Bears Retreating As Europe Shorts Sink To Seven-year Low

A Europe In Denial Seeks To Abolish Mobile Roaming Charges

But perhaps the biggest obstacle to change is the German mindset underscored by election results that Germany is giving enough, but not too much. Germans are afraid of the side effects of the eurocrisis, and they believe that Ms. Merkel was able to protect German money against the demands of foreigners, says Gero Neugebauer, a political scientist at Berlin’s Free University. [Germans] believe we should help [ailing economies], but they have to contribute to their own fates first. That position has been causing widespread discontent in some pockets of Europe. Struggling countries have pointed to Germany as the reason that they are having such a hard time returning to job creation. The 2013 Transatlantic Trends survey by the German Marshall Fund of the US showed that Europe was split over Merkel’s handling of the economy, with 47 percent of Europeans surveyed approving and 42 percent disapproving. There was sharp disapproval in Spain, Portugal, and Italy, at 82 percent, 65 percent, and 58 percent respectively. “The perception that the majority has of Merkel [in Spain] is that she is the one driving the politics of austerity, the one demanding social spending cuts, says Jaime Pastor, an expert on political science and social movements in Madrid. Germany demands Europe to become more like Germany, he says. But not all countries are in the position to do this. First things first Before anything happens in Europe, first the CDU will have to forge a coalition, after their current partners, the Free Democrats (FDP) failed to make it into the lower house, or Bundestag, in a stinging defeat for the market-friendly party. The CDU will now likely turn to the SPD. But the two will have to undergo tough negotiations, which could take months. Support for the SPD fell after the last grand coalition during Merkel’s first term in 2005, and in this election the domestic policies between the CDU and SPD have split, especially over issues of minimum wages and taxes on the rich. “Given the issues that we set out and those that the CDU focused on in the campaign…

Europe Factors to Watch-Shares set to rebound after 2-day dip

Service providers, according to the proposal, dont have to agree to end them, but then would have to allow customers to substitute a local SIM card from the country of travel, whichassuming savvy customersmeans no roaming anyway and loss of business. Either way, customers will no longer have to pay for incoming calls when traveling in other EU countries starting in July 2014. Two years later, all roaming charges would be scrapped altogether. Kroes (with strong support from EC President Manuel Barroso) also seeks to cap prices of EU-wide calls at the level of long-distance calls within a country. It doesnt take much cynicism to note that the personages most acutely aware of roaming charges are EU politicians and their lobbyist friends, who have to scoot between France and Belgium and their home constituencies and many important conferences and meetings at, say, Lake Como or Malaga. The generous interpretation of this is that EU apparatchiks simply assume that everyone is as annoyed by roaming charges as they are, and are thus trying to bring their benevolent influence to all and sundry. More cynically one cant help but think they are aware that those roving and roaming customers will see in the leveling of prices a convenient way of having the stationary masses absorb some of the roamers additional cost, all in the name of doing everyone a political favor. (Subsidizing the few at the cost of all incidentally being something the EU bureaucracy knows only too well how to do.) Its self-centered, yet its got a nice populist touch to it, especially when announced towards the end of summer holiday time, just as travelers find themselves hit by the hefty extra charges. Its hard to avoid this interpretation given that the official website of the Digital Agenda for Europe suggests that there is weak competition among national operators for roaming customers [that] has, at times, led to excessive prices for these services. Not only is it the EU Commissions position, apparently, to determine what prices exactly are excessive, they are also aware there is weak competition among operators. But if there is sufficient domestic, home-country competition, it is surely a question of lack of customer-bother about roaming services, not the positioning or quantity of carriers available. In other words: its a demand problem, not a supply problem. In fairness, an intra-EU wide competition is a desirable notion and it is tough to regulate the EU-wide set of services which have traditionally been the province of national regulators. But short of having Brussels take over all regulation of telecom servicessomething that the limited popular accountability of Brussels bureaucrats makes an unpalatable propositionthats not easy. Certainly for telecommunication companies who know how to work with the devils they know (Paris, Rome, Berlin), adding an unknown overseer in Brussels is not an attractive scenario. A hybrid, compromised regulatory structure for telecoms is here for the foreseeable future.

Merkel’s back for Germany. What does that mean for Europe? (+video)

and France, the least ever, according to data compiled by Bloomberg going back to 2004. The number of Euro Stoxx 50 shares changing hands has dropped 18 percent this year to 710 million a day, the data show. There has been a lack of allocation to Europe, Jarvis said in a phone interview on Sept. 19. In order to put money to work, investors needed a greater degree of certainty. People just didnt like the overall environment in Europe, be it the regulatory angle or the macro uncertainty. Short Bans Countries from Spain (GSPG10YR) to Belgium and Italy prohibited short selling during market retreats in recent years. While regulators have lifted the restrictions, traders are still required to report positions that exceed preset levels. The U.S. and Asia are better investments because European economies are expanding too slowly, according to Julian Lewis at Cavendish Asset Management Ltd. Euro-zone unemployment held at a record 12.1 percent in July and European car sales have slipped to the lowest since records began in 1990, signs that the recovery lacks momentum after the bloc exited a record-long recession in the second quarter. While yields in Spain and Italy have fallen by more than 3 percentage points from their highs to 4.30 percent and 4.29 percent, respectively, they are still at least 24 basis points above the average rate in 2006, before the financial crisis.

