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 Pimco said current policies are untenable in the absence of fiscal union and will lead to a break-up of the euro?

Andrew Bosomworth, head of Pimco's portfolio management in Europe, said current policies are untenable in the absence of fiscal union and will lead to a break-up of the euro.

"Greece, Ireland and Portugal cannot get back on their feet without either their own currency or large transfer payments," he told German newspaper Die Welt.

He said these countries could rejoin EMU "after an appropriate debt restructuring", adding that devaluation would let them export their way back to health.

Mr Bosomworth said EU leaders were too quick to congratulate themselves on saving the euro last week with a deal for a permanent bail-out fund from 2013.

"The euro crisis is not over by a long shot. Market tensions will continue into 2011. The mechanism comes far too late," he said.

The bond fund argues that the EU strategy of forcing heavily indebted countries to undergo draconian fiscal austerity without offsetting stimulus is unworkable.

The austerity policies are stifling the growth needed to stabilise debt levels.

"Can countries inside a fixed exchange-rate system like the euro grow and tighten budget policy at the same time? I don't think so. It didn't work in Argentina," Mr Bosomworth said.

Pimco also gave warning that the bond vigilantes have lost faith in the policy and are trying to liquidate their holdings of peripheral EMU faster than the European Central Bank (ECB) can buy the debt, causing a relentless rise in yields, and a vicious circle.

Despite this, the ECB said on Monday that it had cut purchases of government debt last week, settling €603m (￡509m), down from €2.68bn a week earlier. The withering comments from the world's top investor in EMU sovereign debt is a blow for Portugal and Spain. Both nations are hoping bond spreads will start to narrow before they face a funding crunch in the first quarter of next year.

Jacques Cailloux, chief Europe economist at RBS, agreed that last week's European summit had failed to grasp the nettle.

"None of the policy responses put in place in Europe since the start of the crisis provides a credible backstop to prevent further contagion," Mr Cailloux said.

"We remain most concerned about an escalation of the sovereign debt crisis hitting larger economies in the euro area. Markets continue to underestimate the potential disruption via financial transmission channels that such an event could trigger."

Meanwhile, Spain must cut harder and deeper to rein in its finances, the OECD has warned, calling for an overhaul of its labour laws and employment practices. Madrid is already in the midst of harsh austerity measures, but the influential Paris-based think-tank said more must be done. The Spanish economy should be able to shrink its budget deficit from 11pc of GDP last year to the 6pc target next year, the OECD believes.

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Greek prime minister George Papandreou and European Commission president Jose Manuel Barroso speaking to the press on Monday?Photo: BLOOMBERG

Under questioning from MPs on the Treasury Select Committee, Stephen Nickell, a member of the Office for Budget Responsibility (OBR) and a former Bank of England rate-setter, said a collapse of the single currency was "a possibility".

Asked more broadly about the sustainability of currency unions, he added: "The general consensus is that sooner or later they fail for one reason or another – but that doesn't mean to say it always happens."

His comments came as deep divisions in the eurozone threatened to drive Spain, Portugal and Ireland into more difficulty.

Attempting to defy Germany, the eurozone's powerhouse and the nation that will provide the bulk of any rescue fund, Belgian Finance Minister Didier Reynders called for the €440bn bail-out fund to be expanded, while Luxembourg Finance Minister Jean-Claude Juncker and Italian counterpart Giulio Tremonti outlined proposals for a joint European government bond.

However, Germany, the Netherlands and Austria on Monday pitched themselves against weaker member states by insisting the rescue package should not be increased. Finance ministers from the 16 member nations were debating the bail-out plans late into the night.

Mr Juncker and Mr Tremonti's "E-Bonds" would be sold by a European Debt Agency, created as early as this month, to finance as much as 50pc of the issuances by EU members. For troubled members, like Ireland and Portugal, it could fund the entire bond issue.

However, Angela Merkel, the German Chancellor, quickly dashed hopes by rejecting the idea as unworkable and stating: "I see no need to expand the fund right now."

As market fears revived, the cost of insurance for Irish, Greek, Portuguese, Italian and Spanish sovereign debt rose. Bond yields were also higher as institutions shunned governments.

Ireland, which faces a crucial vote on its debt reduction plans on Tuesday, offered some rare good news as the government appeared to have won sufficient parliamentary support to push the plans through and qualify for the €85bn bail-out package.

