Category: News Desk

EU’s Rating Outlook Cut To ‘Negative’


Moody’s Investors Service lowered the European Union’s credit rating outlook from ‘stable’ to ‘negative’ on Monday, citing risks in the region’s last remaining Aaa-rated economies – Germany, France, the U.K. and Netherlands – as the reasons behind the cut.

The move follows a similar action in July, when Moody’s had revised the outlooks of Germany and the Netherlands to ‘negative’; while France and the U.K. had already seen their outlooks lowered earlier this year.

Mexican ‘Egg Crisis’ To Cost $230 Million


 The Mexican government will spend nearly $230 million to restore egg production in the country after 11 million chickens had to be slaughtered following an outbreak of bird flu, claimed a report by the Washington Post on Monday, with an extreme shortage of eggs causing prices to double since June this year. 

US To Forgive $1 Billion From Egyptian Debt


The United States government is nearing a deal to forgive $1 billion in debt for Egypt’s newly-established Islamist government, said the New York Times on Monday, with the agreement set to be part international assistance package intended to “bolster Egypt’s transition to democracy,” according to administration officials.

Samsung To Review All Chinese Suppliers After Child Labour Accusations


Samsung Electronics Co has vowed to conduct an inspection on all of its Chinese parts-suppliers for any form of labour violations, said a report by Reuters on Monday, following accusations that a supplier had been using under-aged labour at their factories.

After Months of Inaction, the ECB Must Act Now to Save Euro


The European Central Bank is under pressure to ride to the eurozone’s rescue. According to the Secretary-General of the Organisation for Economic Co-operation and Development, the ECB can and should do more to stem the eurozone crisis because current financial facilities are simply not enough.

Speaking at an international business and political conference in Slovenia, Angel Gurria of the OECD yesterday urged the ECB to provide a “credible signal” to markets and resume bond-buying to help stem financing costs for debt-ridden countries like Spain and Italy.

Spain Sets Up ‘Bad Bank’ To Absorb Toxic Property Assets


Spain’s government has approved the creation of a so-called “bad bank” that will take over most of the nation’s worst property assets and defaulted loans, reported Reuters over the weekend, in an effort to secure some much-needed eurozone bailout money for the nation’s loss-making banks and to reform a banking industry devastated by a property crash.

Key Economic News to Watch this Week: September 3


A series of important meetings take place this week. US Secretary of State Hillary Clinton meets with Asian leaders in Indonesia and China respectively, before attending the APEC ministerial talks in Russia at the end of the week. However, an even bigger market focus this week could prove to be ECB Mario Draghi’s plans eurozone recovery. He is expected to chair a policy meeting this Thursday.

Monday, September 3

British Bank Makes $838 Million From “Food Speculative Activities”: Report


U.K. banking giant Barclays Plc has been accused of making as much as 529 million pounds ($838 million) over the last two years from speculating on food staples such as wheat and soy, claimed a report by The Independent on Saturday, with experts now warning of a “speculative bubble” that could cause further pain in an already enveloping global food crisis.

Greece Promises Latest $14.4bn of Austerity Cuts “Will be the Last”


Greece’s Prime Minister Antonis Samaras has announced a fresh round of austerity measures despite widespread protests in Athens. He said the cuts – worth $14.4 billion – were painful yet necessary to keep Greece in the eurozone but also promised that it would be the last round of fiscal tightening for the embattled Mediterranean state.

China Promises to Keep Investing in Eurozone


China has pledged more help for the deteriorating eurozone crisis, with Premier Wen Jiabao promising to purchase more EU government bonds.

Speaking at a joint press conference with German Chancellor Angela Merkel at the end of a two-day official visit to Beijing, the Premier said China remains confident in the euro and will continue to buy European bonds to help debt-ridden European countries ride out the crisis.

However, he said it is important that European leaders “strike a balance” between a fiscal tightening and economic stimulus.