Eden Hazard marked his 100th cap with an early goal to set Belgium on their way to a comfortable 2-0 away win over Cyprus in their Euro 2020 qualifier on Sunday.

Michy Batshuayi got the other goal for the top team in the FIFA rankings, who began their campaign last Thursday with a 3-1 home success over Russia and now have six points from their opening two games in Group I.

Hazard opened the scoring after 10 minutes with a curling shot after Batshuayi had set him up. It was his 30th international goal as the 28-year-old Chelsea star became the third Belgian to reach the 100-cap mark after Jan Vertonghen and Axel Witsel.

Batshuayi doubled the score eight minutes later, running on to a pass over the top of the home defence from Thorgan Hazard, knocking it past the onrushing goalkeeper Urko Pardo and sliding the ball into the empty net from a tight angle.

Belgium, without injured regulars Kevin de Bruyne, Romelu Lukaku and Witsel, cruised through the rest of the contest to stretch to 12 games their unbeaten record against the Cypriots, who had beaten San Marino 5-0 at home on Thursday in their opening qualifier.

Earlier on Thursday, Denis Cheryshev scored twice as Russia won 4-0 away in Kazakhstan for their first points of the campaign.

His first-half pair of goals were followed by two more early in the second half in Arana, from Artem Dzyuba and an own goal by Kazakh defender Abzal Beysebekov.

Eden Hazard marked his 100th cap with an early goal to set Belgium on their way to a comfortable 2-0 away win over Cyprus in their Euro 2020 qualifier on Sunday.

Eden Hazard marked his 100th cap with an early goal to set Belgium on their way to a comfortable 2-0 away win over Cyprus in their Euro 2020 qualifier on Sunday. Michy Batshuayi got the other goal for the top team in the FIFA rankings, who began their campaign last Thursday with a 3-1 home success over Russia and now have six points from their opening two games in Group I. Hazard opened the scoring after 10 minutes with a curling shot after Batshuayi had set him up. It was his 30th international goal as the 28-year-old Chelsea star became the third Belgian to reach the 100-cap mark after Jan Vertonghen and Axel Witsel. Batshuayi doubled the score eight minutes later, running on to a pass over the top of the home defence from Thorgan Hazard, knocking it past the onrushing goalkeeper Urko Pardo and sliding the ball into the empty net from a tight angle. Belgium, without injured regulars Kevin de Bruyne, Romelu Lukaku and Witsel, cruised through the rest of the contest to stretch to 12 games their unbeaten record against the Cypriots, who had beaten San Marino 5-0 at home on Thursday in their opening qualifier. Earlier on Thursday, Denis Cheryshev scored twice as Russia won 4-0 away in Kazakhstan for their first points of the campaign. His first-half pair of goals were followed by two more early in the second half in Arana, from Artem Dzyuba and an own goal by Kazakh defender Abzal Beysebekov.

Euro 2020 qualifier: Eden Hazard marks milestone with early goal to help Belgium win

Germany defender Nico Schulz scored a late winner as their new-look side snatched a 3-2 win away to the Netherlands in their opening Euro 2020 Group C qualifier on Sunday, an absorbing clash that swung in fortunes from one side to the other.

Germany had seemed well set for victory after a superb first half produced goals for Leroy Sane and Serge Gnabry to give coach Joachim Loew an unexpected fillip as he seeks to restore the flagging fortunes of the 2014 world champions.

But some of the frailties of the last 12 months returned as they let their grip on the game slip, with Memphis Depay laying on a goal for Matthijs de Ligt and then scoring the equaliser himself in another influential display from the in-form forward.

Wing-back Schulz produced the decisive moment of the match though when he netted in the final minute after a fine build-up down the left to re-establish Germany's advantage and claim a crucial victory to get their qualifying campaign underway.

Northern Ireland head the group after goals from Jonny Evans and Josh Magennis gave them a 2-1 win over Belarus on Sunday and a perfect start of six points from two games.

Germany and the Netherlands have three points each, though the latter have now played two matches.

After Netherlands goalkeeper Jasper Cillessen had denied Gnabry at close range, the visitors hit the front as Schulz provided a low cross from the left from which Sane took a touch and scored with a powerful shot.

A rampant Germany doubled their advantage after 34 minutes as Gnabry twisted his way around Netherlands defender Virgil van Dijk before curling a 25-metre shot into the corner of the net, the fifth international goal in six caps for the former Arsenal forward.

The Dutch pulled one back within three minutes of the halftime break though as Depay provided an inviting cross for teenage defender De Ligt to head home his first international goal.

Depay, fresh from two goals and two assists on Thursday against Belarus, levelled the score just past the hour-mark with a low finish into the bottom corner as the visitors failed to clear the loose ball in the box.

It was the second time since November that the Netherlands had come from two goals down to equalise against Germany, and for Depay it was his 11th goal in his last 15 internationals.

But the visitors had the final say as Marco Reus’s pass found an unmarked Schulz in the box and he was able to settle the contest with a low finish that gave Cillessen no chance.

Germany defender Nico Schulz scored a late winner as their new-look side snatched a 3-2 win away to the Netherlands in their opening Euro 2020 Group C qualifier on Sunday, an absorbing clash that swung in fortunes from one side to the other.

Germany defender Nico Schulz scored a late winner as their new-look side snatched a 3-2 win away to the Netherlands in their opening Euro 2020 Group C qualifier on Sunday, an absorbing clash that swung in fortunes from one side to the other. Germany had seemed well set for victory after a superb first half produced goals for Leroy Sane and Serge Gnabry to give coach Joachim Loew an unexpected fillip as he seeks to restore the flagging fortunes of the 2014 world champions. But some of the frailties of the last 12 months returned as they let their grip on the game slip, with Memphis Depay laying on a goal for Matthijs de Ligt and then scoring the equaliser himself in another influential display from the in-form forward. Wing-back Schulz produced the decisive moment of the match though when he netted in the final minute after a fine build-up down the left to re-establish Germany's advantage and claim a crucial victory to get their qualifying campaign underway. Northern Ireland head the group after goals from Jonny Evans and Josh Magennis gave them a 2-1 win over Belarus on Sunday and a perfect start of six points from two games. Germany and the Netherlands have three points each, though the latter have now played two matches. After Netherlands goalkeeper Jasper Cillessen had denied Gnabry at close range, the visitors hit the front as Schulz provided a low cross from the left from which Sane took a touch and scored with a powerful shot. A rampant Germany doubled their advantage after 34 minutes as Gnabry twisted his way around Netherlands defender Virgil van Dijk before curling a 25-metre shot into the corner of the net, the fifth international goal in six caps for the former Arsenal forward. The Dutch pulled one back within three minutes of the halftime break though as Depay provided an inviting cross for teenage defender De Ligt to head home his first international goal. Depay, fresh from two goals and two assists on Thursday against Belarus, levelled the score just past the hour-mark with a low finish into the bottom corner as the visitors failed to clear the loose ball in the box. It was the second time since November that the Netherlands had come from two goals down to equalise against Germany, and for Depay it was his 11th goal in his last 15 internationals. But the visitors had the final say as Marco Reus’s pass found an unmarked Schulz in the box and he was able to settle the contest with a low finish that gave Cillessen no chance.

Euro 2020 qualifier: New-look Germany edge Netherlands in thriller

After being cheered to the Wembley rafters during the 5-0 thrashing of the Czech Republic, manager Gareth Southgate expects his young England side to face a more hostile 90 minutes in their second Euro 2020 qualifier in Montenegro on Monday.

The team from the small Balkan state have made life uncomfortable for England before at home and Southgate knows that is likely to be the case again in the Group A clash in Podgorica.

Southgate said he trusted his youngsters to cope, however, and the match would be an important part of their learning curve.

"No hesitation," Southgate told a news conference when asked if he would have any reservations about fielding players such as 18-year-old Jadon Sancho, who started against the Czechs, and Declan Rice and Callum Hudson-Odoi who made substitute cameos on Friday.

"This is part of their education and to be a top team we've got to adapt to every environment we go into.

"Friday at Wembley is always a different experience to going away from home in a qualifier, which is always difficult."

With Eric Dier ruled out through injury, meaning West Ham's Rice, who earned his first England cap on Friday having been permitted to switch allegiance from Ireland, could be in line for a first start in the heart of midfield.

"The make-up of the side will get the best out of the players we have here and available and I think we will have a very strong team out," Southgate said.

"Declan came into the game the other night, which was a great way for him to gain some experience of international football. I would have no hesitation in starting him."

Montenegro earned draws in their previous home games against England in 2010 and 2013 but their manager Ljubisa Tumbakovic said he could find no weaknesses in Southgate's in-form side.

"I'm really trying but I can't," he said. "We in the coaching team who deal with the players are realistic.

"Things that happen in the past are just nice results for Montenegro; tomorrow we will play a match with totally different players, new coaches, with different capabilities and different ideas from both teams.

"The model and the way the (England) national team plays is something special."

England have actually won only one of their four meetings with Montenegro -- 4-1 at Wembley in 2013.

After being cheered to the Wembley rafters during the 5-0 thrashing of the Czech Republic, manager Gareth Southgate expects his young England side to face a more hostile 90 minutes in their second Euro 2020 qualifier in Montenegro on Monday.

After being cheered to the Wembley rafters during the 5-0 thrashing of the Czech Republic, manager Gareth Southgate expects his young England side to face a more hostile 90 minutes in their second Euro 2020 qualifier in Montenegro on Monday. The team from the small Balkan state have made life uncomfortable for England before at home and Southgate knows that is likely to be the case again in the Group A clash in Podgorica. Southgate said he trusted his youngsters to cope, however, and the match would be an important part of their learning curve. "No hesitation," Southgate told a news conference when asked if he would have any reservations about fielding players such as 18-year-old Jadon Sancho, who started against the Czechs, and Declan Rice and Callum Hudson-Odoi who made substitute cameos on Friday. "This is part of their education and to be a top team we've got to adapt to every environment we go into. "Friday at Wembley is always a different experience to going away from home in a qualifier, which is always difficult." With Eric Dier ruled out through injury, meaning West Ham's Rice, who earned his first England cap on Friday having been permitted to switch allegiance from Ireland, could be in line for a first start in the heart of midfield. "The make-up of the side will get the best out of the players we have here and available and I think we will have a very strong team out," Southgate said. "Declan came into the game the other night, which was a great way for him to gain some experience of international football. I would have no hesitation in starting him." Montenegro earned draws in their previous home games against England in 2010 and 2013 but their manager Ljubisa Tumbakovic said he could find no weaknesses in Southgate's in-form side. "I'm really trying but I can't," he said. "We in the coaching team who deal with the players are realistic. "Things that happen in the past are just nice results for Montenegro; tomorrow we will play a match with totally different players, new coaches, with different capabilities and different ideas from both teams. "The model and the way the (England) national team plays is something special." England have actually won only one of their four meetings with Montenegro -- 4-1 at Wembley in 2013.

Euro 2020 qualifier: Gareth Southgate says youngsters will handle hostile Montenegro atmosphere

Spain captain Sergio Ramos scored another "Panenka" penalty to give his side a 2-1 home win over Norway on Saturday in their opening Euro 2020 qualifier but it was a far from convincing display from Luis Enrique's side.

Spain made a slick start and took the lead at Valencia's Mestalla stadium when Rodrigo Moreno volleyed in Jordi Alba's cross from close range in the 16th minute and continued to dominate proceedings without carving out many clear chances.

Norway, who had done little in attack, levelled in the 65th minute with a perfectly-taken penalty from striker Joshua King, who blasted the ball beyond David de Gea after Inigo Martinez had hauled Bjorn Johnsen to the floor.

Spain earned a spot-kick of their own six minutes later when Alvaro Morata was tripped by Norway goalkeeper Rune Jarstein, who Ramos easily deceived by chipping the ball down the middle of the goal to score a "Panenka" for the fifth time this season and eighth in his career.

"We have begun a new journey and what better way to start than with a win over a team that made things very difficult for us despite the fact we had the ball the whole time," Ramos told reporters.

"We knew it was going to be difficult but we still played well and perhaps should have had a bigger advantage at halftime. Still, we reacted well to their equaliser and the win will give us more confidence."

Spain's players had talked of the importance of making a flying start to the qualifying campaign after their confidence had been knocked by a dismal World Cup and a disappointing finish in the UEFA Nations League.

Luis Enrique had named an experimental squad for this game and the trip to Malta next Tuesday but there was a familiar feel to his starting line-up with the exception of veteran Jesus Navas, who made a first start for the national team since 2014.

Spain made a promising start in front of a near-capacity crowd and got their breakthrough when Barca left back Alba played a one-two with Marco Asensio to cut down the flank and play a simple cross to Rodrigo who could hardly miss.

The home side dominated possession but lacked a cutting edge in attack as Morata missed a series of chances, drawing a couple of saves from Jarstein and failing to hit the target with a free header.

Morata makes amends

Morata compensated for those misses by helping Spain restore their lead after King had levelled against the run of play, darting on to a through ball and colliding with the desperate Jarstein, who was then fooled by the nerveless Ramos.

Asensio should have sealed the victory when played through but his attempted chip sent the ball over the bar.

Norway pressed Spain back into their area in added time but never looked like finding another equaliser.

Spain joined Malta and Sweden on three points in Group F after those sides also earned 2-1 wins in their opening fixtures.

Luis Enrique said his side should have scored more goals but was happy with the performance.

"We have to appreciate all the positive things we did today, I think we deserved to win 5-1 or 6-1, but in football goals is the only thing that matters," he said.

"I'm happy with everything, the attitude, the way we played after training hard all week and for creating chances against a team who defended in their own half. It was a shame we conceded the penalty but we found a solution, and we realised that if you want to win you have to suffer."

Spain captain Sergio Ramos scored another "Panenka" penalty to give his side a 2-1 home win over Norway on Saturday in their opening Euro 2020 qualifier but it was a far from convincing display from Luis Enrique's side.

