STOCK MARKET WATCH -- Wednesday, 18 April 2012

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18. Eurozone crisis live: German borrowing costs hit record low after Portugal admits it may need more

http://www.guardian.co.uk/business/2012/apr/18/eurozone-crisis-portugal-bailout-imf

Eurozone crisis live: German borrowing costs hit record low after Portugal admits it may need more help

12.27pm An interesting research note from UBS argues today that Ireland should be given plenty of slack by the Troika if it misses the targets set under the bailout.

FT Alphaville has the full note (scroll to 11.28am its excellent Markets Live session). Here's a flavour:

The more important factor is that Europe needs Ireland to succeed as much as Ireland needs Europe. Why is that? Quite simply, because here is a country that has diligently stuck to the fiscal targets and also adopted a textbook reform agenda: if it fails, there is a risk that other vulnerable economies such as Portugal, Spain and Italy will fail too.

Put differently, provided Ireland makes an earnest effort, this symbiotic relationship should serve it well.

12.14pm: The eurozone crisis received a mention at Prime Minister's Questions in the House of Commons.

Asked about Standard & Poor's decision last Friday to reaffirm Britain's AAA rating and stable outlook, David Cameron said

We've received more reminders from other European countries this week about the importance of getting on top of your deficit, on top of your debts, and having a proper plan.

And Fraser Nelson, Editor of The Spectator, swiftly tweets a photo showing how predictions for Britain's deficit-reduction schedule have steadily worsened since Cameron took over...

Fraser Nelson@frasernelson
In PMQs, Cameron talks about "importance of getting on top of the deficit". Here's his progress over two years. twitpic.com/9b7kqh