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 British Fighters on Frontline of Islamic State Information War

It’s estimated that several hundred British citizens are fighting for Islamic State alongside other foreign jihadists More

Pakistan's Political Turmoil Again Shines Spotlight on Military

Thousands of protesters calling for PM Sharif to step down continue protests in front of parliament, as critics fear political impasse could spur another military coup More

Photogallery Ebola Quarantines Spark Anxiety in Liberian Capital

Food prices rise sharply as residents attempting purchases clash with security forces, leaving one person dead More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Native Bees May Help Save Cropsi
X
Deborah Block
August 22, 2014 12:23 AM
U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video Native Bees May Help Save Crops

U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video US Defense Officials Plan for Long-Term Strategy to Contain Islamic State

U.S. defense officials say American air strikes in Iraq have helped deter Islamic State militants for the time being, but that a broad international effort is needed to defeat the extremists permanently. Defense Secretary Chuck Hagel warned Thursday that the group formerly known as the Islamic State in Iraq and the Levant, or ISIL, is better organized, and financially and militarily stronger than any other known terrorist group. Zlatica Hoke has more.
Video

Video Drug-Resistant Malaria Spreads in Southeast Asia

On Thailand’s border with Myanmar, also known as Burma, a malaria research and treatment clinic is stepping up efforts to eliminate a drug-resistant form of the parasite - before it spreads abroad. Steve Sandford reports from Mae Sot, Thailand.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.