Spain captain Sergio Ramos scored another "Panenka" penalty to give his side a 2-1 home win over Norway on Saturday in their opening Euro 2020 qualifier but it was a far from convincing display from Luis Enrique's side. Spain made a slick start and took the lead at Valencia's Mestalla stadium when Rodrigo Moreno volleyed in Jordi Alba's cross from close range in the 16th minute and continued to dominate proceedings without carving out many clear chances. Norway, who had done little in attack, levelled in the 65th minute with a perfectly-taken penalty from striker Joshua King, who blasted the ball beyond David de Gea after Inigo Martinez had hauled Bjorn Johnsen to the floor. Spain earned a spot-kick of their own six minutes later when Alvaro Morata was tripped by Norway goalkeeper Rune Jarstein, who Ramos easily deceived by chipping the ball down the middle of the goal to score a "Panenka" for the fifth time this season and eighth in his career. "We have begun a new journey and what better way to start than with a win over a team that made things very difficult for us despite the fact we had the ball the whole time," Ramos told reporters. "We knew it was going to be difficult but we still played well and perhaps should have had a bigger advantage at halftime. Still, we reacted well to their equaliser and the win will give us more confidence." Spain's players had talked of the importance of making a flying start to the qualifying campaign after their confidence had been knocked by a dismal World Cup and a disappointing finish in the UEFA Nations League. Luis Enrique had named an experimental squad for this game and the trip to Malta next Tuesday but there was a familiar feel to his starting line-up with the exception of veteran Jesus Navas, who made a first start for the national team since 2014. Spain made a promising start in front of a near-capacity crowd and got their breakthrough when Barca left back Alba played a one-two with Marco Asensio to cut down the flank and play a simple cross to Rodrigo who could hardly miss. The home side dominated possession but lacked a cutting edge in attack as Morata missed a series of chances, drawing a couple of saves from Jarstein and failing to hit the target with a free header. Morata makes amends Morata compensated for those misses by helping Spain restore their lead after King had levelled against the run of play, darting on to a through ball and colliding with the desperate Jarstein, who was then fooled by the nerveless Ramos. Asensio should have sealed the victory when played through but his attempted chip sent the ball over the bar. Norway pressed Spain back into their area in added time but never looked like finding another equaliser. Spain joined Malta and Sweden on three points in Group F after those sides also earned 2-1 wins in their opening fixtures. Luis Enrique said his side should have scored more goals but was happy with the performance. "We have to appreciate all the positive things we did today, I think we deserved to win 5-1 or 6-1, but in football goals is the only thing that matters," he said. "I'm happy with everything, the attitude, the way we played after training hard all week and for creating chances against a team who defended in their own half. It was a shame we conceded the penalty but we found a solution, and we realised that if you want to win you have to suffer."

Euro 2020 qualifiers: Sergio Ramos gives Spain winning start

Italy's central bank chief warned on Tuesday that the state was "only ever a few short steps" from losing investors' trust as markets dumped stocks and bonds, fearing repeat elections will become a de facto referendum on the country's euro membership.

Prime minister-designate Carlo Cottarelli is set to unveil his cabinet on Tuesday - he will meet President Sergio Mattarella at 1430 GMT - as tensions between the head of state and the two political parties he sidelined flared.

Cottarelli, a former International Monetary Fund official who Mattarella chose on Monday to head a stop-gap government leading to early elections, was due to meet the head of state in the afternoon.

The anti-establishment 5-Star Movement and the far-right League, the biggest winners from inconclusive elections in March, abandoned plans to form a coalition government at the weekend after Mattarella vetoed their choice for economy minister, an 81-year-old who has argued for Italy to leave the euro.

Investors believe that Cottarelli, 64, will fail to muster support to pass a budget, leading to repeat elections in the autumn when the two eurosceptic parties could return with even stronger representation in parliament.

A new poll by the SWG organisation showed support for the League had jumped to 27.5 percent, up about 10 points from the March 4 elections. While the 5-Star would fall about three points to 29.5 percent, the two combined would have a 57 percent majority in parliament if they decide to join forces again.

Such worries sent Italian stocks to their lowest level since July 2017, dragged down by a selloff in the shares of banks - many of which have invested heavily in the Italian government debt that is now falling sharply in value.

This selloff pushed up yields on the debt. Those on two-year bonds, the most sensitive to political upsets, were set for their biggest one-day jump in 26 years.

The continuing uncertainty in the euro zone's third biggest economy also helped the euro tumble to fresh multi-month lows. Investors had already worried about the proposed coalition's ambitious spending programme for a country which already has the third highest public debt in the world - plans that were likely to bring it into conflict with the European Union.

Bank of Italy chief Ignazio Visco said any move to weaken the country's public finances could undermine confidence and years of valuable reforms.

Italy's high debt as a proportion of its annual economic output could expose it to dangerous crises of confidence, he told the central bank's annual meeting.

Visco acknowledged the selloff was very serious but questioned its economic basis. "There are no justifications -- except for emotions -- for what we're seeing today on the markets," he said.

The number of investors expecting the euro zone to lose at least one member state in the coming months has increased due to the crisis in Italy, a survey showed on Tuesday.

The Sentix research group said its monthly "euro break-up" index, based on a survey of around 1,000 institutional and retail investors, more than doubled to 13 percent from 6.3 percent in April.

One currency strategist recalled how European Central Bank President Mario Draghi helped to calm the last euro zone debt crisis in 2012.

Something similar might soon also be required, said Saxo Bank's head of foreign exchange strategy John Hardy. "If this continues for another couple of sessions I think you will have to see some official (European) response. A 'whatever it takes' kind of moment," he said.

The ECB's outgoing vice president Vitor Constancio stressed that any help for Italy, should it run into liquidity problems, must meet the bank's mandate and "certain conditions".

"Italy knows the rules. They might want to read them again," Constancio told Spiegel magazine in an interview, according to a pre-release.

The ECB's never-used emergency bond buying scheme -- known as Outright Monetary Transactions or OMT -- is a potential tool to help Italy but comes with a long list of conditions.

While 10-year Italian bond yields have soared to over 3 percent recent days, they are well below the six percent reached when Draghi pledged to do "whatever it takes" to preserve the euro.

Cottarelli, whose simplicity startled reporters on Monday when he arrived at the presidential palace by taxi carrying a backpack and pulling his trolley bag, was preparing a slimed-down cabinet of experts with no direct links to political parties to steer the country to elections.

Both parties planning the failed coalition were infuriated by Mattarella's veto, accusing him of violating democratic principles.

The 5-Star leader, Luigi Di Maio, called on parliament to impeach Mattarella, which would be unprecedented in Italy's post-World War Two history. The party is planning big street protests against the president on Saturday.

5-Star members took to the streets holding anti-Mattarella placards such as "Sovereignty Belongs to the People", while the president's supporters went on Twitter with the hashtag "I stand with Mattarella".

Prime minister-designate Carlo Cottarelli is set to unveil his cabinet on Tuesday - he will meet President Sergio Mattarella at 1430 GMT - as tensions between the head of state and the two political parties he sidelined flared

Italy's central bank chief warned on Tuesday that the state was "only ever a few short steps" from losing investors' trust as markets dumped stocks and bonds, fearing repeat elections will become a de facto referendum on the country's euro membership. Prime minister-designate Carlo Cottarelli is set to unveil his cabinet on Tuesday - he will meet President Sergio Mattarella at 1430 GMT - as tensions between the head of state and the two political parties he sidelined flared. Cottarelli, a former International Monetary Fund official who Mattarella chose on Monday to head a stop-gap government leading to early elections, was due to meet the head of state in the afternoon. The anti-establishment 5-Star Movement and the far-right League, the biggest winners from inconclusive elections in March, abandoned plans to form a coalition government at the weekend after Mattarella vetoed their choice for economy minister, an 81-year-old who has argued for Italy to leave the euro. Investors believe that Cottarelli, 64, will fail to muster support to pass a budget, leading to repeat elections in the autumn when the two eurosceptic parties could return with even stronger representation in parliament. A new poll by the SWG organisation showed support for the League had jumped to 27.5 percent, up about 10 points from the March 4 elections. While the 5-Star would fall about three points to 29.5 percent, the two combined would have a 57 percent majority in parliament if they decide to join forces again. Such worries sent Italian stocks to their lowest level since July 2017, dragged down by a selloff in the shares of banks - many of which have invested heavily in the Italian government debt that is now falling sharply in value. This selloff pushed up yields on the debt. Those on two-year bonds, the most sensitive to political upsets, were set for their biggest one-day jump in 26 years. The continuing uncertainty in the euro zone's third biggest economy also helped the euro tumble to fresh multi-month lows. Investors had already worried about the proposed coalition's ambitious spending programme for a country which already has the third highest public debt in the world - plans that were likely to bring it into conflict with the European Union. Bank of Italy chief Ignazio Visco said any move to weaken the country's public finances could undermine confidence and years of valuable reforms. Italy's high debt as a proportion of its annual economic output could expose it to dangerous crises of confidence, he told the central bank's annual meeting. Visco acknowledged the selloff was very serious but questioned its economic basis. "There are no justifications -- except for emotions -- for what we're seeing today on the markets," he said. The number of investors expecting the euro zone to lose at least one member state in the coming months has increased due to the crisis in Italy, a survey showed on Tuesday. The Sentix research group said its monthly "euro break-up" index, based on a survey of around 1,000 institutional and retail investors, more than doubled to 13 percent from 6.3 percent in April. One currency strategist recalled how European Central Bank President Mario Draghi helped to calm the last euro zone debt crisis in 2012. Something similar might soon also be required, said Saxo Bank's head of foreign exchange strategy John Hardy. "If this continues for another couple of sessions I think you will have to see some official (European) response. A 'whatever it takes' kind of moment," he said. The ECB's outgoing vice president Vitor Constancio stressed that any help for Italy, should it run into liquidity problems, must meet the bank's mandate and "certain conditions". "Italy knows the rules. They might want to read them again," Constancio told Spiegel magazine in an interview, according to a pre-release. The ECB's never-used emergency bond buying scheme -- known as Outright Monetary Transactions or OMT -- is a potential tool to help Italy but comes with a long list of conditions. While 10-year Italian bond yields have soared to over 3 percent recent days, they are well below the six percent reached when Draghi pledged to do "whatever it takes" to preserve the euro. Cottarelli, whose simplicity startled reporters on Monday when he arrived at the presidential palace by taxi carrying a backpack and pulling his trolley bag, was preparing a slimed-down cabinet of experts with no direct links to political parties to steer the country to elections. Both parties planning the failed coalition were infuriated by Mattarella's veto, accusing him of violating democratic principles. The 5-Star leader, Luigi Di Maio, called on parliament to impeach Mattarella, which would be unprecedented in Italy's post-World War Two history. The party is planning big street protests against the president on Saturday. 5-Star members took to the streets holding anti-Mattarella placards such as "Sovereignty Belongs to the People", while the president's supporters went on Twitter with the hashtag "I stand with Mattarella".

Italy banker warns on political crisis as investors fear for euro

The European Union states decided on Monday to close disciplinary procedures against Greece over its excessive&nbsp;deficit&nbsp;after improvements in&nbsp;Greece&#39;s&nbsp;fiscal position, confirming the country&#39;s recovery is on the right track.

The move, although largely symbolic, sends&nbsp;a new&nbsp;signal&nbsp;that&nbsp;Greece&#39;s&nbsp;public finances are again under control, facilitating the country&#39;s plans to tap&nbsp;markets&nbsp;after a successful issue of bonds in July which ended a three-year exile.

EU&nbsp;fiscal rules oblige member states to keep their budget&nbsp;deficits below 3 per cent of their economic output or face sanctions that could entail hefty fines, although so far no country has received a financial penalty.

Greece had a 0.7 per cent budget surplus in 2016 and is projected to maintain its fiscal position within&nbsp;EU&nbsp;rules&#39; limits this year.

&quot;In the light of this, the Council (of&nbsp;EU&nbsp;states) found that Greece fulfils the conditions for closing the excessive&nbsp;deficit&nbsp;procedure,&quot; the&nbsp;EU&nbsp;said in a note.

&quot;After many years of severe difficulties,&nbsp;Greece&#39;s&nbsp;finances are in much better shape. Today&#39;s decision is therefore welcome&quot;, Estonia&#39;s finance minister Toomas Toniste said.

The&nbsp;EU&nbsp;states&#39; decision confirmed a proposal by the&nbsp;EU&nbsp;executive commission in July to end the disciplinary&nbsp;procedure&nbsp;for Greece.

The economics commissioner Pierre Moscovici said the decision was &quot;a recognition of the tremendous efforts and sacrifices the Greek people have made to restore stability to their country&rsquo;s public finances.&quot;

But he stressed that Greece still needs to&nbsp;positively exit its bailout programme which&nbsp;ends&nbsp;in August after a third review of the country&#39;s reforms by international creditors.

&quot;There needs to be constructive cooperation between all institutions and the Greek authorities to ensure a smooth and swift conclusion of the third review, with no unnecessary drama,&quot; Moscovici said.

The move, although largely symbolic, sends?a new?signal?that?Greece's?public finances are again under control, facilitating the country's plans to tap?markets?after a successful issue of bonds in July which ended a three-year exile.

The European Union states decided on Monday to close disciplinary procedures against Greece over its excessive deficit after improvements in Greece's fiscal position, confirming the country's recovery is on the right track. The move, although largely symbolic, sends a new signal that Greece's public finances are again under control, facilitating the country's plans to tap markets after a successful issue of bonds in July which ended a three-year exile. EU fiscal rules oblige member states to keep their budget deficits below 3 per cent of their economic output or face sanctions that could entail hefty fines, although so far no country has received a financial penalty. Greece had a 0.7 per cent budget surplus in 2016 and is projected to maintain its fiscal position within EU rules' limits this year. "In the light of this, the Council (of EU states) found that Greece fulfils the conditions for closing the excessive deficit procedure," the EU said in a note. "After many years of severe difficulties, Greece's finances are in much better shape. Today's decision is therefore welcome", Estonia's finance minister Toomas Toniste said. The EU states' decision confirmed a proposal by the EU executive commission in July to end the disciplinary procedure for Greece. The economics commissioner Pierre Moscovici said the decision was "a recognition of the tremendous efforts and sacrifices the Greek people have made to restore stability to their country’s public finances." But he stressed that Greece still needs to positively exit its bailout programme which ends in August after a third review of the country's reforms by international creditors. "There needs to be constructive cooperation between all institutions and the Greek authorities to ensure a smooth and swift conclusion of the third review, with no unnecessary drama," Moscovici said.

