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Unease Over Economy

  • January 19th, 2008
  • Posted by 7thmin

euro-symbol-reduced.jpgStock exchanges ended the week showing a downward trend (18.1.08) after a skeptical response to the stimulus plan announced for the American economy.

“Appetite for shares has sharply decreased as problems in the US housing market have spread around the world”, summarised the BBC, citing late falls on Friday:

The FTSE 100 closed 0.7 point lower at 5,901.7 in London; the CAC 40 index fell 1.3%, closing at 5,092.40 in Paris, the DAX fell 1.3% in Frankfurt.

In the United States the Dow Jones index was slightly up, the Nasdaq slightly down, and for the week, the Standard and Poors indicator showed a loss of 5.41%, the steepest fall for more than five years.

The Bush administration announced a plan (18.1.08) involving temporary corporate and individual tax cuts to put up to an additional $US145-billion (A$165-billion; dcerates.com, 19.1.08) into circulation and counter a trend towards recession.

Trends have fuelled concern that recession in America this year could spread, with authorities in Germany revising growth forecasts from 2% to 1.7%; in France still holding to the 2% figure but conceding difficulty with it.

A trade down-turn is now thought to be probable pin some sectors, e.g. exports from developing countries, though countered by continuing high-level activity in the emergent Chinese and Indian economies.

Reference:

BBC, “Bush outlines $140bn stimulus package”; Market Data, last updated 18.1.08, 22:11. www.bbc.com, (19.1.08).

Alain Faujas, “Les signes d’une contagion de la récession hors des Etats-Unis se multiplient” (Growing signs recession in the USA may spread), Le Monde, 19.1.08.

ft.com – Financial Times, “Bush outlines $140-billion stimulus package”, 19.1.08. www.ft.com, (19.1.08).

Krishna Guha and Matthew Garrahan, “Recession looming in US housing-boom states”, BBC, 16.1.08. www.bbc.com,(19.1.08).

Le Monde, “Correction: Wall Street de nouveau en baisse malgré le plan Bush, perd 0,49%” (New fall on Wall Street despite Bush plan), 18.1.08. www.lemonde.fr, 19.1.08.

Daniel Pimlott, “Biggest drop in housing starts since 1980”, ft.com – Financial Times, 18.1.08. www.ft.com, (19.1.08).

Unease Over Economy

Stock exchanges ended the week showing a downward trend (18.1.08) after a very skeptical response to the stimulus plan announced for the American economy.

“Appetite for shares has sharply decreased as problems in the US housing market have spread around the world”, summarised the BBC, citing late falls on Friday:

The FTSE 100 closed 0.7 point lower at 5,901.7 in London; the CAC 40 index fell 1.3%, closing at 5,092.40 in Paris, the DAX fell 1.3% in Frankfurt.

In the United States the Dow Jones index was slightly up, the Nasdaq slightly down, and for the week, the Standard and Poors indicator showed a loss of 5.41%, the steepest fall for more than five years.

The Bush administration announced a plan (18.1.08) involving temporary corporate and individual tax cuts to put up to an additional $US145-billion (A$165-billion; dcerates.com, 19.1.08) into circulation and counter a trend towards recession.

Trends have fuelled concern that recession in America this year could spread, with authorities in Germany revising growth forecasts from 2% to 1.7%; in France still holding to the 2% figure but conceding difficulty with it.

A trade down-turn is now thought to be probable pin some sectors, e.g. exports from developing countries, though countered by continuing high-level activity in the emergent Chinese and Indian economies.

Reference:

BBC, “Bush outlines $140bn stimulus package”; Market Data, last updated 18.1.08, 22:11. www.bbc.com, (19.1.08).

Alain Faujas, “Les signes d’une contagion de la récession hors des Etats-Unis se multiplient” (Growing signs recession in the USA may spread), Le Monde, 19.1.08.

ft.com – Financial Times, “Bush outlines $140-billion stimulus package”, 19.1.08. www.ft.com, (19.1.08).

Krishna Guha and Matthew Garrahan, “Recession looming in US housing-boom states”, BBC, 16.1.08. www.bbc.com,(19.1.08).

Le Monde, “Correction: Wall Street de nouveau en baisse malgré le plan Bush, perd 0,49%” (New fall on Wall Street despite Bush plan), 18.1.08. www.lemonde.fr, 19.1.08.

Daniel Pimlott, “Biggest drop in housing starts since 1980”, ft.com – Financial Times, 18.1.08. www.ft.com, (19.1.08).

Unease Over Economy

Stock exchanges ended the week showing a downward trend (18.1.08) after a very skeptical response to the stimulus plan announced for the American economy.

“Appetite for shares has sharply decreased as problems in the US housing market have spread around the world”, summarised the BBC, citing late falls on Friday:

The FTSE 100 closed 0.7 point lower at 5,901.7 in London; the CAC 40 index fell 1.3%, closing at 5,092.40 in Paris, the DAX fell 1.3% in Frankfurt.

In the United States the Dow Jones index was slightly up, the Nasdaq slightly down, and for the week, the Standard and Poors indicator showed a loss of 5.41%, the steepest fall for more than five years.

The Bush administration announced a plan (18.1.08) involving temporary corporate and individual tax cuts to put up to an additional $US145-billion (A$165-billion; dcerates.com, 19.1.08) into circulation and counter a trend towards recession.

Trends have fuelled concern that recession in America this year could spread, with authorities in Germany revising growth forecasts from 2% to 1.7%; in France still holding to the 2% figure but conceding difficulty with it.

A trade down-turn is now thought to be probable pin some sectors, e.g. exports from developing countries, though countered by continuing high-level activity in the emergent Chinese and Indian economies.

Reference:

BBC, “Bush outlines $140bn stimulus package”; Market Data, last updated 18.1.08, 22:11. www.bbc.com, (19.1.08).

Alain Faujas, “Les signes d’une contagion de la récession hors des Etats-Unis se multiplient” (Growing signs recession in the USA may spread), Le Monde, 19.1.08.

ft.com – Financial Times, “Bush outlines $140-billion stimulus package”, 19.1.08. www.ft.com, (19.1.08).

Krishna Guha and Matthew Garrahan, “Recession looming in US housing-boom states”, BBC, 16.1.08. www.bbc.com,(19.1.08).

Le Monde, “Correction: Wall Street de nouveau en baisse malgré le plan Bush, perd 0,49%” (New fall on Wall Street despite Bush plan), 18.1.08. www.lemonde.fr, 19.1.08.

Daniel Pimlott, “Biggest drop in housing starts since 1980”, ft.com – Financial Times, 18.1.08. www.ft.com, (19.1.08).

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