This week's view from Europe, courtesy of Edith Rigler :
Euro area government debt up to 88% of GDP, EU27 up to 83% – Eurostat, 23 July 2012
The highest ratios of government debt to GDP at the end of the first quarter of 2012 were recorded in Greece (132.4%), Italy (123.3%), Portugal (111.7%) and Ireland (108.5%). Compared with the fourth quarter of 2011, twenty-one Member States registered an increase in their debt to GDP ratio at the end of the first quarter of 2012, and six a decrease. Among the highest increases in the ratio were Portugal (+3.8 %), Spain (+3.7 %) and Belgium (+3.6 %). The largest decreases were in Greece (-33.0 %), Hungary (-1.8 %) and Denmark (-1.5 %).
European banks are facing job cuts and consolidation – Bankmagazin, 24 July 2012
FICO and Efma, the European Financial Marketing Association, have published the results of the fifth "European Credit Risk Survey" . European banks are facing difficult times. More than two-thirds (71 %) of European risk managers forecast an increase in job cuts and nearly half expect waves of redundancies.
Breaking up Deutsche Bank? – Handelsblatt, 31 July 2012
Pre-tax profit of half-year results of Deutsche´s investment banking decreased by 60%. As a result, breaking up Deutsche into two parts – an investment and a consumer bank – is currently being discussed in Germany. In a recent online survey, 60 % of respondent were in favour of such a move.
EU consultation on a future framework for investment funds launched – European Commission, 26 July 2012
The European Commission has launched an in-depth consultation on issues arising in the area of investment funds, focusing on how money market funds should be regulated; the fund industry's involvement in securities lending and repo´s; and the fund industry's exposure to certain OTC derivatives. The consultation ends on 18 October 2012.