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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Spain runs out of money for the 87th time, China under pressure

Most of today’s bad news come from Spain, where Moody’s downgraded five regions, including Catalonia, the Scotland of Spain, that accounts for a fifth of GDP, questioning the effectiveness of Spain’s regional liquidity fund. So far €17.2bn have been drawn from the fund which is capped at €18bn, leaving little leeway to change much with the remaining €800m. Moreover, Spain is under way to accrue a budget deficit of 7.3% for this year. That exceeds the target set by the EU by one percent. The Spanish newspaper El Confidencial attributes the missed target to €10.5bn deficit in the country’s social security system. Wild guess: the money went towards unemployment benefits? read article

Chinese companies are facing pricing pressures due to what Bloomberg calls “the worst wholesale-cost deflation since 2009, signaling corporate earnings may deteriorate further and putting a damper on global inflation pressures.” If you are the rest of the world and believe in quantitative easing, this is a good thing, because it gives more room to stimulate growth by pumping money into the economy. If you’re China, it’s pretty shit. The country’s industrial output fell 6.2% YOY in August and wholesale prices dropped 3.6% in September, the biggest decrease since October 2009, the benchmark year for the post-Lehman inferno. read article

Yahoo reported earnings, for the first time under management of Marissa poster-child-for-mother-with-high-profile-career Mayer, performing better than expected overall, mostly on the back of the sell-off of its Alibaba stake, while actual revenue fell. Mayer wants to turn the business around by developing Yahoo’s mobile applications, catering to all of us smartphone users who need to check everything all the time and now there’s 4G as well woohoo! Yahoo shares rose on the promises. read article

In the final presidential debate in the US election, Romney and Obama played an expected blame game of “would you really want that man to be your Commander in Chief?!” According to European papers, Obama had the clear lead, while the American commentators are either less impressed or more confused than before. NYTimes CNN WaPo

So much for now.

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One Response

  1. princess1960 says:

    hello thank you for your take a brief…
    SP i read MOODY’s grade not good ..ok we don’t waiting for miracle ..but for wors
    i am very sorry for that ..ah i read Rose what to buy SP bank
    is true??
    chine deficit ..you are bored about the news ME too because nothing change
    YAHOO ..stock is bad ..
    never mind they have money
    USA debate i did not saw because all the same ..bored too
    all what i read is the same ..
    not to much for the moment
    i like your blog
    and i am waiting next one

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