EU ends Greece's deficit procedure in positive signal to markets

The&nbsp;euro&nbsp;and&nbsp;European government&nbsp;bond&nbsp;yields&nbsp;slipped on Monday after the bloc&#39;s most powerful leader, German Chancellor Angela&nbsp;Merkel, won a fourth term but faced a fractured parliament as support for the far right surged.

Investors were unnerved by the prospect of months of coalition talks that could distract from negotiations with Britain over its divorce from the&nbsp;European Union and efforts to integrate the bloc&#39;s remaining members.

Some analysts said the political uncertainty may also throw into question&nbsp;European Central Bank plans to reduce monetary stimulus, a move likely to be announced at the ECB&#39;s next meeting on Oct. 26.

&quot;There might be some concerns at the ECB that a less stable and less pro-EU German government will have negative implications for the (economic) outlook. That would be dovish,&quot; said Frederik Ducrozet, an economist at Pictet Wealth Management.

Business confidence in Germany deteriorated unexpectedly in September, a survey on Monday showed, and the chief economist of the Ifo economic institute said the election result could stoke further uncertainty.

A decline in the&nbsp;euro&nbsp;accelerated after the data, and by 1040 GMT it was down 0.6 per cent at $1.1885. That put more distance between a 2-1/2-year high of $1.2092 reached on Sept. 8, when the last ECB meeting fuelled expectations the central bank would begin tapering its massive stimulus programme.

Europe&#39;s benchmark German&nbsp;bond&nbsp;yield was set for its biggest daily fall in seven weeks, down 5 basis points at 0.40 per cent.

The fall was less pronounced in Southern&nbsp;European&nbsp;bond&nbsp;yields&nbsp;as the election result led to concerns about the emergence of a more hardline stance towards the&nbsp;eurozone in the bloc&#39;s largest economy.

While&nbsp;Merkel&nbsp;held on to power in Sunday&#39;s vote, the surprise winners were the anti-immigration Alternative for Germany (AfD), which became the first far-right party to enter the country&#39;s parliament in more than half a century.

All parties have ruled out a coalition with the AfD but investors are unsettled by the possibilityMerkel&nbsp;may have to form a coalition with the Free Democrats (FDP), who are seen more opposed to deeper financial integration in the&nbsp;euro&nbsp;area and might take a more hardline stance on Greece&#39;s debt.

&quot;This suggests headwinds to the&nbsp;euro&nbsp;and periphery,&quot; analysts at Morgan Stanley said in a note.

The impact on stock markets from the election was less marked, with&nbsp;eurozone shares down around 0.2 per cent.

That followed sharp falls in Asian equities which were hit by concerns over the economic health of the world&#39;s second-biggest economy China, while Wall Street was set to open a touch lower.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was down 0.8 per cent.

Hong Kong&#39;s Hang Seng was down 1.3 percent and Shanghai slipped 0.4 per cent after a number of Chinese cities rolled out new measures to cool housing prices.

Asian investor sentiment was also undermined by concerns that China&#39;s beefed-up environmental protection could reduce demand, and consequently economic growth.

KIWI JITTERS

The New Zealand dollar was also hit by political jitters as the ruling National Party won the largest number votes in a weekend election but failed to secure a ruling majority, with a protracted period of coalition-building now also a possibility there.

The kiwi, the world 11th most-traded currency, was down 0.7 per cent at $0.7288 and set for its biggest daily&nbsp;drop&nbsp;in around a month.

It was at a 1-1/2-month high of $0.7435 as recently as Sept. 20, when speculation for a comfortable win by the ruling party had boosted the currency.

&quot;While there are a few different scenarios and some potentially testy issues to negotiate, ultimately the political landscape appears as though it will remain relatively centralist and we are reasonably agnostic on what it all means,&quot; wrote economists at ANZ.

The pound edged up 0.1 per cent to $1.3510, bouncing back from a slide on Friday when rating agency Moody&#39;s downgraded Britain&#39;s credit rating.

The dollar was up 0.3 per cent against a basket of six major currencies at 92.397.

Oil prices rose to their highest in seven months after major producers said at a meeting in Vienna the global market was well on its way towards rebalancing.

The November Brent crude futures contract was up 35 cents at $57.21 a barrel, its highest since Feb. 23, while U.S. crude for November delivery was down 8 cents at $50.58, but not far off recent four-month highs.

Investors were unnerved by the prospect of months of coalition talks that could distract from negotiations with Britain over its divorce from the?European Union and efforts to integrate the bloc's remaining members.

The euro and European government bond yields slipped on Monday after the bloc's most powerful leader, German Chancellor Angela Merkel, won a fourth term but faced a fractured parliament as support for the far right surged. Investors were unnerved by the prospect of months of coalition talks that could distract from negotiations with Britain over its divorce from the European Union and efforts to integrate the bloc's remaining members. Some analysts said the political uncertainty may also throw into question European Central Bank plans to reduce monetary stimulus, a move likely to be announced at the ECB's next meeting on Oct. 26. "There might be some concerns at the ECB that a less stable and less pro-EU German government will have negative implications for the (economic) outlook. That would be dovish," said Frederik Ducrozet, an economist at Pictet Wealth Management. Business confidence in Germany deteriorated unexpectedly in September, a survey on Monday showed, and the chief economist of the Ifo economic institute said the election result could stoke further uncertainty. A decline in the euro accelerated after the data, and by 1040 GMT it was down 0.6 per cent at $1.1885. That put more distance between a 2-1/2-year high of $1.2092 reached on Sept. 8, when the last ECB meeting fuelled expectations the central bank would begin tapering its massive stimulus programme. Europe's benchmark German bond yield was set for its biggest daily fall in seven weeks, down 5 basis points at 0.40 per cent. The fall was less pronounced in Southern European bond yields as the election result led to concerns about the emergence of a more hardline stance towards the eurozone in the bloc's largest economy. While Merkel held on to power in Sunday's vote, the surprise winners were the anti-immigration Alternative for Germany (AfD), which became the first far-right party to enter the country's parliament in more than half a century. All parties have ruled out a coalition with the AfD but investors are unsettled by the possibilityMerkel may have to form a coalition with the Free Democrats (FDP), who are seen more opposed to deeper financial integration in the euro area and might take a more hardline stance on Greece's debt. "This suggests headwinds to the euro and periphery," analysts at Morgan Stanley said in a note. The impact on stock markets from the election was less marked, with eurozone shares down around 0.2 per cent. That followed sharp falls in Asian equities which were hit by concerns over the economic health of the world's second-biggest economy China, while Wall Street was set to open a touch lower. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8 per cent. Hong Kong's Hang Seng was down 1.3 percent and Shanghai slipped 0.4 per cent after a number of Chinese cities rolled out new measures to cool housing prices. Asian investor sentiment was also undermined by concerns that China's beefed-up environmental protection could reduce demand, and consequently economic growth. KIWI JITTERS The New Zealand dollar was also hit by political jitters as the ruling National Party won the largest number votes in a weekend election but failed to secure a ruling majority, with a protracted period of coalition-building now also a possibility there. The kiwi, the world 11th most-traded currency, was down 0.7 per cent at $0.7288 and set for its biggest daily drop in around a month. It was at a 1-1/2-month high of $0.7435 as recently as Sept. 20, when speculation for a comfortable win by the ruling party had boosted the currency. "While there are a few different scenarios and some potentially testy issues to negotiate, ultimately the political landscape appears as though it will remain relatively centralist and we are reasonably agnostic on what it all means," wrote economists at ANZ. The pound edged up 0.1 per cent to $1.3510, bouncing back from a slide on Friday when rating agency Moody's downgraded Britain's credit rating. The dollar was up 0.3 per cent against a basket of six major currencies at 92.397. Oil prices rose to their highest in seven months after major producers said at a meeting in Vienna the global market was well on its way towards rebalancing. The November Brent crude futures contract was up 35 cents at $57.21 a barrel, its highest since Feb. 23, while U.S. crude for November delivery was down 8 cents at $50.58, but not far off recent four-month highs.

German Elections: Euro, bond drop as Merkel holds on

Asian share markets retreated on Wednesday and the Euro was pressured as doubts over the policies of US President Donald Trump and an election looming in France sapped investor confidence.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan ticked down 0.3 per cent, slipping further from Monday&#39;s four-month high, led by 0.9 per cent fall in South Korean shares. Japan&#39;s Nikkei slipped 0.2 per cent.

&quot;The markets are now paying attention to political risks in Europe and the United States, after a rally earlier this week following the strong US payrolls data,&quot; said Kenta Tadaide, senior economist at Mizuho Research Institute.

On Wall Street, the S&amp;P 500 ended barely higher while the Nasdaq edged to a record high as gains in big tech names countered energy declines. With more than half of the S&amp;P 500 having reported results, fourth-quarter earnings are on track to have climbed 8.2 per cent, which would be the best performance since the third quarter of 2014, according to Thomson Reuters.

A raft of strong global economic data and hopes that Trump&#39;s talk of economic stimulus measures had helped to support world share markets, and the dollar, since late last year. But the lack of detail on Trump&#39;s stimulus plans and some other policy stances taken after he was sworn in on January 20 have unsettled investors.

Trump&#39;s protectionist leanings on international trade and controversy over his move to temporarily ban the entry of immigrants from seven Muslim-majority countries have caused alarm. &quot;Corporate earnings have been pretty good so far. But without details of Trump&#39;s economic policies, it is hard to become bullish,&quot; said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

Uncertainty on the new administration&#39;s currency policy is also keeping foreign exchange markets on edge. The dollar has been steadily declining against the yen since Trump signalled displeasure with Japan&#39;s currency stance on January 31.

The US&nbsp;currency traded at 112.35 Yen, having fallen to 111.59 Yen on Tuesday, its lowest since late November. The pair may see limited moves for now as traders look to a meeting between Trump and Japanese Prime Minister Shinzo Abe on Friday.

The Euro, on the other hand, shed 0.6 per cent on Tuesday and last stood at $1.0682, hit by rising concerns that the far right could win France&#39;s presidential vote and take the country out of the Euro. The gap between French and German 10-year borrowing costs widened to 78 basis points, the biggest level since late 2012.

Support for conservative challenger Francois Fillon, who was seen as a frontrunner a few weeks ago, has tumbled in the wake of a financial scandal, losing ground to independent centrist Emmanuel Macron and the anti-EU National Front leader Marine Le Pen.

&nbsp;

While most investors expect Le Pen to be defeated in the run-off by a more moderate candidate, markets are nervous after last year&#39;s experience of the Brexit referendum and Trump&#39;s victory.

In addition, wrangling over Greece&#39;s bailout are starting to haunt the market ahead of the euro group meeting on February 20, with two-year Greek debt yield soaring to near 10 percent on Tuesday, compared to around six percent just about two weeks ago.

Elsewhere, the Chinese Yuan dipped slightly following Tuesday&#39;s data that showed China&#39;s foreign exchange reserves unexpectedly fell below the closely watched $3 trillion level in January for the first time in nearly six years. Still, the market impact was limited as the fall in the reserves, of $12.3 billion to $2.998 trillion, was the smallest in seven months, indicating China&#39;s renewed crackdown on outflows appears to be working, at least for now.

The Yuan was little changed after dipping to a&nbsp;one-week low of 6.847 per dollar in offshore trade and three-week low of 6.8916 in the onshore trade. &quot;The fall was relatively small and had limited impact on the mainland markets. It is not like we have seen massive capital outflows,&quot; said Naoki Tashiro, head of TS China Research.

Oil prices extended falls, as a massive increase in US&nbsp;fuel inventories and a slump in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. International Brent crude futures fell 0.9 per cent to $54.55 per barrel. They were down 4.0 per cent so far this week.

(Reuters)

MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3%, slipping further from Monday's four-month high

Asian share markets retreated on Wednesday and the Euro was pressured as doubts over the policies of US President Donald Trump and an election looming in France sapped investor confidence. MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3 per cent, slipping further from Monday's four-month high, led by 0.9 per cent fall in South Korean shares. Japan's Nikkei slipped 0.2 per cent. "The markets are now paying attention to political risks in Europe and the United States, after a rally earlier this week following the strong US payrolls data," said Kenta Tadaide, senior economist at Mizuho Research Institute. On Wall Street, the S&P 500 ended barely higher while the Nasdaq edged to a record high as gains in big tech names countered energy declines. With more than half of the S&P 500 having reported results, fourth-quarter earnings are on track to have climbed 8.2 per cent, which would be the best performance since the third quarter of 2014, according to Thomson Reuters. A raft of strong global economic data and hopes that Trump's talk of economic stimulus measures had helped to support world share markets, and the dollar, since late last year. But the lack of detail on Trump's stimulus plans and some other policy stances taken after he was sworn in on January 20 have unsettled investors. Trump's protectionist leanings on international trade and controversy over his move to temporarily ban the entry of immigrants from seven Muslim-majority countries have caused alarm. "Corporate earnings have been pretty good so far. But without details of Trump's economic policies, it is hard to become bullish," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. Uncertainty on the new administration's currency policy is also keeping foreign exchange markets on edge. The dollar has been steadily declining against the yen since Trump signalled displeasure with Japan's currency stance on January 31. The US currency traded at 112.35 Yen, having fallen to 111.59 Yen on Tuesday, its lowest since late November. The pair may see limited moves for now as traders look to a meeting between Trump and Japanese Prime Minister Shinzo Abe on Friday. The Euro, on the other hand, shed 0.6 per cent on Tuesday and last stood at $1.0682, hit by rising concerns that the far right could win France's presidential vote and take the country out of the Euro. The gap between French and German 10-year borrowing costs widened to 78 basis points, the biggest level since late 2012. Support for conservative challenger Francois Fillon, who was seen as a frontrunner a few weeks ago, has tumbled in the wake of a financial scandal, losing ground to independent centrist Emmanuel Macron and the anti-EU National Front leader Marine Le Pen. While most investors expect Le Pen to be defeated in the run-off by a more moderate candidate, markets are nervous after last year's experience of the Brexit referendum and Trump's victory. In addition, wrangling over Greece's bailout are starting to haunt the market ahead of the euro group meeting on February 20, with two-year Greek debt yield soaring to near 10 percent on Tuesday, compared to around six percent just about two weeks ago. Elsewhere, the Chinese Yuan dipped slightly following Tuesday's data that showed China's foreign exchange reserves unexpectedly fell below the closely watched $3 trillion level in January for the first time in nearly six years. Still, the market impact was limited as the fall in the reserves, of $12.3 billion to $2.998 trillion, was the smallest in seven months, indicating China's renewed crackdown on outflows appears to be working, at least for now. The Yuan was little changed after dipping to a one-week low of 6.847 per dollar in offshore trade and three-week low of 6.8916 in the onshore trade. "The fall was relatively small and had limited impact on the mainland markets. It is not like we have seen massive capital outflows," said Naoki Tashiro, head of TS China Research. Oil prices extended falls, as a massive increase in US fuel inventories and a slump in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. International Brent crude futures fell 0.9 per cent to $54.55 per barrel. They were down 4.0 per cent so far this week. (Reuters)

Asia shares down, Euro pressured by doubts over Trump's policies, French election

The Euro briefly fell to a 20-month low against the Dollar on Monday after Italian Prime Minister Matteo Renzi announced his resignation following a crushing defeat in a referendum on constitutional reform.&nbsp;

The 19-nation currency slumped to $1.0506 at around 8:20 am (2320 GMT) in Tokyo trading, the lowest since March 2015 and down from $1.0664 late Friday.

