Dec. 29 - The euro sinks to a fifteen-month low and the ECB is forced to step back into the market after a poorly received Italian debt auction.
Hear those things to a fifteen month low -- the ECB is forced to step back into the market opera -- received Italian deaths oceans. Runs ten year bond -- east at the sale from Euro lifetime highs hit last month but quickly climbed back above 7%. On today's auction has done little to calm fears of a chaotic best quarter of Italy's finances with borrowing -- still seen as being close to unsustainable. Dealers reported the ECB buying small quantities of Italian bonds on the open market. Prime minister Mario Monti says they'll present -- growth strategy to EU finance ministers on January the 23. Aimed at reducing the number of young unemployed. Not surprisingly the European debt crisis is dominating a thin holiday markets as 2011. Draws to a close. When looking at the lost trading session of the year now and the Spanish prime minister Mariano Rajoy is due to announce detailed spending cuts on Friday. The new center right government needs to find savings of around twenty billion euros to meet its deficit target of four point 4% of GDP next yet. Unions say minimum wages will be frozen in an effort to rein in one of the Euro zone's biggest deficits. Spain's borrowing costs which had risen close to the critical 7% level. Have dropped since the ECB's injection of nearly half a trillion euros in cheap -- earlier this month. The Newton senior political analyst at the Mira says the Spanish government is better place than its Italian counterpart. He is the head of the democratically elected government he has the mandate. For what he is gonna have to -- bank. We should help him in the weeks and months to come of what is going to be a long and tough road despite the progress with structural reform and fiscal. Retrenchment we -- previous outgoing government made. Now. Well rough holy is likely to run into significant problems in my view is that he is gonna have to face them the public sector unions. In other news preliminary data showed German inflation slowed by more than expected to an annual rate of two point 1% in December. Is the lowest reading since March and closer to the ECB's Europe and target of just under 2%. Turkish warplanes have launched airstrikes against suspected Kurdish militants in Northern Iraq local officials say the action killed at least 35 smugglers. To a mistaken for -- us. And the US fifth fleet says it will not allow any disruption to shipping in the Strait of Hormuz. The move comes up to Iran threatened to stop traffic moving along the world's most important oil went. That's all from us and now I'm Nigel Stephenson this is --