WEEKAHEAD-The view from Reuters EMEA news editors

LONDON, Feb 5 (BestGrowthStock) – Following is the view from Reuters
editors in Europe, the Middle East and Africa on the news that
is likely to matter in the week ahead.

GREECE – Sovereign risk jitters spread

EU SUMMIT – Jobs and growth in the spotlight

BANKS – Contrasting fortunes at Switzerland’s big two

UKRAINE – Election for leader to face IMF negotiation

GREECE – Sovereign risks remain high with Greece still in
investors’ crosshairs as they wait for concrete action on its
planned budget deficit cuts while bond market vigilantes are
quick to punish peers who are skittish about taking unpopular
but needed fiscal reform measures. Premiums for the next
perceived weakest links in the euro zone area, especially
Portugal, are set to remain near record highs with the spreading
fallout keeping the euro on the back foot versus the dollar.
Concern is also growing over how long core euro zone sovereign
markets will be immune to the ill wind buffeting peripheral
markets. The still high volatility of Greek government bonds
after the European Union backed Greece’s deficit-cutting plans
has highlighted again that actions are more important than words
in tackling fiscal deficits. It also highlights the high level
of political risk currently in markets. A series of strikes in
the coming two weeks will challenge the Athens government’s
resolve to implement its plans and the bond market is likely to
punish any backsliding. The Spanish government faces a rough
ride from trade unions as it seeks to curb spending.
([email protected])
([email protected])

EU SUMMIT – EU leaders meet for a one-day economic summit in
Brussels on Thursday, Feb 11. The main focus is an attempt to
agree on the EU’s 2020 strategy which is intended to boost
growth and make the EU economy more competitive, but there’s a
chance it could be hijacked by events. Greece and Portugal are
likely to grab the spotlight and the event also offers a chance
for Europe to regains some initiative on climate after being
eclipsed at Copenhagen. ([email protected])

BANKS – The contrasting fortunes of Switzerland’s big two
banks, UBS and Credit Suisse, will dominate bank results along
with Barclays boss Varley up before British lawmakers on the
“too big to fail” issue. We expect more focus on bonuses and the
UK’s bonus tax, plus a look at whether that debate has any
impact on the bank hiring season. This could also be a
make-or-break week for the RBS-Sempra deal.
([email protected])

UKRAINE – Ukraine votes for a new president on Sunday Feb 7
in an election which investors hope can produce a government
capable of negotiating a $16.5 billion IMF bailout. The contest,
which will define future relations with Russia and the European
Union, is close in this second round run-off between Yulia
Tymoshenko and Viktor Yanukovich. Bond spreads have narrowed
since the start of the year but the risk is the loser may call
supporters out onto the streets.

TAKE-A-LOOK-Five world markets themes next week [MKT/THEMES]
Global markets weekahead [ID:nLDE61419B]
Weekahead USA [WKAHEAD/AM] Weekahead Asia [WKAHEAD/A]

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WEEKAHEAD-The view from Reuters EMEA news editors