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EU Forecasts 'Mild Recession' for Euro Zone in 2012

  BRUSSELS - The European Union icts Lowered growth forecast for this year Thursday and the euro area Warned That Would undergo a "mild recession," casting further Top gloom on the continent's economic prospects.

The new figures are Likely to Intensify Concerns That, as European nations enact tough austerity Measures to appease the debt Markets, They Are Undermining the Economic Growth needed to help pull them out of financial distress.

Icts in forecast, the European Commission Said the 17-nation single currency zone Likely Will shrink by 0.3 percent in 2012 as a Whole. It Had forecast growth of 0.5 percent for the Year last November.

Pushing the projections down Were A contraction of 1.3 percent for Italy and Foreseen 1 percent in Spain - two of the Euro-zone's biggest economies, aussi Which are beset by debt problems. Of the Three Countries That Have received small international bailouts, Ireland WAS Expected to see slight growth, while Greece and Portugal Were Projected To Suffer steep contractions.

The gross domestic product for all 27 nations of the European Union Will Be Flat, According To the commission forecast payday advance.

Compared with last November, "Have prospects worsened and Risks goal REMAIN There are signs of stabilization Especially In the Recent Period," Said Olli Rehn, the European Commissioner for economic and Monetary affairs.

"Financial markets injustement REMAIN There are weak signs of purpose stabilization," Mr Rehn said.

"With the exception of Greece spreads Have come down since mid-November," referring to the He Said Premium Costs Paid by borrowing in the euro zone's Struggling nations.

Mr. Rehn argued aussi That There Were No signs of a credit crunch FOLLOWING the intervention in December by the European Central Bank, When It Offered cheap, along-term loans to the Banking Sector.

"The new liquidity Measures by the European Central Bank Have Contributed to the improvement, 'he said.

The forecast last November HAD Predicted That Germany, The Economic Engine of Europe, just 0.8 percent Would record growth in 2012. That Was Lowered to 0.6 percent on Thursday.

EU Forecasts 'Mild Recession' for Euro Zone in 2012

Official Visits China Investment-Hungry Ireland

  DUBLIN - Ireland HAS soi Positioned to Become China's springboard into Europe, Irish government officials said on Monday at the conclusion of a three-day official visit by Xi Jinping, the vice president of China, who is Expected to Succeed Hu Jintao have icts paramount leader next year.

Mr. Xi cam to Ireland, the only European Union country will visit ET on his world tour, Accompanied by a delegation of 150 business executives. The Irish government is Hopping Chinese Companies That Will Follow the lead of Many American multinationals, like Pfizer, Google and Facebook, that 'Have Their European headquarters based in Ireland.

"We had very Fruitful discussions in our meeting, and we aussi Concluded a number of important memoranda of understanding Between Ireland and China in the Areas of investment, education and business," Prime Minister Enda Kenny of Ireland said on Monday. Said Mr. Kenny ET Accepted invitation from Mr. Xi year to visit China next month.

Ireland is hungry for all the investment it Attract Cdn. Its economy WAS battered first by the Financial Crisis, and then by deep cuts in Public Spending as the country struggled to honor the terms of year international bailout. Unemployment is running at 14 percent and record numbers of people are emigrating in search of work.

In the past, Irish Officials Looked Mainly to the United States, Britain and the Continent for prospective investors, find purpose They Now That THEY must focus more on emerging markets direct payday lenders.

Ireland's pitch to China WAS icts usual combination of low corporate tax rates, a well-educated work force of English speakers and ready access to the European Union's market of 500 million people. The country's techno technological skill, particularly in agribusiness and education, WAS aussi emphasized.

DURING Mr. Xi's three-day tour of Ireland, Which included events ranging from a tour of a small farm on the Atlantic seaboard to a lavish performance of the "Riverdance" stage show in Dublin, Mr. Xi Said That China Offered "Tremendous business opportunities" for Irish companies.

