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Europe Week Ahead: EU summit countdown stokes tension

Friday, October 12, 2012 - 02:34

Oct. 12 - Market tensions ease as Spain says Europe's bond-buying fund is ready for action, but the countdown to next week's EU summit could see tensions rise again.

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The mood brightens in Europe and not just because the EU was the surprise went -- of the Nobel Peace Prize Spain says -- European bond buying plan is ready for use and doesn't face any opposition within the eurozone. And EU summit on Thursday and Friday the big event markets will be waiting for but it may come too soon for any dramatic developments. Inspectors from the EU IMF and ECB continued to pull over DC's accounts and won't be ready to report in time for the summit. Spot -- prime minister Mariano Rajoy also unlikely to make our formal request for aid until he's got past regional elections due on the following Sunday. Any frustration with Spain is likely to show -- and a major bond auction on Thursday Madrid -- to sell benchmark ten year debt as of Ellis three and four year bonds. Spanish yields today falling to the lowest and a month for the below about 6% mark but it may not take much to see them spike -- and again. The debate on whether to ease up on austerity measures will also rule on Gemini resisting IMF calls to give Spain and other countries more tying to meet budget targets. IG index -- David Jones says this hardline stance is by the use. Worrying thing is that we don't just we don't have the economic growth fast so it's there it's not just going to be. Austerity cuts they're gonna solve this problem is gonna put them back on a firmer footing but I think without without the growth that to try and balance it off. We're looking at probably eight years and years of a tough times for these economies. Elliott and that we keep -- on Portugal -- -- unveil his latest budget on Monday the proposed package of tax hikes and spending -- has already sparked unrest and analysts will be watching to see signs of rising -- again. German -- W investor sentiment the big number out to watch for next week about his post season numbers edging higher. Suggesting Europe's economic engine is still coming. And the UK the focus shifts to jobs with unemployment numbers jumped on Wednesday unemployment forecast to hold steady at around 8%. Nokia due to put Q3 earnings on Thursday just days before its latest make a break four hits the shops the -- Smartphone is -- in the coming weeks. And that success will be crucial. As a phone company struggles to compete with apple and some some. Once the biggest move by a phone maker Nokia has fallen behind -- rivals and not tough more than three billion euros in losses over the last eighteen months. Also due out next week off third quarter results from -- SNL and Spain's bank and to. That's all from us and I hope I'm -- to give up this and brought --

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Europe Week Ahead: EU summit countdown stokes tension

Friday, October 12, 2012 - 02:34