Last week ECB president Mario Draghi’s remark at the ECS press conference provided a loop hole to contribute to the Greek bailout, by suggesting to distribute profits from Greek bonds to Greece. Meantime Greece is in a vicious cycle while the austerity measures posed by the EU paralyze market activity lowering consumption which in turn produces less tax revenues to cover its growing debt. Will Draghi’s suggestion help the struggling nation? Let’s start:

Here’s an update on technicals, fundamentals and what’s going on in the markets.

In the US, Producer Price Index (PPI); primary sign of consumer inflation that value the producer’s price change of finished goods and services, deduction is expected from 0.3% on December down to 0.1%. Meanwhile no change is predicted in the Core PPI (not including food and energy) and 0.1% on this month as well.

Last week, the European Central Bank President Mario Draghi communicated calm and satisfaction with the central bank’s LTRO program saying it has successfully combated credit erosion. That move only provided temporary calm to the markets, until the massive downgrade by S&P for euro-zone countries and the collapse of talks between Greece and the banks. Also US data is beginning to worsen.

Here’s an update on technicals, fundamentals and what’s going on in the markets.

In the US, Unemployment Claims, measures the unemployment insurance that was filed on the last month, predicted to rise by 8K up to 389K

Last week Mario Draghi President of the European Central Bank lowered rates to 1.0% and announced new measures to aid the banks but made it clear that he opposes big bond buys meaning there will be no QE at this time. The ECB forecasts recession in 2012. Will these measures stop the “ticking bomb” situation in Europe? Let’s start:

Here’s a quick update on technicals, fundamentals and what’s going on in the markets.

In the US, Consumer Price Index (CPI), value the consumer’s price change of goods and services, due to reduce by 0.3% this month, while the Core CPI (apart from food and energy) is expected to remain 0.1% similar to the last report.

Last week Italy became the main player in the EU debt crisis scene overshadowing Greece’s problems of finding a replacement to the newly resigned Prime Minister George Papandreou and struggling to agree on the EU bailout terms. Italy, the third largest member of the EU,  is on the verge of bankruptcy, something the EU cannot afford. The tentative resignation of Prime Minister Silvio Berlusconi did not stop the dangerous collapse in market confidence causing Italian borrowing costs to reach a breaking point, hitting 7.5%. Will this escalation threaten EU existence?