"High-tech industries and emery Cdn Become a priority in China-Ireland Economic Cooperation and trade," Mr. Xi Said at a forum on investment and trade in Dublin, speaking-through year and interpret Adding That "business leaders of our Two countries need to expand to sixteen Opportunities "such cooperation" for Mutual Benefit. "

Mr. Xi's visit was put with protests over human rights Some are mistaken in China, the order numbers of demonstrators Were Small, and government officials said THEY HAD raised human rights issues with Chinese visitors Their only "in a general way." .. ...... Unlike The Vast Majority of foreign dignitaries visit Ireland Who, Mr. Xi Granted no history interviews DURING stay.

Official Visits China Investment-Hungry Ireland

Stocks & Bonds: Markets, is Balance, Edge Higher on Expected Greek Aid

  Higher stocks edged on Friday, investors stayed cautious goal Before a long holiday weekend When Hopes are set for the Approval of Greece's bailout plan.

The Standard & Poor's 500-stock index ended positive ict sixth week out of seven so far in 2012, lifting it near a level not seen in Nearly a year. The index Has Risen 8.2 percent this year.

Friday's modest advance HAS Pushed the benchmark index up 24 percent from Nearly icts October low. European shares ended the week Higher ahead of the deal, with the FTSEurofirst 300 index up 0.6 percent.

Eurozone Finance Ministers are Expected to Approve a one billion rescue package of 130 euros for Greece on Monday When The Market In The United States Will Be closed for Presidents' Day.

"The Fact the European market is up the Friday Before, Knowing the US market is off on Monday, is really a sign That the situation in Greece is priced into the Market, "Said Andrew Slimmon, managing director of Global Investment Solutions at Morgan Stanley Smith Barney in Chicago.

Were Analysts wary of a pullback After Thursday's strong gains Pushed the S. & P. icts Highest to close since May 2 and viewed the market's resilience as constructive.

"It is Encouraging That We HAD Obviously Some breakouts yesterday on the indexes and we are Not Giving anything back," Said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

The Dow Jones industrial average 45.79 points Gained, or 0.35 percent, to close the trading day at 12,949.87. The S no faxing pay day loans. & P. added 3.19 points, or 0.23 percent, to 1,361.23. The Nasdaq composite index dropped 07.08 points, or 0.27 percent, to 2,951.78.  

For the week, the Dow rose 1.2 percent, the S. & P. Gained 1.4 percent and the Nasdaq advanced 1.7 percent.

Equity Markets Have Tended to Positively react to progress on the debt situation in Greece, goal past agreements broken down Have at the last minute.

Wall Street stocks aussi Typically pause near the end of earnings season as the market digests the results. According To Thomson Reuters data, 404 of the S. & P. 500 Companies Have Reported results-through Friday, with 64 percent beating expectations.

The Nasdaq underperformed the market overalls, dragged lower by a 14.3 percent decline in shares of Gilead Sciences to $ 47. After the drop cam Some patients treated fish icts with experimental hepatitis C drug relapsed.  

HJ Heinz rose 4.5 percent to $ 54.47 and Campbell Soup Gained 2.6 percent to $ 32.90 After Both food makers posted better-than-Expected quarterly profits.

In contrast General Mills lost 3.6 percent to $ 38.34 Lowered After it icts outlook.

Data Showed gasoline Prices in the United States Jumped 0.9 percent in January, pushing overalls Consumer Prices Offering up and a reminder of the Energy Costs Risks posed to the Economic Recovery.

Interest rates Were even higher. The Treasury's benchmark 10-year note Fell 5/32, to 100, and the yield rose to 1.98 percent from 2 percent late Thursday.

Stocks & Bonds: Markets, is Balance, Edge Higher on Expected Greek Aid

Instant view: Jobless claims drop to near four-year low

  

NEW YORK (Reuters) - New claims for Unemployment Benefits Fell unexpectedly last week to a near four-year low, a government report Showed on Thursday, the Labor market Suggesting WAS finally Strengthening.

Housing starts rose more than expected in January as groundbreaking on rental property surged, boosting Hopes the still-weak housing Sector Economic Growth Could help this year.

U. S. January Producer Prices rose 0.1 percent.

COMMENTS:

Ellen Zentner, SENIOR ECONOMIST US, NOMURA SECURITIES, NEW YORK

"Anytime we get improvement in Labor Market Indicators thesis it's significant. Claims Have Been trend was downward. It's clear downward trend That HAS Continued and is deepening, and That points to year acceleration in job growth. So very good news.

