Euro falls on Spain worries

European share prices ended lower after Moody's announcement, ending a two-week rally, while Wall Street was little changed after early gains on upbeat U.S. economic data.
Precious metals prices came under pressure as the U.S. dollar rose. Oil gained following an unexpectedly large drop in U.S. inventories. U.S. Treasuries saw their early flight-to-safety buying momentum wane, but the 10-year benchmark note held modest gains while the 30-year bond lost more than half a point.
Spanish government bonds reversed early losses. The 10-year government bond yields shot up to a high of 6.43 percent before falling past Tuesday's closing level to 5.48 percent, down 7 basis points for the day.
"It's literally a question of people thinking maybe Spain is too cheap," said Huw Worthington, a European fixed income strategist at Barclays Capital in London. "People have maybe cheapened it too much ahead of the auction."
Spain will hold a 10- and 15-year bond auction on Thursday.
The euro fell to a record low against the Swiss franc of 1.2758 francs on the EBS trading platform before recouping to 1.2787, off 0.4 percent.
Against the dollar the euro fell 0.91 percent at $1.3262. The greenback rose 0.49 percent to 84.04 against the yen. Against major currencies the U.S. dollar was up 0.79 percent .DXY.
Moody's cited concerns about Spain's mounting debt and 2011 funding needs. The decision included the caveat that while the Aa1 rating could be cut, it does not expect Madrid to have to follow Greece and Ireland in requiring a European Union bailout.BCE, Citigroup, Agerpres, Mediafax, PIB, Rusia, SUA, Spania,Banca Mondiala,FMI, Guvern,agenda de business, bugetul de stat, economie, revista presei,romania,antena3.ro,realitatea.net,mediafax,bucuresti,camera de comert

Europe's central bankers appeared to calm jittery markets despite refusing to accelerate measures to support ailing eurozone economies in the aftermath of the Irish bailout.
The European Central Bank president, Jean-Claude Trichet, said he would keep giving banks unlimited liquidity well into next year but made no guarantee to step up the bond-buying to combat investor panic surrounding Portugal and Spain.
Investors initially sold the euro and increased the cost of insuring eurozone debts after Trichet's comments, but a closer reading of his remarks and analysis of market activity later showed that the ECB was involved in large-scale behind-the-scenes support to bond markets.If you ever played Monopoly, you learned that by managing your cash flow wisely, you could buy a bunch of houses and hotels -- and win. If you didn't manage it well, you might wind up in jail or penniless.
Small wonder that aside from bankruptcy and audit, the term cash flow is probably the most terrifying in an entrepreneur's dictionary. According to a survey by Intuit, 22 million of the nation's smallest business are waiting for approximately $1,500 in overdue payments every month, creating a $33 billion logjam on their cash flow. In the same survey, 42 percent of business owners said they stay up nights worrying about how quickly they will be paid.
Obviously, the money your customers give you is cash flowing "into" your business, and the checks you're writing to pay salaries, suppliers, utilities and others constitutes the cash flowing "out" of your business. And as entrepreneurs know, a positive cash flow is the holy grail for all business owners.BCE, Citigroup, Comisia Europeana, FMI, Federal Reserve, Germania, Grecia, Irlanda, Marea Britanie, PIB, Rusia, SUA, Spania, Standard & Poor's, Ungaria, Uniunea Europeana, economie, obligatiuni, zona euro

Analysts anticipate a slight return to economic growth next year, after two years of recession, with the estimated GDP rise ranging between 0.2% and 2%. However, even if Romania leaves recession behind next year, the tentative economic growth will not be felt in the standard of living. The economic rebound remains fragile considering the fiscal adjustment started in mid this year, the unemployment rise and the reduction of capital flows. And the key factors to sustainable economic rebound are investments in infrastructure and structural reforms. It remains to be seen if forecasts will remain unmodified and if they will come true. The official forecast for the economy in 2010 has moved from a 1.3% GDP growth at the beginning of the year to a 0.5% decline at the end of May and to minus 1.9% toward the end of the year.
Ionuţ Dumitru, chief economist of Raiffeisen Bank, who has the most upbeat forecast for next year, anticipates a 2% GDP growth.
As for the role of the state in the relaunch of the economy, analysts cite the need to ensure predictability and to reduce taxation red tape in order to attract foreign investments.
Lucian Anghel, chief economist of BCR, says five to ten strategic projects of national importance should be singled out, and spared from any kind of cuts, which should help restore investor confidence.BCE, Citigroup, Comisia Europeana, FMI, Federal Reserve, Germania, Grecia, Irlanda, Marea Britanie, PIB, Rusia, SUA, Spania, Standard & Poor's, Ungaria, Uniunea Europeana, economie, obligatiuni, zona euro