14th September 2011
From the New York Times, Tracking Europe's Debt Crisis
News from the eurozone:
From the Financial Times, Moody's has downgraded its credit ratings on Crédit Agricole and Société Générale and kept France's biggest bank BNP Paribas on review for a downgrade.
Confidence in the future of the eurozone took a yet another knock yesterday as Italian borrowing costs hit a record high and the German Chancellor, Angela Merkel, was forced to quash rumours that Greece was about to crash out of the single currency, reported in the Independent.
And from This is Money, Italy was dragged deeper into the eurozone debt crisis yesterday amid mounting fears over the future of Greece, writes Hugo Duncan.
Frantic trading as Europe struggles with its debt crisis is providing a brief shot in the arm for stock exchanges, but won't immunise their hefty valuations from fierce competition when the volumes abate, says Reuters.
Some good news from the Wall Street Journal, industrial production in the 17 countries that share the euro rebounded in July, driven by a surge in Germany, the currency area's manufacturing powerhouse.
The eurozone must begin to look to the future if they are to get help from elsewhere…the Financial Times reports, Wen Jiabao, Chinese premier, has outlined conditions that Europe must meet before China will increase support for debt-laden Europe, in a sign of Beijing's reluctance to be cast as a saviour for the global economy.
News from the UK:
Public sector job cuts imposed as part of the government's austerity drive have sent unemployment back through the 2.5m barrier, according to official figures released today reports the Guardian.
And from the Telegraph, Adam Posen, a leading UK policymaker, has called on the Government to set up a state-owned bank to funnel desperately needed credit to small businesses.
While This is Money is reporting , stamp duty should be scrapped, VAT should be charged on everything and all savings returns should be tax-free under radical reforms proposed by an influential pressure group today.
Fear of the markets has blinded leaders to the alternatives. Economies can grow out of debt or plunge deeper into crisis, reported in the Guardian.
Sign up for our free email newsletter here, for your chance to win an iPad 2.