The president of the European Central Bank said they will do “whatever it takes” to keep the euro solvent bringing a run on various stock markets.
The Spanish Ibex share index jumped 6% on the news with the main share index closing up 5.6% The news also drew Spain’s 10-year bonds down .6% from the record high it had been maintaining for weeks. Continue reading
Germany’s AAA credit rating is in danger of a downgrade after Moody’s changed the outlook for the nation’s credit to negative. The move is a possible first step into downgrading the country’s overall rating.
Moody’s stated that the exit of Greece from the Euro is increasing and the increasing financial decline in Spain. A full bailout of Spain is considered to be more likely as the cost of Spanish bonds remains at a record high. Continue reading
The continued debt problems in Spain, despite the country receiving banking bailouts, is rippling across Europe and driving the Euro down against foreign currencies.
The euro fell to 94.37 yen this morning, the lowest point for the Euro since November 2000. The fall came after news late Friday that Spain’s Valencia region had requested emergency funds from a new rescue fund. Madrid’s borrowing costs skyrocketed to levels that analysts see as impossible to sustain in the long run. Continue reading
Corn prices are nearing the record highs of last summer as the U.S. Midwest suffers its worst drought since 1956. Shoppers should expect higher grocery bills, because corn is used in three-quarters of supermarket products.
Source: Smart Money – Rising Corn Prices and Your Grocery Bill
Hundreds of Spanish firemen, police officers and nurses marched yelling through the streets Monday, denouncing as “robbery” the pay cuts enforced under Spain’s latest fiscal emergency plan. Continue reading
California cities are increasingly considering filing for bankruptcy or even folding after San Bernardino became the third California city in the last month to seek bankruptcy protection. Multiple cities have been slashing budgets and employee salaries in an attempt to reign in debts.
Michael Coleman, fiscal policy advisor for the California League of Cities, warns that bankruptcy might not be the only thing happening in the near future. Continue reading
The prime minister of France is calling for the French people to support the government as it tries to tackle a “crushing” debt crisis.
Jean-Marc Ayrault said the nation is preparing to deal with an “unprecedented” debt crisis. He said that anyone earning more than 1 million euros would be taxed at 75%. Continue reading
Production declined and new orders plummeted in June marking the first decrease in US manufacturing in three years. The news comes on the heels of other countries like China having downturns in manufacturing.
“This is not good,” Dan Greenhouse, Chief Economic Strategist at BTIG told the BBC. “It is…a terribly weak number.” Continue reading
Moody’s marked down several major banks including Citigroup and Bank of America in the United States and Royal Bank of Scotland, Barclays and HSBC in the United Kingdom. Lloyds of London also had their ratings cut.
In addition to Citigroup and Bank of America, Morgan Stanley, JP Morgan Chase and Goldman Sachs were issued downgrades. Continue reading
The leader of the party winning Greece’s elections Sunday is urgently trying to form what he calls a “national consensus.”
The New Democracy party, narrow victors in the vote, are one of a number of parties who favor Greece staying within the euro. Continue reading