Europe is facing a make-or-break month. Its economy is sinking and the debt crisis that has hit some of its members threatens global economic disaster. Now its central bank is poised to hold off from helping — in the hope that Europe's divided leaders will be pushed into action.
REUTERS/Kai PfaffenbachThe global exporters’ crisis is intensifying (read my free special report on Germany’s inevitable crisis).
Germany’s largest bank said it is deeply concerned about stagnation in the United States. Separately, Saudi Arabia’s central bank gave $4 billion to the country’s banks to help them deal with liquidity issues.
WASHINGTON — Just as the global economy has all but recovered from debt-fueled crises in the United States and Europe, economists have a new worry: China. They see a lending bubble there that threatens global growth unless Beijing defuses it.
That’s the view that emerges from an Associated Press survey this month of 30 economists. Still, the economists remain optimistic that Beijing’s high-stakes drive to reform its economy — the world’s second-largest — will bolster Chinese banks, ease the lending bubble and benefit U.S. exporters in the long run.
While fourth quarter 2012 earnings results will again garner attention this week, investors may also be looking overseas to gauge market direction, since this week holds the first meeting of the year for European finance ministers. It is worth remembering that each spring for the past three years, the S&P 500 has started a slide of about 10% during the second quarter, led by events in Europe.
Google's message in Europe is clear: Don't think of us as a monopoly, but rather as a "growth engine" that is helping businesses and charities to succeed. Google is promoting that message using emails sent to European politicians and it has now released a report detailing what it says is an immense and positive impact on the UK economy.
The world is lurching towards another Crisis. Japan, which has been ground zero for Keynesian insanity, is back in technical recession. This comes after the Bank of Japan launched the single largest QE program in history: a QE program equal to 25% of GDP launched in April 2013.
BRUSSELS: European Union leaders faced a daunting list of crises as they began their summit on Thursday, notably migrants crowding in at their southern borders, Russia growling in the east, Britain's threat to quit and a desperate need to create jobs. But a battle of wills between Greece and its creditors that threatens to disrupt the euro single currency looked set to take up part of the 24-hour Brussels summit, despite frustrated leaders' efforts to push the issue down to their weary finance ministers to solve.
It's going to be another ugly day for economic data from the Eurozone. On Friday, we're expected to get inflation and unemployment data from the economic bloc. Expectations for the both numbers are pretty dismal. Inflation is expected to slow further, with CPI expected to rise 0.3% year-over-year in August. This would be down from the 0.4% seen in July.
The ECB has held off purchasing sovereign debt bonds in Europe the past two weeks and the results were easily predictable. Yield on 10-Year Italian debt is back over 7%.
Italy 10-Year Government Bond Yield