Special Reports

US Consumer Confidence Falls in July
Published: 7/27/2010 10:18:30 AM By: TradingEconomics.com, Bloomberg

Confidence among U.S. consumers declined in July to a five-month low, a sign the lack of jobs will limit the economy’s recovery.

G20 Fails to Act.. Again
Published: 6/29/2010 11:19:00 AM By: Anna Fedec, contact@tradingeconomics.com

During the last year and a half, leaders of the Group of 20 leading nations have met four times. And although expectations for each gathering were elevated, not a single one brought an essential outcome. And if it continues to be so, maybe one should question how essential is the institution of G20 to the world's prosperity?

G-20 Leaders Agree to Tackle Deficits
Published: 6/27/2010 5:48:45 PM By: TradingEconomics.com, Reuters

World leaders agreed on Sunday to take separate paths toward shared goals of lasting growth and safer banks as two years of global crisis give way to a fragile economic recovery.

Central Banks Exit Strategies Overview (06.26.2010)
Published: 6/26/2010 1:58:01 PM By: Anna Fedec, contact@tradingeconomics.com

With the global recovery progressing, central banks are trying to find a way out of loose monetary policy. And while the Reserve Bank of Australia, Bank of Canada and Bank of New Zealand increased interest rates already; the US Federal Reserve, European Central Bank, Bank of England, Bank of Japan and Swiss National Bank are likely to wait much longer.

China Says It Will Increase Yuan's Flexibility
Published: 6/19/2010 4:57:56 PM By: TradingEconomics.com, WSJ

China's central bank moved Saturday to head off resurgent international criticism of its currency policies with a pledge to make its tightly controlled exchange rate more flexible, a surprise announcement that was quickly welcomed by the U.S. and others even though the central bank also ruled out a big rise in the yuan.

Canada’s House Prices Increase 11.6% in March
Published: 5/26/2010 6:06:10 PM By: HOMAM ALATTAR

The Canadian National Composite House Price Index?published by Teranet and National Bank of Canada?displayed an increase of 11.6% in March from last year to reach 133.47; the increase resembles a 1% rise since beginning of 2010.

BRIC's Monetary Policy Overview (05.15.10)
Published: 5/15/2010 4:10:07 PM By: Anna Fedec, contact@tradingeconomics.com

Although BRIC's, with the exception of Russia, have already initiated some form of monetary policy tightening, they have been very reluctant in rising cost of credit. Indeed, series of interest rate hikes may hamper consumption and cause and inflow of speculative capital looking for an higher yield. This in turn may trigger the currency appreciation, hurt exporters and eventually stop the recovery. In this article, we take a close look at every BRIC member monetary policy.

World Stocks Fall on Waning Optimism over Europe Bailout
Published: 5/11/2010 10:28:58 AM By: TradingEconomics.com, Bloomberg

The euro halted a two-day gain and stocks fell, with Chinese equities entering a bear market, amid concern Europe’s indebted nations will struggle to cut deficits even after an almost $1 trillion emergency loan package.

Shock and Awe Package Lifts Euro Markets
Published: 5/10/2010 10:16:42 AM By: TradingEcoomics.com, Reuters

750 billion euros global emergency package to stabilize the euro unleashed a spectacular rally in European stocks and bonds on Monday but analysts said EU leaders had only bought time to tackle deep-seated fiscal problems.

EU to Fend off Market "wolves" in Greek Crisis
Published: 5/9/2010 5:11:11 PM By: TradingEconomics.com, Reuters

European Union finance ministers on Sunday promised to counter the "wolfpack" of the financial markets and defend the euro as they held an emergency meeting on ways to keep Greece's debt crisis from spreading.

EU Finance Chiefs Race to Ready Emergency Fund Before Asian Markets Open
Published: 5/8/2010 7:03:43 PM By: TradingEconomics.com, Bloomberg

European Union finance ministers met on Saturday to hammer out the details of an emergency fund to prevent a sovereign debt crisis from shattering confidence in the 11- year-old euro.

EU Bets $146 Billion on Greek Bailout to Avert Contagion
Published: 5/3/2010 10:51:27 AM By: TradingEconomics.com, Bloomebrg

Euro-region governments are betting 110 billion euros ($146 billion) in economic medicine for Greece will be enough to inoculate the rest of their region from contagion.

Greece Faces `Unprecedented' Cuts as $159B Rescue Nears
Published: 5/2/2010 11:35:06 AM By: TradingEconomics.com, Bloomberg

Greece accepted an unprecedented bailout from the European Union and International Monetary Fund valued at more than 100 billion euros ($133 billion) to prevent default, agreeing to budget cuts that unions called “savage.”