"We think That four-week moving average to show That Will continues downward trend restes in place."

"There Was a surprise in Both the headline and the core. For the headline, We had a pop Expected in wholesale gasoline prices. It's been worrisome gasoline Prices That Have Been on the rise, purpose warm weather strikes again.

"Warm weather led to much lower demand for heating oil and residential natural gas, and we saw Some Big Declines In Those Areas and That Held That headline PPI to a minimum, up only one-tenth of a percent.

"The Core, the Increase there, four-tenths, was very Surprising. Goal of 40 percent from one cam That Particular area, and That Was drug prices. That's a one-off.

"One category accounting for 40 percent of the Increase in the core means clustering That You're That Cdn dismiss a one-off."

KEVIN CARON, MARKET STRATEGIST, Stifel, Nicolaus & CO, FLORHAM PARK, NEW JERSEY

"The data was decent. Housing and Employment Have Been weak spots for the economy and data shows improvement year so that's a very good sign. Seeing something positive in housing is very good.

"The most important initial jobless figure Today Was claims. The job market is getting better and that's really key.

"We're still in the early innings of this but I'm glad to see Another data point That adds to the picture of An Improving Economy.

"To Some extents there 's beens Some recognition by the equities market (that the job market is getting better)."

David Coard, HEAD OF FIXED INCOME SALES AND TRADING, THE WILLIAMS CAPITAL GROUP, NEW YORK

"It looks like the (Treasuries) Market Has Come off, and I think That It Was Probably core PPI number. Purpose I would not get too Worked up about it Because tomorrow's inflation indexes are Going to be more important. The market is going to Be Interested in whether MOST Prices at the retail level are rising online pay day loans.

"I am not so worried about inflation Even Though I Have Become more of a bull on the economy. Even as we move forward in this recovery I Do not Know That the Economy is Likely to really heat up the economy structurally Because Is not Going to be Able to take on The Same Amount of leverage that got us Into this Mess. A lot of forex Have Occurred structurally to Reduce how much lift Ourselves We Can. Also, Because Of what we Have Been Through Our Attitudes Toward leverage Have Been ratcheted down. While I am bullish on the economy I do not see growth getting away from us enough to the point Where It Becomes inflationary Any time soon. "

MIKE SHEA, A MANAGING PARTNER AND TRADING PARTNERS LLC AT DIRECT ACCESS IN NEW YORK

"The jobless data is Another Brick in the wall, Another example of the Fact That Surely Steady aim - Slower Than we'd like - our economy is bouncing back. Still, global macro issues are always going to trump what's going on in the US, at least this overall outcome (Europe). Until we get a clear resolution, I do not see the market running from US history point. To Be Held we're going back. "

JACOB Oubina, SENIOR ECONOMIST US, RBC CAPITAL MARKETS, NEW YORK

Jobless CLAIMS: "There Was nothing unusual in the jobless claims data as per the Department of Labor. Actually it looks like we're shifting to a lower level we Than Even Thought. It looks like the level is 350.000, at least in the short term. Purpose We Have to keep in Mind that the pipeline poses of Some Problems Could layoffs down the road.

PPI: "I would just take the core jump tenths of oven with a grain of salt Given the prescription drugs component. That tend to jump at this time of year.  

"In terms of PPI, People were braced for a much Firmer headline goal here print the decline in housing and utilities Prices Took Some of the bite out of it."

DAVID SLOAN, ECONOMIST, IFR ECONOMICS, A UNIT OF THOMSON REUTERS

"Initial claims for the week to February 11 Defied market expectations for year upward correction in Improving year trend, falling by 13k to 348k, Their Lowest level since March 8, 2008. For the series has to Produce Third-straight decline is unusual and suggests the improvement in the Labor market is and Even Extending Maintaining momentum as we enter February, next week for Which Will See the non-farm payroll Surveyed. Giving support to the further Top positive message is a 100k decline in Continuing claims in the week to February 4, 3426 to mln, This The Lowest level since August 23, 2008. "

(Economics and Markets Desk Americas)

Instant view: Jobless claims drop to near four-year low

Hot News: GE to hire veterans US 5.000, investing in plants

Obama to stress "insourcing" as counterweight China

  

WASHINGTON (Reuters) - President Barack Obama Takes election-year history économique message to the Midwestern heartland on Thursday, touring a factory padlock Wisconsin and stressing the potential of "insourcing" jobs back to the United States from overseas.

