Spanish/French bonds find favour in auction but Slowdown in euro zone factories speeds up

Published on Dec 1, 2011 by Euronews

http://www.euronews.net/ The first test of investor confidence since combined action by six central banks saw Spain selling nearly four billion euros of bonds.

But Spain had to offer the highest rate of return since 2005 to borrow for five years.

France too decided to sell 4.3 billion euros of debt but the cost of borrowing over ten years was 3.18 per cent - less than in early November.

Analysts said the central bank action helped produce 'pretty good' results.
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Slowdown in euro zone factories speeds up

Published on Dec 1, 2011 by Euronews

http://www.euronews.net/ Manufacturing in the euro zone contracted at its fastest pace for two years last month.

The latest survey showed factories were forced to cut their workforces as a result of the downturn helping to push unemployment in the bloc as a whole to 10.3 per cent.

Earlier data showed factories in the powerhouse economies of Germany and France slowed at a rate not seen for more than two years, with contraction in Spain and Italy too.

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ECB's Draghi warns of increasing downside risks

Published on Dec 1, 2011 by Euronews

http://www.euronews.net/ The new head of the European Central Bank has warned the European Parliament that risks threatening the economic outlook have increased.

Mario Draghi was speaking as various euro zone countries had been finding it increasingly difficult to borrow money by selling bonds.

The ECB has been buying bonds, but Draghi warned it cannot continue that forever.