Standard & Poor’s Ratings Agency has downgraded Italy one step as the EU nation’s economy continues in a downward spiral.
S&P said the continued weakness of the Italian economy was the reason behind the cut from BBB+ to BBB. The ratings agency said that their expectation of the Italian economy had downgraded to a 1.9% contraction, significantly worse than previously forecasts. Continue reading
Chinese officials have caused concern in world markets with a surprise announcement that both imports and exports fell in June.
China had been trying to maintain that the country’s economy was not slowing down but a 3.1% downturn in exports from a year prior is leading economists to watch for a slowdown. Continue reading
The Eurozone debt crisis, which has stabilized over the last year, is in danger of seriously exploding as the government of Portugal is threatening to collapse.
Portugal’s Prime Minister made a national address Tuesday night saying he refused to accept the resignation of the country’s foreign minister and that he would try to go on governing. Continue reading
The Republic of Ireland has reported that in the fourth quarter of 2012 and the first quarter of 2013 a decline in business and services. The two consecutive declines means the economy is officially back in recession.
Preliminary estimates show the country’s GDP was down .6% in the first quarter of 2013. Continue reading
After the U.S. Federal Reserve indicated it would begin to scale back stimulus funds later this year, global markets responded with significant downturns.
European stock markets were off 3% along with other risky investments. With the belief that interest rates will be rising earlier than expected the dollar rose in late trading. Continue reading
New car sales in Europe hit the lowest point since 1993 in May.
The continual slide in sales is attributed to the worsening recession across the continent.
Registration of new cars fell to 1.04 million in May and the trends shows a danger of falling below 1 million in upcoming months. The last time registrations fell below 1 million was May 1993. Continue reading
British Prime Minister David Cameron held a press conference just before the G8 summit in Northern Ireland to announce a groundbreaking trade deal between the European Union and United States.
Cameron called the deal the “biggest bilateral trade deal in history” and said that a successful agreement would have more impact on world finance than all other world trade deals put together. Continue reading
The city of Detroit, Michigan is about to default on almost $2.5 billion in debt and is asking the city’s creditors to take ten cents for every dollar they’re owed by the city. Continue reading
A report from UCLA related economists say that the expected “great recovery” of the U.S. economy is not happening and that the economy is falling short of even normal growth.
The UCLA Anderson Forecast for the second quarter said the real gross domestic product is too small to help the nation climb out of his slump. Forecast director Edward Leamer wrote the current figure is 15.4% below what is considered a “normal” growth trend. Continue reading
France’s economy entered its second recession in four years according to data covering the first quarter of 2013.
The economy shrank two tenths of a percent in the first quarter of 2013 after having the same decline in the last quarter of 2012. President Francois Hollande now predicts zero growth for the country in 2013, less than previous government projections of .1% growth. Continue reading