The word of the day is "crexit," which was coined by Allianz Chief Economist Michael Heise. This is the idea that Greek will exit from its economic crisis this year. However, many point to a speech given by European Central Bank president Mario Draghi as the turning point for the eurozone crisis as a whole.
FRANKFURT, Germany — Well, that didn’t last long.
After four quarters of meagre growth, the fragile economic recovery in the 18-country eurozone creaked to a halt in the second quarter.
Growth was zero. After only 0.2% in the first quarter.
Now who will get out and push? The European Central Bank, with a further monetary stimulus? Or governments in France and Italy, which have dragged their heels in making their economies more business-friendly?
True that the recent UK credit downgrade attracted a lot of attention, however as some analysts pointed out, it did not reveal anything new. We all know UK growth is flat-lining and the Government’s austerity measures are failing to translate into deficit reduction. The Eurozone faces an even greater challenge as the economic fortunes of member countries diverge.
Indeed, there are many factors which suggest that a loosening of ties with the Eurozone by British businesses is possible, if not already under way.
With just three weeks until the Greek snap elections on January 25 in which Tsipras' Syriza is virtually assured of victory (unless somehow G-Pap's "new and improved" political party manages to steal enough votes to prevent this, although one wonders what his political campaign will be: "vote for us because this time we know how to avoid a sovereign bankruptcy"), Germany takes yet another opportunity to remin
TORONTO — The Toronto stock market was slightly higher at the open amid rising gold stocks and economic concerns.
The S&P/TSX composite index rose 27.33 points to 12,885.82 while the Canadian dollar inched up 0.02 of a cent to 97.45 cents US.
European stocks slid deeper into the red on Tuesday and the euro fell on rising expectations that Greece is set for a default despite fresh international efforts to resolve the debt crisis.German Chancellor Angela Merkel sought to ease fears over a possible Greek bankruptcy, saying the 17-country eurozone had to stick together and that an "uncontrolled insolvency" must be avoided.US President Barack Obama warned overnight that the world economy would remain weak until the eurozone crisis was solved, as market anxiety mounted over debt woes in Greece, Spain and Italy.