Friday, May 21, 2010

UK Analysis: Public Borrowing Hits Highest On Record In April

Public Sector Net Borrowing hit a record level for the month in April, although upward revisions to receipts growth means borrowing in the last fiscal year was revised down sharply, according to figures released by National Statistics Friday. Public sector borrowing stood at Stg9.955 billion in April, up from Stg8.826 billion in the same month a year earlier, the highest outturn for an April on record, albeit broadly in line with the median forecast of Stg10.5 billion. There was, however, a sharp downward revision to borrowing in March to Stg17.973 billion from an originally estimated Stg23.5 billion outturn. National Statistics said that this was mainly due to higher receipts...full story

German Business Confidence Unexpectedly Drops as Debt Crisis Rattles Euro

German business confidence unexpectedly fell after Europe’s debt crisis rattled financial markets and fueled concerns about the future of the euro. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, eased to 101.5 from 101.6 in April. Economists expected an increase to 101.9, according to the median of 37 forecasts in a Bloomberg News survey. Ifo’s gauge of executives’ expectations fell to 103.7 from 104 The euro has plunged 6.5 percent against the dollar in the past month as policy makers’ pledge of a 750 billion-euro ($936 billion) safety net failed to allay investor concern that Europe’s monetary union could collapse. While a... more story

Thursday, May 20, 2010

Economic governance divides France and Germany

Germany's curb on speculative trading has cast doubt on Europe's ability to build the sort of economic governance that many believe is now essential for the euro's survival. Germany The move stunned France and showed how the euro zone's two largest economies are struggling to coordinate policy during the debt crisis that has engulfed the single currency. "France and Germany will have to start speaking the same language or else the euro will disintegrate," said Alexander Law, chief economist at Xerfi consultancy in Paris. French President Nicolas Sarkozy has said repeatedly since the start of the Greek debt disaster that euro zone countries must now establish common...Full  story