Europe fractures even as it shakes off recession
19. In order to put money to work, investors needed a greater degree of certainty. People just didnt like the overall environment in Europe, be it the regulatory angle or the macro uncertainty. Short Bans Countries from Spain (GSPG10YR) to Belgium and Italy prohibited short selling during market retreats in recent years. While regulators have lifted the restrictions, traders are still required to report positions that exceed preset levels. The U.S. and Asia are better investments because European economies are expanding too slowly, according to Julian Lewis at Cavendish Asset Management Ltd. Euro-zone unemployment held at a record 12.1 percent in July and European car sales have slipped to the lowest since records began in 1990, signs that the recovery lacks momentum after the bloc exited a record-long recession in the second quarter. While yields in Spain and Italy have fallen by more than 3 percentage points from their highs to 4.30 percent and 4.29 percent, respectively, they are still at least 24 basis points above the average rate in 2006, before the financial crisis. The extra yield investors demand to hold the nations debt over benchmark German bunds has fallen to less than 2.4 percentage points, the lowest in two years, Bloomberg data show. Draghi said on Sept. 16 that the improvement in the euro area isnt fully reflected in the cost of credit. Little Growth Although it looks now as if the euro zone is not going to collapse, we see little signs of growth, Lewis, who helps oversee $800 million in London, said in a phone interview on Sept.
As night fell, authorities said they had cornered the gunmen in the mall. Armed police leave after entering the mall. At least one suspect has been killed, a government official said. Police have said another suspected gunman has been detained at a Nairobi hospital. Armed police take cover behind escalators as smoke fills the air. Witnesses say tear gas was thrown in the corridors. A woman who had been hiding during the attack runs for cover after armed police enter the mall. A body is seen on the floor inside the smoke-filled four-story mall. An injured person is helped on arrival at the Aga Khan Hospital in Nairobi after the attack at the upscale mall. An armed police officer takes cover during a volley of gunfire outside the mall. Kenya mall attack >> Photos: Kenya mall attack “What we have learned for the last five years is we have to speak out against this,” Bihi said. Al-Shabaab breaks new ground with complex Nairobi attack In a message on its now-suspended Twitter page, Al-Shabaab named nine people it said were among the gunmen who stormed Nairobi’s Westgate Mall on Saturday.
Somali jihadists recruit in U.S., Canada, Europe
(CNN) — The financial crisis has driven a wedge through Europe, with two economies emerging and — more dangerously — a psychological split between the north and the south, European leaders have told CNN. Jean-Claude Trichet, former president of the European Central Bank, Mario Monti, former prime minister of Italy, and Joaquin Almunia, EU competition commissioner, joined CNN’s Richard Quest to debate if the crisis had fractured the region, both economically and socially. Trichet, who headed France’s Banque de France before joining the ECB, said a two-speed economy was emerging, but that could be seen as a “major rebalancing.” When he began at the ECB in 2003, Germany was the sick man of Europe due to its lack of competitiveness, Trichet said. The country has since emerged as the eurozone’s power player, and a lead negotiator in the four-year old financial crisis. According to Trichet, Europe has been adjusting after “countries that went too far too rapidly, had bubbles and so forth…now those countries that were growing extremely fast, abnormally fast, [and] a lot of them are correcting.” However, member countries are not always going at the “same time, at the same speed,” Trichet said. Monti who stepped up as Italy’s “technocrat” prime minister after the country’s economic instability forced the resignation of Silvio Berlusconi, told Quest his greater concern was the prospect of a two class Europe. The eurozone crisis has generated a backlash against integration Mario Monti “The crisis has been managed very, very poorly in my view as regards the psychology, and the eurozone crisis has generated a backlash against integration,” Monti said. This “psychological conflict of north versus south and vice versa, this needs to be tackled.” Trichet echoed the concerns, telling Quest such a split was “absolutely unacceptable.” “If we had, in the past, fully implemented the rules including the stability and growth pact, and what was badly needed — control and monitoring of competitiveness — we wouldn’t have two class Europe,” he said. Almunia, meanwhile, said his fear was that “after the crisis those who were, at the beginning of this crisis, at the bottom, would continue to be at the bottom.” Is there an alternative for Germany? However, he added, that would not happen if the countries in recession “do what they have started to do and ….continue to do [it].” Can Italy improve competitiveness? Germany’s emergence as power player Spain’s export bonanza Germany emerged as an economic force after labor reforms were implemented under its then-chancellor Gerhard Schroder. Now, its export-led economy drives the 17-nation eurozone, with Chancellor Angela Merkel — battling for third term in this weekend’s federal elections — a central figure during Europe’s crisis. Merkel’s popularity remains high in Germany, and her party, the Christian Democratic Union, is expected to gain the most votes. Merkel’s leadership during the crisis saw her named as the world’s most powerful woman by Forbes three years in a row.