Euro Lower by Jean Jacques Chenier

New York 22 August 2010:

The euro zone's private sector expanded at a slower pace in August. The
preliminary composite purchasing managers index for the euro zone fell to 56.1
in August from July's 56.7. Economists had forecast a reading of 56.3.

 Both France and Germany posted better-than-expected results, while other
euro-area economies dragged on the headline index, stoking investor fears that
the severe fiscal tightening in smaller euro-zone countries is crimping growth.

 The data comes after comments on Friday by European Central Bank official
Axel Weber--usually seen to be one of the central bank's most conservative
members--who said that the ECB should offer unlimited liquidity for Europe's
banks into 2011.

 With Weber's comments still in investors' minds, the "weaker than expected
European PMI data for August did the euro no favors.

 Jean Jacques Chenier