US treasury secretary Timothy Geithner has argued that Europe has the means and commitment necessary to resolve the continuing euro debt crisis.
The average yield on 10-year Spanish bonds has risen to 6.65%, a 0.22% from a bond sale in July. In addition to a yield increase demand for the bonds fell from 3.2 times the amount of bonds last month to 2.4.
The White House has stated that Spain faces “difficult challenges” following a discussion between President Obama with Spanish Prime Minister Mariano Rajoy.
Leading indexes and the euro have continued to hold recent gains following the European Central Bank’s decision to buy Spanish and Italian bonds.
Data from Germany, the ECB and China indicates Europe is inching ever-closer to the financial abyss.
The Governor of the Bank of England Sir Mervyn King has said there is “no obvious end in sight” to the on-going euro crisis, creating a series problem for a UK recovery.
The eurozone economy is now 0.4pc smaller than it was a year ago, whist the region contracted 0.2 pc in the second quarter, eurozone GDP figures released this morning show.
The Greek government is to ask for the country’s debt reform plan to be relaxed during meetings with the French President Francois Hollande and the German Chancellor Angela Merkel.
Finland’s foreign minister Erkki Tuomioja has caused waves by suggesting the nordic nation is preparing for a eurozone breakup.
Italian Prime Minister Mario Monti has flown to Berlin to meet with German Chancellor Angelia Merkel before a new sale of Italian debt to discuss the current state of the Eurozone crisis.
Unemployment figures have risen in Germany for the fifth month in a row. Whilst remaining at a post-reunification jobless low the employment market has suffered following a second quarter of falling GDP figures.
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