Tag: debt crisis

Cost-cutting boosts Barclays profits

Cost-cutting boosts Barclays profits

In an interim management statement today, banking giant Barclays said profits climbed 5% in the third quarter – boosted by cost-cutting measures. For the three months to the end of September, the bank said pre-tax profits were £1.34 billion, versus £1.27 billion for the same period a year earlier. However, revenues for the three month [...]

October 31, 2011 | 0 Comments More
Euro crisis: Leaders gather for emergency summit

Euro crisis: Leaders gather for emergency summit

EU leaders are travelling to Brussels for an emergency summit – the 14th in 21 months – designed to tackle the euro zone debt crisis. The summit will also see leaders discuss Greece’s second bailout, as well as boosting the €440 billion rescue fund. There are still growing fears that Greece’s debt crisis could spread [...]

October 26, 2011 More
German Government slashes economic growth forecast

German Government slashes economic growth forecast

The German Government has today slashed its growth forecasts for the euro zone’s largest economy. The Government said it now expected the economy to expand by 1% in 2012, down from an earlier estimate of 1.8%. Meanwhile, this year’s forecast has been lowered slightly to 2.9% from 3%. Its downgrade comes just a week after [...]

October 20, 2011 More
Euro debt crisis impacts on Goldman Sachs Q3 results

Euro debt crisis impacts on Goldman Sachs Q3 results

US banking giant Goldman Sachs has today reported a fall in third quarter profits. Goldman Sachs, which is the US’ largest investment bank, made a net loss of $393 million (£250 million) for the third quarter compared with profits of $1.9 billion a year earlier. The bank said trading was “significantly impacted” by the euro [...]

October 18, 2011 More
Item Club warns of euro zone crisis impact

Item Club warns of euro zone crisis impact

Leading think tank, the Ernst & Young Item Club, has warned that growth within the UK economy is “grinding to a halt” because of the euro zone debt crisis. The Item Club also warned that the quantitative easing (QE) measures, announced recently by the Bank of England, are unlikely to boost the recovery. Its comments [...]

October 17, 2011 More
IMF downgrades growth forecast for Asia

IMF downgrades growth forecast for Asia

The Washington-based International Monetary Fund (IMF) has downgraded its growth prospects for Asia amid the euro zone debt crisis and sluggish US growth. The IMF is now forecasting growth for Asia of 6.3% in 2011 and 6.7% in 2012. This is slightly lower than the 7% growth for both years it estimated in April. According [...]

October 14, 2011 More
Euro zone’s ‘powerhouse’ expected to slow

Euro zone’s ‘powerhouse’ expected to slow

Growth in the Germany economy, which is the euro zone’s largest, is expected to slow sharply next year as the ongoing debt crisis persists. In a closely monitored twice-yearly report, Germany’s leading economic institutes have slashed their growth forecasts for the economy from 2% next year to 0.8%, citing the debt problems in the euro [...]

October 13, 2011 More
Japan core machinery orders surge in August

Japan core machinery orders surge in August

Japanese core private-sector machinery orders – a highly volatile series seen as an indicator of corporate spending – surged in August. According to the Cabinet Office, orders grew 11% in August on a monthly basis – the strongest pace in a year – and also beating forecasts. Orders have fallen over recent months due to [...]

October 12, 2011 More
David Cameron urges action for euro zone

David Cameron urges action for euro zone

British Prime Minister, David Cameron, is urging European leaders to take “decisive steps” to deal with the debt crisis. Mr Cameron said the crisis is putting the global economy in a “precarious” situation and told leaders of the 17-member nation they had a “collective responsibility” to avoid a disaster. Mr Cameron told the Financial Times [...]

October 10, 2011 More
Euro zone interest rates remain on hold

Euro zone interest rates remain on hold

The European Central Bank (ECB) has today opted to leave interest rates unchanged at 1.5% – for the third consecutive month. The move was widely expected. Rates were lifted from the historic low of 1% in April and then raised further in July in a bid to curb rising inflation. Many major economies are battling [...]

