China assures EU of rare earths supply at talks

China ready to buy $5.3 billion of Portugal debt: report
The paper said, without citing any sources, that a deal reached between the two governments will lead to China buying Portuguese Debt in auctions or in the secondary markets during the First Quarter of 2011. China's Central Bank declined to comment on the report. The euro rose to the day's high versus The Dollar on Wednesday on the back of the report, climbing around 30 pips to a session high of $1.3168 according to Reuters data. Portugal has moved into the eye of the storm in Europe's Debt cri...

Let's Not Save the Euro or, For That Matter, The European Union
I am no fan of the European Union. It is an artificial contraption, run by the corporate and bureaucratic elites of the continent, without democratic sanction because the various peoples subsumed under its rule themselves see that it is without democratic values or ambitions. Had it at least energized the economies of Europe there might be some raison d'être for its intrusive rules which wreak havoc with every member nation's culture and identity. The fact is, however, that t...

China ready to buy $5.3 billion of Portugal debt: report
Lisbon | Wed Dec 22, 2010 4:54am EST Lisbon (Reuters) - China is ready to buy between 4 billion Euros ($5.26 billion) and 5 billion Euros of Portuguese sovereign Debt to help the country ward off pressure in Debt markets, the Jornal de Negocios daily reported on Wednesday. The paper added, without citing sources, that a deal reached between the two governments will lead to China buying Portuguese Debt in auctions or in the secondary markets during the First Quarter of 2011. Portugal has moved...

It's Europe's crisis
John Bolton The recent riots in Athens, London and Rome signal rising insecurity and uncer tainty within the European Union. The most profound and widespread challenge is the growing sense that the EU's common currency, the Euro, may not survive in its present form, if at all. The obvious reason is that, as a matter of economics, the euro project gives surrealism a bad name: A currency without a government was always doomed to fail. Now, there are only two choices: 1) Abandon or dramatically ...

China frets about spreading EU debt woes
By Langi Chiang and Kevin Yao Beijing | Tue Dec 21, 2010 2:37am EST Beijing (Reuters) - China urged European authorities to back their tough talk with action on Tuesday by showing they can contain the euro zone's simmering Debt problems and pull the bloc out of its crisis soon. China, which has invested an undisclosed portion of its $2.65 Trillion reserves in the euro, said it backed steps taken by European authorities so far to tackle the region's Debt problems, but made clear it would like ...

China aims to improve trade balance in 2011
Beijing | Wed Dec 22, 2010 4:00am EST Beijing (Reuters) - China will try to import more in 2011 while keeping exports steady, Commerce Minister Chen Deming said on Wednesday, in a sign that the world's second-largest economy is keen to pull more weight as a consumer. In a statement on the ministry's website www.mofcom.gov.cn, Chen said China wants to better balance its trade account, and will step up purchases of high-tech goods and commodities such as grains and cotton next year. "We will im...

It's Europe's Crisis
The recent riots in Athens, London and Rome signal rising insecurity and uncertainty within the European Union. The most profound and widespread challenge is the growing sense that the EU's common currency, the Euro, may not survive in its present form, if at all. The obvious reason is that, as a matter of economics, the euro project gives surrealism a bad name: A currency without a government was always doomed to fail. Now, there are only two choices: 1) Abandon or dramatically shrink the...

Crisis-hit Greece gets new ratings warning
Athens, Greece—Fitch Ratings agency on Tuesday warned of a possible downgrade of Greek bonds, adding pressure on the government as it debates the 2011 Budget in parliament. Fitch said that the action "indicates that there is a heightened probability that Greece's sovereign Ratings will be downgraded" from its current BBB- status after a review is completed next month. It follows similar warnings from Ratings agencies Moody's and Standard and Poor's earl...

Moody's warns of lowering Portuguese debt rating
Moody's warned on Tuesday it may lower by one or two notches Portugal's A1 rating owing to uncertainty about growth and borrowing prospects, but said it expected Lisbon to be able to pay its Debts. "In Moody's opinion, Portugal's solvency is not in question," Anthony Thomas, Moody's Vice President and lead analyst for Portugal was quoted as saying in a statement. Moody's emphasised its concern over Portugal's growth prospects, which will affect its long-term ability to repay debts, rather than m...

