Europe's biggest concerns center on Italy and Spain, which had already
published GDP data showing sharp contractions. Italy's GDP fell at an annualized
rate of 2.9% in the second quarter, while Spain's shrank an annualized 1.7%. In
both countries, economic activity remains well below its level before the 2008
financial crisis. Their renewed recessions since late 2011 are making it harder
for those countries to curb rising national debts and win back investors who are
fleeing their government bonds and banking systems. Many Italian companies are
trying to reduce their exposure to the slumping domestic economy. Tuscany-based
knitwear maker Filpucci SpA is shifting more manufacturing to China to cut labor
costs, while trying to boost sales to U.S. retailers such as Gap Inc. "There is
no longer a market here" in Italy, said the company's vice president, Federico
Gualtieri. At family-owned textile maker Marini & Cecconi SRL, orders from
Italian retailers and clothing brands have dropped as much as 15% for this
winter's collections, compared with last year, said Francesco Marini, who helps
run the company. Mr. Marini said the company is increasingly selective about
who it supplies in Italy amid concerns that smaller, financially strained
retailers won't be able to pay.
Access Investments-Building Awareness - European Union-ROMANIA
Friday, August 17, 2012
Europe's biggest concerns center on Italy and Spain, which had already
published GDP data showing sharp contractions. Italy's GDP fell at an annualized
rate of 2.9% in the second quarter, while Spain's shrank an annualized 1.7%. In
both countries, economic activity remains well below its level before the 2008
financial crisis. Their renewed recessions since late 2011 are making it harder
for those countries to curb rising national debts and win back investors who are
fleeing their government bonds and banking systems. Many Italian companies are
trying to reduce their exposure to the slumping domestic economy. Tuscany-based
knitwear maker Filpucci SpA is shifting more manufacturing to China to cut labor
costs, while trying to boost sales to U.S. retailers such as Gap Inc. "There is
no longer a market here" in Italy, said the company's vice president, Federico
Gualtieri. At family-owned textile maker Marini & Cecconi SRL, orders from
Italian retailers and clothing brands have dropped as much as 15% for this
winter's collections, compared with last year, said Francesco Marini, who helps
run the company. Mr. Marini said the company is increasingly selective about
who it supplies in Italy amid concerns that smaller, financially strained
retailers won't be able to pay.
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4 comments:
I've looked the Spanish and Italian bond yields to see whether they were influenced by the Finnish minister talks of euro break-up. Some are up and some are down, so no impact there; everybody is still on holydays, it seems.
Looking at yields, the German 2-year bond yield is negative since beginning of July, at - 0.03% right now. The spread between the German 10-year bond yield and the US gov one has recently increased; it is back at 0.3% (ie there is slightly more perceived risk on the US bonds than on German ones, if you interpret those in that way.)
The younger generation that have known nothing other than the EU and the Euro have been brainwashed by Brussells into thinking that Europe must be united. Many people will remember that we survived very well before unelected deciders hanging on to their well paid jobs in Brussells /Strasburg decided life would be better for us if bananas werer straight.
Whilst seeking a bailout has the practical effect of making a country's fiscal decisions subject to ultimate approval by the Bundestag, it doesn't alter the fact that these supplicant states need ( probably permanent ) transfers, mainly, from german taxpayers.
Although the former may simply amount to guarantees, the latter will need hard cash.
Whilst the Fins prepare for a euro break-up, economist and Guardian columnist Will Hutton insists the euro is A Good Thing and the UK must join it as soon as possible.
Sorry Will, the euro sceptics turned out to be right all along.'
Hardly, it's not over and looking at it now, it looks less likely. The Germans know that they will lose their much vaunted export markets if the Euro goes under.
I offer odds of 2-1 that they prop it up indefinitely and it becomes the next Federal currency - and not only that, it also takes over from the dollar in the next 10 years.
And the finnish guy - he should be fined.
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