The day after meeting China's leader-in-waiting, Vice President Xi Jinping at the White House, Obama WAS set to make the case for US Exploiting advantages over Fast-Growing Economies Where Labor and Business Costs are rising.

In Milwaukee, Best Known As the home of Miller beer, hey will visit the Master Lock company That ET lauded in history State of the Union address last month for HAVING Moved back about 100 union jobs from China since mid-2010.

Master Lock, a unit of Fortune Brands Home & Security, is the world s largest manufacturer of padlocks and related products to secure homes, cars and bicycles. It says icts Milwaukee plant is running at full capacity for the first time in 15 years - an example the White House is eager to replicate as the election nears November 6.

"Right now We Have Opportunity to excellent year bring manufacturing back - but We Have to sixteen it," Said Obama in a statement released Before the visit Wisconsin, Which starts a three-day trip Where the Democrat Will raise funds in California and Stop in at aircraft manufacturer Boeing in Washington state.

"My message to business leaders is simple: ask Yourselves what you can do to bring jobs back to your country, your country and everything Will Do We Can Help You Succeed to, 'he said.

PRODUCTIVITY GAINS

How to cope with a rising China - and cheap Chinese exports compete Against - is one of the toughest challenges for Obama to navigate as the election approches, particularly as opinion polls showing rising US vote frustration with the Asian powerhouse économique.

In Washington on Tuesday, ET struck a friendly but firm tone with Xi, who is in line to assume the Chinese presidency in March 2013 cash advance no faxing. Aim at the Master Lock plant, the President is Expected to cheer US productivité gains That Have Some Companies Encouraged to turn Their backs on China and start investing in and moving workers back to the United States.

Republican presidential hopeful Mitt Romney, has formed private equity executive, Obama HAS accusé of Being too conciliatory with China and the executive or Other Lacking leadership experience to steer the economy Toward US lasting recovery.

The White House aussi Japanese carmaker Honda Said That HAD has plans to invest in Ohio plant and heavy equipment maker Caterpillar That Decided to shift production of excavators from Japan to Texas to support US Customers better.

UNION protests

Master Lock is a positive story for Obama, who needs to any historical leadership to secure économique Another White House term.

The Democratic president won Wisconsin in 2008 and although Republicans Performed well in state and congressional elections in 2010, polls show HIM Likely to clinch it again in November amid frustration over Republican Governor Scott Walker's Policies Toward Labor Unions.

Last year, Walker signed Into law legislation ending collective bargaining rights for MOST public and forcing workers to pay 'em more for pensions and health coverage. Obama's visit to the unionized factory on Wednesday coincides with the first anniversary of protests over Walker's union move.

The governor, who is Expected to Accompany Obama to Master Lock, Said It Was Necessary to kidney in Costs in a time of pinched budgets. Walker's Critics accuse HIM of ramming-through union-busting and Proposals are Trying to Oust HIM with a recall vote.

(Reporting By Laura MacInnis; Editing by Peter Cooney)

Obama to stress "insourcing" as counterweight China

Summary Box: Cyprus opens oil, gas drilling area

  

HERE'S THE DRILL: Cyprus HAS Launched a second licensing round for offshore exploratory drilling have Hopes grow That Potential Oil and Gas Discoveries Will buoy the country's sagging economy eurozone.

GROWING INTEREST? An initial licensing round in 2007 generated from interest-only US company Noble Energy. Officials predict more interest in the second round FOLLOWING Noble's discovery of Estimated year 5-8 trillion cubic feet of natural gas payday loan lenders.

TURKEY TENSION: Neighboring Turkey, Which Does not Recognize Cyprus as a sovereign state, is watching Developments. Cyprus WAS Split Into Internationally reconnu year Greek-speaking south and a breakaway Turkish-dominated north in 1974.