Central Banks Exit Strategies Overview (05.01.2010)
Published: 4/30/2010 1:11:49 PM By: Anna Fedec, contact@tradingeconomics.com

With global recovery taking center stage, central banks are trying to find a way out of lose monetary policy. Yet, the task seems to be more difficult than many have expected since the wrong timing or technique of an “exit strategy” may destroy a still fragile growth.

Greece's help May Arrive Too Late
Published: 4/29/2010 11:30:32 PM By: Anna Fedec, contact@tradingeconomics.com

On Thursday, the European Commission said that the multi loan program for Greece would be finalized within the next few days. Yet, although the markets have stabilized, it's hard to believe that Athens will finally receive the much needed help after many months of meetings and broken promises.

Greek, Portuguese Bonds Drop as Debt Crisis Escalates
Published: 4/27/2010 12:29:47 PM By: TradingEconomics.com, Bloomberg

Government bonds of the euro region’s most indebted nations slumped, led by the biggest drop for Greek two-year notes since at least 1998, as credit downgrades escalated Europe’s sovereign-debt crisis.

US Consumer Confidence Hits Highest Level Since 2008
Published: 4/27/2010 12:17:59 PM By: TradingEconomics.com, Bloomberg

Consumers in the U.S. turned more optimistic in April as the growing economy raised hopes jobs will become available.

Greece Asks EU to Trigger Bailout Agreement
Published: 4/23/2010 12:04:18 PM By: TradingEconomics.com, Bloomberg

Greece called for activation of a financial lifeline of as much as 45 billion euros ($60 billion) this year in an unprecedented test of the euro’s stability and European political cohesion.

Goldman Sachs Charged With Fraud by SEC
Published: 4/16/2010 11:46:47 AM By: TradingEconomics.com, Reuters

Goldman Sachs Group Inc was charged with fraud on Friday by the U.S. Securities and Exchange Commission in the structuring and marketing of a debt product tied to subprime mortgages.

March Retail Sales in U.S. Rise More Than Forecast
Published: 4/14/2010 9:31:27 AM By: TradingEconomics.com, Bloomberg

Sales at U.S. retailers climbed in March more than anticipated, signaling consumers will play a bigger role in a broadening economic recovery.

Euro Zone Nations Offer 30 Billion Euros to Greece
Published: 4/11/2010 2:51:25 PM By: TradingEconomics.com, Reuters

Euro zone finance ministers approved a giant 30-billion-euro ($40.12 billion) emergency aid mechanism for debt-plagued Greece on Sunday but stressed Greece had not requested the plan be activated yet.

EU Agrees on Greek Rescue Terms as Fitch Downgrades Debt
Published: 4/9/2010 12:42:41 PM By: TradingEconomics.com, Reuters

Euro zone officials agreed on Friday on the terms of a possible financial rescue for Greece as a credit ratings agency downgraded Athens' debt by two notches citing a worsening economy and rising borrowing costs.

Manufacturing in U.S. Expands by Most Since 2004
Published: 4/1/2010 11:12:29 AM By: TradingEconomics.com, Bloomberg

Manufacturing expanded in March at the fastest pace since July 2004, indicating factories will be a source of strength for the U.S. recovery in coming months.

Greece Will Get Help But Europe's Credibility May Falter
Published: 3/26/2010 6:11:00 PM By: Anna Fedec, contact@tradingecoomics.com

After several weeks of meetings and failed negotiations, the EU has finally reached a deal for Greece. The deal is suppose to rescue the country from defaulting on its debt. Yet, looking at the essence of the agreement which is putting on the table the possibility of a bailout from the International Monetary Fund, many economists, including us, are considering it as a major failure since the Euro Zone unity and economic and monetary union were shown to be very weak.

Eurozone Agrees to Greek Rescue Deal
Published: 3/26/2010 10:56:38 AM By: TradingEconomics.com, Financial Times

Eurozone leaders on Thursday night agreed a rescue package for Greece including assistance from the International Monetary Fund as well as bilateral loans from fellow euro-member states.

Central Banks Exit Strategies Overview
Published: 3/25/2010 11:48:30 AM By: Anna Fedec, contact@tradingecoomics.com

With the ongoing global recovery taking center stage, central banks are trying to find a way out of loose monetary policy. Yet, the task seems to be more difficult than many have expected since the wrong timing or technique of an “exit strategy” may destroy a still fragile growth.

