Friday 9 September 2011
World economic negatives blowing around the world
The Organization of Economic Cooperation and Development today said it expects economic growth in the G7 developed economies will be less than 1% in the second half of 2011.
And after just a one-day bounce, European stocks are back down today in reaction to the European Central Bank cutting its euro-zone economic growth forecasts again today.
Reports today are also that anger over the way Greece is dragging its feet on meeting the austerity targets required for its debt bailout, has other euro-zone countries suggesting that Greece be expelled from the 17-nation euro bloc. Probably just a scare tactic to force Greece into action, but it doesn’t help boost deteriorating consumer and business confidence in Europe.
In Asia, Fitch Ratings warned last night that it might have to downgrade China’s credit rating within two years. Fitch cited the problems China’s banks are having with the heavy debt loads created by the country’s efforts to support the economy during the 2008 global financial crisis.
Fitch warned that Japan faces an even greater risk of a credit rating downgrade, given its huge public debt load and the political deadlock that’s blocking efforts to tackle the problem.
Reports today are also that anger over the way Greece is dragging its feet on meeting the austerity targets required for its debt bailout, has other euro-zone countries suggesting that Greece be expelled from the 17-nation euro bloc. Probably just a scare tactic to force Greece into action, but it doesn’t help boost deteriorating consumer and business confidence in Europe.
In Asia, Fitch Ratings warned last night that it might have to downgrade China’s credit rating within two years. Fitch cited the problems China’s banks are having with the heavy debt loads created by the country’s efforts to support the economy during the 2008 global financial crisis.
Fitch warned that Japan faces an even greater risk of a credit rating downgrade, given its huge public debt load and the political deadlock that’s blocking efforts to tackle the problem.
