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6 Feb 2013
In a recent speech to the European Parliament, French President Francois Hollande urged the euro zone to set a mid-term target for the EUR exchange rate and to forge a jobs policy to fight political d
In a recent speech to the European Parliament, French President Francois Hollande urged the euro zone to set a mid-term target for the EUR exchange rate and to forge a jobs policy to fight political disillusionment at reforms.
Hollande's calls ran into immediate opposition from German Economy minister Roesler who recommended that the focus should instead be on competitiveness rather than weakening the currency. Luxembourg Finance Minister Luc Frieden said the euro's level doesn't concern him at present and its strength follows the economic reality of the euro zone.
Staying in Europe, Fitch joined Moody's and S&P in assigning a negative outlook to Netherland's AAA rating. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The outlook revision reflects Fitch's concerns over persistent banking system problems – as highlighted by the recent nationalization of SNS Reaal (the country's fourth largest banking group) - and public debt levels higher than those of top-rated peers.” Dutch 10yr yields closed 3bp higher on the day and were largely unmoved following Fitch's announcement.
Hollande's calls ran into immediate opposition from German Economy minister Roesler who recommended that the focus should instead be on competitiveness rather than weakening the currency. Luxembourg Finance Minister Luc Frieden said the euro's level doesn't concern him at present and its strength follows the economic reality of the euro zone.
Staying in Europe, Fitch joined Moody's and S&P in assigning a negative outlook to Netherland's AAA rating. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The outlook revision reflects Fitch's concerns over persistent banking system problems – as highlighted by the recent nationalization of SNS Reaal (the country's fourth largest banking group) - and public debt levels higher than those of top-rated peers.” Dutch 10yr yields closed 3bp higher on the day and were largely unmoved following Fitch's announcement.