Next Gen News

. Only available in Italian ? 7.017bn raised, compared to ? 8.5 billion maximum target

. All details of the sale of debt in Italy today. Analysts are impressed.

. Hungary canceled the auction of three-year bonds

. Today's agenda

. Catch live coverage of yesterday " / aa>

3:39 p.m.

If this market has not seen the blog of Nick Fletcher of the Armed Forces, here's a quick glance eye position in the U.S. today. Investors reacted favorably to the figures of unemployment claims, which rose last week, but decreased in a basic four-week moving average.

The Dow Jones Industrial Average is about 70 points, helping to push the FTSE 100 30.30 points higher at 5537.70. The weekly initial jobless claims in the United States increased from 15,000 to 381,000, slightly higher than the projected figure of 375,000. But analysts said that after three consecutive declines before that, there seemed to be an improvement in the labor market in December.

Meanwhile, the purchasing managers index was 62.5 in Chicago in December, down slightly from 62.6 in November, but ahead of consensus estimates of 61.

3:21 p.m.

Despite relatively optimistic tone of Société Générale (see below), analysts still believe that banks store the money in 2012, which means they are less likely to lend to other banks or the real economy.

This is summarized in the amount of cash near Pomerol night with the European Central Bank, which reached ? 452bn this week, although most of those who had actually been paid by the ECB in the three years of cheap financing in the approach of Christmas. As long as the sovereign debt crisis persists, say some analysts, banks use the money to pay its own debt rather than lend it elsewhere.

Alessandro Giansanti, an ING rates strategist, told Reuters:

I hope that [banks] to save money on desposits ... because they fear it could cash in the short term and can not cope with bond redemption, [while] the deposits are down and they need larger pools of liquidity. The origin of the problem banks are governments. Until the government risk is always present [interbank stress] is not going away.

2:54 p.m.

economists at Societe Generale, a French bank, I think that Europe is not horrible writhing in the jaws a real credit crunch, according to latest figures. Overall deposits in M3 in the euro area - which are a measure of liquidity into the economy - fell by a "modest" ? 13 billion in November. This resulted in the displacement of the average annual M3 growth to 2%.

Now, the idea of ??growth of M3 ECB dangerously inflation is 4.5%, it is likely that the ECB chief Mario Draghi can reduce interest rates at their current record low of 1%. Aware that all references to the M3 deposits can be difficult for a touch after Christmas frontal lobes, Société Générale experts have launched a metaphor for the winter:

To paint a picture of the season, the European economy at present is like an icebreaker to forge their own path through the Arctic ice: when shortage of icebergs on the horizon, stoically take to avoid them and do heavy if progress predictable. The landscape is still dark, but not precipitously. Therefore, the latest figures from the money supply in the euro area continues to reflect the financial difficulties of the steep banking industry, but the time show no signs of an emerging credit crisis in full.

14:44:

Howard Archer of IHS Global Insight has some positive ideas on sales after Christmas, the database footprint (a measure of how many people enter the store) and anecdotal reports. Bargain hunters are tracking expensive items that are the source of the attractive price tags, said Archer. He adds:

The strong activity described in the lifts early Christmas after the sale of the hope that consumer spending in general have grown decent in December and may have contributed to the economy in order to prevent contraction in the fourth quarter.

But this could be to delay the inevitable, said Archer, with sales in December follies unlikely to prevent a contraction that is advertised by forces stronger than sales of stickers on the windows, such that: rising unemployment, stagnant wages and high inflation.

The concern is that once the best selling business are gone, consumers quickly away from their wallets and purses, and suffer a major downturn. This could weigh heavily on consumer spending in the first months of 2012 and raise the already high risk that the economy could contract in the first quarter of 2012.

14:32: Hello . More John Hooper in Rome at the press conference Monti.

Monti did not much further on what he and his government was working. But he said at the end of January that it planned to publish two new packages - one on competition and liberalization and the other with the reform of employment and welfare

This should be music to the ears of investors. Underlying problem of Italy is an economy that has barely increased since the beginning of the century.

have doubled the austerity program that has received final approval by Parliament last week's "save Italy" decree, Monti said he would have no objection to Press to call the new measures "Growing up in Italy" program. One clue as to its contents:. He said that included new rules to make it much easier and faster to set up businesses in Italy

held a solid support bond investors at auction today, the new packages impressive. And the history of Europe to deliver when the markets are eager contention were poor in 2011. Hopefully 2012 will ring the changes.

14:19:. hours to present this blog to my colleague Dan Milmo

13:54:

Prime Minister of Italy Mario Monti

, ceased answer questions more than two hours after the start of the press conference and New Year have traditionally Italian PM.

John Hooper , our Italian correspondent, has all the details:

After stating that the auction this morning for the bonds was "fairly well", a complaint was slight at Monti's "spread" - increasing the return required by investors to buy Italian reference obligations rather than their German safe haven.