Summary Box: Cyprus opens oil, gas drilling area

SEC Looks Into Private Equity industry practices: WSJ

  

(Reuters) - The Securities and Exchange Commission inquiry year HAS Launched Into how the private equity industry gains icts Investments, how are Marketed Those Investments, and Other Practices, the Wall Street Journal Reported on Saturday.

Federal Regulators feels Numerous letters to Private Equity Firms in December in an "informal inquiry" into the $ 1.2 trillion industry, Which Historically HAS has not beens major focus of scrutiny by the SEC, the newspaper said.

Which It Was unclear FIRMS received the SEC letter which "Requested information related to 12 Broad Areas, Including fund raising and fund formation," it said.

One focus of the SEC inquiry how Will Be Private Equity Investments and FIRMS value Discrepancies in valuations from firm to firm, it Said, Citing the letter and people familiar with the matter low interest rate personal loans. 

The SEC HAS laundry charges policing resources as the private equity industry HAS grown since the 2008-2009 Financial Crisis. Regulators Have Several boxes Involving private equity FIRMS THEY That may soon bring, the newspaper said.

To date, the private equity industry HAS steered clear of recent trading scandals and Was Not at the core of the housing market's collapse.

(Reporting by Karl Plume in Chicago, editing by Mohammad Zargham)

SEC Looks Into Private Equity industry practices: WSJ

Hot News: Source: No extended deadline for Greek pensions cut

U. S. Reaches Settlement with top mortgage banks

  

WASHINGTON (Reuters) - The biggest U. S. Will banks provide statement about $ 25 one billion in relief to distressed homeowners, as state and Federal Officials hold lenders responsible for Taking shortcuts DURING illegal foreclosures and For Other deceptive practices.

The Settlement Announced on Thursday seals More than a year of negotiations After evidence emerged late in 2010 That banks robosigned Thousands of foreclosure documents without reviewing paperwork Properly.

The Obama Administration Hopes Will the settlement open a new avenue for relief housing Because It Will force the banks to write down mortgages at a time When Roughly one in oven borrowers owe more on mortgage Their Than Their home is worth.

Senior discounts Have Been done was voluntary BASIS by banks, was limited Often limited basis.

The deal resolves civil government lawsuits over faulty foreclosures and servicing misconduct. 

The banks Involved in the deal are Bank of America Corp., Wells Fargo & Co, JPMorgan Chase & Co., Citigroup Inc. and Ally Financial Inc..

Although the deal with 49 states is the joint federal-state Largest settlement ever obtenues, the Amount is miniscule Compared to the Declines in home values ​​and the banks still face a host of Other mortgage-related lawsuits.

"The bottom line about this settlement, is it's okay, it's a step forward, it's a step in the right direction cheap credit report. Purpose let's not kid Ourselves, there 'sa hell of a lot more That Needs to be done, "Said Ira Rheingold, executive director of the National Association of Consumer Advocates.

Does the deal little to ease investor bank Fears, industry analysts said.

"We Believe Any initial euphoria over the deal fade as investors Will Quickly Realize the flood of additional mortgage-related litigation That the major banks face," Said analyst Jaret Seiberg Guggenheim Partners in a note on Thursday.

The US Justice Department, the Department of Housing and Urban Development, and a handful of state attorneys general Announced the deal at a news conference in Washington. Some large states, Such as California and New York, joined at the last minute.

"This historic settlement Will Provide immediate relief to homeowners - forcing banks to Reduce the principal balance on Many loans, refinance loans for borrowers underwater, and pay billions of dollars to states and Consumers," HUD Secretary Shaun Donovan Said.

(Reporting By Aruna Viswanatha, Rick Rothacker, and Jim Vicini, writing by Karey Wutkowski; Editing by Gerald E. McCormick and Tim Dobbyn)

US Reaches Settlement with top mortgage banks

Greece to Eliminate 15.000 Government Jobs

  ATHENS - Greece Will state cut 15.000 jobs this year, the government Announced Monday, part of new austerity Measures AGREE it must be to secure new debt agreements and rescue funds from international lenders.