Europe still cant turn the page
As we are on the cusp of rapping (pun intended) up 2010, one of the main issues that impacted markets that of sovereign European Debt problems, remains in full force. After seeing Bailouts for Greece and Ireland and now the implementation of a permanent bailout facility we’ve learned that outside of temporarily saving senior bank bondholders, the actions have done nothing to calm investor concerns as funding costs are still very elevated. While markets are thin this week and let’s ...

FOREX-Euro helped by report China will buy Portugal's debt
Wed Dec 22, 2010 7:49am EST * Euro gets lift from report China will buy Portuguese Debt * ECB tender shows heavy reliance on cheap funding * Euro hovers near all-time low vs Swiss franc (Adds detail, updates prices) By Anirban Nag LONDON, Dec 22 (Reuters) - The euro gained against The Dollar and bounced from all-time lows against the Swiss franc on Wednesday, boosted by a news report that China was ready to buy significant amounts of Portuguese Sovereign Debt. The Jornal de Negocios daily rep...

China supports EU efforts at financial stability
A top Chinese official says Beijing supports measures taken by the European Union and the International Monetary Fund to stabilize Europe's Debt crisis. Vice Premier Wang Qishan on Tuesday said China has also taken steps to help European nations combat the Sovereign Debt crisis. He was speaking at the opening of the third China-EU High-Level Economic and Trade Dialogue. Wang said the two sides "should have confidence and enhance cooperation to work together for a robust, sustainable and balanced...

China supports EU efforts at financial stability
BEIJING (AP) - A top Chinese official says Beijing supports measures taken by the European Union and the International Monetary Fund to stabilize Europe's Debt crisis. Vice Premier Wang Qishan on Tuesday said China has also taken steps to help European nations combat the Sovereign Debt crisis. He was speaking at the opening of the third China-EU High-Level Economic and Trade Dialogue. Wang said the two sides "should have confidence and enhance cooperation to work together for a robust, sustain...

Greece to vote on 2011 austerity budget
Athens (AFP) – Greek lawmakers on Wednesday wrap a five-day debate on a Budget containing over 14 billion Euros in savings under a tough Austerity policy imposed after the country's Bailout by the EU and the IMF. The Socialist Government of George Papandreou has a six-seat majority in parliament and is expected to carry the vote to be held after midnight. The 2011 Budget includes cuts in the badly mismanaged Greek health sector and public companies, a two-percent increase in the lowe...

Greece to vote on 2011 austerity budget (AFP)
Athens (AFP) – Greek lawmakers on Wednesday wrap a five-day debate on a Budget containing over 14 billion Euros in savings under a tough Austerity policy imposed after the country's Bailout by the EU and the IMF. The Socialist Government of George Papandreou has a six-seat majority in parliament and is expected to carry the vote to be held after midnight. The 2011 Budget includes cuts in the badly mismanaged Greek health sector and public companies, a two-percent increase in the lowe...

China frets about spreading EU debt woes
By Langi Chiang and Kevin Yao Beijing | Tue Dec 21, 2010 2:37am EST Beijing (Reuters) - China urged European authorities to back their tough talk with action on Tuesday by showing they can contain the euro zone's simmering Debt problems and pull the bloc out of its crisis soon. China, which has invested an undisclosed portion of its $2.65 Trillion reserves in the euro, said it backed steps taken by European authorities so far to tackle the region's Debt problems, but made clear it would like ...

China frets about spreading EU debt woes
Beijing (Reuters) - China urged European authorities to back their tough talk with action on Tuesday by showing they can contain the euro zone's simmering Debt problems and pull the bloc out of its crisis soon. China, which has invested an undisclosed portion of its $2.65 Trillion reserves in the euro, said it backed steps taken by European authorities so far to tackle the region's Debt problems, but made clear it would like to see the measures having more effect. "We are very concerned about w...

