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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

UK remains in recession, indicators point towards bad time

The UK’s preliminary GDP reading shows a 0.7% contraction in Q2, adding-on to fears that Britain will remain stuck in a recession for the rest of the year. It’s comforting to know that more than £9bn of tax revenues have been put towards the Olympics, the reasoning for which looks to be an example of overvaluing the possibility of positive results (hello, Daniel Kahneman). The British GDP has now been shrinking for 9 consecutive months. read article

And the wave of bad news continues… Moody’s cut the outlook of the EFSF to negative and Spain’s 2-year bond yields hit a peak of 7.14%. In Germany, the business climate index missed estimates, as did Apple‘s Q2 earnings. The biggest company in the world missed earnings forecasts by more than $2bn due to the crisis in Europe and the general economic slowdown.

This quarter was only the second time in the last 39 quarters in which Apple reported results that missed analysts’ profit and revenue expectations,

says MarketBeat. And Apple doesn’t expect things to get better any time soon: with the plans for an iPhone 5 uncertain and a low-cost iPad planned for this year’s Christmas sales, the company is decreasing its margins. Moreover, Apple’s lower figured drag expectations down for their Asian suppliers.

Speaking of Asia, the IMF is pointing its finger at China for its “moderately undervalued” currency and its investment-reliant economy, while China is adopting more of a “who, me?!”-response.

In the USTim Geithner is spending today and tomorrow justifying the New York Fed‘s actions of the last years to different financial committees in Washington DC. After both the Libor rate-rigging and the JPMorgan Whale-trade loss went past the Fed without any intervention, it’s time for some questions. Dealbook sums it up: read article

Just yesterday, Geithner had proclaimed that the looming austerity measures in the US, tax increases and around $100bn cuts in domestic and military spending, will damage the US economy. He also added that he believes the eurozone would survive the crisis in its current form, mostly based on European leaders having said so… Wishful thinking? Well, let’s leave it at that.

So long.

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One Response

  1. […] The UK is in recession (and hoped that the Olympics would help, most likely it won’t); […]

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