LONDON: Christine Lagarde has just announced she will run for a new term as managing director of the International Monetary Fund, citing the backing of France, Britain, Germany, China and Korea among others.
With no obvious challengers, the main risk to her candidacy comes from the trial she faces over negligence while France's finance minister that resulted in the taxpayer having to fork out 400 million euros to businessman Bernard Tapie.
Optimism is an admirable thing - except when it strains credibility. Portugal's new government said overnight it will narrow the budget deficit this year even as it starts to reverse past austerity measures. It argues it will be able to square the circle because economic growth will rise this year to 2.1 percent, a good half a percent more than last year and well above most independent forecasts.
Germany's Angela Merkel meets Turkish Prime Minister Ahmet Davutoglu for German-Turkish government consultations with a news conference around 1430 GMT. What Ankara can do to stem the tide of refugees into Europe will be high on the agenda, as will cooperation on countering the Islamic State threat.
One month after an inconclusive election in Spain, a left-wing alliance is now seen as gaining ground over a potential "grand coalition". King Felipe is set to conclude five days of talks with the parties represented in parliament.
MARKETS AT 0745 GMT
A further rise in oil prices and the possibility of more easing measures from the European Central Bank in March have helped lift markets. Shares rose in Asia, after modest gains on Wall Street, and futures suggest Europe will follow suit.
The dollar is up against its major rivals and U.S. Treasury yields are rising. German government bond yields have hit new record lows after ECB chief Draghi said on Thursday the bank would review its policy stance but the fall is minimal.
Futures indicate Euroepan stocks will rise 1.5 percent to 2.1 percent at the opening.
On the earnings front, eyes on German software maker SAP after it raised its 2017 outlook for revenue and profit to the upper end of expectations. Delhaize reported better-than-expected sales growth, while Tod's 2015 sales rose 7.4 percent, boosted by currency moves. Philips will be in focus after saying its $3.3 billion deal to sell its Lumileds division to a group of Asian investors has foundered over objections by the U.S. government.
Comments
Comments are closed.