The unit later rebounded to $1.0585.

Meanwhile, the Yen, which is often bought as a safe haven in times of uncertainty, picked up in early deals with the dollar fetching 112.88 Yen, against 113.51 Yen in New York on Friday.

But the Dollar quickly recovered to sit at 113.71 Yen.&nbsp;

Italians voted against proposed reforms that would have curtailed the size and powers of the Senate and transferred powers from regions to the national government.

Opposition parties had denounced the proposed amendments to the constitution as dangerous for democracy because they would have removed important checks and balances on executive power.

Interior Ministry projections suggested the No camp, led by the populist Five Star Movement, had been backed by 59.5 per cent of those who voted.

The defeat and Renzi&#39;s departure threatens to plunge Italy into a new phase of political uncertainty and possible economic turmoil.

Some analysts fear a deeper crisis of investor confidence that could derail a rescue scheme for Italy&#39;s most indebted banks, triggering a wider financial crisis across the eurozone.

&quot;His defeat in the face of populist moves will spawn concerns over the rest of Europe,&quot; said Yunosuke Ikeda, chief currency strategist at Nomura Securities in Tokyo.

&quot;But given the fact that this had been predicted beforehand, it&#39;s not a surprise in the same way as the Brexit vote or (Donald) Trump&#39;s election victory.&nbsp;

&quot;As Prime Minister Renzi has now resigned, some investors might think all the bad news is out now.&quot;

The impact on the euro may also have been mitigated by a vote in Austria where anti-immigration and eurosceptic Norbert Hofer&#39;s bid to become the European Union&#39;s first far-right president was resoundingly rejected.

In Italy, President Sergio Mattarella will be charged with brokering the appointment of a new government to run the country until the next general election, which is due to take place by the spring of 2018.

Market players were now looking ahead to a European Central Bank meeting later this week and whether President Mario Draghi comments on the Italian referendum.

&quot;The ECB is holding a governing council meeting on Thursday. If president (Mario) Draghi makes dovish remarks in consideration of instability risks (from the vote), the euro would fall,&quot; Nomura&#39;s Ikeda said.

(AFP)

The 19-nation currency slumped to $1.0506 at around 8:20 am (2320 GMT) in Tokyo trading, the lowest since March 2015

The Euro briefly fell to a 20-month low against the Dollar on Monday after Italian Prime Minister Matteo Renzi announced his resignation following a crushing defeat in a referendum on constitutional reform. The 19-nation currency slumped to $1.0506 at around 8:20 am (2320 GMT) in Tokyo trading, the lowest since March 2015 and down from $1.0664 late Friday. The unit later rebounded to $1.0585. Meanwhile, the Yen, which is often bought as a safe haven in times of uncertainty, picked up in early deals with the dollar fetching 112.88 Yen, against 113.51 Yen in New York on Friday. But the Dollar quickly recovered to sit at 113.71 Yen. Italians voted against proposed reforms that would have curtailed the size and powers of the Senate and transferred powers from regions to the national government. Opposition parties had denounced the proposed amendments to the constitution as dangerous for democracy because they would have removed important checks and balances on executive power. Interior Ministry projections suggested the No camp, led by the populist Five Star Movement, had been backed by 59.5 per cent of those who voted. The defeat and Renzi's departure threatens to plunge Italy into a new phase of political uncertainty and possible economic turmoil. Some analysts fear a deeper crisis of investor confidence that could derail a rescue scheme for Italy's most indebted banks, triggering a wider financial crisis across the eurozone. "His defeat in the face of populist moves will spawn concerns over the rest of Europe," said Yunosuke Ikeda, chief currency strategist at Nomura Securities in Tokyo. "But given the fact that this had been predicted beforehand, it's not a surprise in the same way as the Brexit vote or (Donald) Trump's election victory. "As Prime Minister Renzi has now resigned, some investors might think all the bad news is out now." The impact on the euro may also have been mitigated by a vote in Austria where anti-immigration and eurosceptic Norbert Hofer's bid to become the European Union's first far-right president was resoundingly rejected. In Italy, President Sergio Mattarella will be charged with brokering the appointment of a new government to run the country until the next general election, which is due to take place by the spring of 2018. Market players were now looking ahead to a European Central Bank meeting later this week and whether President Mario Draghi comments on the Italian referendum. "The ECB is holding a governing council meeting on Thursday. If president (Mario) Draghi makes dovish remarks in consideration of instability risks (from the vote), the euro would fall," Nomura's Ikeda said. (AFP)

Euro falls after Italy's Renzi quits on referendum defeat

Asian markets were on tenterhooks on Wednesday as early state exit polls in the US&nbsp;presidential election showed wins for both candidates and no clear trend as yet, causing a nervous shift back to safe haven assets.

Asian stocks and US&nbsp;stock futures edged 0.5 per cent higher in volatile trade, while the Dollar slipped on the Yen and Euro as investors hedged against the risk of a shock win by Republican Donald Trump.

Both Trump and Democrat Hillary Clinton scored early victories in their bitter race, with Trump winning as expected in conservative Indiana, Kentucky and West Virginia and Clinton capturing liberal Vermont.

The victories in the four states were long predicted and not especially significant in a national race where opinion polls show Clinton has an edge.

Markets have tended to favour Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage.

&quot;In contrast, a Trump victory would trigger massive uncertainty that would likely undermine risk assets at least initially, which in turn could preclude a Fed rate hike this year,&quot; warned Michelle Girard, chief US&nbsp;economist at RBS.

Much of the action was in the currency markets where the Mexican peso has become a touchstone for sentiment on the election as Trump&#39;s trade policies are seen as damaging to its export-heavy economy.

The dollar jumped 1.2 per cent on the peso as the early results were reported, after hitting its lowest in two months overnight.

The dollar backtracked 0.7 per cent on the safe haven yen to 104.48 Yen, while the Euro rose to $1.1048. Against a basket of currencies, the Dollar was off 0.2 per cent at 97.678.

Yields on 10-year US&nbsp;Treasury yields inched down to 1.849 per cent, after touching a high of 1.876 per cent.

In share markets, MSCI&#39;s broadest index of Asia-Pacific stocks outside Japan was still up 0.4 per cent, but the Nikkei rose 0.8 per cent.

Wall Street had added somewhat to Monday&#39;s stellar gains with the Dow ending up 0.4 per cent. The S&amp;P 500 gained 0.38 per cent and the Nasdaq 0.53 per cent.

Shane Oliver, head of investment strategy at fund manager AMP Capital, said the most positive outcome for US&nbsp;equities would be a Clinton win with a split Congress.

&quot;Historically, since 1927 US&nbsp;total share returns have been strongest at an average 16.7 per cent per year when there has been a Democrat president and Republican control of the House, the Senate or both.&quot;

The return only averaged 8.9 per cent when the Republicans controlled the presidency and Congress.

In commodity markets, gold edged up to $1,278.46 an ounce as the Dollar eased.

Oil took a knock from data showing a surprisingly large rise in crude stocks. US&nbsp;crude eased 19 cents to $44.79, while Brent was untraded early in the Asian day.

(Reuters)

Asian stocks and US stock futures edged 0.5 per cent higher in volatile trade, while the Dollar slipped on the Yen and Euro

Asian markets were on tenterhooks on Wednesday as early state exit polls in the US presidential election showed wins for both candidates and no clear trend as yet, causing a nervous shift back to safe haven assets. Asian stocks and US stock futures edged 0.5 per cent higher in volatile trade, while the Dollar slipped on the Yen and Euro as investors hedged against the risk of a shock win by Republican Donald Trump. Both Trump and Democrat Hillary Clinton scored early victories in their bitter race, with Trump winning as expected in conservative Indiana, Kentucky and West Virginia and Clinton capturing liberal Vermont. The victories in the four states were long predicted and not especially significant in a national race where opinion polls show Clinton has an edge. Markets have tended to favour Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage. "In contrast, a Trump victory would trigger massive uncertainty that would likely undermine risk assets at least initially, which in turn could preclude a Fed rate hike this year," warned Michelle Girard, chief US economist at RBS. Much of the action was in the currency markets where the Mexican peso has become a touchstone for sentiment on the election as Trump's trade policies are seen as damaging to its export-heavy economy. The dollar jumped 1.2 per cent on the peso as the early results were reported, after hitting its lowest in two months overnight. The dollar backtracked 0.7 per cent on the safe haven yen to 104.48 Yen, while the Euro rose to $1.1048. Against a basket of currencies, the Dollar was off 0.2 per cent at 97.678. Yields on 10-year US Treasury yields inched down to 1.849 per cent, after touching a high of 1.876 per cent. In share markets, MSCI's broadest index of Asia-Pacific stocks outside Japan was still up 0.4 per cent, but the Nikkei rose 0.8 per cent. Wall Street had added somewhat to Monday's stellar gains with the Dow ending up 0.4 per cent. The S&P 500 gained 0.38 per cent and the Nasdaq 0.53 per cent. Shane Oliver, head of investment strategy at fund manager AMP Capital, said the most positive outcome for US equities would be a Clinton win with a split Congress. "Historically, since 1927 US total share returns have been strongest at an average 16.7 per cent per year when there has been a Democrat president and Republican control of the House, the Senate or both." The return only averaged 8.9 per cent when the Republicans controlled the presidency and Congress. In commodity markets, gold edged up to $1,278.46 an ounce as the Dollar eased. Oil took a knock from data showing a surprisingly large rise in crude stocks. US crude eased 19 cents to $44.79, while Brent was untraded early in the Asian day. (Reuters)

Dollar spooked in Asia as US polls too close to call

Germany is moving to close the pay gap between men and women with a proposed new law agreed in principle by the government&#39;s ruling coalition parties Thursday.

Chancellor Angela Merkel&#39;s conservative CDU reached the agreement in talks with its centre-left coalition allies the SPD, without saying when the changes would take effect.

Under the deal, companies with more than 200 employees will have to be transparent about what they pay men and women in equal positions and publish wage data in anonymous form.

Companies with more than 500 staff will have to introduce mechanisms to equalise pay for both sexes, said SPD parliamentary chief Thomas Oppermann.

He hailed the proposed law as &quot;a great step forward&quot; for millions of female employees.

Women in Germany earn around one fifth less than men, according to official data released in May.

In raw or unadjusted terms, the gender pay gap stood at 21 percent in Germany last year, above the European average of 16.5 percent, the federal statistics office Destatis calculated.

In the former communist east of the country, the pay gap was much narrower, standing at eight percent last year, but in the west it stood at 23 percent, Destatis calculated.&nbsp;

Women in Germany tend more often to work in low-paid jobs or sectors and frequently only part time, the statisticians said.

The adjusted pay gap, which compares wages for people with the same qualifications doing the same work, stood at seven per cent.

(AFP)

Under the deal, companies with more than 200 employees will have to be transparent about what they pay men and women

Germany is moving to close the pay gap between men and women with a proposed new law agreed in principle by the government's ruling coalition parties Thursday. Chancellor Angela Merkel's conservative CDU reached the agreement in talks with its centre-left coalition allies the SPD, without saying when the changes would take effect. Under the deal, companies with more than 200 employees will have to be transparent about what they pay men and women in equal positions and publish wage data in anonymous form. Companies with more than 500 staff will have to introduce mechanisms to equalise pay for both sexes, said SPD parliamentary chief Thomas Oppermann. He hailed the proposed law as "a great step forward" for millions of female employees. Women in Germany earn around one fifth less than men, according to official data released in May. In raw or unadjusted terms, the gender pay gap stood at 21 percent in Germany last year, above the European average of 16.5 percent, the federal statistics office Destatis calculated. In the former communist east of the country, the pay gap was much narrower, standing at eight percent last year, but in the west it stood at 23 percent, Destatis calculated. Women in Germany tend more often to work in low-paid jobs or sectors and frequently only part time, the statisticians said. The adjusted pay gap, which compares wages for people with the same qualifications doing the same work, stood at seven per cent. (AFP)

Germany takes step to close pay gap between men, women

The British pound slumped to a fresh three-year low against the euro Monday and edged lower on the dollar, as signs of weakness mounted in the British economy. 
 
At 86.80 pence on the euro, the pound was at its weakest level since August 2013. 
 
Meanwhile sterling fell to $1.2883, just barely above its $1.2798 post-Brexit vote level that marked a three-decade low against the US greenback. 
 
The currency&#39;s fall came as data from Britain showed London residential rents fell for the first time in six years in July, amid worries the June 23 vote to exit the European Union was already having an impact on the economy. 
 
The rental data came on the heels of numbers showing home prices fell for the second straight month. 
 
&quot;In the month of August, the British pound has been the weakest currency and the trend continued today,&quot; said Kathy Lien of BK Asset Management. 
 
