Broadgate: Market News 20/2
20 February 2012
The week started with a decision by Moody’s, a credit rating agency, to downgrade the credit ratings of several European Countries such as Spain, Italy, and Portugal. Also expected to be in the crossfire are Britain, Australia, and France.
However the big news in Europe is that Greece has until today, February 20, 2012 to pay off part of the debt, which has been part of the major debt crisis in Europe.
In order to do this, the Greek parliament has to accept into law Austerity measures including a budgetary spending cut.
Many European leaders expressed optimism that a solution would be reached today.
In Japan, the Government has decided to increase the amount of money included in the QE package; a move surprising most analysts since it means depreciation of the Yen against other currencies.
In the U.S., Federal Reserve Representative Fisher states that a new stage of Q.E. was not needed, and that the US economy’s numbers in January turned out better than expected.
The over all feeling is that the US economy has somewhat stabilized, especially in the face of the Euro-zone crisis.
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