63310
The summit of Europe's heads of government is over, yet the continent's problems remain. After intense negotiations in Brussels, tough decisions on the future of the European currency have been postponed again. Horace's sneer "parturient montes, nascetur ridiculus mus" ("mountains will be in labour, and an absurd mouse will be born") comes to mind. What was agreed in Brussels is a collection of technicalities: a vague amendment of the European Treaties to establish a permanent rescue mechanism f...

France’s AAA Grade at Risk as Rating Cuts Spread: Euro Credit
Dec. 20 (Bloomberg) -- France risks losing its top AAA grade as Europe’s Debt crisis prompts a wave of downgrades that threatens to engulf the region’s highest-rated borrowers, with Belgium also facing a possible cut, analysts and investors said. Moody’s Investors Service said Dec. 15 it may lower Spain’s rating, citing “substantial funding requirements,” and slashed Ireland’s rating by five levels on Dec. 17. Standard & Poor’s is reviewing its...

Greek PM slams debt rating agencies
Greek Prime Minister George Papandreou on Monday slammed the "unacceptable logic" of Debt rating companies who have repeatedly downgraded the sovereign and bank standings of weak European economies in the past week. "Because of the crisis in the Eurozone, we have a barrage from rating houses who downgrade countries or place them on negative watch," Papandreou told a cabinet meeting, according to his office. "This is an unacceptable logic on their part," he said, noting that the same companies ha...

Can anyone stop the Euro going down in flames?
Riots on the streets of Greece and political turmoil in Dublin may be troubling - but they also seem remote. Even Britain's Controversial £7billion contribution to the Irish Bailout appears modest compared with our own banking rescues and public Debts. But this weekend the euro firestorm is approaching the City. On Friday the Bank of England warned of the threat to Britain's banks of a continued euro crisis and, as if on cue, Lloyds Banking Group shocked the Stock Market by announcing a sh...

Greeks go on strike before austerity vote
Greek unions called a general strike on Wednesday and Athens was paralysed by a 24-hour public transport stoppage in Protest against the government's 2011 Budget, set to pass later as part of an EU/IMF Bailout. The Budget, meant to help stem a Debt crisis that has shaken the euro zone, includes further tax hikes and wage cuts in state-run enterprises, especially in public transport. Fitch said on Tuesday it may cut Greece's Credit Rating next month to junk as both other major rating agencies hav...

Portugal faces rating cut, Spanish debt costs rise
By Andre Khalip and Nigel Davies LISBON/Madrid | Tue Dec 21, 2010 7:08am EST LISBON/Madrid (Reuters) - Portugal was put on notice on Tuesday that its Credit Rating could be cut and fellow euro zone debtor Spain had to pay more to issue new Debt, suggesting the currency bloc's crisis will rage unabated in 2011. China, the world's new economic powerhouse, urged European policymakers to demonstrate as a matter of urgency that they can contain the euro zone's debt problems and pull the bloc aroun...

A fiscally-unified plan for European defaults
There are basically two ways that the European crisis might end up resolving itself. Either the peripheral countries start defaulting, or else the Eurozone becomes a fiscal union as well as monetary union. Both are politically unacceptable, of course. And George Soros, in a lucid column today, reckons that both might be in the cards: The lack of a common treasury is now in the process of being remedied, first by a rescue package for Greece, then by creating a temporary emergency facility, and â...

Get Out: Ireland, Portugal and Greece need to leave the Eurozone or they will not be able to land on their feet
Via AFP: "Without their own currency or large fund transfers, Greece, Ireland and Portugal will not be able to land on their feet," Andrew Bosomworth, head of Pimco Europe's portfolio, told the German daily Die Welt. Having their own currencies would allow a competitive Exchange Rate to boost exports and achieve the Economic Growth needed to be able to repay their heavy Debt loads, he added. Once growth returned and the countries regained the confidence of Sovereign Debt markets, they could rein...