A look at economic developments and activity in major stock markets around the world Monday:
LUXEMBOURG – The 16 nations that use the euro will lay out plans to cut public spending as they try to convince jittery markets that no more countries will need bailouts and that the debt crisis can be contained. Despite a massive rescue plan and pledges to cut deficits, confidence in the currency and European countries’ ability to handle heavy debt loads remains fragile – the euro has touched a series of four-year lows in recent days and stock markets have fallen.
BUDAPEST, Hungary – Hungary tried to minimize fallout from comments about a potential debt crisis as analysts stressed the country’s fiscal situation is nowhere near as dire as that of Greece. Economy Minister Gyorgy Matolcsy said his government would strive to meet the 2010 budget deficit target of 3.8 percent of gross domestic product, set by the previous administration, downplaying recent comments by other officials suggesting the deficit could reach 7-7.5 percent of GDP and that the country was close to defaulting on its debts. The statements stunned financial markets and caused both the euro and the Hungarian forint to nosedive. Attempts to backtrack over the weekend did not appear to ease global concern linked to the Central European country.
BERLIN – Germany will cut welfare benefits, introduce new taxes and shed government jobs to save as much as 80 billion euros, or $96 billion, through 2014 and set an example for the rest of Europe, Chancellor Angela Merkel said. The wide-ranging savings package finalized by the Cabinet includes trims in social programs such a subsidy for new parents who stay home, more taxation for the nuclear power industry, and delaying the building of a replica of a Prussian palace in the heart of Berlin. Merkel said as many as 15,000 federal government jobs could be shed through 2014.
BERLIN – Government data show that industrial orders in Europe’s biggest economy were up 2.8 percent on the month in April following a strong rise in March. The figures released by Germany’s Economy Ministry showed foreign and domestic orders contributing equally to the improvement. They increased by 2.8 percent and 2.9 percent respectively. The rise followed a 5.1 percent overall increase in orders in March. That figure was revised upward from an initial estimate of 5 percent. The ministry said the number of large orders was slightly above average for April. Germany has settled into a modest export-led recovery over the past year.
BUCHAREST, Romania – Hundreds of people protested outside Romania’s parliament as the prime minister proposed cutting public wages by one-fourth and pensions by 15 percent. The opposition Social Democratic Party submitted a no-confidence motion after Prime Minister Emil Boc argued that the government needed to make the sweeping cuts to receive the next installment of a multibillion dollar loan from the International Monetary Fund and the European Union.
CAIRO – The sharp drop in oil prices recently poses serious problems for Iran at a time of mounting public discontent over the state of its economy and the possibility of more U.N. sanctions over its disputed nuclear program. The declines in Iran’s biggest source of revenue strain an already stretched budget and hamper a key tactic used by President Mahmoud Ahmadinejad to keep popular support amid the economic woes – his distributions of some public funds to supporters and the poor. Critics have called the policy a „charity economy.”
LONDON – The pain of cutting Britain’s national deficit will be worse than previously feared and will affect everyone in the country, Prime Minister David Cameron said. Laying out the reasons for squeezing spending, Cameron said the nation cannot avoid cutting a deficit which rose to 156 billion pounds ($225 billion) in the last fiscal year. He has suggested that welfare programs and expenditure for civil servants are high on the list of possible cuts and confirmed that the capital gains tax would go up, but otherwise gave no fresh details. Instead, he concentrated on explaining why he believes drastic action is required – and placing the blame on the Labour Party governments of the previous 13 years.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
NBA Team Valuations Where Have All The IPOs Gone? What’s Driving Africa’s Growth Jobs Data Sends Stocks Tumbling
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A look at global economic developments
A look at economic developments and activity in major stock markets around the world Monday:
LUXEMBOURG – The 16 nations that use the euro will lay out plans to cut public spending as they try to convince jittery markets that no more countries will need bailouts and that the debt crisis can be contained. Despite a massive rescue plan and pledges to cut deficits, confidence in the currency and European countries’ ability to handle heavy debt loads remains fragile – the euro has touched a series of four-year lows in recent days and stock markets have fallen.
BUDAPEST, Hungary – Hungary tried to minimize fallout from comments about a potential debt crisis as analysts stressed the country’s fiscal situation is nowhere near as dire as that of Greece. Economy Minister Gyorgy Matolcsy said his government would strive to meet the 2010 budget deficit target of 3.8 percent of gross domestic product, set by the previous administration, downplaying recent comments by other officials suggesting the deficit could reach 7-7.5 percent of GDP and that the country was close to defaulting on its debts. The statements stunned financial markets and caused both the euro and the Hungarian forint to nosedive. Attempts to backtrack over the weekend did not appear to ease global concern linked to the Central European country.
BERLIN – Germany will cut welfare benefits, introduce new taxes and shed government jobs to save as much as 80 billion euros, or $96 billion, through 2014 and set an example for the rest of Europe, Chancellor Angela Merkel said. The wide-ranging savings package finalized by the Cabinet includes trims in social programs such a subsidy for new parents who stay home, more taxation for the nuclear power industry, and delaying the building of a replica of a Prussian palace in the heart of Berlin. Merkel said as many as 15,000 federal government jobs could be shed through 2014.
BERLIN – Government data show that industrial orders in Europe’s biggest economy were up 2.8 percent on the month in April following a strong rise in March. The figures released by Germany’s Economy Ministry showed foreign and domestic orders contributing equally to the improvement. They increased by 2.8 percent and 2.9 percent respectively. The rise followed a 5.1 percent overall increase in orders in March. That figure was revised upward from an initial estimate of 5 percent. The ministry said the number of large orders was slightly above average for April. Germany has settled into a modest export-led recovery over the past year.
BUCHAREST, Romania – Hundreds of people protested outside Romania’s parliament as the prime minister proposed cutting public wages by one-fourth and pensions by 15 percent. The opposition Social Democratic Party submitted a no-confidence motion after Prime Minister Emil Boc argued that the government needed to make the sweeping cuts to receive the next installment of a multibillion dollar loan from the International Monetary Fund and the European Union.
CAIRO – The sharp drop in oil prices recently poses serious problems for Iran at a time of mounting public discontent over the state of its economy and the possibility of more U.N. sanctions over its disputed nuclear program. The declines in Iran’s biggest source of revenue strain an already stretched budget and hamper a key tactic used by President Mahmoud Ahmadinejad to keep popular support amid the economic woes – his distributions of some public funds to supporters and the poor. Critics have called the policy a „charity economy.”
LONDON – The pain of cutting Britain’s national deficit will be worse than previously feared and will affect everyone in the country, Prime Minister David Cameron said. Laying out the reasons for squeezing spending, Cameron said the nation cannot avoid cutting a deficit which rose to 156 billion pounds ($225 billion) in the last fiscal year. He has suggested that welfare programs and expenditure for civil servants are high on the list of possible cuts and confirmed that the capital gains tax would go up, but otherwise gave no fresh details. Instead, he concentrated on explaining why he believes drastic action is required – and placing the blame on the Labour Party governments of the previous 13 years.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
NBA Team Valuations Where Have All The IPOs Gone? What’s Driving Africa’s Growth Jobs Data Sends Stocks Tumbling
Read the article on Forbes
