The International Monetary Fund (IMF) has stated that the United States economic recovery “remains tepid” and has cut the estimated growth of the US economy by a tenth of a percentage point to 2% overall.
The IMF said that the eurozone debt crisis is a driving factor in the revised estimate but also uncertain domestic policies and the upcoming Presidential election. The IMF report also stated that “house prices have stabilized recently but remain at depressed levels.” 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
JPMorgan Chase, which had reported a $2 billion dollar loss betting on credit derivatives that caused the resignation of key staffers, reportedly grossly understated the loss.
Internal models at the bank are telling the corporate officers to expect losses of as much as $9 billion due to the failed trades. The bank is exiting as fast as it can from the money-losing trade but the losses continue to mount. Continue reading
Struggling banks led Spain to be the fourth and largest European Union nation to ask for a bailout. The country will receive up to 100 billion euro, however, some of the member nations, like the UK, are not contributing to the loan.
The news of the bailout initially sent worldwide stock markets soaring but the enthusiasm quickly wore off and many markets were trading lower than opening by mid-morning. Ratings agency Fitch downgraded the rating for two Spanish banks two ranks from A to BBB+. Fitch attributed the move to last week’s downgrade of Spain’s sovereign credit rating. Continue reading
Shortages in chemotherapy drugs and other expensive treatments have risen after pharmaceutical companies cut credit to Greece’s largest state-backed health insurance fund. The fund provides subsidized medicine to lower-income Greek citizens.
Some pharmacies have been overrun with hysterical people attempting to get life-saving medicine for themselves or relatives. People reported to SKAI TV waits of hours to get necessary medication and patients have been heard screaming from inside pharmacies. Continue reading
The International Monetary Fund is lending $157 million to Malawi in an attempt to save the country’s flagging economy.
The country’s economic crisis is attributed to recently deceased leader Bingu wa Mutharika who had long been criticized for his human rights record and handling of the nation’s economy. Continue reading
Key interest rates in China have been cut in an attempt to arrest a decline in growth. The benchmark one-year loan rate was cut a quarter of a percent and deposit rates by the People’s Bank of China was also lowered a quarter of a percent. Continue reading
Luis deGuindos, Spain’s economy minister, stated today that the country is on the verge of asking for a bailout as reported in various media sources.
Any decision on a bailout request would be dependent on the outcome of audits of all Spanish banks. The results of the audit are not expected until the end of June. Continue reading
The US economy’s unemployment rate increased slightly in April while the Eurozone’s held steady at a record high level.
The news sent all the US stock markets plunging lower in morning trading. The jobless rate in the US increased to 8.2%, up .1%, according to the Labor Department report. The number of jobs added in March and April was revised down by 49,000 and there are now five million fewer jobs in the US than at the start of the recession. Continue reading
The contraction rate of manufacturing in Spain ranked higher than Greece’s rate in the month of May. Spain’s rate declined at the highest rate since May 2009.
Spain’s figure of 42.0 was the worst in the eurozone below Greece’s level of 43.1.
The manufacturing decline in many of the endangered eurozone nations is beginning to impact the stronger nations like France and Germany. Continue reading