&quot;The main reason why the currency is weak is because investors are worried about this week&#39;s UK economic reports.&quot; 
 
Even if the formal moves to leave the European Union will not be taken by the government until next year, Lien said, &quot;the damage has been done and consequences are just beginning to appear.&quot; 
 
2100 GMT Monday Friday 
 
EUR/USD 1.1183 1.1165 
 
EUR/JPY 113.23 113.07 
 
EUR/CHF 1.0877 1.0882 
 
EUR/GBP 0.8680 0.8643 
 
USD/JPY 101.25 101.27 
 
USD/CHF 0.9726 0.9747 
 
GBP/USD 1.2883 1.2918

The currency's fall comes as data showed London residential rents fell for the first time in six years in July

The British pound slumped to a fresh three-year low against the euro Monday and edged lower on the dollar, as signs of weakness mounted in the British economy. At 86.80 pence on the euro, the pound was at its weakest level since August 2013. Meanwhile sterling fell to $1.2883, just barely above its $1.2798 post-Brexit vote level that marked a three-decade low against the US greenback. The currency's fall came as data from Britain showed London residential rents fell for the first time in six years in July, amid worries the June 23 vote to exit the European Union was already having an impact on the economy. The rental data came on the heels of numbers showing home prices fell for the second straight month. "In the month of August, the British pound has been the weakest currency and the trend continued today," said Kathy Lien of BK Asset Management. "The main reason why the currency is weak is because investors are worried about this week's UK economic reports." Even if the formal moves to leave the European Union will not be taken by the government until next year, Lien said, "the damage has been done and consequences are just beginning to appear." 2100 GMT Monday Friday EUR/USD 1.1183 1.1165 EUR/JPY 113.23 113.07 EUR/CHF 1.0877 1.0882 EUR/GBP 0.8680 0.8643 USD/JPY 101.25 101.27 USD/CHF 0.9726 0.9747 GBP/USD 1.2883 1.2918

British Pound slumps to three-year low against Euro

Volkswagen has been slapped with a five-million-Euro ($5.5 million) fine in Italy over the massive engine-fixing scandal, the Italian competition authority said on Monday. 
 
The German carmaker was handed the fine for &quot;improper business practices&quot; after it installed emissions-cheating software in 11 million diesel engines worldwide in a scandal which broke last year, dubbed &quot;dieselgate&quot;. 
 
The antitrust watchdog said the fine related to the marketing in Italy since 2009 of vehicles that tricked pollution tests. 
 
Volkswagen, which owns 12 brands in all, from VW to Audi, Porsche, Seat, and Lamborghini, admitted in September that it had installed software in the vehicles that tricked US emissions tests into showing the cars met environmental standards. 
 
The device switched off after testing, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides. The still incalculable costs of the affair, including regulatory fines and legal costs, pushed VW into the red for the first time in more than 20 years last year when it booked a loss of 1.6 billion Euros. 
 
In June it agreed to pay out $14.7 billion in a settlement with US authorities and car owners.&nbsp; 
 
(AFP) 
 
Keywords- VW scandal, VW engine-fixing scandal, Volkswagen emissions&nbsp;scandal, VW fined by Italy watchdog, VW fined $5.5 million, Italy watchdog fines VW with 5 million Euros

The fine was for the emissions-cheating software the German carmaker had installed in 11 million of its diesel cars worldwide

Volkswagen has been slapped with a five-million-Euro ($5.5 million) fine in Italy over the massive engine-fixing scandal, the Italian competition authority said on Monday. The German carmaker was handed the fine for "improper business practices" after it installed emissions-cheating software in 11 million diesel engines worldwide in a scandal which broke last year, dubbed "dieselgate". The antitrust watchdog said the fine related to the marketing in Italy since 2009 of vehicles that tricked pollution tests. Volkswagen, which owns 12 brands in all, from VW to Audi, Porsche, Seat, and Lamborghini, admitted in September that it had installed software in the vehicles that tricked US emissions tests into showing the cars met environmental standards. The device switched off after testing, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides. The still incalculable costs of the affair, including regulatory fines and legal costs, pushed VW into the red for the first time in more than 20 years last year when it booked a loss of 1.6 billion Euros. In June it agreed to pay out $14.7 billion in a settlement with US authorities and car owners. (AFP) Keywords- VW scandal, VW engine-fixing scandal, Volkswagen emissions scandal, VW fined by Italy watchdog, VW fined $5.5 million, Italy watchdog fines VW with 5 million Euros

Volkswagen fined $5.5 million in Italy

<div style="text-align: justify;">Italy&nbsp;moved into the knockout stages of Euro 2016 and continued to defy their doubters as Eder scored two minutes from fulltime to secure a 1-0 win over a shot-shy and unadventurous Sweden on Friday. 
Eder ended a great run by firing home to move&nbsp;Italy&nbsp;clear at the top of Group E on six points after two matches following their 2-0 victory over Belgium in their opening encounter. 
The result left Sweden in an uncomfortable position with one point after two games ahead of their final group clash against Belgium next week. 
Sweden were well organised at the back but toothless in attack, with their danger man Zlatan Ibrahimovic looking a shadow of his brilliant best and hardly creating a chance. 
Italy, who came into the tournament with questions surrounding the strength of their squad, but surprised many with their superb performance against a highly-fancied Belgium side, relied on their trademark, tight defence against the Swedes. 
They rarely threatened up front, however, until Marco Parolo hit the crossbar with a header shortly before Eder netted the winner. 
&quot;It was a difficult game,&quot;&nbsp;Italy&nbsp;coach Antonio Conte told Rai Sport. &quot;We struggled in the first half. 
&quot;The boys did well to ride the storm and hurt Sweden when we needed to.&quot; 
Italy&nbsp;had been praised for their unity and work rate in their opening win over Belgium, but appeared to have no answer to Sweden&#39;s organised rearguard until Eder&#39;s late intervention. 
Sweden coach Erik Hamren had criticised their lack of attacking vitality following their opening 1-1 draw with Ireland, and while there was an improvement in their overall performance, Ibrahimovic once again failed to provide a cutting edge and live up to his billing. 
&quot;We were much better than the Italians for periods, but we didn&rsquo;t create really dangerous chances,&quot; Sweden midfielder Albin Ekdal told Swedish broadcaster SVT. 
Sweden are still without a shot on target at the tournament, although Martin Olsson proved a menacing threat down the left, sending an effort just over the bar on 18 minutes having set the tone with an early cross that prompted a nervous clearance from Giorgio Chiellini. 
Olsson&#39;s frequent forays left space for Antonio Candreva, but Andreas Isaksson and Erik Johansson combined to clear his testing deliveries, while Ibrahimovic flashed a close-range header wide towards the end of the first half. 
Having masterminded victory over the Belgians, Conte&#39;s tactics were completely neutralised during the opening 45 minutes in Toulouse and his side appeared unsettled as a result. 
&quot;At halftime Conte told us we were too slow and he was right,&quot; Parolo told Rai Sport. 
&quot;We changed the tempo after the break and we deserved our victory.&quot; 
Conte introduced Simone Zaza in the 60th minute and he had a decisive role in the winner, heading a Chiellini throw in into the path of Eder. 
The forward then cut in from the left -- evading Andreas Granqvist&#39;s attempted tackle -- and sent a curling right-footed shot round Isaksson to take&nbsp;Italy&nbsp;through. 
(Reuters)</div>

Eder scored two minutes from full time to secure the win against Sweden

Italy moved into the knockout stages of Euro 2016 and continued to defy their doubters as Eder scored two minutes from fulltime to secure a 1-0 win over a shot-shy and unadventurous Sweden on Friday. Eder ended a great run by firing home to move Italy clear at the top of Group E on six points after two matches following their 2-0 victory over Belgium in their opening encounter. The result left Sweden in an uncomfortable position with one point after two games ahead of their final group clash against Belgium next week. Sweden were well organised at the back but toothless in attack, with their danger man Zlatan Ibrahimovic looking a shadow of his brilliant best and hardly creating a chance. Italy, who came into the tournament with questions surrounding the strength of their squad, but surprised many with their superb performance against a highly-fancied Belgium side, relied on their trademark, tight defence against the Swedes. They rarely threatened up front, however, until Marco Parolo hit the crossbar with a header shortly before Eder netted the winner. "It was a difficult game," Italy coach Antonio Conte told Rai Sport. "We struggled in the first half. "The boys did well to ride the storm and hurt Sweden when we needed to." Italy had been praised for their unity and work rate in their opening win over Belgium, but appeared to have no answer to Sweden's organised rearguard until Eder's late intervention. Sweden coach Erik Hamren had criticised their lack of attacking vitality following their opening 1-1 draw with Ireland, and while there was an improvement in their overall performance, Ibrahimovic once again failed to provide a cutting edge and live up to his billing. "We were much better than the Italians for periods, but we didn’t create really dangerous chances," Sweden midfielder Albin Ekdal told Swedish broadcaster SVT. Sweden are still without a shot on target at the tournament, although Martin Olsson proved a menacing threat down the left, sending an effort just over the bar on 18 minutes having set the tone with an early cross that prompted a nervous clearance from Giorgio Chiellini. Olsson's frequent forays left space for Antonio Candreva, but Andreas Isaksson and Erik Johansson combined to clear his testing deliveries, while Ibrahimovic flashed a close-range header wide towards the end of the first half. Having masterminded victory over the Belgians, Conte's tactics were completely neutralised during the opening 45 minutes in Toulouse and his side appeared unsettled as a result. "At halftime Conte told us we were too slow and he was right," Parolo told Rai Sport. "We changed the tempo after the break and we deserved our victory." Conte introduced Simone Zaza in the 60th minute and he had a decisive role in the winner, heading a Chiellini throw in into the path of Eder. The forward then cut in from the left -- evading Andreas Granqvist's attempted tackle -- and sent a curling right-footed shot round Isaksson to take Italy through. (Reuters)

Late goal allows Italy to enter knockout stages of Euro 2016

Poland beat Switzerland 5-4 in a shootout to reach their first European Championship quarter-final, as a riveting clash ended 1-1 after extra time on Saturday, following a brilliant late equaliser by Swiss Xherdan Shaqiri. 
 
Grezgorz Krychowiak drilled in the winning spot-kick after Granit Xhaka had missed Switzerland&rsquo;s second penalty to send the Polish fans at the Geoffroy Guichard stadium into raptures. 
 
The Poles will meet Croatia or Portugal, who play later on Saturday, for a berth in the semis. 
 
Jakub Blaszczykowski had given Poland a 39th-minute lead, before Shaqiri levelled with a spectacular bicycle kick in the 82nd, to send the contest into a dramatic climax. 
 
&quot;We were prepared for this kind of battle,&quot; Poland coach Adam Nawalka said. &quot;The Swiss are a world class side and it was no surprise that they came storming back in the second half. 
 
&quot;But the important thing is that my team showed potential after conceding the equaliser. We are mentally prepared for the quarter-final match in Marseille on Thursday.&quot; 
 
Man of the match Shaqiri, who was superb in the second half and extra time, said the goal meant little after a painful loss. 
 
&quot;It&#39;s a great disappointment, we could have achieved something very big,&quot; the 24-year old forward told a news conference. 
 
&quot;It was a beautiful goal and I am always proud to score for my country, but we are out.&quot; 
 
Gaping goal

Poland dominated the first half and should have gone ahead inside the first minute, when Arkadiusz Milik sent his shot over a gaping goal, following a calamitous defensive mix-up. 
 
With striker Robert Lewandowski subdued, the Poles created had to rely on chances created by livewire left winger Kamil Grosicki and the impressive Blaszczykowski on the other flank. 
 
Switzerland captain Stephan Lichsteiner could not keep up with Grosicki, who fired over the bar from 18 metres after a clever run through the middle. 
 
Blaszczykowski broke the deadlock with a composed finish from 10 metres after a darting run by Grosicki and a dummy from Milik gave the winger time and space to pick his spot. 
 
With Shaqiri and striker Haris Seferovic stifled by Poland&rsquo;s rock-solid defence, the Swiss created little in the opening period despite roaring &ldquo;Go Suisse&rdquo; chants by their supporters. 
 
They came out with renewed purpose in the second half and Shaqiri finally showed a glimpse of his talent with a dazzling solo run and a stinging shot which Lukasz Fabianski parried. 
 
Blaszczykowski had Yann Sommer at full stretch as the pace increased with Switzerland throwing men forward. 
 
Shaqiri produced a moment of magic with one of the best goals of the tournament in the 82nd minute, twisting his body in the air to unleash a fierce shot, which gave Fabianski no chance as it went in off the post. 
 
Galvanised by the goal, Switzerland took the upper hand and dominated extra time, forcing several desperate clearances by a defence which had conceded in only one other match in 2016. 
 
Substitute Eren Derdiyok missed a sitter for the Swiss when Fabianski kept out his close-range header and they paid the price as a rattled Poland held on to force the shootout. 
 
