Germany opposes Greek debt write-down for ECB (by MarketWatch)

LONDON (MarketWatch) -- German Economy Minister Philipp Roesler rejected calls for the European Central Bank to take a hit on its holdings of Greek government debt in an interview published by The Wall Street Journal on Friday. "The current discussion is primarily about private-sector involvement. European states and their taxpayers already make a massive contribution to Greece's restructuring process though their support efforts," Roesler said. Private bondholders and the Greek government are attempting to finalize an agreement on a 50% voluntary writedown of Greek debt. Private creditors have called on the official sector to also share the pain, while European Union and International Monetary Fund have also hinted the ECB may need to share in write-downs. Germany and the ECB have resisted calls for the ECB to take haircuts on its holdings.

Euro-zone ministers won't meet Monday on Greece (by William L. Watts)

FRANKFURT (MarketWatch) -- Euro-zone finance ministers canceled a meeting that had been tentatively set for Monday, according to an announcement released Friday on behalf of Luxembourg Prime Minister Jean-Claude Juncker, who chairs meetings of euro group ministers. A meeting may be set later next week if warranted, the statement said. Dow Jones Newswires reported earlier Friday that the meeting, which was due to focus on Greece's second bailout, could be postponed to give negotiators representing private-sector bondholders and the Greek government more time to complete talks on write-downs on the value of privately-held Greek debt.

Euro-zone composite PMI confirms growth in Jan. (by William L. Watts)

FRANKFURT (MarketWatch) -- Private-sector activity in the 17-nation euro zone returned to growth in January, according to the final Markit composite purchasing managers index for the region released Friday. The index rose to 50.4 in January from 48.3 in December, confirming an earlier flash estimate. A reading of more than 50 indicates growth in activity, while a figure below that level indicates contraction. The reading marked the first move back above 50 in five months. The data continued to show a divide across the region, with German PMI hitting a seven-month high and French PMI hitting a five-month high, while readings for Italy, Spain and Ireland remained below the 50-level, although the rate of decline eased in Italy and Spain.

British services PMI jumps in January to 56.0 (by William L. Watts)

FRANKFURT (MarketWatch) -- The Markit/CIPS purchasing managers index for Britain's dominant services sector rose to a 10-month high at 56.0 in January from 54.0 in December. Economists had forecast a January reading of 53.3. A reading of more than 50 signals growth in activity, while a figure of less tha 50 indicates a contraction. "Compared to the volatility seen through most of last year, sustained and accelerated growth in the service sector is welcome news," said David Noble, chief executive of the Chartered Institute of Purchasing and Supply. "A record improvement in the degree of optimism and the highest increase of employment in nearly four years represents a tentative vote of confidence for the year ahead," he said.

Euro-zone retail sales down 0.4% in December (by William L. Watts)

LONDON (MarketWatch) -- It was a disappointing holiday shopping season for euro-zone retailers in December, data showed Friday. Retail sales across the 17-nation region fell 0.4% in December, the European Union statistics agency Eurostat reported. Compared to December 2010, sales declined 1.6%. Economists had forecast a 0.2% monthly rise in December sales and a 1.3% year-on-year fall.