Entries in Euro (11)


Finland Would Like to Exit Euro Instead of Pay for Other EU Countries

iStockphoto/Thinkstock(HELSINKI) -- Finland would rather end using the Euro than help pay the debt of other countries within the European Union the Finnish Finance Minister Jutta Urpilainen says, according to the Wall Street Journal.

Matti Hirvola, a spokesman of Urpilainen, countered that the minister’s comments did not indicate that Finland was indeed planning to stop using the Euro.

Finland is currently one of the few EU countries still with a triple-A credit rating.

Copyright 2012 ABC News Radio


Traveling Overseas: Best Bang for Your Buck?

Nick M Do/Getty Images(WASHINGTON) -- While a growing euro storm may be brewing, the dollar has increased in value -- much to the delight of American tourists.

The trend over the past few months is clear: the dollar is worth more against the euro. And that means more bang for each tourist buck.

"Americans traveling in Europe have had a tough time with the weak dollar over recent decades," says market analyst Alec Young. "But we do get bouts where the dollar firms up."

"We've recently had a very nice run for the dollar and that would benefit the U.S. tourist traveling around the world," he says.

With the euro woes expected to linger, this summer might prove to be a great bargain for Americans heading overseas.

Copyright 2012 ABC News Radio


Euro Drops to Three-Week Low as Holland is Elected French President 

Hemera/Thinkstock(NEW YORK) -- The euro fell to a three-week low as France elected French Socialist leader Francois Hollande as their new president, Bloomberg News reports.

The euro fell to $1.3047 at 3:18 p.m. EST. The Bank of Tokyo-Mitsubishi predicts the euro will decline to $1.25 over the following three to six weeks, and then down to $1.20 over the next year, according to Bloomberg News.

Copyright 2012 ABC News Radio


Iceland Prime Minister Says Nation Will Adopt Euro or Other Currency

iStockphoto/Thinkstock(REYKJAVIK, Iceland) -- Iceland Prime Minister Johanna Sigurdardottir said on Saturday that the nation will make a decision on whether or not to join the European Union and adopt the euro or drop the krona and adopt another currency, Bloomberg News reports.

Iceland began discussing the possibility of joining the EU in July 2010 and will most likely vote to decide early next year.

A Capacent Gallup poll in February revealed that around a quarter of Iceland's voters support joining the EU and a little over half oppose it.

Copyright 2012 ABC News Radio


Eurozone's Effort to Save Greece Could Weaken US Dollar

Michele Tantussi/Bloomberg via Getty Images(WASHINGTON) -- As euro-zone finance ministers continue to deliberate about a second big bailout for Greece, many investors seem optimistic about the progress of the talks.

But any measures to save Greece from the verge of default could lift financial markets but weaken the U.S. dollar, possibly affecting U.S. travelers.

Nick Bennenbroek, head of currency strategy at Wells Fargo, said the outlook for the U.S. dollar is mixed. Getting closer to a deal would lead to a boost in emerging currencies and some of the major currencies, such as the Canadian dollar.

On Monday morning, the euro rose to a one-week high and by mid-afternoon it was $1.32 to the  U.S. dollar.

Euro-zone finance ministers are still deliberating in Brussels over whether to agree to a second, €130 billion, or $171.5 billion, bailout plan for Greece. Martin Koehring, economist for the Economist Intelligence Unit, said talks are unlikely to conclude before the early hours of Tuesday. Without the bailout, Greece faces the prospect of defaulting on a €14.5 billion, or $19.1 billion, bond redemption due by March 20.

“The fact that we’ve got zero to negative growth in Europe and the European Central Bank  will be potentially easing its monetary policy stance further” — by lowering interest rates or adding funds to their banking system — “does mean the euro will probably fall in the coming weeks or months against the dollar,” Bennenbroek said.

Also, U.S. economic numbers in the past few months, such as the falling unemployment rate, have boosted the U.S. dollar against the euro.

Travelers could also see marginal changes in exchange rates.

“I wouldn’t completely dismiss the relevance for those considering international travel,” Bennenbroek said, considering an estimated 5 cent increase in the Canadian dollar relative to the U.S. dollar in the next several months.

He said if U.S. stock markets continue to strengthen, the dollar would probably fall against the other currencies, such as the Mexican peso.

John Bowler, economist at the Economist Intelligence Unit, said he expects the U.S. dollar to weaken further.

He said the dollar had weakened against the euro since the start of the year as investors have regained their taste for risk, triggered by the injection of €500 billion by the European Central Bank into euro zone banks in late December.

“As long as risk appetite remains strong, the dollar is likely to weaken further,” Bowler said. But “any shock, such as a disorderly default by Greece, would interrupt this trend and send investors back into the safe haven of the dollar.”

