Thursday, October 7, 2010

Europe: The 'Rich' And The 'Poor'

[ Normxxx Here:  Why the EU will come apart at the seams.  ]
German Factory Orders Top Forecasts
German August Manufacturing Orders Rise 3.4%

By William L. Watts, Marketwatch | 7 October 2010

LONDON (MarketWatch)— German factory orders rose more than expected in August, the nation's economics ministry said Wednesday, offering further evidence the recovery in Europe's largest economy is maintaining its momentum. Seasonally-adjusted orders increased 3.4% in August, more than offsetting the 1.6% drop seen in July. Economists had forecast a 1.1% monthly increase.

Compared to August 2009, orders surged an unadjusted 24%, the ministry said. The euro (EURUSD) extended gains versus the U.S. dollar to trade at $1.3853, which was near an eight-month high. Data showed the rebound was driven largely by stronger foreign demand for capital and intermediate goods, with demand from other countries in the euro zone showing the strongest jump.

Stronger demand within the euro zone offers evidence the region's recovery is broadening, said Carsten Brzeski, senior economist at ING Bank in Brussels. Moreover, German order books are now "richly filled," which will leave firms busy working off increasing backlogs, he said. Even if orders slow in coming months, industrial production should continue to drive growth, Brzeski said.


Fitch Downgrades Ireland On Bank Clean Up, Economy

DUBLIN (Reuters) 6 October 2010— Fitch Ratings downgraded Ireland's credit rating to A+ from AA— and put it on a negative outlook, pointing to the bigger-than-expected cost of cleaning up the country's banks and uncertainty over economic recovery. "The downgrade of Ireland reflects the exceptional and greater-than-expected fiscal cost associated with the government's recapitalization of the Irish banks, especially Anglo Irish Bank," Fitch said in a statement on Wednesday. "The negative outlook reflects the uncertainty regarding the timing and strength of economic recovery and medium-term fiscal consolidation effort."

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