For Europe's markets, latest gloom is from US

Europe's financial markets turned abruptly negative on Friday, prompted for once by disappointing data from the United States - rather than the eurozone - but underlining the fragility of a currency union caught in the grip of a debt crisis and an alarming global economic slowdown.

The latest bout of gloom, darkened by a worse-than-expected jobs report from Washington, seems to have doused any residual glimmers of optimism that greeted last week's agreement by European Union leaders to use the region's bailout funds to prop up weak banks while beginning longer-term work toward a more fully integrated banking system for the eurozone.

But since then there have been too many negative indicators, including the release of record-high unemployment data for the eurozone this past week and acknowledgment by three big central banks that additional measures were needed to stimulate moribund economies.

Read more: For Europe's markets, latest gloom is from US - The Economic Times

EU battles Wall Street speculators- Merkel Invokes Market ‘Battle’ as Germany Votes on Greece Aid

Chancellor Angela Merkel went on the offensive before tomorrow’s parliamentary vote on German aid to Greece, appealing for European unity to ward off speculators and tighten government control over “perfidious” markets.

“In some ways, it’s a battle of the politicians against the markets” and “I’m determined to win,” Merkel said today. “The speculators are our adversaries. That’s why we have to weigh our words more carefully than ever and stand united.”

Note EU-Digest:  Watching the hype on CNBC today as the stock market plunged close to1000 points being blamed on Greece and Europe showed that financial speculators will do everything needed to get their way. It is time to ban these kind of activities and speculators out of the EU.

For more: Merkel Invokes Market ‘Battle’ as Germany Votes on Greece Aid - BusinessWeek

Europe Should Burn the Speculators says Stiglitz

Countries like Greece are being "attacked by financial markets" and the European Union should intervene in the stock market to "teach speculators a lesson," according to Nobel Prize winning economist Joseph Stiglitz. Speaking at the London School of Economics Monday, Stiglitz said that the notion of a European Union default is “absurd” but that the EU should show solidarity for its weaker members to stop what he has branded “irrationality” by financial markets.

Talks of a possible bailout for Greece intensified following news that ECB President Jean-Claude Trichet would be cutting short a trip to Australia in order to attend the forthcoming EU Council summit in Brussels on Thursday. A spokesman later said the change was purely logistical.

But Stiglitz, who is advising the Greek government, believes no bailout will be required and downplayed fears of contagion throughout the euro zone.

Note EU-Digest: Mr. Joseph Stiglitz is absolutely right. Speculators, Euro Sceptics and others must be thought a lesson by Governments, because they will always look for the weakest link."

For more: EU Debt Crisis: Europe Should Burn the Speculators: Stiglitz - CNBC