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from MacroScope:

Euro falling but no impact on inflation yet

Lithuanian 1 euro coins are pictured in the Lithuanian Mint in Vilnius

Euro zone inflation figures are due and after Germany’s rate held steady at 0.8 percent the figure for the currency bloc as a whole could marginally exceed forecasts and hold at 0.4 percent.

One upside for the currency bloc is the falling euro which has broken below its 2013 lows and is down almost nine percent from the peak it hit against the dollar in May. With U.S. money printing about to end next month and speculation intensifying about the timing of a first interest rate rise from Washington, there are good reasons to think that this trend could continue.

If it does, it would push the prices of imports up while making it easier for euro zone countries to sell abroad which should have an upward impact on both growth and inflation. The impact won’t be instant, however, as today’s figures will demonstrate.

Either way, there is no chance of the European Central Bank doing anything new at its monthly meeting on Thursday having pushed through a range of new measures last time.

from MacroScope:

A reminder that all is not well in the euro zone

Bank of Portugal Governor Costa arrives to read a statement in Lisbon

A reminder that while the euro zone crisis may be in abeyance, it still has the ability to bite.

Portugal will blow 4.4 billion euros of the 6.4 billion euros left from Lisbon’s recently exited international bailout programme shoring up troubled lender Banco Espirito Santo which will be split into "bad" and "good" banks. Junior bondholders and shareholders will be heavily hit.

from Photographers' Blog:

Romanian migrants build new lives in Britain

London, England
By Luiza Ilie, photos by Luke MacGregor

Poverty and a lack of jobs have driven millions of Romanian workers abroad in search of a better life, helping fuel an anti-immigration backlash in wealthier Western countries that could hurt governments in upcoming European parliament elections. Reuters interviewed immigrants in the United Kingdom and the families of those left behind in Romania.

For the main story, click here.

The following are photos and scenes of some Romanians who have built a new life in the United Kingdom, and who mostly said they faced remarkably little discrimination despite the media frenzy that marked their arrival. The UK was one of six European Union countries that lifted its restrictions on migrants from Romania and Bulgaria at the start of the year.

from Photographers' Blog:

Lost dogs of Romania

 Bucharest, Romania

By Bogdan Cristel

I love dogs. I grew up with them around me all the time and I remember always having one with me when I played in my grandpa’s yard as a child.

Our dogs, just like thousands of others in Bucharest, were kept in the family garden. But everything changed in the city after former Communist dictator Nicolae Ceausescu began a project to erase old houses with backyards and replace them with huge high-rise blocks.

from Photographers' Blog:

Faces of Romania’s past

Slobozia, Romania
By Bogdan Cristel

Romania is proud to have produced a man thought by many to be the world’s first war photographer – Carol Popp de Szathmary, from the city of Cluj, who took photographs of the Crimean War in the 1850s.

One of the most impressive people to have followed in his footsteps is Costica Acsinte, another Romanian who worked as a photographer during the First World War. Below is an image of his taken on the front line.

from MacroScope:

A small step back?

A reported 0300 GMT deadline, which Russian forces denied had been issued, for Ukraine’s troops to disarm in Crimea or face the consequences has passed without incident and in the last hour President Vladimir Putin has ordered troops that took part in military exercises in western Russia to return to base.

That has helped lift the euro but the situation remains incredibly tense. Russia’s stock market is up a little over two percent and the rouble has found a footing but they are nowhere near clawing back Monday’s precipitous losses.

from MacroScope:

Money for Ukraine?

Russia’s next move remains the great unanswered question for Ukraine but there are glimmers that things might be starting to move elsewhere.

IMF chief Christine Lagarde said last night she would send a technical support team to Ukraine soon if Kiev makes a request. It can’t do so until an interim government is formed, probably tomorrow. That would be step one, but only step one, down the road to an international aid package.

from MacroScope:

PMIs on the up

Slowing growth in the Chinese and U.S. factory sectors earlier this week did nothing to soothe frayed market nerves and put a firm focus on today’s service sector PMI surveys in Europe along with the equivalent U.S. report and a weekly jobless number there.

While the world’s two largest economies suffered a hiccup, euro zone factories had their best month since mid-2011 in January. But it is the service sector that dominates in Europe. Flash readings, which are not usually revised much, showed the euro zone services reading hit a four-month high with France lagging Germany again although even its number rose. Today we’ll get the first numbers for Italy, Spain and Britain.

from MacroScope:

A moment of truth for Turkey

Turkish Prime Minister Tayyip Erdogan will make his first visit to Brussels for five years where he will meet EU Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso and European Parliament President Martin Schulz.

The EU has been critical of Erdogan’s response to a sweeping corruption inquiry, clearing out hundreds of police officers and raising concern about a roll-back of reforms meant to strengthen independence of judiciary.

from MacroScope:

Putin’s Ukraine “victory” — pyrrhic?

Ukraine continues to top the European worry list.

Monday demonstrated how quickly the financial side of the equation can spiral out of control. The hryvnia currency slumped and the cost of insuring against Ukrainian default soared, forcing the central bank to intervene and urge its citizens not to spark a bank run.

Having turned its back on the EU, Kiev must find more than $17 billion next year to meet gas bills and debt repayments. Presumably Russia will have to help out if it is not to have a basket case on its doorstep.

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