British Government entrusted to plan budgets based on cost reduction of 40%. New finance minister George Osborne hopes thus to reduce a record budget deficit, said Transport Minister Philip Hammond.

The governing coalition of Prime Minister David Cameron in the Conservative and Liberal Democrat proposes to reduce spending and raise taxes totaling 113 billion pounds ($ 172 billion) to cut the deficit to 11% of GDP.

Ukrainian Globalist
2010-07-05 19:40, Economics.

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