Merkel Seen Likely to Slowly Pull Coalition Left

Ingela Alverfors, a lawyer for Sweden’s data protection authority, confirmed to ZDNet that opting in to the model clauses definitely will not enable compliance with Sweden’s Data Protection Act. And if the school persists in using Google Apps, she said the watchdog does have the right to issue fines. Can a code of conduct end uncertainty over the cloud in the EU? Uncertainty over cloud services in schools in Sweden comes as Europe considers overhauling its data protection directive and addressing heightened concerns in Europe over the controversial US FISA Amendments Act 2008. Consumer privacy rights in the cloud, in particular around Google’s new consolidated privacy policy, have come under scrutiny from Europe’s data protection authorities. However, schools’ privacy has been somewhat overlooked, according to SafeGov, a US-based group that advises governments on how to mitigate data protection risks around cloud services. SafeGov on Monday released a report focusing on data protection in the cloud at schools based on discussions with over a dozen European data protection authorities. The organisation is urging Europe to consider adopting a code of conduct tailored to certain sectors that would contain a promise from cloud providers not to mine student data and not to serve ads to children at schools. “We found strong agreement within the DPAs [data protection authorities] that in addition to consumer rights, you need to look at people inside these institutions, such as this school in Sollentuna,” SafeGov’s president, Jeff Gould told ZDNet. “We don’t want advertising to get a foot in the door in schools and we want to have a kind of ‘permanent sanctuary’ that is completely protected from advertising, even if it’s a free service.” Notably, one of SafeGov’s partners is Microsoft, but Gould said the company does not influence its research or ambitions. “For the record Microsoft is one of our members, but we are not representing the point of view of Microsoft,” Gould told ZDNet. “We think this is an industry-wide problem that both Microsoft and Google and all the other players in this space can and should abide by a simple set of rules regarding the privacy protection and data protection rights of students who use cloud services in schools.” “We think Microsoft and Google should be absolutely on an equal footing.” The code might apply to all cloud providers equally, but the issues the report raises and SafeGov’s recommendations for the content of such a code do focus more heavily on Google’s business in schools. It also comes shortly after Microsoft’s US launch of ad-free Bing for schools aimed at K-12 students, while its Office products haven’t ever had an ad-supported business model. “In the case of Google and schools, they’ve come in with this consumer product that’s designed for online behavioural advertising and they said ‘OK, we know that you don’t want advertising in schools, and we’ll voluntarily turn off the ad-serving but by the way, well leave the option to turn ad-serving back on at any time’,” said Gould.

Should Europe’s schools adopt a code banning cloud companies from data mining?

German Bund futures opened 1 tick higher at 138.79. On Monday, William Dudley, president of the Federal Reserve Bank of New York, said in a speech the timeline that Fed Chairman Ben Bernanke articulated in June for scaling back the central bank’s stimulus measures is “still very much intact”, as long as the economy keeps improving. At a separate event, Dallas Fed President Richard Fisher said the Fed had hurt its credibility and had urged colleagues to support a $10 billion reduction in the Fed’s bond-buying programme at last week’s meeting. Last week, equity markets worldwide strongly rallied after the Fed decided not to trim down its quantitative easing programme, but the euphoria was short-lived as investors started to see the Fed’s decision as a sign that the U.S. economy was losing steam. “Tapering uncertainty continues to keep traders risk appetite in check,” Capital Spreads trader Jonathan Sudaria wrote in a note. European stocks have now erased all their gains triggered by the Fed’s surprise decision, although the broad STOXX Europe 600 is still up 5.2 percent so far this month, on track to post its best monthly performance in two years, and its best month of September since 1997. Despite the gains expected at the open on Tuesday, Aurel BGC chartist Gerard Sagnier warned that stocks may be entering a phase of consolidation. “Indexes are showing signs of weakness, with a key support level broken on the S&P 500 and a number of short-term support levels broken in Europe. But for now, the retreat could be limited, around 2 to 3 percent on the downside,” he said. ——————————————————————————– MARKET SNAPSHOT AT 0623 GMT: LAST PCT CHG NET CHG S&P 500 1,701.84 -0.47 % -8.07 NIKKEI 14,732.61 -0.07 % -9.81 MSCI ASIA EX-JP 544.29 -0.49 % -2.67 EUR/USD 1.3501 0.07 % 0.0009 USD/JPY 98.93 0.11 % 0.1100 10-YR US TSY YLD 2.695 — -0.01 10-YR BUND YLD 1.907 — -0.01 SPOT GOLD $1,323.80 0.17 % $2.26 US CRUDE $103.45 -0.14 % -0.14 > GLOBAL MARKETS-Asian shares lose ground, Fed the usual suspect > US STOCKS-Wall St falls on Fed officials’ comments, Washington worries > Nikkei dips on Fed taper concerns; iPhone suppliers shine > FOREX-Dovish central banks keep euro and dollar pinned down > PRECIOUS-Gold firms after 3-day drop, Fed uncertainty persists > METALS-London copper slips on prospect of swell in supply > Brent edges down near $108 ahead of Iran nuclear talks COMPANY NEWS: TELECOM ITALIA, TELEFONICA Spain’s telecoms group Telefonica has reached an agreement to raise its stake in Telco, the holding company that controls Telecom Italia. to an initial 65 percent with an option to bring the stake to around 70 percent, a source with direct knowledge of the situation told Reuters on Monday. FIAT Chrysler Group LLC on Monday filed paperwork for an initial public offering, an action that could slow majority owner Fiat’s plans to take full ownership of the U.S. automaker.