Daily Archives: July 31, 2012

Claire Jones

It’s all looking a little sunnier in the eurozone what with the recent falls in borrowing costs for Spain and Italy. Are the black clouds drifting away?

Not quite. The big picture hasn’t changed much.

If anything, the latest data on unemployment and confidence (or lack thereof) suggests the growth outlook has gotten worse.

But it has been a decent few days for sovereign bonds. Spanish government’s borrowing costs and Italian yields are down on the back of comments made by Mario Draghi, European Central Bank president, which suggested the central bank could ramp up its crisis response at this Thursday’s governing council meeting of top central bank officials.

What were the magic words? Read more