On the euro, Mr Nickell said: "There is a possibility it will collapse but at the moment it is not something to which I subscribe a very high probability." Asked to estimate the probability he said: "1.7pc".

Meanwhile, European Central Bank (ECB) Governing Council member Nout Wellink said it is not the central bank’s task to rescue euro-area countries with funding problems.

“It’s not up to the ECB to save countries where governments run the risk of becoming insolvent,” Wellink, who also heads the Dutch central bank, said. “We are not here to take over, on our balance sheet, the risks of the national economies of Europe.”

Greece: 11.393 (+0.39)

Ireland: 7.916 (+0.1)

Portugal: 5.701 (-0.1)

Spain: 5.080(+0.9)

Italy: 4.461 (+0.7)

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One of the directors of the Rok said rok has suffered a catastrophic September with 30pc revenue in the budget.

Garvis Snook, Chief Executive, said an agreement to ensure that repair of building and demand management services subscription Tesco "reflects the quality work directly employed technicians" home insurance customers.Snook confidence in his company also expressed financièrement.Le 4 October, alongside three other directors, he bought ￡ 97,059 Rok actions.

Just one month later, however, and society is administration.Même according to the standards of this recession, the rate of disappearance of Rok is shocking. Believed only consulting company have been informed of the impending administration late in the night of Sunday.

Mike Jervis, administrators a joint of PricewaterhouseCoopers, said Monday that Rok suffered a catastrophic September with and 30pc revenue budget .the ' fall, he said, was on the whole, but led primarily by the public sector - customers representing 55pc Rok - contracted cutting back of the construction business. As Rok was a fixed price basis to meet its contracts with clients such as insurance, this seriously trapped trésorerie.M flows.Jervis said: "when business turnover decreases farther because it was the case here, and you encounter finance commercial losses, you can run roads very quickly."

However, although difficult economic conditions, none of the rivals of Rok - prohibiting the Connaught - defunct reported that this terminal decline.For Rok investors, which include the BlackRock, this means a lot of questions, especially because of the bizarre events during the summer.

August 11, shares of Rok drops 45pc company has suspended its Finance Director after identification "serious misconduct" in financial reporting of its plumbing, heating and electricity.However, on 30 September, Rok has lifted the suspension and apologizes to Ashley Martin, who quit anyway, saying that he had found in the division of the problems were "due to scale back subcontracting of work in the private housing sector"and the weakness of operational, commercial and financial controls"."

Until Monday, it was last updated on Rok.On trade means refinancing talks were perpetrated with the Royal Bank of Scotland but negotiations close sources say the administration is not related to this because they were still at a stage "investigation" and are there any funding proposal on the table.

According to Mr. Jervis, management has asked banks to call administrators "due to difficulties to meet the financial obligations of the company" to fournisseurs.Cependant, he insisted suppliers were not squeezing the société.M. ""Jervis added: "we have a duty to examine the circumstances that led to the insolvency, including the conduct of Directors .donc we do that, we always, but I'm not going to comment on this yet."

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PwC said that he was called in at the request of management Rok, led by Chief Executive Garvis Snook.

The disappearance of the former stock market darling, who carries out construction repairs for insurers and advice, left the 3,800 jobs at risk and more than 60 m ￡ with the Royal Bank of Scotland, HSBC and Clydesdale Bank debt.

PWC appointed administrators Rok Plc and Rok Building Monday, Limited, however, said that he had already received more than 50 expressions of interest in the acquisition of Rok or contracts individuels.Mike Jervis, administrator of the commune, said: "our immediate priority is to examine the financial situation of the company and ask for a buyer business emergency."

According to Jervis, PwC was called after the Rok revenues fell 30pc below of budget in September as public sector - clients representing 55pc Rok - sustained business of austerity measures.

Mears, group housing, is nominated for purchase contracts, he then rival Connaught collapsed in September. "People who are interested in these types of companies achieve experience is gasoline,", said Mr. Jervis. " We are talking days rather than weeks.?

The appointment of administrators is just six weeks after Rok said in a trading update that he is confident that meet the expectations of the market this year.Sources close to the circumstances of the average administration regulation the Financial Services Authority is almost certain to explore the disappearance of the Rok.The FSA has refused to comment.