IMF Role in Greek Rescue Gains Support Among European Chiefs
Published: 3/25/2010 11:07:02 AM By: TradingEconomics.com, Bloomberg

European leaders showed signs of bowing to German demands for an International Monetary Fund role in any rescue of debt-stricken Greece, seeking to prevent the fiscal crisis from undermining the euro.

EU Indecision Pushes Greece Towards an IMF Bailout
Published: 3/22/2010 9:47:57 PM By: Anna Fedec, contact@tradingecoomics.com

It has been almost six months since Greece said it may not be able to service its sovereign debt because its budget deficit would reach 12.7% of GDP in 2009. Yet, after weeks of meetings and negotiations with the European Union, there is still no signs of any bailout package, and both Greece and the EU risk paying a very high price for so much bureaucracy and uncertainty.

EU Ministers Discuss Standby Plans for Greece
Published: 3/16/2010 9:48:31 AM By: TradingEconomics.com, Reuters

EU finance ministers on Tuesday discussed standby plans drawn up by countries using the euro to provide Greece with financial help if it becomes the first state in 11 years of monetary union to seek such aid.

Japan's Economy May be Struggling but its Debt is Sustainable
Published: 2/25/2010 1:09:10 PM By: Anna Fedec, contact@tradingeconomics.com

At the beginning of February, Standard & Poor’s downgraded Japan’s long-term outlook rating to negative. Yet, unlike Greece, which is also troubled by a rising national debt, the probability that Japan will default on its government bonds is pretty small.

Consumer Confidence in U.S. Falls
Published: 2/23/2010 10:38:02 AM By: TradingEconomics.com, Bloomberg

Confidence among U.S. consumers fell more than anticipated in February to the lowest level since April 2009 as the outlook for jobs diminished, a sign spending may be slow to gain traction as the economy recovers

Greece Needs Help but EU Bureaucracy May Be Fatal
Published: 2/17/2010 12:29:47 PM By: Anna Fedec, contact@tradingeconomics.com

It has been almost two months since S&P and Moody's downgraded Greece’s sovereign rating after it became clear that the Eurozone country may default on its government bonds. Yet, besides a guideline on how to solve the budget problems and a promise of support if things get out of control, the Euro Area members are not rushing to provide any financial help to its troubled pal. Moreover, many EU members seem to be underestimating the magnitude of problems in Greece which may prove to be a serious mistake in the months ahead.

Eurozone Gives Greece 30 Days to Show Good on Deficit
Published: 2/15/2010 7:07:34 PM By: TradingEconomics.com, Reuters

Euro zone states urged Greece on Monday to announce more deficit-control steps by mid-March if needed, but said nothing new of last week's pledge to defend the country if debt market pressures spin out of control.

EU Demands Greek Cuts in Bid to Uphold Euro Stability
Published: 2/11/2010 9:58:39 AM By: TradingEconomics.com, Bloomberg

European leaders ordered Greece to get the bloc’s highest budget deficit under control and said they were prepared to take “determined” action to staunch the worst crisis in the euro currency’s 11-year history.

Germany and France Will Not Let Greece Default
Published: 2/10/2010 7:52:34 PM By: Anna Fedec, contact@tradingeconomics.com

In 1997, the European Union established the Stability and Growth Pact. The main objective was to maintain fiscal discipline in countries adopting the Euro. However, very few envisioned that after a few years, Greece would be close to default on its debt and only a minority of EU members would be respecting the basic rules of the stability pact.

Quantitative Easing is Helping Wall Street Traders
Published: 12/9/2009 10:36:35 PM By: Anna Fedec, contact@tradingeconomics.com

Quantitative easing and other unconventional monetary policy measures did not have the positive results that many economists and politicians expected. In fact, it remains exceptionally difficult to get credit. However, it is indisputable that these measures of mass liquidity deployed by central bankers over the last 18 months are having a positive impact on investors' confidence judging by the recent performance of the world's stock markets. Still, the jury is still out and it may take years to assess the full influence of quantitative easing on the economy.

Debt Bubble May Hamper Global Recovery
Published: 12/3/2009 11:25:19 AM By: Anna Fedec, contact@tradingeconomics.com

Last week's announcement that Dubai World could no longer service its outstanding debt highlighted the fact the world economy remains fragile. Indeed, the burst of a debt bubble may be next in the line, after a series of devastating asset and housing bubbles.

A Weak US Dollar in Not in the Long-Term Interest of China
Published: 11/4/2009 11:14:39 AM By: Anna Fedec, contact@tradingeconomics.com

Since July 2008, China has kept the value of Yuan close to 6.82 per US dollar, oscillating around very narrow band. And like the dollar, the Renminbi has been falling against other currencies, not only undermining the reduction of global imbalances but also making exports from other countries less competitive against cheaper Chinese products.

