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/ 21 January 2009
Spiralling state debt is fuelling concern that the eurozone could splinter despite official assurances that a break-up is all but impossible.
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/ 14 January 2009
Snared by the global economic slump, the German economy contracted sharply last year, suggesting a disastrous 2009 for Europe’s industrial powerhouse.
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/ 12 January 2009
Policymakers facing mounting job losses prepared new measures to ease the pain on Monday.
The European Central Bank’s chief and the chairperson of euro zone finance ministers rejected any need for a European rescue fund.
A global sell-off knocked world shares to a five-month low on Thursday as surging oil prices fanned concerns about inflation and slowing growth.
The scale of losses and the economic fallout from the global credit crunch may not be as bad as feared and subprime losses could end up costing less than half market forecasts, the Bank of England said on Thursday. The central bank is still concerned about the consequences of the credit crisis but Deputy Governor John Gieve said conditions could stabilise soon.
Germany’s Finance Minister, Peer Steinbrück, blamed the Bank of England on Friday for the collapse of Northern Rock and the loss of 2 000 jobs, savaging the central bank for not pumping enough liquidity into money markets last year. Unlike the central banks of the United States and European Union, the Bank of England failed to support the banking sector with vital loans, Steinbrück said.
Against the backdrop of the gloomiest outlook for the global economy in many years, the price of oil hit a barrel for the first time last week and the cost of wheat, rice and soya beans soared. The first rule of economics — that prices are determined by demand and supply — appears to have broken down.
The price of New York oil on Wednesday struck an historic peak at $114,95 on news that United States energy inventories tumbled last week and as the US currency hit an all-time low against the euro, traders said. Later on Wednesday, New York’s main oil contract, light sweet crude for delivery in May, stood at $114,37 a barrel, up 58 cents on Tuesday’s close.
The International Monetary Fund (IMF) called on Saturday for ”strong action” and ”close cooperation” to combat the financial crisis that is battering the world economy. The IMF, wrapping up a meeting in Washington, DC, stressed ”the challenges facing the world economy are of a global nature”.
Despite sagging global growth, soaring oil prices and the threat of renewed turmoil hanging over share markets, Europe appears to have managed so far to weather the storm unleashed by the upheaval in the United States housing market and fears of a major world economic slump.
Central banks on both sides of the Atlantic are in talks about the feasibility of mass purchases of mortgage-backed securities in a bid to solve the global credit crisis, the Financial Times said on Saturday. The newspaper, without citing sources, said the talks were at an early stage and part of a broader exchange on how to battle the turmoil in financial markets,
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/ 10 February 2008
A new court battle will be held on Monday over the detention of French rogue trader Jerome Kerviel. The decision by a Paris appeals court on Friday to back a prosecution demand that the 31-year-old trader be held in custody was the latest twist in the worst investment banking scandal in history.
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/ 24 January 2008
Global share prices rocketed on Thursday, though fears of an economic slowdown lingered as Société Générale revealed a massive €4,9-billion fraud-related loss it attributed to one of its traders. Europe’s leading share indices surged in morning deals, with gains of between 4% and more than 5% after a recovery on the Japanese market.
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/ 10 January 2008
The JSE was under pressure by midday on Thursday as investors were uncertain about the outcome for European markets ahead of the European Central Bank and Bank of England interest-rate decisions later in the day. By noon, the broader all-share index had pulled back 0,49%. The gold-mining index gave up 1,12%, while resources were a slight 0,01% in the red.
Global economic growth is "robust" but inflation risks remain as markets absorb the impact of the United States subprime crisis and higher food prices, European Central Bank (ECB) chief Jean-Claude Trichet said on Monday. "Food is a very big problem" stoking inflationary pressures, Trichet said.
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/ 28 December 2007
The European Central Bank (ECB) said on Friday it would seek to drain a further €150-billion from Eurozone money markets through a new offer aimed at absorbing excess liquidity. The offer had a fixed rate of 4%, the same level as the ECB’s benchmark lending rate, and would come to maturity on December 31.
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/ 26 December 2007
When the newly created euro slumped to an all-time low in 2000, detractors lined up to predict a dark future for the young currency. The euro marks its ninth birthday on January 1, with detractors now warning of grave consequences on account of its strength.
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/ 7 November 2007
The euro soared to another record high against the sagging dollar on Wednesday, climbing above ,47 for the first time, while the British pound reached ,10. The 13-nation euro hit ,4730 in afternoon European trading before slipping back to ,4682 — still well above the ,4554 it bought in New York late on Tuesday.
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/ 22 October 2007
The euro rose to a new all-time high against the dollar on Monday after a weekend meeting of the Group of Seven finance ministers ended without a clear statement of concern about the 13-nation currency’s strength. The euro rose as high as ,4348 in Asian trading, breaking a previous record of ,4319, set on Friday.
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/ 25 September 2007
The euro resumed its record-setting run against the dollar on Tuesday, climbing to ,4153 after a pair of economic reports painted a dismal picture for United States consumers and the ailing home sales market. The strength of the euro drew concern, with Spain’s finance minister warning of problems.
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/ 19 September 2007
The Bank of England announced on Wednesday that it will inject £10-billion into longer-term money markets next week amid the ongoing global credit squeeze. Until now, the British central bank has refrained from pumping cash into the three-month money markets.
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/ 13 September 2007
Angela Merkel and Nicolas Sarkozy were expected to form the perfect couple — a pair of like-minded conservative leaders who would work hand in hand to heal Europe after its Iraq divisions and failed constitution. From his first day in office the Frenchman’s bullish diplomacy has grated on his German partners.
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/ 12 September 2007
The dollar plunged to a record low against the euro on Wednesday as an expected interest-rate cut next week from the Federal Reserve has dampened the United States currency’s appeal. The dollar also dropped to a fresh 15-year trough against a basket of currencies.