Koehring said allowing Greece to default would cause major losses among European banks and could raise fears among investors that Portugal or Cyprus — or both — could be next, potentially raising the need for further bailouts of other highly indebted countries.

Copyright 2012 ABC News Radio


Metallica, Red Hot Chili Peppers Bet Against the Euro

Metallica. Valerie Macon/Getty Images(LONDON) -- Fears about the euro’s instability are causing organizations to reassess their connections to Europe, even prompting bands Metallica and the Red Hot Chili Peppers to push their European tour dates earlier.

Cliff Burnstein, manager of both American bands, has pushed tours forward for both music groups abroad, as worries about the future of the euro spread.

Heavy metal band Metallica will present their “European Summer Vacation” tour which will include Germany, England and Austria next year, as opposed to playing in the continent in 2013 as originally planned to avoid potential difficulties when concert promoters pay the band in euros, Burnstein told the Wall Street Journal.

“Over the next few years, the dollar will be stronger and the euro weaker, and if that’s the case, I want to take advantage of that by playing more of these [European] shows now, because they will be more profitable for us,” he told the Wall Street Journal.

Burnstein decides in which currency concert promoters should pay the band. Depending on the exchange rate, he can even purchase derivative financial instruments for a preferred rate.

Metallica, which formed in 1981, has won nine Grammy awards and two MTV music video awards for “Enter Sandman” and “Until it Sleeps.” Their ninth studio album, Lulu, featuring guitarist and vocalist Lou Reed of band The Velvet Underground, was released in October.

Rock-band the Red Hot Chili Peppers began touring in Asia, Europe and Latin America this summer and recently announced they will bring their I’m With You World Tour back to North America in January. About 75 percent of the Red Hot Chili Peppers’ revenue is from touring abroad, Burnstein told the Journal.

Copyright 2011 ABC News Radio


Dow Closes its Worst Week Since September

Comstock/Thinkstock(NEW YORK) -- The markets couldn't do much to make up for a rough week in a shortened post-Thanksgiving session as major indexes lost more than four percent for the week.

The Dow closed down 26, ending its worst week since late September, while the Nasdaq lost 19 and the S&P gave up three.

Stocks wavered between gains and losses during minimal trading Friday, as the day after Thanksgiving is traditionally the lightest volume of the year.

Meanwhile, worries about Europe's debt problems flared up again on Friday. In another sign investors are growing hesitant to lend to European countries, Italy had to pay 7.8 percent to borrow for two years at a debt auction.

A record number of shoppers are expected to hit stores on Black Friday. The National Retail Federation estimated 152 million people will heads to the malls from Friday to Sunday. It would mark an increase of 10 percent from last year.

Copyright 2011 ABC News Radio


US Markets Closed; German Business Confidence Rises

Comstock/Thinkstock(NEW YORK) -- The U.S. markets are closed Thursday for the Thanksgiving holiday but world markets have edged higher.

There's speculation that China might ease its monetary policy and that is easing fears Germany's strong economy may be succumbing to Europe's debt crisis. Benchmark oil was hovering over 96 dollars a barrel, while the dollar fell against the euro and the yen.

A closely watched survey shows German business confidence rose unexpectedly this month, despite the lingering European debt crisis. It breaks a trend of four months of falling business confidence.

Global markets were spooked Wednesday by the poor results at an auction of German debt -- with only 60 percent demand -- and by news the Dow fell for a sixth straight day.  

Copyright 2011 ABC News Radio


Euro Weakens as Concern about Greece's Debt Rises

Chris Hondros(NEW YORK) -- As concerns about Greece's debt rise, the euro continues to weaken, having declined against all but one of its 16 major peers Monday morning.

The euro fell 0.3 below the dollar and 0.2 below the yen.

Subdued trade is expected for the remainder of Monday since U.S. markets are closed for Memorial Day.

European governments are in talks about new bailout loans for Greece, according to the Financial Times. European Union and International Monetary Fund officials are expected to announce a report on the finances of deficit-burdened Greece sometime this week.

Copyright 2011 ABC News Radio´╗┐


Eurozone Approves $113 Billion Bailout for Ireland

Photo Courtesy - PETER MUHLY/AFP/Getty Images(BRUSSELS, Belgium) -- The European Union on Sunday approved an 85 billion euro or $113 billion dollar deal to help stave off an economic meltdown for Ireland.  The money will come from the International Monetary Fund, the 16 nations within the Eurozone and the European Commission. 

Ireland will be allowed to take money from its pension funds to make up its part of the EU commitment.  That had been against Eurozone rules. The EU has also agreed to set up a system by which a country deemed insolvent can restructure its debt. 

Ireland will have up to seven and a half years to pay back its loans -- longer than the three years allowed to Greece in its bailout deal arranged last May.

Copyright 2010 ABC News Radio

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