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Europe Week Ahead: ECB contemplates rock, hard place

Friday, June 01, 2012 - 02:27

June 1 - Attention turns to the ECB with bank governor Mario Draghi under pressure to provide new stimulus even after saying repeatedly that it was now time for governments to act.

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Just when you thought it couldn't get anyone else does in the US jobs numbers -- -- -- -- -- -- -- from around the world with nonfarm payrolls up just 69000. And -- The numbers add to a down day for stocks in the -- ball the flight sixty sees German two year yields on negative for the first time ever. All eyes on the ECB next week -- -- president Mario -- looks to be stuck between a rock and a hard place. Pressure for more stimulus is likely to rise if as expected the buying downgrades this economic forecasts. But dragging may find out how to -- to -- so often and so fondly that's it's up to governments to take the next steps. Spain still the most pressing concern for the eurozone Madrid won some breathing space today after a battle and agreed to give him more trying to cut the budget deficit. But first they spotted on -- and still likely to be never a moment. Maturities up to ten years out on the block as benchmark yields -- just under about 57%. Level. And the minister did spend more time to cut the deficit being welcomed today as a sign that battle in the starting to show some flexibility. Even so analysts say it's only delays the inevitable. Final -- anymore he's pushed me Germany paying. And I think got to Germany -- -- -- and that hope in the show April agreeing to your bones and and ends up boring calls for Jeremy. Agreed to fiscal union. And -- bold and payload into that relates because ultimately be -- would break -- power without a face fiscal union. -- also likely to -- of anxiety next week. No more pulls allowed in the remaining two weeks before the election meaning markets may be vulnerable to any kind of rumor or speculation regarding which party is looking stronger. And I would -- the -- on this a policy decision from the Bank of England's. No big move on Q we expect it but the pressure is building after today's UK PMI numbers so the second biggest drop in the index -- has today. Looking at was on the -- -- -- next week. -- -- -- set -- PMI is due on Tuesday after today's manufacturing numbers held way below about fifty point mark. Device first quarter GDP the region is -- at the elites -- No change from zero growth as the forecast. And Wednesday also brings Germany's industrial and this thing goes. Europe's last hope for both may be snuffed out with forecasts of a 1% drop and I've picked on all those. That's all from -- -- I'm Janine gave up the central to.