Swiss Central Bank's Gamble on Euro-Zone Crisis

Even the winners from the crisis are starting to suffer.

The Swiss National Bank has set out to halt the franc's relentless appreciation by pledging to buy unlimited amounts of foreign currency. After seeing the euro move close to one Swiss franc in August from 1.25 franc at the start of the year, the SNB has drawn a line in the sand at 1.20 franc. The euro zoomed 8.8% higher against the franc Tuesday, and the 1.20-franc level held. But this is a big gamble.

Barroso says Europe will avoid return to recession

Europe will not slide back into recession, and the euro remains "strong and resilient", the president of the European Commission has said.

Jose Manuel Barroso added that the Commission and national governments were "doing all it takes" to tackle the debt problems in the eurozone area.

Euro crisis requires market solution

Ultimately the euro crisis remains a pressure cooker building up steam despite the protestations of the currency system being saved by multiple political interventions. Yet after a half dozen supranational attempts to instil order within the sovereign nations of the EU, the markets are clearly not listening. Instead a market solution is now needed.

Many commentators have been suggesting a eurobond as the answer to Europe’s problems. However, given that Germany has so far rejected this option, the alternative needs to be a simple programme that rewards prudent debt levels, while providing a space for errant sovereign states to reorganise their finances.

Euro rate rise less likely after inflation and job data

Eurozone interest rates are likely to stay on hold following the release of official inflation data from Eurostat.

Inflation in the 17 countries that use the euro was 2.5% year on year in August, unchanged from July's figure.

While it is still above the European Central Bank's target of just under 2%, it means that prices are rising more slowly than earlier in the year.

Portugal plans biggest spending cuts for 50 years

The Portuguese government is planning the country's biggest spending cuts in 50 years, a move its finance minister described as "unprecedented".

Vitor Gaspar said the centre-right Social Democratic administration would reduce public spending from the current 44.2% of Portugal's annual economic output or GDP to 43.5% by 2015.