Athens is racing to push through exchange économique icts That Will persuades lenders to release € 130 billion, or $ 170.5 billion, in new bailout funds to Avoid defaulting on bond payments icts in March.

The talks, Which focus on Greece's debt burden Bringing down to a manageable level, are up Against a backdrop Taking of a Deteriorating Greek Economy That Is Causing the country's debt burden to rise as austerity cut Measures Into the potential for economic growth .  

Greece's debt rose to 159.1 percent of gross domestic product in the Third Quarter of 2011 from 138.8 percent a year Earlier, According To Data released Monday by Eurostat, the European Union Statistical Agency.

Public-sector layoffs Have long-taboo subject has beens in Greece, since the state Constitution Protects workers from Being fired. So Need to Happen Any cuts or attrition-through Eliminating positions.

The Greek Administrative Reform minister, Dimitris Reppas, the job cuts Announced aim fired, return not provide statement details on How They Would Be Carried Out.

Anticipating a barrage of new austerity measures, Including wage cuts in the Private Sector, the country's Two Hand Labor Unions Called a 24-hour general strike for Tuesday. The strike is Expected to Disrupt Transportation and Other Public Services. Three Separate protest rallies Have Been Planned for central Athens alone.

Some economists argue the dislocation That shows in Greece austerity That is PRECISELY the wrong medicine for the Struggling Economy. Shrinking the G.D.P. side of the equation Makes it harder to bring down Greece's debt ratio to a more sustainable level, as the country HAS Pledged to do, and adds additional pressure for tax cuts and Spending.

Two Years of Spending cutbacks Have Weighed emploi is, with the jobless rate at 19 percent, and Have Lowered government tax revenue. The Economy is Expected to contract 6 percent in 2011, the International Monetary Fund Estimated HAS.

The European Union HAS forecast Greece's debt ratio for 2011 at 162.8 percent of GDP - Far above-the 60 percent euro zone members are That Supposed To aim for. Negotiators are able to Hopping the Greek economy was jogging icts That Would bring debt to 120 percent of GDP by 2020, aims Even That figure is Now in Doubt free credit score online.

Eurostat, Which HAD not Issued Before Such quarterly debt figures, the report Monday WAS Said Meant to complement Annual Data Already it published. The Realization That Greece in late 2009 HAD beens hiding the true state of public finances icts the European sovereign debt set in motion crisis and put the future of the euro currency soi in jeopardy.

Eurostat aussi Said the debt ratios of the 17 euro area as a Whole Countries rose to 87.4 percent of GDP from 83.2 percent a year Earlier. For all of the 27 European Union nations, the debt ratio rose to 82.2 percent from 78.5 percent.

Those averages below the REMAIN Roughly 100 percent for the United States and 200 percent for Japan.  

Among The Most members indebted euro, Italy's debt ratio rose 0.5 points to 119.6 percent in the quarter from a Third-year Earlier, though it DID show progress in shaving 1.6 points from the second quarter of 2011. Portugal's debt ratio rose 9.18 points from a year Earlier, to 110.1 percent, while Ireland's more Than rose 16 points to 104.9 percent.

Athens aussi Negotiating with private-sector Creditors over a restructuration of Greece's bonds, one of the prerequisites for the release of further Top bailout funds.

A Spokesman for Prime Minister Lucas D. Papademos Said Monday That Were Those talks stuck over: various issues.

As negotiations Between the Greek government and Its lenders dragged on Wednesday, political gamesmanship and Maneuvering Were much in evidence in Athens.  

The leader of the right-leaning Popular Orthodox Rally, Giorgos Karatzaferis, Called for the establishment of a technocratic government similar to The One That HAS assembled Italy Under Prime Minister Mario Monti.

Mr. Karatzaferis added ET That Would not continue discussing the terms of the bailout for Greece Until Ministers from the Socialist Party, or PASOK, "leave the government." PASOK is the Largest Party in the governing coalition, the center includes Which aussi -right New Democracy party and the Popular Orthodox Rally.

The New Democracy leader Antonis Samaras, Said continues to oppose ET Would Measures that Greece's recession deepened.

David Jolly from Paris Reported.  

Greece to Eliminate 15.000 Government Jobs