Consumer Confidence in U.S. Unexpectedly Falls
Published: 10/27/2009 10:32:34 AM By: TradingEconomics.com, Bloomberg

Confidence among U.S. consumers unexpectedly fell in October for a second month as Americans fretted about a lack of jobs.

Global Recovery More Important Than Currency Intervention
Published: 10/23/2009 10:53:46 AM By: Anna Fedec, contact@tradingeconomics.com

Last week, Brazil announced the implementation of a 2% tax on capital inflows for fixed income and equities. Apparently, this decision was intended to prevent a bubble in the Bovespa and stop the Brazilian real for appreciating any further. However, although there is more and more discussion about the damaging effect of high/low exchange rates it is unlikely that any significant coordinated action will take place in the near future.

Group of 20 Agrees on Far-Reaching Economic Plan
Published: 9/26/2009 1:45:52 PM By: TradingEconomics.com, Bloomberg

Group of 20 leaders said they will crack down on risk-taking by banks and better align economic policies as they turned from crisis management to delivering a new set of rules for the world economy.

G20 Meeting Is Crowded With Conflicts of Interest
Published: 9/24/2009 4:25:28 PM By: Anna Fedec, contact@tradingeconomics.com

This week, leaders of the Group of 20 leading nations are meeting in Pittsburg. This meeting is happening the third time in less than a year and the agenda is expected to include calls for bigger financial markets regulations, global intervention to trim down trade imbalances and further discussion over protectionism. But with so many different interests in the same table will the major economies have the ability to solve some important issues?

A Trade War Between China and the US Will Damage Both Economies
Published: 9/16/2009 10:46:03 AM By: Anna Fedec, contact@tradingeconomics.com

Last week, President Barack Obama announced the United States would impose tariffs of up to 35% on tires from China. In response, Chinese government pledged dumping and subsidy probes of chicken and auto products from the US. However, regardless of which country is right or wrong, those protectionism moves are leaving both countries in very difficult position because by entailing trade restriction they can equally loose.

Government Spending May Lead US into a Double dip Recession
Published: 7/23/2009 12:17:45 PM By: Anna Fedec, contact@tradingeconomics.com

Government spending is rising day-by-day. The list includes: $787bn spent for the fiscal stimulus, at least $600bn for the TARP funding, unlimited resources for bank takeovers, loans to the financial institutions, and so on. But on the wake of declining tax revenues, how are those programs being financed? And more importantly, who is paying for it?

US Government Bailout (Update)
Published: 7/9/2009 8:07:30 PM By: Anna Fedec, contact@tradingeconomics.com

The lending capacity of the United States financial system has declined significantly over the last eighteen months as huge losses on loans and toxic securities have smashed capital in the financial sector. Hence, in a attempt to inject additional liquidity into the financial system, the U.S. Treasury along with the Federal Reserve has set out a series of programs to clean up the balance sheet of distressed financial institutions.

A Look to European Stimulus Plans
Published: 7/5/2009 12:29:34 PM By: Anna Fedec, contact@tradingeconomics.com

Since the beginning of the global financial crisis, European governments have been criticized for falling short of implementing a coordinated fiscal stimulus. However, although European countries have been slow in applying the stimulus packages, they haven’t stayed much behind the United States.

Public Debt May Rise To Unsustainable Levels
Published: 6/24/2009 4:58:33 PM By: Anna Fedec, contact@tradingeconomics.com

The term “too big to fail” has led to several bailouts and to an unprecedented increase in public debt. Indeed, the gross public debt of the ten richest countries in the world will grow by $9 trillion in the next three years reaching 106% of GDP, up from 78% in 2007, according to International Monetary Fund. More importantly, although there is little danger that countries will default on its bonds, it will take generations to pay for all this debt.

World Bank Cuts Forecast for Global Growth
Published: 6/22/2009 8:23:05 AM By: Tradingeconomics.com, Bloomberg

The World Bank said the global recession this year will be deeper than it predicted in March and warned that a flight of capital from developing nations will swell the ranks of the poor and the unemployed.

Government Bailouts and Weapons of Mass Liquidity
Published: 5/31/2009 1:55:48 PM By: Anna Fedec, contact@tradingeconomics.com

The lending capacity of the United States financial system has declined significantly over the last eighteen months as huge losses on loans and toxic securities have smashed capital in the financial sector. Hence, in a attempt to inject additional liquidity into the financial system, the U.S. Treasury along with the Federal Reserve has set out a series of programs to clean up the balance sheet of distressed financial institutions.

