– Will Fight For Stability Oriented Policy After Stark Departure MARSEILLE (MNI) – There are no reasons to revise German growth projections downward or launch fresh stimulus packages, European Central Bank Governing Council member Jens Weidmann said Friday. “The recent pessimism on economic growth is exaggerated. At the current juncture, there are no reasons to [...]

MARSEILLE, France (MNI) – The Group of Seven finance ministers and central bank governors issued the following statement late Friday night after meeting here: “We met at a time of new challenges to global economic recovery, with significant challenges to growth, fiscal deficits and sovereign debt, stemming from past accumulated imbalances. This is reflected in [...]

All agreed Europe has capacity to cope with problems Important to show Europe has financial firepower to show they can cope with debt problems Broad support for US jobs plan Headlines from Reuters…

Extreme tensions in the markets toward European banks Strong measures taken by Italy, France

G7 decided on coordinated response to slowdown in global growth Reaffirmed commitment to honoring sovereign debt Must put into place fiscal adjustments anchored in fostering growth Fiscal adjustments must be made taking into account different national circumstances Central banks are ready to supply liquidity to banks We will communicate amongst ourselves on any possible interventions [...]

EUR/USD falls to 1.3650. Will be a lot easier to chop rates without that crusty old German around…

German ECB managing board member and chief economist Juergen Stark resigns in protest over the central bank’s buying of bonds of highly indebted euro states German/France push financial transactions tax in letter to EU Bloomberg: ECB waters down plan to wean addicted banks off of ECB liquidity Rumors of weekend default by Greece hit EUR/USD [...]

According to the US Geological Survey.

Real money still selling on every quasi fixing on the hour and half-hour, traders say…

AUD a bit firmer on the comment, now at 1.0455, off midday lows of 1.0419.

From the Handelsblatt.

Back down to 1.3655.

The Italian PM tells a TV interviewer the ECB gave him four days to make deep budget cuts. In return, they would buy Italy’s bonds. Berlusconi also tells the interviewer he is undecided about seeking office again when his term expires in 2013. Berlusconi will be 75 at the end of the month… EUR/USD’s early [...]

–Congressional Budget Office Chief To Testify Tuesday To Key Panel –CBO’s Elmendorf Told NY Fed In June That Fundamental Reforms Needed –CBO’s Elmendorf Warned Simpson-Bowles Panel About Health Entitlements By John Shaw WASHINGTON (MNI) – Congressional Budget Office Director Doug Elmendorf will be the lead-off witness this coming Tuesday before Congress’s Select Committee on Deficit [...]

G7 has voiced its support for credible fiscal budget consolidation plans from high-debt countries. Broad support for Obama jobs plan

US DATA: BOEMRE shut-in data says personnel remain evacuated from a total of 4 production platforms, equivalent to 0.7 percent of the 617 manned platforms in the Gulf of Mexico. No rigs are evacuated.

Nikkei reports govt to ask for JPY 7-8 trillion To be submitted by end of October

…but don’t let the door hit you in the arse on your way out. Thanks Stark for work to secure a stable euro Stark epitomizes a culture of stability Stark served all euro area citizens His putative replacement, Joerg Asmussen is a Merkel confidante and should be more compliant regarding bond-buying…

FRANKFURT (MNI) – ECB chief economist Juergen Stark, who tendered his resignation earlier today, warned that massive public fiscal risks were undermining financial stability. “At a European level there is a need to strengthen the rules to achieve economic and monetary union,” Stark wrote in a column for the German daily Handelsblatt to be published [...]

Industrial Output HICP (final) – July – – August - %mom %yoy %mom %yoy Median forecast* 1.5 4.6 0.2 2.5 High forecast 2.5 5.2 0.2 2.5 Low forecast -0.5 2.6 -0.6 2.5 Previous period -0.7 2.9 -0.6 2.5 – No of responses 13 10 9 15 – 4Cast 1.5 4.7 na na Barclays Cap. 2.5 [...]