The eyes of the world are on the unfolding Eurozone crisis that seems more catastrophic than the 2008 Great Recession. In a research note …
In a bit of good news, it has been reported that the employment rate in United Kingdom has risen considerably following the months of the Olympics season in London. In fact, industry experts have estimated a dip of about 8.2 per cent in unemployment rates, the best since the last four years, i.e. the year 2008. London and United Kingdom are places which have been worse affected by the recession.
Jens Weidmann, the chief of the German Central Bank is presently engaged in a progressively intense and high stakes fight involving the response of the ECB policy towards the ongoing crisis in the euro zone with Mario Draghi, the President of the European Central Bank. The struggle began on Thursday after Draghi implied that the European Central Bank could once more intercede in debt markets so that the crippling debt costs troubling Italy and Spain could be diminished.
Unemployment in eurozone is the highest since the euro was born. It is another sign of the tragic economic situation in Europe. The highest rate of unemployment in 17 countries of eurozone added some pressure on European Central Bank to take an action. But even Draghi’s promises cannot have an immediate result on economic situation of eurozone members.
In response to the pleas made by the Italian and the Spanish leaders for quite some time now, the leaders of the Euro Zone have agreed on taking an emergency action at a midnight summit on Friday. The summit included the currency areas of seventeen different nations and they have decided upon bringing down the spiraling borrowing costs of both Spain and Italy. They have decided that by the end of the year 2012 the first step to the union of European Banking will be taken up developing a single supervisory body for all the banks belonging to the euro zone.
The annual growth rate for the first quarter is 8.1 percent, the slowest in three years for China. Considering the slack and downturn in Chinese Manufacturing market raising all the fears of a worse than expected setback, the Chinese government has revised the economic growth target to just 7.5 percent, downgrading itself from its 9.2 percent growth last year and 10.4 percent growth in 2010.
Once upon a time, Spanish Banks, on account of its meticulous banking practices, were credited as one of the most reliable pillars of the Western Economies to withhold the pressure of global liquidity crisis. There was a time when high capital provisions, tough scrutiny and higher securities for lending were a mandate. But then, that was in history. Today, Spanish banking crisis is one of the most tumultuous issue to the Eurozone.
The economic problems of Spain were put in strong relief after figures showed that unemployment is near 25 percent Friday.The figures showed that unemployment has spiked to 24.4 percent in the first quarter of 2012. Now people are afraid that France, the second-biggest eurozone economy, also could face a downgrade from S&P after the presidential elections.
Even as the economic depiction in the United States has brightened up recently with more positive employment figures, Europe remains held up in a slump. Most economists are estimating a recession for 2012, which will heighten the pressure faced by governments and financial institutions across the Continent.
It is the final week for stock market in 2011 and analysts are expecting a quiet time in the market. Most market players, traders …