October 6, 2011 More
Hometrack: House prices fall in September

Hometrack: House prices fall in September

According to housing intelligence group, Hometrack, house prices in England and Wales fell in September – the 15th consecutive monthly fall. According to Hometrack, house prices dipped by 0.1% in September on a monthly basis and are 3.5% lower on the year. Hometrack attributes the ongoing trend to weak demand for housing on the uncertainty [...]

October 3, 2011 | 1 Comment More
German unemployment hits lowest level in 20 years

German unemployment hits lowest level in 20 years

Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September. The country’s unemployment rate fell from August’s rate of 7% to 6.6%. Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million. It was also [...]

September 30, 2011 | 0 Comments More
Price of gold extends losses

Price of gold extends losses

The price of spot gold fell further today – to a 2½-month low of $1,624 – after reaching a record high of $1,920.94 a troy ounce earlier this month. This represents the sharpest drop since March 2009 – in the aftermath of the collapse of US bank, Lehman Brothers. Gold is now down 9% from [...]

September 27, 2011 | 0 Comments More
Ifo: German business confidence falls for third straight month

Ifo: German business confidence falls for third straight month

The Munich-based Ifo think tank has today revealed confidence among German firms fell for the third consecutive month in September. The closely-watched Business Climate Index dipped to 107.5 this month from August’s reading of 108.7 - this represented the lowest level since June 2010. However, the fall was not as bad as the 106.5 economists [...]

September 26, 2011 | 0 Comments More
German analyst and investor confidence down in September

German analyst and investor confidence down in September

The Zew economic sentiment index has revealed German analyst and investor confidence fell to a 2½ year low in September as the ongoing euro zone debt crisis and fears of a global slowdown dampened sentiment. The index, which measures expectations of economic activity over the next six months, fell for the seventh consecutive month to [...]

September 20, 2011 | 0 Comments More
S&P downgrade Italy’s sovereign debt

S&P downgrade Italy’s sovereign debt

Credit ratings agency Standard & Poor’s (S&P) has today downgraded Italy’s sovereign debt by one notch to A from A+, and kept it on a negative outlook. The agency cited weak economic growth prospects, which may impact on the country’s ability to reduce its deficit. The Italian Senate recently passed a tough austerity budget, which [...]

Euro zone growth will slow but no recession

Euro zone growth will slow but no recession

The European Commission has today warned that euro zone growth will almost grind to a halt in the second half of the year. Its prediction comes amid the ongoing debt crisis in the 17-member region. It slashed growth forecasts for the third quarter to 0.2%, while growth for the final quarter has been revised down [...]

September 15, 2011 | 0 Comments More
OECD lowers growth prospects for major economies

OECD lowers growth prospects for major economies

The Paris-based Organisation for Economic Cooperation and Development (OECD) has revised its growth forecasts for major economies. The US, which is the world’s largest economy, is expected to see growth in the third quarter of 1.1% and 0.4% in the fourth – this is far lower than the previous estimates of 2.9% and 3%. However, [...]

September 8, 2011 | 0 Comments More
Global stocks down on euro zone and recession fears

Global stocks down on euro zone and recession fears

Global stocks have fallen to a one-week low today with banks among the worst performers. Concerns that the euro zone may not be able to contain its debt crisis, together with fears of the US slipping back into recession sent European shares falling this morning. Deutsche Bank lost 7.3% in early trading today, Societe Generale [...]

September 5, 2011 | 0 Comments More
Stocks fall as Morgan Stanley downgrades global GDP

Stocks fall as Morgan Stanley downgrades global GDP

US banking giant Morgan Stanley today downgraded its forecast for global economic growth, sending stock markets falling throughout the world. The American bank lowered its expectations for world growth for the 2011 year to 3.9% from 4.5%, while also downgrading 2012 growth to 3.8% from 4.5%. The downgrade sent shockwaves through stock markets as double-dip [...]

August 18, 2011 | 0 Comments More