Europe Stocks Waver Amid U.s. Deadlock, China Data

Earnings Wall

Bob Corker, R-Tenn., told CNBC that a debt deal was still “very possible” following the talk between Reid and McConnell. “I’ve had some good conversations early this morning. It is between Mitch and Harry. And I think people want to see that come to fruition,” said Corker, who is a member of the Senate Banking Committee. President Barack Obama and Vice President Joe Biden are scheduled to meet Congressional leaders at 8 p.m. London time. In European news, the Eurogroup of finance ministers from the euro zone countries met on Monday to discuss, among other topics, Greece and banking supervision. In Ireland, the government is preparing to soften its line on austerity for Tuesday’s 2014 budget proposals, despite warnings that it would be better to stick to its targets. Taoiseach (Prime Minister) Enda Kenny triumphantly declared an end to the “era of the bailout” on Saturday. He said Ireland would become the first euro zone country to exit its bailout, and it may even do so without a financing backstop from the rest of Europe. (Read More: Ireland risks long-term pain for short-term gain ) Meanwhile, the Ernst and Young ITEM Club said in a new report on Monday that the U.K. government’s “Help to Buy” mortgage guarantee scheme would lead to a rapid improvement in prospects for the housing market, and added that fears of a housing bubble were unfounded. Japan and Hong Kong were shut for public holidays on Monday. U.S bond markets were also closed for the Columbus Day holiday. Peugeot in talks to raise cash CNBC’s Stephane Pedrazzi reports on developments at Peugeot-Citroen.

Analysis: Not much left for Europe’s left

Not even the raft of major earnings reports will get investors distracted from the debt ceiling, he said. Government shutdown: Track the latest news out of Washington /conga/story/2013/10/governmentshutdownstream.html 282136 Under normal circumstances earnings would be in focus, but they are unfortunately totally overshadowed by the debt ceiling talks. This week we have Coca-Cola /quotes/zigman/222647/quotes/nls/ko KO +0.37% , Yahoo /quotes/zigman/59898/quotes/nls/yhoo YHOO -0.44% and Google /quotes/zigman/93888/quotes/nls/goog GOOG +0.47% , so quite a host of earnings, but they are just a side story. Among notable movers in the pan-European index on Monday, shares of Peugeot SA /quotes/zigman/165954 FR:UG -0.98% slid 9.1% after the French car maker confirmed it is talking with possible partners for new industrial or commercial projects that will likely have financial consequences . Reuters also reported that the firm is preparing a 3-billion-euro ($4.1 billion) capital increase , citing people familiar with the matter. On a more upbeat note, shares of Electricite de France SA /quotes/zigman/396068 FR:EDF +0.10% climbed 2.2% as the utility firm closed in on sealing a 14-billion-pound ($22.4 billion) deal to build and operate nuclear reactors in the U.K. Heavyweight Vodafone gained 0.8% after the telecom firm said it completed the takeover of Kabel Deutschland Holding AG /quotes/zigman/590596 DE:KD8 +0.30% . U.S. deadlock More broadly, the losses in Europe came 14 days into the U.S. government shutdown and three days before the country is expected to reach its borrowing limit, unless lawmakers break a stalemate and raise the nations debt ceiling. On Sunday, Senate Republicans and Democrats leaders continued attempts to find a way to break the fiscal impasse between the Republican-led House and President Barack Obama. Read: Fed shutdown and your retirement: Remain calm Treasury Secretary Jack Lew has warned the U.S. will run out of borrowing authority on Oct.

Europe stocks close mixed; US deadlock drags

“Social democracy nowadays basically amounts to the defense of the status quo and preventing the worst,” says Olaf Cramme, director of Policy Network, a think-tank for progressive center-left politics. Germany’s opposition Social Democrats (SPD) have just recorded their second worst election result since World War Two. They now face an ugly trilemma between entering a “grand coalition” under Merkel on unequal terms, staying out and seeing her possibly team up with the Greens, the SPD’s natural partner, or being punished by voters at a rerun election. Socialists or social democrats still head 13 of the 28 EU governments and are in coalition in five others, but they are often driven to pursue unpopular policies that hit the interests of their own electorate. “It is an extremely difficult balance,” Social Democratic Danish Prime Minister Helle Thorning-Schmidt told Reuters in an interview. “We had some reforms that have been seen as quite harsh, but they have also been necessary. “I think we have found the right formula, not to be popular because we have not actually reached that yet, but to do the right thing for the country,” she said. Austria’s Socialists lost votes last month, though they remain the largest party. Italy’s center-left Democratic Party, which now heads a shaky left-right coalition, bled votes to the anti-establishment 5-Star protest movement in a February election and is driven by factional squabbling. In Greece, Ireland and Spain, center-left parties are paying a high electoral price for having supported public pay and pension cuts required by international creditors. FEWER MEMBERS, LESS MONEY In Britain, the opposition Labour party is still distrusted because it presided over a deregulated financial market bonanza that ended in the crash of 2008, wrecking the reputation for economic competence once built by Tony Blair and Gordon Brown.