Comparing Stimulus Plans across the G20
Published: 5/31/2009 1:42:53 PM By: Anna Fedec, contact@tradingeconomics.com

With interest rates close to the zero, many countries have turned to fiscal stimulus to prevent their Gross Domestic Product from declining further. However, despite their common goal, some will fail, others will succeed.

The IMF Is Receiving an Upgrade. Will it Work?
Published: 4/28/2009 2:25:04 PM By: Anna Fedec, contact@tradingeconomics.com

Not a long time ago, many investors were questioning the need of the International Monetary Fund. However, with the worsening of the global financial crisis, the need for a lender of last resort has emerged, bringing the organization to the light again. But, will the IMF be able to help the world’s economy and is the institution really necessary for overseeing the global financial system?

U.S. Weapons of Mass Liquidity
Published: 4/21/2009 12:38:56 PM By: Anna Fedec, contact@tradingeconomics.com

The lending capacity of the United States financial system has declined significantly over the last eighteen months as huge losses on loans and toxic securities have smashed capital in the financial sector. Hence, in a attempt to inject additional liquidity into the financial system, the U.S. Treasury along with the Federal Reserve has set out a series of programs to clean up the balance sheet of distressed financial institutions.

G20 Agrees $1,100bn to Fight Crisis
Published: 4/2/2009 11:41:23 AM By: TradingEconomics.com, Financial Times

World leaders on Thursday agreed to “fight back” against the global recession with $1,100bn in funding for the International Monetary Fund, regional development banks and international trade finance, but did not commit themselves to a new round of fiscal stimulus.

Will the G20 Be Able to Fix the Global Economy?
Published: 3/25/2009 3:51:24 PM By: Anna Fedec, contact@tradingeconomics.com

On April 2, leaders from twenty of the world’s most advanced and emerging countries will meet in London to discuss a way to pull out the global economy out of the financial crisis. But has the so called G20 Group any ability and legitimacy to solve this difficult problem?

U.S. Treasury Announces $1 Trillion Toxic-Debt Plan
Published: 3/23/2009 5:53:12 AM By: TradingEconomics.com, Bloomberg

The U.S. Treasury announced a plan aimed at financing as much as $1 trillion in purchases of distressed assets to help a financial system that is “still working against recovery.”

Europe Unemployment at Two-Year High; Inflation Slows
Published: 2/27/2009 5:51:49 AM By: TradingEconomics.com, Bloomberg

European unemployment rose more than economists expected in January and inflation slowed, adding to arguments for the European Central Bank to cut interest rates more to revive the economy.

G-20 Calls for `Broad' Policy Action
Published: 11/15/2008 12:54:17 PM By: TradingEconomics.com, Bloomberg.com

World leaders agreed more must be done to shore up the global economy and improve regulation of financial markets, leaving details on how to do that to individual countries.

European Leaders Vow Bank Guarantees
Published: 10/12/2008 1:53:46 PM By: TradingEconomics.com, Bloomberg.com

European leaders agreed to guarantee bank borrowing and use government money to prevent big lenders from going under, trying to stop the financial hemorrhage and stave off a recession.

What to Expect This Week
Published: 9/20/2008 2:25:37 PM By: Anna Fedec

After an extraordinary week where the world's most important financial markets came close to a collapse, the week ahead is likely to bring some good news.

What to Expect This Week?
Published: 8/30/2008 1:52:51 PM By: TradingEconomics.com, contact@tradingeconomics.com

This week central banks decisions will take the center stage. The European Central Bank, the Bank of England, the Bank of Canada and the Reserve Bank of Australia are all expected to keep interest rates on hold.

What to Expect This Week?
Published: 8/23/2008 10:25:42 AM By: TradingEconomics.com

This week, housing data for the United States is likely to show that new home sales declined in July, home prices felt further but existing home sales went slightly up...

What to Expect This Week?
Published: 8/16/2008 1:49:14 PM By: TradingEconomics.com

This week will be very light in terms of economic releases. In the United States, despite the recent easing in energy and food prices producer price inflation is likely to grow further boosted by second round effects of high commodity prices.

What to expect this week?
Published: 8/2/2008 4:26:08 PM By: Trading Economics

This week, the market will be focus on the outcome of several central banks meetings. The United States Federal Reserve, European Central Bank, Bank of England and Reserve Bank of Australia are expected to keep rates unchanged due to signs of further economic slowdown.