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Europe Day Ahead: German court key to future of euro

Tuesday, September 11, 2012 - 03:55

Sept. 11 - Eight red-robed German judges hold the key to the future of the single currency as they rule on Wednesday on the legality of the EU's bailout mechanism and budget rules.

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Tense wait for investors is the market sweats on -- crucial German court ruling. An election in Poland dominated by the eurozone debt crisis and a possible new stimulus round from the US Federal Reserve. Welcome -- look at the trading day ahead. Eight red robed judges in the southwest city of Karl's book. Hold the key to the future of the Euro the German Constitutional Court will rule amendment galaxy of the European Union's bailout. Fund and its budget rules the court has to do see from mountain -- said delaying rather than decision. On the stability mechanism the courts present -- -- Scola. Has been dubbed the most powerful man in Germany behind Chancellor Angela Merkel of course are rejection would be seen as catastrophic for the single currency. The judges are expected to give the go ahead possibly also tightening the screws in the by the German parliament but it should be a done deal says Paul Mortimer Lee at BNP Paribas. I would expect that he does that in the caveats there will be relatively small so I would expect to its really going to be a relief to the market. Much of of a worry. Of an all big worry I think most people expect to have to go out there constitutional cool -- the assembly is constitutional. Several casino banks face a crack down new rules being announced by the EU's chief regulator Michel bunny they would insist on higher reserves. And oppose stricter oversight but -- stopped short of separating investment banking from -- activities. I'm not leads to the break out of any launch institutions. Independent bank analyst Ralph Silva says investors will still need to do their homework. -- and in Spain there are banks that are worth investing and as well as Germany as well as France the problem is is that investors are looking for shortcuts. There are no shortcuts you invest in the banks that have the following. He very well diversified model in other words they have more than 50% in each one of the points of businesses. Which is a healthy market. Secondly they have we really good geographic diversification we don't know it's -- -- -- and lastly. They have to have a handle on their marketing and public relations area banks that are going against the government will lose. Also Wednesday the Fed's open market committee begins two days of deliberations economists polled by Reuters say the chances of the federal -- third round. If Q we have jumped off to the week August employment report. They get a 60% -- snout QE3 being announced off to the meetings in the tack to previous rounds the Fed board some 2.3 trillion dollars in mortgage. And government tests in an effort to push down borrowing costs. Voters in the Netherlands preparing to go to the polls and hotly contested election dominated by the eurozone crisis on the debate over austerity. Can't take a prime minister mark -- as liberal policy Imus off left labour opposition led by deodorant Samson I met connect. I that would need just one of a party to form a coalition. And they've been promised together before. Spots and upsets could see Germany lose Holland as a key ally. In the Euro rescue princess finally apple launches -- -- designed phone Wednesday it's not yet claim and whether the hands there will be tank the eye for an fine for the new iPhone. Innovations are expected to include a new placing -- biggest screen and a smaller connection port. Which is likely to -- owners of existing right for an music plans. Who like you need to -- and adapt -- last week apple -- its orders from memory chips from its rival and main supply Samsung. The -- for an -- would take place in San Francisco that's it stick with us those stories and more. On Reuters dot com and the inside a platform and join us throughout the year week for -- today. A snapshot of the latest world news and market headlines but -- AM London time climax of -- problem this is Royces.

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Europe Day Ahead: German court key to future of euro

Tuesday, September 11, 2012 - 03:55