Monday, December 20, 2010

20101220 1201 Global Economics News.

EU: Ireland’s rating cut five levels by Moody’s to Baa1
Ireland’s credit rating was cut five levels by Moody’s Investors Service and further downgrades are possible as the government struggles to contain losses in the country’s banking system. The rating was lowered to Baa1 from Aa2, that’s three levels above non-investment grade and the same level as countries including Russia and Lithuania. The outlook on the rating is “negative,” Moody’s said. (Bloomberg)

EU nations violating deficit caps may be fined up to 0.5% of GDP
Euro-area governments may under European Commission proposals be fined as much as 0.5% of their countries’ gross domestic product if they ignore recommendations to fix economic imbalances, European Union President Herman Van Rompuy said. The commission “will develop a number of indicators that show if a country gets into problems economically,” and “we’ll check that for the first time in March,” Van Rompuy said. (Bloomberg)

US: Payrolls drop in 28 states, joblessness up in 21
Payrolls decreased in 28 US states and the unemployment rate climbed in 21, showing most parts of the world’s largest economy took part in the November labor-market setback. North Carolina led the nation with 12,500 job cuts last month, followed by Massachusetts with 8,600 dismissals, and Ohio with 7,800, figures from the Labor Department showed today in Washington. The report is consistent with figures on 3 Dec that showed unemployment increased last month for the first time since August. (Bloomberg)

US: Consumer, business spending probably rose
Spending by US consumers and businesses probably accelerated in November, a signal the economy is speeding up at the end of the year, economists forecast before reports this week. Household purchases rose 0.5% after a 0.4% increase in October, according to the median estimate of 62 economists surveyed by Bloomberg News ahead of 23 Dec figures from the Commerce Department. The same day, another report from the agency may show demand for durable goods excluding cars and aircraft climbed 2%. (Bloomberg)

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