News / Economy

World's Economy Still Focused on Europe

World's Economy Still Focused on Europei
|| 0:00:00
...    
🔇
X
Mil Arcega
June 23, 2012 2:12 PM
Bargain hunters helped to lift U.S. stocks higher Friday after Wall Street's big sell-off a day earlier. But European and Asian stocks ended the week sharply lower despite developments in Greece that may have averted a potentially disruptive exit from the Eurozone. As Mil Arcega reports financial markets remain deeply concerned about the ability of the world's political leaders to come to grips with a weakening global economy.
World's Economy Still Focused on Europe
Bargain hunters helped to lift U.S. stocks higher Friday after Wall Street's big sell-off a day earlier.  But European and Asian stocks ended the week sharply lower despite developments in Greece that may have averted a potentially disruptive exit from the Eurozone. Financial markets remain deeply concerned about the ability of the world's political leaders to come to grips with a weakening global economy.

New reports out Friday show German business confidence declined in June.

Chinese manufacturing continues to shrink.

And the number of Americans applying for unemployment benefits hit a nine-month high.

Expectations were naturally high on Friday as leaders of France, Germany, Italy and Spain met in Rome.  Despite announcing general agreement on a $160 billion plan to revive economic growth, analysts say fixing what ails Europe will require more than money.

Thanos Veremis is a Greek political historian:

"If you want to save the euro, you have to do much more than just hand out money around, you need to create a ministry of the exchequer - or whatever you call it in England - or a minister of finance or a common fiscal policy, which we don't have in Europe," said Veremis.

Structural reforms from a European banking consortium to jointly issued euro-bonds are just a few of the ideas gaining momentum - especially after formation of a new coalition government in Greece failed to ease concerns about the deepening fiscal crisis.  

With the world's major economies slowing down, some investors were eager to see stimulative action from the U.S.  

But financial markets were ultimately disappointed Wednesday after U.S. central bank chairman Ben Bernanke announced only the extension of an earlier program to maintain interest rates at record lows.

Experts say the Fed still has a few options, including expanding its balance sheet to make more U.S. dollars available, but market strategist Stephen Wood says the Federal Reserve may be conserving its fire power.
 
"I think in some ways the Federal Reserve, like the European Central Bank - they want to keep a little bit of their powder dry just in case the financial situation in Europe gets out of control."

Despite agreement on the need to bolster economic growth, European leaders remain at odds over how to do it.

Among the thorny issues likely to come up at the European Summit in Brussels on Thursday, June 28 is a proposal to use Europe's existing bailout funds to buy debt from ailing economies in Spain, Italy and Greece.

You May Like

Video Miami Cubans Divided on New US Policy

While older, more conservative Cuban Americans have promoted anti-Castro political movement for years, younger generations say economically, it is time for change More

2014 Sees Dramatic Uptick in Boko Haram Abductions

Militants suspected in latest mass kidnapping of over 100 people in Gumsuri, Nigeria on Sunday More

Video Cuba Deal Is Major Victory for Pope

Role of Francis hailed throughout US, Latin America - though some Cuban-American Catholics have mixed feelings More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.