(Reuters)

Poland beat Switzerland 5-4 in a shootout to reach their first European Championship quarter-final, as a riveting clash ended 1-1 after extra time on Saturday, following a brilliant late equaliser by Swiss Xherdan Shaqiri. Grezgorz Krychowiak drilled in the winning spot-kick after Granit Xhaka had missed Switzerland’s second penalty to send the Polish fans at the Geoffroy Guichard stadium into raptures. The Poles will meet Croatia or Portugal, who play later on Saturday, for a berth in the semis. Jakub Blaszczykowski had given Poland a 39th-minute lead, before Shaqiri levelled with a spectacular bicycle kick in the 82nd, to send the contest into a dramatic climax. "We were prepared for this kind of battle," Poland coach Adam Nawalka said. "The Swiss are a world class side and it was no surprise that they came storming back in the second half. "But the important thing is that my team showed potential after conceding the equaliser. We are mentally prepared for the quarter-final match in Marseille on Thursday." Man of the match Shaqiri, who was superb in the second half and extra time, said the goal meant little after a painful loss. "It's a great disappointment, we could have achieved something very big," the 24-year old forward told a news conference. "It was a beautiful goal and I am always proud to score for my country, but we are out." Gaping goal Poland dominated the first half and should have gone ahead inside the first minute, when Arkadiusz Milik sent his shot over a gaping goal, following a calamitous defensive mix-up. With striker Robert Lewandowski subdued, the Poles created had to rely on chances created by livewire left winger Kamil Grosicki and the impressive Blaszczykowski on the other flank. Switzerland captain Stephan Lichsteiner could not keep up with Grosicki, who fired over the bar from 18 metres after a clever run through the middle. Blaszczykowski broke the deadlock with a composed finish from 10 metres after a darting run by Grosicki and a dummy from Milik gave the winger time and space to pick his spot. With Shaqiri and striker Haris Seferovic stifled by Poland’s rock-solid defence, the Swiss created little in the opening period despite roaring “Go Suisse” chants by their supporters. They came out with renewed purpose in the second half and Shaqiri finally showed a glimpse of his talent with a dazzling solo run and a stinging shot which Lukasz Fabianski parried. Blaszczykowski had Yann Sommer at full stretch as the pace increased with Switzerland throwing men forward. Shaqiri produced a moment of magic with one of the best goals of the tournament in the 82nd minute, twisting his body in the air to unleash a fierce shot, which gave Fabianski no chance as it went in off the post. Galvanised by the goal, Switzerland took the upper hand and dominated extra time, forcing several desperate clearances by a defence which had conceded in only one other match in 2016. Substitute Eren Derdiyok missed a sitter for the Swiss when Fabianski kept out his close-range header and they paid the price as a rattled Poland held on to force the shootout. (Reuters)

Poland beat Switzerland 5-4 on penalties

Belgium captain Eden Hazard produced an inspired performance, including a fine solo goal, to lead his side to a resounding 4-0 victory over Hungary at Euro 2016 on Sunday to set up a quarter-final clash with Wales. 
 
Hazard, who has finally burst into life at the tournament after a disappointing club season with Chelsea, set up one goal and scored another as Toby Alderweireld, Michy Batshuayi and Yannick Carrasco completed a comfortable victory. 
 
&quot;If he&#39;s feeling good, he&#39;s the best in the world,&quot; Belgium goalkeeper Thibaut Courtois said of Hazard. &quot; The only thing we might have done better was kill the match off earlier.&quot; 
 
Belgium dominated the opening stages and took the lead after 10 minutes when Kevin De Bruyne swung an inviting cross into the box where centre back Alderweireld rose at the far post to power a header past keeper Gabor Kiraly. 
 
Substitute Batshuayi tapped home Hazard&#39;s low cross with 12 minutes remaining shortly after coming on before the Belgium skipper cut inside Hungary&#39;s box and rifled home a superb low strike for the third, with Carrasco grabbing a late fourth. 
 
Hungary, shorn of influential midfielder Lazlo Kleinheisler who was injured in the warm-up, ceded the initiative early as Belgium found space and set the tone for a one-sided half. 
 
De Bruyne has improved significantly after being criticised by coach Marc Wilmots and was again at the heart of much that was good about Belgium&#39;s play. 
 
He lofted an early shot over the bar and teed up striker Romelu Lukaku to force a sharp save from veteran Kiraly, before testing the keeper himself from the edge of the box. 
 
Predictably, it was De Bruyne who forged the opening to cap off an excellent opening spell. 
 
After provoking a foul on the left, the 24-year-old curled in the resulting free kick and, while his delivery evaded Lukaku, Alderweireld arrived behind his team mate to head home. 
 
It was De Bruyne&#39;s 11th goal or assist in his last 12 internationals, and represented another decisive contribution for one of the Euro&#39;s leading lights. 
 
Hungary were largely reduced to pot shots from distance, with Gergo Lovrencsics and Balazs Dzsudzsak both hoping in vain for a repeat of the latter&#39;s belter against Portugal. 
 
De Bruyne fired a free kick against the bar in the 34th, while the overworked Kiraly denied Dries Mertens and Hazard from close range as Belgium threatened to extend their lead. 
 
Hungary improved after the break as Dzsudzsak got more of the ball and he fashioned an excellent chance for Adam Szalai, while Adam Pinter&#39;s deflected strike drew a fine save from Courtois and Roland Juhasz sent a low drive just wide. 
 
With Belgium failing to kill off the game, Wilmots turned to Batshuayi, so far unused at the finals, after 76 minutes. 
 
The switch paid off almost immediately as the highly regarded forward scored with his first touch, a simple finish following a sublime cross from Hazard in the 78th. 
 
Just as De Bruyne had imposed himself during the opening stages of the match, so Hazard shone at the finale. 
 
Ninety-four seconds later, the forward killed the game with a magnificent solo effort, cutting in from the left, evading two challenges and thumping the ball home from the edge of the area. 
 
Substitutes Marouane Fellaini and Carrasco combined at the death to add a breakaway fourth as Belgium secured a quarter-final date with Wales in Lille on Friday. 
 
(Reuters)

Belgium captain Eden Hazard produced an inspired performance, including a fine solo goal, to lead his side to a resounding 4-0 victory over Hungary at Euro 2016 on Sunday to set up a quarter-final clash with Wales. Hazard, who has finally burst into life at the tournament after a disappointing club season with Chelsea, set up one goal and scored another as Toby Alderweireld, Michy Batshuayi and Yannick Carrasco completed a comfortable victory. "If he's feeling good, he's the best in the world," Belgium goalkeeper Thibaut Courtois said of Hazard. " The only thing we might have done better was kill the match off earlier." Belgium dominated the opening stages and took the lead after 10 minutes when Kevin De Bruyne swung an inviting cross into the box where centre back Alderweireld rose at the far post to power a header past keeper Gabor Kiraly. Substitute Batshuayi tapped home Hazard's low cross with 12 minutes remaining shortly after coming on before the Belgium skipper cut inside Hungary's box and rifled home a superb low strike for the third, with Carrasco grabbing a late fourth. Hungary, shorn of influential midfielder Lazlo Kleinheisler who was injured in the warm-up, ceded the initiative early as Belgium found space and set the tone for a one-sided half. De Bruyne has improved significantly after being criticised by coach Marc Wilmots and was again at the heart of much that was good about Belgium's play. He lofted an early shot over the bar and teed up striker Romelu Lukaku to force a sharp save from veteran Kiraly, before testing the keeper himself from the edge of the box. Predictably, it was De Bruyne who forged the opening to cap off an excellent opening spell. After provoking a foul on the left, the 24-year-old curled in the resulting free kick and, while his delivery evaded Lukaku, Alderweireld arrived behind his team mate to head home. It was De Bruyne's 11th goal or assist in his last 12 internationals, and represented another decisive contribution for one of the Euro's leading lights. Hungary were largely reduced to pot shots from distance, with Gergo Lovrencsics and Balazs Dzsudzsak both hoping in vain for a repeat of the latter's belter against Portugal. De Bruyne fired a free kick against the bar in the 34th, while the overworked Kiraly denied Dries Mertens and Hazard from close range as Belgium threatened to extend their lead. Hungary improved after the break as Dzsudzsak got more of the ball and he fashioned an excellent chance for Adam Szalai, while Adam Pinter's deflected strike drew a fine save from Courtois and Roland Juhasz sent a low drive just wide. With Belgium failing to kill off the game, Wilmots turned to Batshuayi, so far unused at the finals, after 76 minutes. The switch paid off almost immediately as the highly regarded forward scored with his first touch, a simple finish following a sublime cross from Hazard in the 78th. Just as De Bruyne had imposed himself during the opening stages of the match, so Hazard shone at the finale. Ninety-four seconds later, the forward killed the game with a magnificent solo effort, cutting in from the left, evading two challenges and thumping the ball home from the edge of the area. Substitutes Marouane Fellaini and Carrasco combined at the death to add a breakaway fourth as Belgium secured a quarter-final date with Wales in Lille on Friday. (Reuters)

Belgium overwhelm Hungary 4-0

The sight of Welsh players bringing kids on to the pitch after their quarter-final victory over Belgium at the European Championship last week may have warmed the hearts of millions around the world, but for the Union of European Football Associations (UEFA) it appears to have been a step too far. 
 
Speaking to reporters on Tuesday, tournament director Martin Kallen sought to bring a bit of harsh reality to the elite tournament.&nbsp; 
 
&quot;This is not about pitch condition, the question is how far do you go with having other people on the pitch?&quot;, he said. 
 
&quot;We are not 100 per cent against it but we are cautious. It&#39;s nice pictures, it&#39;s always cute but a stadium is not the safest place for small kids.&quot; 
 
The Welsh team, who play Portugal on Wednesday in Lyon for a place in the final, have been built on their own tournament motto &quot;Together. Stronger&quot; - playing like it on the pitch and enjoying themselves with their families off it at their Brittany training camp.&nbsp; 
 
The scenes of talisman Gareth Bale lifting his daughter Alba Violet at the Parc des Princes after the Northern Ireland match, or full back Neil Taylor grasping his children&#39;s soft toys following the 3-1 victory over Belgium in Lille, have brought a touch of humanity to the sometimes too serious world of soccer. 
 
&quot;UEFA&#39;s frowning on it unfortunately because it&#39;s encroachment on the pitch,&quot; David Griffiths, the president of the Welsh Football Association, was quoted as saying in British media. &quot;But the team is run like a family and the boys have been together for so long.&quot; 
 
Officially, only people with specific accreditation can join the players on the grass, but with a place in the final at stake there is no guarantee UEFA will be able to stop any of the winning teams&#39; families from again breaking the taboo.&nbsp; 
 
&quot;It is getting more and more a habit that entire family members would like to go on the pitch or into the technical area,&quot; Kallen told reporters.&nbsp; 
 
(Reuters)

Association opposes families celebrating on the field, what others see as a touch of humanity in the sometimes too serious world of soccer

The sight of Welsh players bringing kids on to the pitch after their quarter-final victory over Belgium at the European Championship last week may have warmed the hearts of millions around the world, but for the Union of European Football Associations (UEFA) it appears to have been a step too far. Speaking to reporters on Tuesday, tournament director Martin Kallen sought to bring a bit of harsh reality to the elite tournament. "This is not about pitch condition, the question is how far do you go with having other people on the pitch?", he said. "We are not 100 per cent against it but we are cautious. It's nice pictures, it's always cute but a stadium is not the safest place for small kids." The Welsh team, who play Portugal on Wednesday in Lyon for a place in the final, have been built on their own tournament motto "Together. Stronger" - playing like it on the pitch and enjoying themselves with their families off it at their Brittany training camp. The scenes of talisman Gareth Bale lifting his daughter Alba Violet at the Parc des Princes after the Northern Ireland match, or full back Neil Taylor grasping his children's soft toys following the 3-1 victory over Belgium in Lille, have brought a touch of humanity to the sometimes too serious world of soccer. "UEFA's frowning on it unfortunately because it's encroachment on the pitch," David Griffiths, the president of the Welsh Football Association, was quoted as saying in British media. "But the team is run like a family and the boys have been together for so long." Officially, only people with specific accreditation can join the players on the grass, but with a place in the final at stake there is no guarantee UEFA will be able to stop any of the winning teams' families from again breaking the taboo. "It is getting more and more a habit that entire family members would like to go on the pitch or into the technical area," Kallen told reporters. (Reuters)

UEFA tells Wales to keep their children off the pitch

Host nation France came from behind to beat 10-man Ireland 2-1 and reach the Euro 2016 quarter-finals after forward Antoine Griezmann struck twice in the second half to cancel out Robbie Brady&#39;s second-minute penalty on Sunday. 
 
The French, who celebrated their first knockout-stage win in the competition since winning Euro 2000, were stunned when Paul Pogba gave away a clumsy spot-kick and Brady converted it to score the tournament&#39;s fastest goal at Parc OL. 
 
A disjointed France came to life in the second half as the introduction of winger Kingsley Coman injected pace and bite up front, with Griezmann heading home the equaliser in the 58th minute after a superb cross by Bacary Sagna. 
 
The 25-year-old turned the match on its head three minutes later after Olivier Giroud headed a long ball into his stride for a clinical finish. Ireland had centre back Shane Duffy sent off midway through the second half after he hauled down Griezmann who was through on goal. France will play either England or Iceland for a semi-final place. 
 
(Reuters)

Forward Antoine Griezmann struck twice in the second half to cancel out Robbie Brady's second-minute penalty

Host nation France came from behind to beat 10-man Ireland 2-1 and reach the Euro 2016 quarter-finals after forward Antoine Griezmann struck twice in the second half to cancel out Robbie Brady's second-minute penalty on Sunday. The French, who celebrated their first knockout-stage win in the competition since winning Euro 2000, were stunned when Paul Pogba gave away a clumsy spot-kick and Brady converted it to score the tournament's fastest goal at Parc OL. A disjointed France came to life in the second half as the introduction of winger Kingsley Coman injected pace and bite up front, with Griezmann heading home the equaliser in the 58th minute after a superb cross by Bacary Sagna. The 25-year-old turned the match on its head three minutes later after Olivier Giroud headed a long ball into his stride for a clinical finish. Ireland had centre back Shane Duffy sent off midway through the second half after he hauled down Griezmann who was through on goal. France will play either England or Iceland for a semi-final place. (Reuters)

France enters Euro 2016 last eight with 2-1 win against Ireland

England manager Roy Hodgson has said he is prepared to remain in the job after Euro 2016 but will not be &#39;begging&#39; for a new deal. 
 
Hodgson&#39;s contract expires after the tournament in France and Football Association (FA) chairman Greg Dyke indicated last week that the 68-year-old may have to lead the team to the semi-finals to guarantee staying on. 
 
&quot;I&#39;m not begging for the job. I am prepared to carry on,&quot; Hodgson told British media ahead of Monday&#39;s last-16 match against Iceland in Nice. &quot;It is different to wanting it. I&#39;m prepared to carry on if the FA want me to. If they don&#39;t want me to, then my contract will have run out and that is how it will be. I believe in the team I am working with and believe the team is showing such potential that it will go on to do good things and if the FA want me to continue with me looking after them, I will be happy to do so.&quot; 
 
England reached the last 16 after finishing second to Wales, who have already reached the quarter-finals, in Group B. 
 
They beat Wales 2-1 but draws against Russia and Slovakia left them in what turned out to be a much tougher half of the draw. They have scored three goals from their three games to date. 
 
