LONDON, March 4- The euro zone economy is sprouting more green shoots than anticipated just as the European Central Bank fires up a money printing program worth more than 1 trillion euros. Germany, Europe's largest economy, is the clear leader. "Everyone got caught up in the debate of deflation, Greece and the Ukraine crisis and so expectations were quite low," said...» Read More
Debt-crippled Greece's borrowing costs reached a new record high Tuesday on fears about the country's austerity program, a new blow as Prime Minister George Papandreou chaired a cabinet meeting aimed at finding ways to speed up delayed structural reforms.
On Wednesday, investors will wait with bated breath for news from Germany again, where the Federal Constitutional Court has the power to make or break the fate of the euro zone.
The Swiss National Bank (SNB) came out fighting Tuesday, announcing its intention to set a minimum exchange rate for the Swiss franc against the euro, in a move which sent European shares and the price of gold up.
The cost to Germany of leaving the euro could reach €8,000 for each adult and child in the country and spell disaster for the global economy, according to economists at UBS.
Europe is on the verge of recession and the US is already in a growth recession – an expression used by economists to show that growth is so slow that more jobs are lost than added, a strategist told CNBC Monday.
The exit of any of the countries in the euro region from the single currency would cause "complete chaos" in that country and is "almost inconceivable", Erik Nielsen, global chief economist at UniCredit, told CNBC Tuesday as the euro zone debt crisis continued to loom over European markets.
Former German Chancellor Gerhard Schroeder told CNBC that his successor, Angela Merkel, should never have tolerated the Greece-bashing as the euro zone debt crisis unravelled.
European stocks are expected to add to Monday's losses at the market open with all three major indexes due to start trade in the red.
The current liquidity support measures being used by the European Union to stem the region's banking and sovereign debt crisis won't be enough, World Bank President Robert Zoellick told CNBC in an interview on Tuesday.
If Italian Prime Minister Silvio Berlusconi left office, the market would lay off Italy, according to Nouriel Roubini, the founder of Roubini Global Economics.
European shares fell sharply on Monday amid renewed fears over the euro zone debt crisis and a warning from Deutsche Bank’s CEO on the outlook for banks.
Friday’s disappointing US non-farm payrolls data showed no jobs where created in the US in August sending stocks sharply lower as fears over a recession intensified.
Piling on more debt to help kick start growth will simply “stunt growth” and threaten economic welfare according to German Finance Minister Wolfgang Schäuble.
Gold prices may reach $6,200 per ounce in a bull run which will “end all major bull markets,” Urs Gmuer, asset manager at Dolefin, a Swiss investment advice firm, told CNBC.
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European stocks are expected to fall at the open with the DAX, FTSE and CAC all called lower by more than 1 percent by spread betters.
Without "major surgery" on companies' annual reports, investors' trust will continue to diminish, impacting on growth, James Roberts, a partner at accountancy firm BDO, said as his firm released new research showing reports remain a crucial influence when it comes to investment decisions.
Greater fiscal and political union is needed in Europe, and will be discussed by euro zone leaders within months, Joaquin Almunia, EU Competition Commissioner, told CNBC Saturday.
The Swiss central bank has started to buy French and German government debt from the markets to try to bring the Swiss franc down, Dow Jones newswire wrote on Saturday, quoting a report by German newspaper Frankfurter Allgemeine Zeitung.
Japan's earthquake and tsunami triggered a “change in people’s relation with energy,” Toshiba CEO Masaaki Osumi told delegates at the IFA technology fair on Friday.