The global economy will contract in 2009 by more than initially
thought, given rising unemployment and underutilization of capacity,
World Bank President Robert Zoellick said.
Speaking before a weekend meeting in Italy of finance ministers from
the Group of Eight major industrial nations, Zoellick said indications
were that the world economy would shrink by close to 3 percent, worse
than the previous estimate of 1.75 percent.
Russia may switch some of its
reserves from U.S. Treasuries to International Monetary Fund
bonds, the central bank said today. The comment drove Treasuries
and the dollar lower.
Friday’s statement by China said any investment would be made
according to its usual criteria of “safety and reasonable returns”, but
made no mention of Beijing’s wish for more power in IMF
decision-making, in return for financial support.
Safe, which
controls almost $2,000bn of China’s foreign exchange reserves, added it
was ready to help the IMF explore more ways to raise finance.
Mr
Lipsky said the Chinese and Russian proposals were part of a commitment
made during the London G20 summit in April to augment IMF resources by
$500bn, and that the IMF “absolutely welcomes” the commitments.
The dollar dropped to its lowest level against the euro this year on speculation record U.S. borrowing will undermine the greenback, prompting nations to consider alternatives to the world’s main reserve currency.
The 16-nation euro gained for a fourth day versus the dollar as the Russian government said emerging-market leaders may discuss the idea of a supranational currency. The pound strengthened to $1.65 for the first time since October.
“There’s been a lot of talk out of Russia about a new global currency, and that’s contributing toward this latest bout of dollar weakness,” said Henrik Gullberg, a currency strategist at Deutsche Bank AG in London. “These latest comments are just adding to the general dollar weakness we’ve seen recently.”
Documentary on the events that led to the economic collapse of Argentina in 2001 which wiped out the middle class and raised the level of poverty to 57.5%. Central to the collapse was the implementation of neo-liberal policies which enabled the swindle of billions of dollars by foreign banks and corporations.
Dubai’s house prices dropped 35% over a year earlier, and 42% over a quarter earlier. Dubai’s economy is closely tied to the global market. As uncertainties piled up, demand for properties collapsed. Many developers have delayed or postponed construction of projects.
"We need to move forward, to put the economy on an innovative track," Putin told an audience of business people in Moscow.
"Otherwise, doing nothing, we will simply preserve the current not very effective model which depends very m
World economic recovery will be slow and rising unemployment could bring the threat of social crisis and protectionism, World Bank President Robert Zoellick said in an interview with Spanish Sunday newspaper El Pais.
Exports plunged an unprecedented 26 percent last quarter, forcing companies from Toyota Motor Corp. to Hitachi Ltd. to cut production, workers and wages....
Japan's export-addicted economy shrank during the first quarter at the fastest pace in more than 50 years, continuing a dismal trend that since last year has made it the worst performer among major countries.
India Inc. breathed a huge sigh of relief Sunday, a day after the ruling Congress Party won one of the most definitive electoral victories in nearly two decades of fractious coalition politics.
Richard Branson is to launch an internet bank in a move designed to exploit public disgust with Britain's big banks in the wake of the credit crunch. Branson follows Tesco, which is also planning to capitalize on disenchantment with traditional b
Joseph Cassano: the man with the trillion-dollar price on his head
This is Joseph Cassano. He is the multimillionaire trader accused of bringing down the insurance giant AIG — and with it the world’s economy. So is he a criminal, an incompetent or a
Asian shares fell for a second consecutive session as some of the confidence that fueled a recent rally was dampened by reports that highlighted the weakness in the global economy. China's exports fell a worse-than-expected 22.6% in April from a
Katsuaki Watanabe, president of Toyota Motor Corporation, said: “The negative impact was a consequence of the significant deterioration in sales particularly in the US and Europe...
Global real estate agency Coldwell Banker's Capricorn Coast branch is offering 9 islands, some with luxury mansions and other amenities, around the Great Barrier Reef with prices starting at A$1.3 million ($962,000) and up to A$90 million ($67 mi
According to Estulin’s sources, which have been proven highly accurate in the past, Bilderberg is divided on whether to put into motion, “Either a prolonged, agonizing depression that dooms the world to decades of stagnation, decline and poverty …
The global economy is facing “big deflation,” though the risks of inflation are also increasing as governments print more money, Taleb told the conference organized by Bank of America- Merrill Lynch. Gold and copper may “rally massively” as a result,
Fiat Group SpA confirmed Sunday that it is in talks to buy General Motors' European operations, in a move that, combined with its planned takeover of Chrysler LLC, would form one of the world's biggest car and truck makers.
In Greece, officers fired flash grenades to disperse rioters in Athens after attacks on banks and traffic cameras. Transport strikes disrupted bus, train and ferry services as well as flights by Greek carrier Olympic Airlines.
At one time, Nauruans had one of the world's highest per capita incomes, with at least one importing a Lamborghini to an island on which there is basically no place to go. Then things went very wrong.
US hedge fund Hayman Advisers is betting on the biggest wave of state bankruptcies and restructurings since 1934. The worst profiles are almost all in Europe – the epicentre of leverage, and denial. As the IMF said last week, Europe's banks have
Asian stock markets retreated Monday as investors worried the outbreak of swine flu in North America could grow into a worldwide pandemic that deepens the global recession.
The World Bank estimated in 2008 that a flu pandemic could cost $3 trillion and result in a nearly 5 percent drop in world gross domestic product. The World Bank has estimated that more than 70 million people could die worldwide in a severe pandemic.
For the last several years, the trading behavior of the commodity market conforms to a carefully manipulated market with large capital pools overwhelming the natural market. The reason I say this is that volatility has been absorbed. Also the price m
A clutch of political and labour leaders in Germany have raised the spectre of civil unrest after the country's leading institutes forecast a 6pc contraction of gross domestic product this year, a slump reminiscent of 1931...
This is the more troubling chart. A recent report shows that of prime mortgages, 2.98% are now 60+ days late (of mortgages backed by Freddie Mac and Fannie Mae). I’ve added the 2009 line because that is how wide this change is. These loans are sup
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