If they beat Iceland, their next opponents will be either hosts France or Ireland. 
 
World champions Germany are also in that half of the draw, along with holders Spain and Italy. 
 
Hodgson&#39;s decision to make six changes for the final group game against Slovakia, which ended goalless, drew some criticism although FA chief executive Martin Glenn denied that he and Dyke had any problems with Hodgson&#39;s decisions. 
 
&quot;He has our full support, he has been a great manager and I think we are going to do great things in this tournament,&quot; said Glenn. 
 
Asked about the criticism of his tactics, Hodgson indicated that it came from the media rather than from within the England hierarchy. 
 
&quot;The FA will make the decision on what they want to do,&quot; he said. &quot;One hopes they will do it on their thinking and their observations and judgement and analysis on what is happening with the national team and not because some journalist has written something contrary to that.&quot; 
 
(Reuters)

England reached the last 16 after finishing second to Wales, who have already reached the quarter-finals, in Group B

England manager Roy Hodgson has said he is prepared to remain in the job after Euro 2016 but will not be 'begging' for a new deal. Hodgson's contract expires after the tournament in France and Football Association (FA) chairman Greg Dyke indicated last week that the 68-year-old may have to lead the team to the semi-finals to guarantee staying on. "I'm not begging for the job. I am prepared to carry on," Hodgson told British media ahead of Monday's last-16 match against Iceland in Nice. "It is different to wanting it. I'm prepared to carry on if the FA want me to. If they don't want me to, then my contract will have run out and that is how it will be. I believe in the team I am working with and believe the team is showing such potential that it will go on to do good things and if the FA want me to continue with me looking after them, I will be happy to do so." England reached the last 16 after finishing second to Wales, who have already reached the quarter-finals, in Group B. They beat Wales 2-1 but draws against Russia and Slovakia left them in what turned out to be a much tougher half of the draw. They have scored three goals from their three games to date. If they beat Iceland, their next opponents will be either hosts France or Ireland. World champions Germany are also in that half of the draw, along with holders Spain and Italy. Hodgson's decision to make six changes for the final group game against Slovakia, which ended goalless, drew some criticism although FA chief executive Martin Glenn denied that he and Dyke had any problems with Hodgson's decisions. "He has our full support, he has been a great manager and I think we are going to do great things in this tournament," said Glenn. Asked about the criticism of his tactics, Hodgson indicated that it came from the media rather than from within the England hierarchy. "The FA will make the decision on what they want to do," he said. "One hopes they will do it on their thinking and their observations and judgement and analysis on what is happening with the national team and not because some journalist has written something contrary to that." (Reuters)

Euro 2016: Hodgson happy to continue, but will not 'beg' to stay

Holding midfielder Sami Khedira will miss Germany&#39;s Euro 2016 semi-final against host France after he sustained an adductor muscle injury in the quarter-final victory over Italy, coach Joachim Loew said on Monday. 
 
Khedira, who had played in all of Germany&#39;s matches at the tournament, was withdrawn early in Saturdays game after over-stretching during a challenge for the ball. 
 
&quot;Sami Khedira wont play for us on Thursday. We will do everything for him to be available for a potential final,&quot; Loew told reporters of the 29-year-old Juventus player. 
 
&quot;I will have to bring in new names. There will be personnel changes in the lineup.&quot; 
 
Germany are already without suspended central defender Mats Hummels and injured striker Mario Gomez, who will miss the rest of the tournament after also picking up an injury in the shootout victory over Italy. 
 
Gomez, who will remain with the team, is the only specialist striker in the German squad. 
 
Loew said he had enough options in midfield, naming Emre Can as one of Khediras possible replacements due to his versatility. 
 
&quot;He is a player who can be used in a lot of different positions. In training, he has been very convincing. Physically he is very strong and skilled. I think that a player like Can would do our game a lot of good.&quot; Captain Bastian Schweinsteiger was also a doubt with a knee ligament injury and if he did not fully recover by Thursday, he would not play, Loew said. 
 
&quot;We will not put our head in the sand. We will try everything with the players that are doubtful,&quot; the coach added. &quot;One thing is clear: I will definitely not let play anyone who is not 100 per cent fit. I hope and wish that Bastian can make it. 
 
&quot;I made the mistake many years ago (of fielding a player who was unfit) and I wont make it again,&quot; he said, refusing to name the match he was referring to. 
 
&quot;The thoughts we have should not go back to the past but go forward. I fully trust all my players. They are training at a high level, they are physically in very good shape.&quot; 
 
(Reuters)

Germany are already without suspended central defender Mats Hummels and injured striker Mario Gomez who will miss the rest of the tournament

Holding midfielder Sami Khedira will miss Germany's Euro 2016 semi-final against host France after he sustained an adductor muscle injury in the quarter-final victory over Italy, coach Joachim Loew said on Monday. Khedira, who had played in all of Germany's matches at the tournament, was withdrawn early in Saturdays game after over-stretching during a challenge for the ball. "Sami Khedira wont play for us on Thursday. We will do everything for him to be available for a potential final," Loew told reporters of the 29-year-old Juventus player. "I will have to bring in new names. There will be personnel changes in the lineup." Germany are already without suspended central defender Mats Hummels and injured striker Mario Gomez, who will miss the rest of the tournament after also picking up an injury in the shootout victory over Italy. Gomez, who will remain with the team, is the only specialist striker in the German squad. Loew said he had enough options in midfield, naming Emre Can as one of Khediras possible replacements due to his versatility. "He is a player who can be used in a lot of different positions. In training, he has been very convincing. Physically he is very strong and skilled. I think that a player like Can would do our game a lot of good." Captain Bastian Schweinsteiger was also a doubt with a knee ligament injury and if he did not fully recover by Thursday, he would not play, Loew said. "We will not put our head in the sand. We will try everything with the players that are doubtful," the coach added. "One thing is clear: I will definitely not let play anyone who is not 100 per cent fit. I hope and wish that Bastian can make it. "I made the mistake many years ago (of fielding a player who was unfit) and I wont make it again," he said, refusing to name the match he was referring to. "The thoughts we have should not go back to the past but go forward. I fully trust all my players. They are training at a high level, they are physically in very good shape." (Reuters)

EURO 2016: Germany lose Sami Khedira for semifinal

Germany thumped Slovakia 3-0 with goals from Jerome Boateng, Mario Gomez and Julian Draxler to cruise into the Euro 2016 quarter-finals on Sunday and confirm their status as tournament favourites with a sparkling performance. 
 
Central defender Boateng, who had been passed fit after an injury, connected perfectly with a clearance in the eighth minute to volley home from 25 metres for his first international goal as the world champions took control from the start. 
 
The Germans, who next face either holders Spain or Italy, saw Mesut Ozil&#39;s weak 13th minute penalty saved but Gomez made no mistake two minutes from halftime when he tapped home a perfect cut back from the marauding Julian Draxler. 
 
Draxler, coming into the starting lineup for the lacklustre Mario Goetze, was then left with far too much space at the far post to volley in their third just past the hour as the Germans kept a fourth straight clean sheet at the finals. 
 
Comfortable with either foot, the winger utilised his speed and intelligence to good effect, helping his side pin the Slovaks in their own half for much of the opening period. 
 
Boateng opened the scoring with a deflected volley following a corner and ran to celebrate with team doctor Hans-Wilhelm Mueller-Wohlfahrt, who helped him recover from a muscle injury sustained in their last group game with Northern Ireland. 
 
Ozil&#39;s weak penalty, well saved by Matus Kozacik, was one of the few blemishes in an otherwise superb Germany performance. 
 
Slovakia may have got the better of the Germans in a pre-Euro 2016 friendly but, apart from a few forays forward, they were all at sea. 
 
Five minutes before halftime Juraj Kucka forced a flying save from Germany captain Manuel Neuer as he sent Peter Pekarik&#39;s cross toward the top corner. 
 
Germany hit back immediately, Draxler turning Kucka inside out before squaring for Gomez to stab the ball home from close range to make it 2-0. 
 
Slovakia were marginally better in the second half but when the excellent Draxler hooked a volley into the top corner in the 63rd minute there was no way back. 
 
Draxler and Boateng were replaced by Lukas Podolski and Benedikt Hoewedes nine minutes later as the game took on the air of a friendly with Germany&#39;s place in the last eight against Spain or Italy already booked. 
 
(Reuters)

Ozil's weak penalty, well saved by Matus Kozacik, was one of the few blemishes in an otherwise superb Germany performance

Germany thumped Slovakia 3-0 with goals from Jerome Boateng, Mario Gomez and Julian Draxler to cruise into the Euro 2016 quarter-finals on Sunday and confirm their status as tournament favourites with a sparkling performance. Central defender Boateng, who had been passed fit after an injury, connected perfectly with a clearance in the eighth minute to volley home from 25 metres for his first international goal as the world champions took control from the start. The Germans, who next face either holders Spain or Italy, saw Mesut Ozil's weak 13th minute penalty saved but Gomez made no mistake two minutes from halftime when he tapped home a perfect cut back from the marauding Julian Draxler. Draxler, coming into the starting lineup for the lacklustre Mario Goetze, was then left with far too much space at the far post to volley in their third just past the hour as the Germans kept a fourth straight clean sheet at the finals. Comfortable with either foot, the winger utilised his speed and intelligence to good effect, helping his side pin the Slovaks in their own half for much of the opening period. Boateng opened the scoring with a deflected volley following a corner and ran to celebrate with team doctor Hans-Wilhelm Mueller-Wohlfahrt, who helped him recover from a muscle injury sustained in their last group game with Northern Ireland. Ozil's weak penalty, well saved by Matus Kozacik, was one of the few blemishes in an otherwise superb Germany performance. Slovakia may have got the better of the Germans in a pre-Euro 2016 friendly but, apart from a few forays forward, they were all at sea. Five minutes before halftime Juraj Kucka forced a flying save from Germany captain Manuel Neuer as he sent Peter Pekarik's cross toward the top corner. Germany hit back immediately, Draxler turning Kucka inside out before squaring for Gomez to stab the ball home from close range to make it 2-0. Slovakia were marginally better in the second half but when the excellent Draxler hooked a volley into the top corner in the 63rd minute there was no way back. Draxler and Boateng were replaced by Lukas Podolski and Benedikt Hoewedes nine minutes later as the game took on the air of a friendly with Germany's place in the last eight against Spain or Italy already booked. (Reuters)

Germany cruise into last eight with 3-0 Slovakia win

Greece will be recruiting dogs to sniff out potential tax dodgers trying to take cash out of the crisis-hit country, where mass bank withdrawals prompted capital controls last year. 
 
In a posting on a government web portal on Wednesday, the Finance Ministry said it would be putting together a team to assess tenders for the provision of dogs tasked with detecting cash. 
 
More than 50 billion euros left banks from November 2014 to July last year on fears the country could crash out of the euro, a crisis which culminated in capital controls and a new international bailout for the country. 
 
Banking sources estimate that anything between 15 and 20 billion euros is still being hoarded by Greeks outside the banking system. Tax evasion is still thought to be rampant. 
 
Authorities prefer German Shepherds, Labradors or Belgian Melinois, the government document said, reported on Greece&#39;s Star Channel TV. A pedigree was not necessary. 
 
(Reuters)&nbsp; 
 
&nbsp;

Banking sources estimate that anything between 15 and 20 billion euros is still being hoarded by Greeks outside the banking system

Greece will be recruiting dogs to sniff out potential tax dodgers trying to take cash out of the crisis-hit country, where mass bank withdrawals prompted capital controls last year. In a posting on a government web portal on Wednesday, the Finance Ministry said it would be putting together a team to assess tenders for the provision of dogs tasked with detecting cash. More than 50 billion euros left banks from November 2014 to July last year on fears the country could crash out of the euro, a crisis which culminated in capital controls and a new international bailout for the country. Banking sources estimate that anything between 15 and 20 billion euros is still being hoarded by Greeks outside the banking system. Tax evasion is still thought to be rampant. Authorities prefer German Shepherds, Labradors or Belgian Melinois, the government document said, reported on Greece's Star Channel TV. A pedigree was not necessary. (Reuters)

Man's best friend may soon be sniffing out tax dodgers in crisis-hit Greece

France and Britain were vying for fifth place on the list of the world&#39;s biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. 
 
Britain&#39;s gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. 
 
The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. 
 
With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France&#39;s official GDP of 2.182 trillion Euros last year. 
 
Britain&#39;s vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. 
 
But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. 
 
Britain and France, which have similar populations, have swapped positions before in the rankings. 
 
In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. 
 
(Reuters)

The size of the British economy in 2015 is now 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year

France and Britain were vying for fifth place on the list of the world's biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. Britain's gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year. Britain's vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. Britain and France, which have similar populations, have swapped positions before in the rankings. In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. (Reuters)

After Pound drops, France overtakes Britain as world's fifth-largest economy

Britain&#39;s City of London financial district would have to give up its role in processing Euro currency transactions after it leaves the European Union, French President Francois Hollande warned on Wednesday. 
 
Hollande said other European financial centres should be ready to take over from London, which is home to many banking clearing houses that deal with Euros. 
 
&quot;There is no reason for Europe, and still less the eurozone, to allow a country that is no longer a member of the European Union and has never been a member of the eurozone to continue operations in Euros,&quot; Hollande said after a summit in Brussels. 
 
The French leader added that European financial centres should &quot;prepare to take on a certain number of operations that can no longer be done in Britain&quot;. 
 
In a separate interview with French business daily Les Echos Hollande said France itself should &quot;adapt its regulations, including fiscal (regulations) to make the Paris financial centre more attractive&quot;. 
 
On Tuesday, the president of Paris Europlace, a group that promotes French finance, met with finance minister Michel Spain to suggest ways of boosting the French capital&#39;s ability to woo city bankers. 
 
Britain&#39;s shock vote last week to leave the EU has sparked questions over its role as Europe`s financial capital, with cities like Frankfurt, home of the European Central Bank, and Dublin also hoping to cash in on any move out of London by financial companies. 
 
The issue of whether Euro clearing houses can remain in the British capital is set to be one of the most contentious issues as Britain seeks to negotiate its future trade relationship with the EU after its departure. 
 
