Markets snub promises from Merkel and Sarkozy
The latest attempt to solve the eurozone sovereign debt crisis got the thumbs down from world markets yesterday, with sell-offs of equities and a further flight to safe-haven assets.
President Sarkozy of France and Chancellor Merkel of Germany had hoped their plans for much closer economic co-operation between members of the eurozone would calm investors' fears. But their failure to explain how the bloc's existing debts would berepaid – with eurobonds, for example, ruled out for now – disappointed the markets. And their proposals for a Europe-wide financial transactions tax hit financial shares particularly hard.
Michael Hewson, an analyst at CMC Markets, described the proposals as "profoundly disappointing". Overall, stock markets suffered reverses across much of Europe, lead by Britain and Germany, though rises in early US trading provided some stability. However, it was the financial sector that saw the biggest losses. Barclays Bank fell by 4.2 per cent, Royal Bank of Scotland was down 3.8 per cent, and the London Stock Exchange slipped 2.8 per cent.
Simon Lewis, of the Association for Financial Markets in Europe, said: "The financial services industry should not be seen as an additional source of tax revenue but as an essential part of a stable and sustainable economy."
The uncertainty prompted another rise in the value of the Swiss franc, seen as a safe haven, forcing the SwissNational Bank to pledge further action to drive down its "overvalued" currency. The gold price also rose, hitting an all-time high of $1,790 an ounce.
filmFilm producers sue Warner Bros for $75m over Hobbit films
voicesJust when you thought you could find a man, get married, and have a baby by the age of 35... it turns out you’re too late, says Grace Dent
Swedish stars ask fans for £195 pledges on crowd-funding website
musicAs Mariah Carey and Noddy Holder rake in the royalties from their classics, why there hasn't been a decent festive hit for 20 years?
theatreAuthor Daniel Rosenthal recalls the mishaps that almost brought the curtain down on the likes of John Gielgud and Diana Rigg
lifeAs the Royal Mail plans to phase out deliveries on two wheels, it's no wonder posties are in a spin
musicThe 21-year-old beat Ella Eyre and Chlöe Howl to win the honour
lifeFull of the joys and want to help your fellow man? December isn't the time to do it
Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
French café starts charging extra to rude customers
Australia: Gay marriage law reversed by high court less than a week after first weddings
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- 1 Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
- 2 French café starts charging extra to rude customers
- 3 Australia: Gay marriage law reversed by high court less than a week after first weddings
- 4 Exeter to Edinburgh and back in a day: How one fresher's lost bet left him facing a 900-mile round trip
- 5 Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- < Previous
- Next >
iJobs Money & Business
£44999 - £60001 per annum + Benefits: Pro-Recruitment Group: A Top Tier firm i...
£77099.84 - £96375.26 per annum + Bonus + Benefits : Harrington Starr: My clie...
£45000 - £60000 per annum + Bonus and Package: Harrington Starr: Trading appli...
£50000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...