News: 2013-12-04

By Edward Harrison On Dec 5, 2013

This news post didn’t go out yesterday. So I am putting it up early today. Expect another one later today.

“The eurozone “lost some momentum” in November, a survey says, with private sector activity slowing slightly.

The Markit composite purchasing managers’ index (PMI), which tracks several sectors, slipped to 51.7 from 51.9 in October.

But the figure beat expectations, and the PMI reading stayed above 50, indicating expansion.”

OECD Warns Riksbank Against Obsessing Over Record Private Debt – Bloomberg

“According to Swedish central bank forecasts, average household debt will rise to a record 177.4 percent in the fourth quarter of 2015 after having almost doubled since the mid-1990s. Apartment prices, which have more than doubled since 2000, increased 14 percent in the 12 months through October. “

Nowotny: EU-Fonds nur für große Pleitebanken – KURIER.at

The EU looks like it is about to institutionalize too big too fail by making only TBTF institutions eligible for EU-level bailouts.

IKEA gets 20,000 applications for just 400 jobs amid Spanish unemployment crisis – Telegraph

Strong Governments, Weak Banks | The Centre for European Policy Studies

“Banks in the northern eurozone have capital ratios that are, on average, less than half of the capital ratios of banks in the eurozone’s periphery. The authors explain this by the fact that northern eurozone banks profit from the financial solidity of their governments and follow business strategies aimed at issuing too much subsidised debt. In doing so, they weaken their balance sheets and become more fragile – less able to withstand future shocks. Paradoxically, financially strong governments breed fragile banks. The opposite occurs in countries with financially weak governments. In these countries banks are forced to strengthen themselves because they are unable to rely on their governments. As a result they have significantly more capital and reserves than banks in the northern eurozone.”

German Police May Have to Sharply Revise Figures in Far Right Killings – SPIEGEL ONLINE

“Germany May Revise Up Statistics in Far-Right Killings”