More broadly, investors in Europe welcomed developments in the fiscal negotiations in U.S., with the debt-ceiling looming and the government shutdown moving into Day 15. On the Senate floor on Monday, Senate Majority Leader Harry Reid said he was very optimistic about concluding deals this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the minority leader, said he shared Reids feeling that well get a result thats acceptable to both sides. YHOO | KO | JNJ | INTC | CSX | C /conga/story/misc/earnings_wall_threewide.html 282934 U.S. stocks rose on Monday , and futures also pointed to a higher open on Tuesday . Asia markets closed mostly higher . German data further provided investors with a reason to celebrate. The ZEW sentiment survey showed that the economic expectations indicator rose further above its long-term average in October, to 52.8 points from 49.6 points in Septemberbeating economists expectations for an unchanged reading. Germanys DAX 30 index /quotes/zigman/2380246 DX:DAX +0.72% jumped 0.7% to 8,786.00, on track for the highest close on record. The U.K.s FTSE 100 index /quotes/zigman/3173262 UK:UKX +0.77% picked up 0.9% to 6,562.99, while Frances CAC 40 index /quotes/zigman/3173214 FR:PX1 +0.57% rose 0.5% to 4,245.75. Morgan Cazenove lifted the equipment-rental company to overweight from neutral.

Roland Berger Sees Widening Europe North-South Competitive Gap

Completely unsurprisingly, the falloff in government investment (i.e., subsidization) has been mirrored by a falloff in private investment, via Bloomberg : Clean-energy investment fell 14 percent in the third quarter from the prior three months as Europe curbed subsidies and cheaper U.S. natural gas lured investment. The $45.9 billion spent makes it almost certain that annual investment in renewables and energy-smart technologies will fall for the second consecutive year from $281 billion in 2012, Bloomberg New Energy Finance said in a statement. Investment in the quarter was 20 percent lower than the same period last year as spending in China, the U.S. and Europe fell. The U.S. saw the largest decline, sliding 41 percent to $5.5 billion, according to the London-based research company. Europes clean-energy industry is retrenching after subsidies were reduced in nations from Germany to Spain, which helped propel record growth in previous years. Cheap gas in the U.S. driven by a shale-drilling boom and a reduction in Chinas spending on wind power wind power also contributed to the overall decline, the London-based consultant said One of the most facepalm-worthy parts of all of this is that supporters of the Obama administrations regulatory war-on-coal largely and blithely rely on the argument that because the coal-substitute of natural gas has been doing so well, coal is naturally entering its sunset years anyway and will shortly fall prey to the economical powers of creative destruction but strangely, they often forget to mention that coal could easily regain market share in the event that natural gas prices begin to rise for whatever reason The Obama administration is effectively barring that from happening on the domestic scene, while foreign demand for coal is growing; you need look no farther than Europe as a current Exhibit A for that eventuality. The editors of RealClearEnergy , therefore, would rather the Continent spare us the lectures, emphasis mine: What happens when you dont frack and you decide to shut down nuclear? You return to coal. Thats the lesson that Europe is learning these days.

Europe stocks rise on U.S. budget deal progress

Earnings Wall

Even as Europes economy recovers in 2014, with significant expansion in 2015, governments need to increase investment in infrastructure and education while cutting public debt, according to the study. A majority of the southwest European respondents still sees the economy stagnating in 2015. People are asking whether it makes sense yet to invest in southern Europe, Max Falckenberg, a Berlin-based partner at Roland Berger who led the survey, said in a telephone interview. The process will be slow, because the unit labor costs and productivity in southern Europe need to become more competitive and the market needs further stabilization. Switzerland is the worlds most competitive economy, the World Economic Forum said Sept. 4, holding the top spot for a fifth year. Germany and the U.S. rose two slots to fourth and fifth respectively in the Geneva-based organizations 148-nation league. Singapore and Finland retained their second and third positions. Of the 701 respondents, 70 percent forecast economic expansion in 2014, with significant growth in 2015, the Roland Berger study showed. About 53 percent of respondents in northwest Europe expect their competitiveness relative to the region to improve. By contrast, only 10 percent in southwest Europe see an improvement in their position.