"To an economist, there is no fair price than that set by the market," he said. "Certainly, there is nothing in the fundamentals of our economy to provide a strong dispersion."

Always looking on the bright side, a touch of Italian debt purchases fall by the ECB had almost dried up. He said the Italians should be "somewhat relieved" by the fact that "before [the spread] was going to go much commercial", but now were in a state of "decline with purchases almost stopped."

few minutes ago, he also took a sweet - is this the kind of man - blow to the Germans. Referring to frequent demonstrations by the German authorities in Berlin that the government is paralyzed by public opinion, said: "The German authorities could perhaps have done more to educate the German public about the benefits of euro and the single market "

Jokily

said that sometimes he wondered if he were appointed as part of sending a message to the German public. He added that

Suddeutsche

Zeitinger

had paid "the highest praise." He said he was "ideal son-in-law. Dresses prosaic, said little and done a lot of noise"

1:38 p.m.:. weekly unemployment figures in the U.S. is out, and are not too good

The number of "initial claims for unemployment benefits (a measure of the number of people who sign on unemployment), increased to 381,000 in the week ending on Christmas Eve, compared to 366 000 the previous week. That's over 6000 people expected by analysts.

13:05:

time for lunch and return to:

Italy sold ? 7 billion of debt in the ultimate test of market confidence in the euro area

The auction was a so with mixed results. - The country had hoped to raise up to ? 8.5 billion, but there was also some relief that the bonds fell below 7%.

Hungary

canceled an auction of government debt for three years after the receipt of bids unacceptable. The country has managed to sell more debt out of date, but an extremely high cost. The news hit the Hungarian forint to a month low.

Greece was hit by another strike in 48 hours.

tax collectors joined the strike, to protest against the Greek austerity program.

obligations of the British government again increased.

The yield on 10 year gilts rose to a record high of 1.96% this morning.

24:45:

The Hungarian forint has been struck by the cancellation of the auction this morning for three-year bonds (and yields very pay more than the seven and ten-year bonds).

The forint hit a one-month low against the euro, with settlement of accounts with merchants that Hungary is unlikely that the IMF bailout seconds.

Zoltan

Arokszallasi

, an economist at Erste Group based in Budapest, wrote:

The possibility of a loan agreement of the IMF and the EU is losing .... The outcome of the negotiations remains in doubt.

24:17:

City Plus reaction

the auction in Italy, this time

Kathleen Brooks of Forex. com

The market had been hanged in the auction of long-term debt to Italy today and yesterday was the success of short-term auction suggested that it might be.

The timing of the auction was bad enough for Rome, as it is difficult to see who wants a ton of Italian debt on its balance sheet at year end. The auction results were mixed debt, with the shorter 2014-bonds can not attract offers maximum but yields were down 7.89% last month to 5.62%.

the long-term debt falling

also saw the performance, with 11-year bond yields fell to 6.98% of the7.56% last month. This is below the critical point of 7%, but little, and shows that, in Italy, the situation remains precarious.

11:59:

Euro would not be a crisis blog live properly without a little drama in Greece. And today is the development of tax officials of the country went on strike.

The strike means that the budget offices of Greece will now be closed for two days last year -. Prevent citizens from paying deperately needed funds into the coffers of the country

This marked the beginning of a 48-hour strike to protest against austerity measures recently imposed by Lucas Papademos government strives to meet the targets set by the IMF.

Minister of Finance Evangelos Venizelos Federation had urged tax collectors, not to strike but the union insisted the strike must have place. In a statement, said:

decisions taken by the government contribute to the destruction of the mechanism of tax collection and financial distress of the workers.

collectors, fully aware of the situation in the country, can not remain silent.

The closure caused a spike in tax offices late yesterday. Associated Press reports:

Wednesday, hundreds of Greeks were quick to resolve last-minute tax office before the strike. Many surrendered their license plates, who prefer to take their car to the road rather than pay higher taxes from the road.

11:45:

Mario Monti said he was happy bond auction today. In his traditional press conference season, the Italian Prime Minister said:

auctions held yesterday and today was pretty good, but the financial crisis has in no way complete.

You are absolutely right!
Monti went on to explain that most of the work to reassure the markets that must occur in Europe, adding that present the details of their own growth plans of finance ministers in January.

We will have more details on this press conference later - my colleague

John Hooper

said:

Monti should reveal more details on what he called "phase two -. A development program of liberalization and infrastructure to ensure that the sluggish economy in Italy track

seems that gold is a significant drop in the race "of dollars. Gold is often considered a "safe haven last," but in times of real problems, many traders choose to liquidate billions of U.S. dollar reserves.

Find best price for : --Hungary----Italian----Mauro----Weder----Bank----gilts----Monti----Insight----Global----Archer----Howard----euro----Central----Chicago----FTSE----Industrial----Jones----average----Nick--