Eurozone Crisis Deeps: Slowdown In Europe Accelerated, Bank Of Spain Starts Using ELA, ECB Bond Purchases Will Be "Sterilized" & Merkel Opposes Unlimited Bond Purchases!!!

Euro-zone August composite PMI falls to 46.3

The downturn in private-sector activity in the 17-nation euro zone deepened in August, the Markit euro-zone composite purchasing-managers’ index, or PMI, for the region indicated Wednesday. The PMI fell to 46.3 from 46.5 in July and was down from a preliminary reading of 46.6. The index for the services sector fell to 47.2 from 47.9 in July and was down from a preliminary figure of 47.5. A reading of less than 50 signals a contraction in activity. “The final August PMI came in only slightly below its earlier flash estimate, leaving the euro-zone economy on course to fall back into technical recession in the third quarter,” said Rob Dobson, senior economist at Markit. “Sharp declines in new orders at manufacturers and service providers, plus further job losses, mean that there is little prospect of a sustained improvement in economic conditions over the near-term,” he said.

Another euro country is a candidate for the bailout. Slovenia threatened with insolvency in October.

Slovenia must be the sixth country in the fall of the euro area under the bailout.Prime Minister Janez Jansa suggested on weekends alert and warned of a state bankruptcy: “In October, threatened with insolvency if we do not manage to sell bonds.” According to Jansa’s borrowing on the financial markets at the present time “practically impossible”.

Banking sector in Slovenia under pressure

It is the first time that Jansa speaks publicly about a bankruptcy of the country.So far, the government had always assured of being able to cope with the problems facing them. It distinguishes itself from the difficulties for some time.The rating agencies Standard & Poor’s, Moody’s and Fitch had downgraded the credit rating in early August. The cause is especially the crisis in the banking sector after the bursting of a housing bubble. Raiffeisen Research analysts speak of the “Spain of Central Europe”.

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