Feb. 14 - Athens is coming under growing pressure as European leaders prepare for a make or break meeting on Greece.
The flood of cheap bank loans from the ECB supports the month for government bonds as European finance ministers of I may equal Brighton Beach seeing on Greece. The Greek government is being pulled both plays in the run up to the gathering Wednesday skeptical yours and promise that the -- and immediate 325. Million euros. In budget cuts before agreeing to another bailout package but -- says a deeply angry about painful slashes to jobs and pensions. Which critics say it choking off growth -- GDP -- by 7%. In the fourth quarter of loss yet. Or so Wednesday that by giving them publishes its quarterly inflation report figures just out show UK consumer prices rose by an annual rate of three point 6% in January. It was the smallest increase since November 2010 and reflects the phasing house. And an increase in sales tax Bank of England Governor Mervyn King still have to write to the government explaining why inflation remains. Above its 2% target he says it should be on song by the end of the year. Charles people of Lloyds bank corporate markets is also expecting the bank to pump more money into the economy to outgrowth. There's not fiscal stimulus coming in the UK and then but. Monetary policy and QB he's still really do any gaming town for supporting economic activity now. As it was efficacy show. You know that there's plenty of evidence of the -- Huey you do having you know the biggest impact is the first time he -- QE the second time. The impact is less but nonetheless it does support. Nominal GDP does support activities to some degree so. Mind I don't think it means that we won't be using anymore QA. French banks in the spotlight this week BNP Paribas reporting results Wednesday followed by soc -- on Thursday. French banking stocks including BNP of rallied this year largely shrugging off socialist. Presidential candidate Francois all loans declaration. Of war on the financial sect says there are underlying worries about French banks' exposure. Too weak eurozone economies but independent banking analyst Ralph Silva says the sector -- in pretty resilient. It is -- freeware that is actually causing the French banks with some issues. If you look if you take that out of the -- the French banks are actually doing relatively well we've increased the retail banking operations and increase their investment banking operations Paula you only makes the world to do so. But they're still labeled with this the peripheral debt which is gonna hurt them we are going to see some losses within French banks however we gotta keep this in mind. They can afford to have some losses. They'll well capitalized organization second take a hit for one or two years and still survive quite that. And quite healthy ways so I'm not very word about the by the French banks at this point although we might have a few hiccups coming up. Finally takes round Wednesday expected to show the German Economy contracted by three tenths of 1% in the law school for 2011. But it's sort Europe's powerhouse will avoid sliding into a double dip recession that is it for now -- -- every weekday. Twelve GMT for an update on what's moving and why. -- -- -- -- -- --