Moody’s ratings agency on Monday put Franco-Belgian financial group Dexia’s three main businesses under review for a downgrade, prompting a sharp drop in the group’s shares and further speculation that the bank may see more government aid after a first bailout in 2008.
Fitch ratings agency on Monday revised down its growth forecasts for all major advanced economies, and said it expected growth in emerging economies to slow as well due to financial market volatility which has dented confidence and caused a drop in private consumption and business investment.
The 17 European countries that make up the euro zone face a 40 to 50 percent chance of recession by the end of the year, economists at Goldman Sachs predict, adding that “at best, the European recovery looks to be weak and hesitant”.
Oil investors should brace themselves for a fall in Brent crude prices to about $88.50 a barrel from around $100 currently and make the most of a minor bounce to $110 in the very short term that offers a selling opportunity, ING Wholesale Banking Senior Technical Analyst Roelof van den Akker said on Tuesday.
The U.S. economic outlook has "clearly" deteriorated this year, and "conditions still aren't much different from an economy still in recession," Chicago Fed President Charles Evans said.
The UK should find the right balance between risk and safety, or risk a hemorrhaging of business out of London, Lord Peter Levene, chairman of insurance giant Lloyd's of London chairman warned in a speech late on Tuesday.
The consumer electronics market in Western Europe will recover in the second half of 2011 from the significant deterioration it witnessed in the first six months, when sales declined by 11.3 percent year-on-year, market research company GfK said in a new report.
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