Shares of the company decreased by 45pc on 11 August, when warned Rok "grave breaches" in his plomberie.Toutefois company accounting, next month, Rok cleared its reprehensible acts said issues in its activities of Avonside, acquired in 2007, Finance Director are to fall to work with housebuilders and "weak operational, commercial and financial controls.

PwC said that he was called in at the request of management Rok, led by Chief Executive Garvis Snook.On means rok has been in discussions with lenders to refinance, although these talks close sources claim it wasn't the reason Administration list.it framework talks, RBS is supposed to have appointed PwC to examine the accounts of the Rok on these past few weeks and June placed Rok in arm restructuring interne.La Bank has refused to comment on.

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By Allison Linn, business writer

As if it is not difficult to find a job today, there are new items of evidence that the weak housing market adds to the misfortunes of jobseekers in the nation.

Challenger, gray and Christmas said Thursday that only 6.9% of the population who crossed outplacement program the company moved a new job in the third quarter.

Which is the lowest percentage since Challenger data monitoring in 1986 and is a rate of relocation of 13.4 per cent in the same quarter a year earlier.

The follow-up survey 3,000 people in the June-September period, mostly dismissed managers or executives.

Replacement, firm says the percentage decline in people who move elsewhere for their next position shows that many are poorly to sell their houses to move, or do not have any chance to get their new employers to pay hefty relocation expenses associated with depressed real estate.

"Who are owners of a House - even if they are open to a new job - job seekers are mostly blocked where they are if they are unable or refuse to sell their home without significant loss" Challenger John a., Executive Director, Challenger, gray & Christmas, said in a release.

The percentage of clients Challenger who moved new jobs actually declined to plues years since the Challenger began collecting data.

In the third quarter, 1986, 40% of people who have gone through replacement program for the Challenger moved .and employment within three months of comparable in 2000, this figure was still at 23.5%.

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Questor says BUY

As noted on 19 August: "Quaestor grew more in more uncertain as to whether the company will be approved and suspected that management believes it too."

Although the shares of both companies fell yesterday, falls were in line with the rest of the sector — as the dollar staged a rebound after the recent falls.

When the dollar decline, prices for raw materials tend to increase as they are less expensive in other monnaies.lorsque dollar rises, and prices tend to fall.

Joint venture would have resulted in $with (￡ 6 United) annual cost - which is importantes.Rio Tinto have also received a "equalization payment" savings BHP.

Indeed, the economies of the exploitation of iron ore were an important factor to consider when BHP bid for Rio Tinto all shares in November 2007 in the context of a market booming commodity.

Part of the Rio defense against the approach was that the Pilbara infrastructure and its operations were well above those of BHP.However, BHP walking away from any agreement that the credit crunch has caused the development of products to relax.

When the iron ore joint venture was announced, it is a moment of crisis for Rio.The company stock prices had plunged as the credit crunch hit because the group composing with approximately had been $ debt from its purchase of Canadian aluminium group Alcan.

To strengthen its balance sheet, Rio has accepted this group controlled by the Chinese State Chinalco would inject $19. 5bn in the company in return for a doubling of the participation of the Rio Group in 18pc.This caused uproar among other shareholders because it ignored their pre-emption rights and promoted a sole shareholder rather than another.

Due to the concerns of the shareholder, Rio has decided to walk further Chinese investment in favour of a question of rights and this venture with BHP.Il has been agreed that BHP would pay a sum of cash 5 $ 8bn in Rio at their operations "equalize".

Given that the transaction has been agreed, the iron ore market has stimulated and many Rio shareholders not would have been blamed for wanting higher equalization payment.

However, it is now a point moot .c ' was regulators who scuttled the agreement finally as the combination was too much for competition regulators European and asiatiques.Comme is a joint decision there is no tax payable break.

Thus, BHP and Rio will now she seule.Rio plans to expand production of 330 m tons iron ore per year by 2015 - up to 220 m tonnes maintenant.BHP Billiton plans to increase production to 240 m tonnes per year by 2014.Actions BHP may underperform in Rio, as is currently the first, in a situation of hostile bid with PotashCorp, resulting in uncertainty.

Rio shares are trading on earnings from December 2010 multiple 9.6, falling to 8.2 next year.

Shares increased 21pc since 4 may, when they were tipped title as a purchase to ￡ 33.79, compared to a market until 6pc.Les actions are still a purchase.

A club of hand, Garry white is a member, is the owner of 274 BHP Billiton shares.

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