Europe’s recovery is weak, warns ECB
They’ve been unable to get back into a winning form after drawing 3-3 with Hoffenheim most recently, despite leading twice by two goals before halftime. Kevin-Prince Boateng, Joel Matip and Marco Hoger all found the net before the break last weekend, but Schalke’s defence, the fifth most-porous in the league, still didn’t find it enough to secure an away win. It’s just two wins from seven now for S04, who are two places outside of the relegation playoff spot. They face eighth-place Augsburg at home at the weekend. 4. Bordeaux Gareth Copley/Getty Images Another game, another draw for Bordeaux, who now have three ties in a row and haven’t won for seven matches in all competitions, six in Ligue 1. A disappointing 1-1 stalemate against Evian made for uninspiring fare, and Bordeaux now sit in 17th place, one above the drop zone, having won just once all season long. In a comparatively low-scoring league, they have conceded the joint-fourth highest number of goals so far and are scoring at a rate of less than one goal per game, which is not exactly an ideal combination. They face a must-win game against 19th-place Sochaux-Montbeliard on Sunday, who picked up their first win of the season last time out. 3. Hamburger SV Kiyoshi Ota/Getty Images It’s another one-place drop for Hamburger SV this time out, following another week of action without picking up three points. Most recently, Hamburg needed a late equaliser from Marcell Jansen to rescue a point away to Eintracht Frankfurt, with the 2-2 draw leaving HSV inside the bottom three places, occupying the relegation playoff place. Just one league victory from their seven Bundesliga games has been an exceptionally poor return, but the draw brought an end to a run of three defeats in four games. A battle at the bottom takes place on Sunday, as Nurnberg host HSV. The home team are one place above HSV in 15th, but they have not actually won this season.Nurnberghave drawn five games and lost twokeeping ahead of Hamburg on goal differencethus proving the costly effect of Hamburg having the league’s worst defensive record.
Insight: As Ukraine looks west to Europe, Russia’s shadow looms
Moscow has also homed in on defense or trade vulnerabilities in Georgia, Moldova and Azerbaijan, although the first two remain likely to move ahead with closer EU ties at a special summit in Vilnius in late November. Belarus, despite friction with Moscow, remains firmly in Russia’s camp for now. The big question is Ukraine, economically and politically the most important of the partnership countries. Despite pressure on trade, including key gas supplies from Russia, which sees Ukraine as culturally its own, Kiev is determined to look West and seal closer links to Europe next month. That’s not what Moscow wants to hear, or will accept. “What we have seen during the past few weeks is brutal Russian pressure against the partnership countries of a sort that we haven’t seen in Europe for a very long time,” said Sweden’s Foreign Minister Carl Bildt last month, describing Moscow’s actions as “economic warfare”. Russia has said it is merely protecting its interests. “Russia is in no way trying to infringe on anyone’s sovereign right to make decisions about their international activity,” President Vladimir Putin said in September. Nearly all the partnership countries do the vast majority of their trade with Russia and rely on it for gas. Moscow is concerned about a flood of European goods entering the country if Kiev signs a free trade agreement with the EU. Trade is particularly sensitive: Russia was Ukraine’s biggest trading partner but not any longer. Now it is the EU, with 27 percent of Ukraine’s exports and 34 percent of its imports, and the volume growing by double digits annually. Russia is also wary of the EU’s broader agenda. Drawing in countries in the region could over time help Europe secure a degree of influence over vital gas and oil supply routes towards the West at the expense of Russia’s dominance. As a result, Putin has threatened to impose punitive tariffs and other restrictions on imports via Ukraine if it goes ahead with the EU agreement.
The euro is at eight-month highs against the dollar. It was given another boost Wednesday by news that Italy had averted the threat of snap elections , and the possibility that U.S. political gridlock may force the Federal Reserve to keep pumping money into the economy at full throttle. Draghi said he didn’t expect the U.S. to default — a risk if it doesn’t raise the limit on government borrowing later this month — and believes the government shutdown will be short-lived. “If it were to be protracted it would certainly be a risk for the U.S. and world recovery, so we have to have this present in our minds,” he said. Federal workers sound off on shutdown Draghi repeated previous guidance that interest rates would remain at current or lower levels for an extended period of time, but stressed there were other tools at the bank’s disposal, and none were off the table. Interbank lending rates remain higher than the ECB would like and lending to non-financial firms shrank further in August. Loans to households grew by 0.4%, but that rate has barely moved since the start of the year. Some economists now expect the ECB to launch a third long-term refinancing operation, or LTRO, before the end of the year to provide more cheap funds to eurozone banks. It used LTROs twice during the credit crisis, and banks in distressed economies such as Greece, Italy, Spain and Ireland drew heavily on the facility.
Europe Stocks Rise as Investors Weigh U.S. Shutdown
17. The U.S. wont have enough money to pay all of its bills at some point between Oct. 22 and Oct. 31 without action by Congress, according to the Congressional Budget Office . In China, the non-manufacturing purchasing managers index rose to 55.4 in September from 53.9 in August, the National Bureau of Statistics and Federation of Logistics and Purchasing said in Beijing. Thats the highest level since March. Readings above 50 signal expansion. Aviva Sale Aviva climbed 1.5 percent to 413.4 pence after saying the sale of its U.S. life-insurance and annuities business to Apollo Global Management LLCs Athene Holding Ltd. generated proceeds of $2.6 billion, higher than the $1.8 billion purchase price disclosed in December. Earnings and other improvements in the U.S. companys surplus increased the value, Aviva said in a statement. BP advanced 1.2 percent to 437.65 pence as the U.S.