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Europe Week Ahead: Hollande/Merkel show the hot ticket

Friday, May 11, 2012 - 03:46

May 11 - Francois Hollande will be sworn in as the new French president on Tuesday. Hours later he'll fly to Berlin for talks with the German Chancellor Angela Merkel on re-igniting growth in the euro zone

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European shares on the defensive and a week dominated by elections in France and Greece received votes -- punish their leaders by resoundingly rejecting austerity. Great politicians failed to form a government out of the electorate dumps that too long dominant mainstream parties. The left now holding me up my hands declaring Greece's international bailout deal dead in the water. Another round of elections now looks all but inevitable. Now for a look at the week ahead in Europe falls far along will be sworn in as the new French president on Tuesday within hours of the inauguration belong to a head to -- in place -- this meeting as president. German Chancellor Angela Merkel. Already there are signs of tension between the two leaders most closely charged with extricating Europe from its debt crisis. Buckles says there's no alternative to painful spending cuts on his part says he won't let Germany to tell him from a drive for growth. When National Australia Bank nick Parsons has German politics suggest medical may be the one to give ground. Both leaders. And -- in Europe that want to be in leaders in four years' time. And I think in order to do that they are gonna have to come to some sort of accommodation. I think miss Angela Merkel domestic play. Is going to have potentially. To think in terms of a grand coalition with the SP day. So that being the case. I think we're gonna see. Yes perhaps a surprising degree. Of movement from -- knuckle over the course of the next twelve to fifteen months. Nick Parsons at National Australia Bank. A knuckle could come under further pressure if as expected have Christian Democrats do badly in this weekend's elections in north Rhine Westphalia. Germany's most populous states. GDP figures out on Tuesday should show that unlike the UK Germany has avoided slipping into recession. The drop of north point 2% in the fourth quarter of last yes that's -- -- bells ringing. For the first quarter of 2012 is full cost rising by just north point 1%. A strong set of industrial output numbers earlier this week has raised hopes that Germany is gathering steam after slack winter. Why do you present itself is less likely to avoid recession. It states also out on Tuesday. Full cost to show a second straight quarter of contraction. Eurozone finance ministers meeting on Monday we'll have plenty on the minds. All the political turmoil in Greece and deteriorating confidence in Spain will continue to weigh on financial markets next week. European stocks of persistently under performing well indices I'm likely to stay that way. Euros long awaited break below one dollar thirteen has made an eventual move down to one dollar 25. The consensus trade on currency markets. I'm with a rattled investors seeking solace inequity excuse me and quality assets that seems little reason -- German bond yields to climb much about the current record lows. Emotional five billion euros in ten -- April Wednesday we'll -- appetites. Facebook's IPO will be that big talking point on equity markets the social network wants to race ten point six billion dollars which has priced in a range of 28 to 35 dollars. The stock is due to Begin trading on Friday and -- price range could yet be increased. European first quarter earnings season is drawing to a close Tuesday looks to be the busiest day with results from Ali -- -- -- a San Paulo and test and trip. Both say different EAD yes the week I capped the dance Vodafone and -- -- You can keep up with -- stories and more on the inside a platform on Reuters dot com. And then look out for Reuters today each week day at seven GMT a snapshot of all the latest world news market headlines on social media pulse. I'm Nigel Stephenson this is --

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Europe Week Ahead: Hollande/Merkel show the hot ticket

Friday, May 11, 2012 - 03:46