The news from Brussels is that the European Financial Stability Facility is likely to be increased through means of a guarantee system. Eurozone officials are briefing that the EFSF will promise investors who buy Spanish, Italian or other debt that it will cover a portion of losses, potentially allowing it to guarantee a lot more debt than the fund is worth - €440bn. The guarantee idea is not new, but suggestions that it is the most likely solution is interesting. "This idea is the main contender," an unspecified eurozone official told Reuters. Some more poor statistics, this time from Germany. The ZEW Institute's monthly survey of German analyst and investor sentiment shows confidence falling to its lowest level in nearly three years. ZEW economist Michael Schroeder said he thought the country may already be in recession. he September figure should represent a peak in the rate of inflation, with petrol price rises and January's VAT hike falling out of the year-on-year comparisons in the fourth quarter and the new year respectively. Commodity prices, which tend to lead consumer prices, have fallen just over 10% from the peak seen in February, which also suggests we should see some further downward pressure on inflation. 
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, October 18, 2011
The news from Brussels is that the European Financial Stability Facility is likely to be increased through means of a guarantee system. Eurozone officials are briefing that the EFSF will promise investors who buy Spanish, Italian or other debt that it will cover a portion of losses, potentially allowing it to guarantee a lot more debt than the fund is worth - €440bn. The guarantee idea is not new, but suggestions that it is the most likely solution is interesting. "This idea is the main contender," an unspecified eurozone official told Reuters. Some more poor statistics, this time from Germany. The ZEW Institute's monthly survey of German analyst and investor sentiment shows confidence falling to its lowest level in nearly three years. ZEW economist Michael Schroeder said he thought the country may already be in recession. he September figure should represent a peak in the rate of inflation, with petrol price rises and January's VAT hike falling out of the year-on-year comparisons in the fourth quarter and the new year respectively. Commodity prices, which tend to lead consumer prices, have fallen just over 10% from the peak seen in February, which also suggests we should see some further downward pressure on inflation. 
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LONDON—European stock markets fell Tuesday, with banking shares posting steep losses on fears that euro-zone leaders may not be able to substantially contain the bloc's sovereign-debt crisis, while resource shares slumped after data showed slowing growth in China.
The Stoxx Europe 600 index was recently down 1.1% at 233.44. London's FTSE 100 fell 1.4% to 5362.29, Frankfurt's DAX was 1.3% lower at 5785.89 and Paris's CAC-40 slipped 1.9% to 3127.23.
Banking stocks felt the pinch of Tuesday's selloff, as recent confidence that euro-zone leaders had made progress in working out a solution to the debt crisis were dashed Monday after Germany tempered expectations that European Union leaders will deliver a comprehensive plan to resolve the region's debt crisis at the Oct. 23 summit. The Stoxx Europe 600 banks index lost 1.8%
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