Britain has jealously guarded its status and won a recent EU court decision against the European Central Bank in order to keep hosting the Euro deals. 
 
Jonathan Hill, a Briton, was the European Commissioner in charge of the coveted financial services portfolio until his resignation on Saturday following the referendum result. 
 
(AFP) 
 
&nbsp;

France will adapt its regulations, including fiscal to make the Paris financial centre more attractive to take over operations from London

Britain's City of London financial district would have to give up its role in processing Euro currency transactions after it leaves the European Union, French President Francois Hollande warned on Wednesday. Hollande said other European financial centres should be ready to take over from London, which is home to many banking clearing houses that deal with Euros. "There is no reason for Europe, and still less the eurozone, to allow a country that is no longer a member of the European Union and has never been a member of the eurozone to continue operations in Euros," Hollande said after a summit in Brussels. The French leader added that European financial centres should "prepare to take on a certain number of operations that can no longer be done in Britain". In a separate interview with French business daily Les Echos Hollande said France itself should "adapt its regulations, including fiscal (regulations) to make the Paris financial centre more attractive". On Tuesday, the president of Paris Europlace, a group that promotes French finance, met with finance minister Michel Spain to suggest ways of boosting the French capital's ability to woo city bankers. Britain's shock vote last week to leave the EU has sparked questions over its role as Europe`s financial capital, with cities like Frankfurt, home of the European Central Bank, and Dublin also hoping to cash in on any move out of London by financial companies. The issue of whether Euro clearing houses can remain in the British capital is set to be one of the most contentious issues as Britain seeks to negotiate its future trade relationship with the EU after its departure. Britain has jealously guarded its status and won a recent EU court decision against the European Central Bank in order to keep hosting the Euro deals. Jonathan Hill, a Briton, was the European Commissioner in charge of the coveted financial services portfolio until his resignation on Saturday following the referendum result. (AFP)

France says post-Brexit Britain must relinquish Euro business

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe&#39;s biggest bourses and a record plunge for Sterling. 
 
Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. 
 
Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. 
 
Billions were wiped from share values as Europe saw London&#39;s FTSE drop six per cent in early deals, Germany&#39;s and France&#39;s CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. 
 
Britain&#39;s big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&amp;P 500 futures were down four per cent and Japan&#39;s Nikkei ended down 7.9 per cent. 
 
The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. 
 
Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. 
 
Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. 
 
Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. 
 
&quot;It&#39;s an extraordinary move for financial markets and also for democracy,&quot; said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. 
 
&quot;The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours,&quot; he added. 
 
The shockwaves affected all asset classes and regions. 
 
The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. 
 
That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. 
 
The Bank of England said it would take all necessary steps to shield Britain&#39;s economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. 
 
Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. 
 
Recession fears 
Europe&#39;s natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. 
 
Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s stability. 
 
&quot;Obviously, there will be large spill-over effects across all global economies if the &#39;Leave&#39; vote wins. Not only will the UK go into recession, Europe will follow suit,&quot; was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. 
 
Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. 
 
Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. 
 
As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor&#39;s warning it would likely downgrade the country&#39;s triple A rating if it left the EU. 
 
Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. 
 
Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. 
 
&quot;It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table,&quot; Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. 
 
Fed funds futures were even toying with the chance that the next move could be a cut in US rates. 
 
Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. 
 
Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. 
 
(Reuters)

The British Pound hits its lowest since 1985, the Euro slides 3.2 per cent while Sterling sinks by 10 per cent

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe's biggest bourses and a record plunge for Sterling. Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. Billions were wiped from share values as Europe saw London's FTSE drop six per cent in early deals, Germany's and France's CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. Britain's big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&P 500 futures were down four per cent and Japan's Nikkei ended down 7.9 per cent. The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. "It's an extraordinary move for financial markets and also for democracy," said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. "The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours," he added. The shockwaves affected all asset classes and regions. The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. The Bank of England said it would take all necessary steps to shield Britain's economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. Recession fears Europe's natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. MSCI's broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe's stability. "Obviously, there will be large spill-over effects across all global economies if the 'Leave' vote wins. Not only will the UK go into recession, Europe will follow suit," was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor's warning it would likely downgrade the country's triple A rating if it left the EU. Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. "It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table," Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. Fed funds futures were even toying with the chance that the next move could be a cut in US rates. Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. (Reuters)

World stocks in free fall as UK votes to exit EU

<div style="text-align: justify;">If Britons vote to take their country out of the European Union on June 23, no corner of the global financial market complex will emerge unscathed. 
The invisible thread that links assets as diverse as gold, bank stocks, the Japanese Yen and government bonds would be yanked sharply by Brexit, an event the Bank of England said on Thursday risks &quot;adverse spill-overs to the global economy&quot;. 
With global interest rates and bond yields the lowest on record, central banks running low on crisis-fighting tools and the post-2008 economic recovery flagging, that thread could quickly unravel, with serious consequences for all markets.&nbsp; 
So why will the will of one country&#39;s people in one referendum have such a profound impact on global markets? 
The answer is partly how inter-connected global markets are, and partly timing - the world economic cycle is already very long in the tooth and central banks have far fewer options open to them after nearly a decade of extraordinary policy support. 
Interest rates, yields 
 
Global interest rates are their lowest for 5,000 years, according to Bank of America, but central banks could still cut them further. That could mean the US&nbsp;Federal Reserve reversing its slow-starting tightening cycle, and European Central Bank and Bank of Japan rates going deeper into negative territory. 
Lower rates would also depress bond yields even further, tightening the screw on central and commercial banks. 
 
Over $8 trillion worth of sovereign bonds already carry a negative yield, according to JP Morgan. This means holders of Japanese, German and Swiss debt are paying these governments for the privilege of lending to them, in some cases out to 20 years. 
 
They are willing to accept they will not get all their money back. Even deeper negative yields would increase these losses, raising further doubt that these are truly &quot;safe haven&quot; assets. 
 
But the immediate economic and political uncertainty after a Brexit vote would likely be so great that demand for these bonds would rise anyway, pulling yields even lower. Yield curves, the difference between short- and longer-dated bond borrowing costs, would flatten further. 
 
They are already their flattest for years around the developed world, meaning the premium investors expect for holding longer-dated bonds is shrinking. This is often an ominous signal of low inflation or deflation, and slowing economic growth or possibly recession. 
 
If &quot;core&quot; bond yields would likely fall, yields on lower-rated and riskier bonds would likely rise, widening the spread between the two. This would increase the financing pressure on a wide range of companies around the world and governments in euro zone &quot;periphery&quot; countries like Greece, Italy and Spain. 
 
Banks - Central and Commercial 
 
Flat yield curves are bad news for banks, who make money from borrowing short-term at low rates and lending longer-term at higher rates. Financial stocks have been hit hard this year as the curve flattening has accelerated. 
 
Euro zone banks are down 30 per cent this year, Japanese banks 35 per cent, UK banks 20 per cent, and US banks 10 per cent. 
 
Banks are also being squeezed by negative deposit rates. The ECB, Bank of Japan and Swiss National Bank all charge banks for depositing cash. 
 
It may even become cheaper for banks to put billions of yen, Euros or Francs of their customers&#39; cash in vaults- a possibility German lender Commerzbank is examining. 
 
As for central banks, any move deeper into the uncharted world of negative interest rates would be taken reluctantly. 
 
In the case of the ECB, declining yields would further cut the amount of bonds eligible for purchase as part of its quantitative easing stimulus programme. That would make its inflation target of just under 2 per cent much harder to achieve, in turn putting its credibility under even greater scrutiny. 
 
Financial Planning 
 
Just as the 2007-08 financial crisis was caused by unprecedented stress in the banking system, analysts fear Brexit fallout could again threaten to block the global financial system&#39;s plumbing. 
 
Banks have recovered from 2007-08, but stresses are already appearing in more obscure pockets of dollar-based FX and rates markets that are hitting levels more associated with periods of crisis. The premium for Dollars over Yen in the cross currency basis market is its highest in years. 
 
Spreads between Libor rates and overnight index swap (OIS) rates, broadly a measure of investors&#39; perception of credit risk in the banking system, are also widening. In normal conditions, Libor/OIS spreads should be virtually zero. 
 
Stocks 
 
World stocks are in their longest bull run in history that began on March 9, 2009. But Wall Street&#39;s peak was reached over a year ago, profit growth has slumped, and companies are reluctant to reinvest their record cash piles. 
 
European stocks are down 13 per cent this year, Japan down 20 per cent, and Wall Street is flat. Would they be able to withstand the political, economic and investment shock a Brexit would likely deliver, especially with risk appetite so fragile? 
 
Currencies 
 
Like 2008, a vote for Brexit would almost certainly increase demand for the pre-eminent currency in global trade, banking and financial market trading: the Dollar. 
 
Dollar credit to non-US banks stands at almost $10 trillion, according to the Bank for International Settlements, of which $3.3 trillion is in emerging markets. A stronger Dollar will increase the overall debt burden for these companies, and many emerging market countries, who would be forced to draw down their FX reserves to counter the expected capital outflow and downward pressure on their currencies. 
 
Japan&#39;s Yen, another safe-haven currency, would probably rise too, perhaps as much as 14 per cent, according to Goldman Sachs. This would not be welcome in Tokyo, where policymakers are struggling to kill off deflation once and for all, stoke inflation, reflate the economy and heal the banking system. A higher exchange rate would be damaging on all those fronts. 
 
(Reuters)</div>

World stocks are in their longest bull run in history that began on 9 March, 2009

If Britons vote to take their country out of the European Union on June 23, no corner of the global financial market complex will emerge unscathed. The invisible thread that links assets as diverse as gold, bank stocks, the Japanese Yen and government bonds would be yanked sharply by Brexit, an event the Bank of England said on Thursday risks "adverse spill-overs to the global economy". With global interest rates and bond yields the lowest on record, central banks running low on crisis-fighting tools and the post-2008 economic recovery flagging, that thread could quickly unravel, with serious consequences for all markets. So why will the will of one country's people in one referendum have such a profound impact on global markets? The answer is partly how inter-connected global markets are, and partly timing - the world economic cycle is already very long in the tooth and central banks have far fewer options open to them after nearly a decade of extraordinary policy support. Interest rates, yields Global interest rates are their lowest for 5,000 years, according to Bank of America, but central banks could still cut them further. That could mean the US Federal Reserve reversing its slow-starting tightening cycle, and European Central Bank and Bank of Japan rates going deeper into negative territory. Lower rates would also depress bond yields even further, tightening the screw on central and commercial banks. Over $8 trillion worth of sovereign bonds already carry a negative yield, according to JP Morgan. This means holders of Japanese, German and Swiss debt are paying these governments for the privilege of lending to them, in some cases out to 20 years. They are willing to accept they will not get all their money back. Even deeper negative yields would increase these losses, raising further doubt that these are truly "safe haven" assets. But the immediate economic and political uncertainty after a Brexit vote would likely be so great that demand for these bonds would rise anyway, pulling yields even lower. Yield curves, the difference between short- and longer-dated bond borrowing costs, would flatten further. They are already their flattest for years around the developed world, meaning the premium investors expect for holding longer-dated bonds is shrinking. This is often an ominous signal of low inflation or deflation, and slowing economic growth or possibly recession. If "core" bond yields would likely fall, yields on lower-rated and riskier bonds would likely rise, widening the spread between the two. This would increase the financing pressure on a wide range of companies around the world and governments in euro zone "periphery" countries like Greece, Italy and Spain. Banks - Central and Commercial Flat yield curves are bad news for banks, who make money from borrowing short-term at low rates and lending longer-term at higher rates. Financial stocks have been hit hard this year as the curve flattening has accelerated. Euro zone banks are down 30 per cent this year, Japanese banks 35 per cent, UK banks 20 per cent, and US banks 10 per cent. Banks are also being squeezed by negative deposit rates. The ECB, Bank of Japan and Swiss National Bank all charge banks for depositing cash. It may even become cheaper for banks to put billions of yen, Euros or Francs of their customers' cash in vaults- a possibility German lender Commerzbank is examining. As for central banks, any move deeper into the uncharted world of negative interest rates would be taken reluctantly. In the case of the ECB, declining yields would further cut the amount of bonds eligible for purchase as part of its quantitative easing stimulus programme. That would make its inflation target of just under 2 per cent much harder to achieve, in turn putting its credibility under even greater scrutiny. Financial Planning Just as the 2007-08 financial crisis was caused by unprecedented stress in the banking system, analysts fear Brexit fallout could again threaten to block the global financial system's plumbing. Banks have recovered from 2007-08, but stresses are already appearing in more obscure pockets of dollar-based FX and rates markets that are hitting levels more associated with periods of crisis. The premium for Dollars over Yen in the cross currency basis market is its highest in years. Spreads between Libor rates and overnight index swap (OIS) rates, broadly a measure of investors' perception of credit risk in the banking system, are also widening. In normal conditions, Libor/OIS spreads should be virtually zero. Stocks World stocks are in their longest bull run in history that began on March 9, 2009. But Wall Street's peak was reached over a year ago, profit growth has slumped, and companies are reluctant to reinvest their record cash piles. European stocks are down 13 per cent this year, Japan down 20 per cent, and Wall Street is flat. Would they be able to withstand the political, economic and investment shock a Brexit would likely deliver, especially with risk appetite so fragile? Currencies Like 2008, a vote for Brexit would almost certainly increase demand for the pre-eminent currency in global trade, banking and financial market trading: the Dollar. Dollar credit to non-US banks stands at almost $10 trillion, according to the Bank for International Settlements, of which $3.3 trillion is in emerging markets. A stronger Dollar will increase the overall debt burden for these companies, and many emerging market countries, who would be forced to draw down their FX reserves to counter the expected capital outflow and downward pressure on their currencies. Japan's Yen, another safe-haven currency, would probably rise too, perhaps as much as 14 per cent, according to Goldman Sachs. This would not be welcome in Tokyo, where policymakers are struggling to kill off deflation once and for all, stoke inflation, reflate the economy and heal the banking system. A higher exchange rate would be damaging on all those fronts. (Reuters)

Tracing global market thread that could be unraveled by Brexit

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