news for last week- October 10
IMF said the economy had grown faster than expected and predicted that it would grow by %4.8 over the year as a whole.
2011 growth 4.1% but growth remains fragile
Growth: Developed vs Developing
developed countries were set to experience sluggish growth whereas developing nations would countinue to boom.slugish growth due to budget cuts.
Bank Write-downs and Loan Provisions
between 2002 and 2010 the total amount of bank loan provision write downs would amount to $2.2 trillion.
Bank of Japan interest rate intervention
the bank of japan cut the interest rates from 0.1% to a range between zero and %0.1 cheaper cost of borrowing, more credit and more consumption, higher inflation and gdp growth. also escape from the japanese yen, because of low interest income.
Wen Jinbao and the Unstable Yuan
Chinese prime minister told that unstable yuan put the world economy in peril.
Fitch downgraded the Ireland
Ireland was downgraded by Fitch because of the effect that bailing out Anglo Irish Bank will have on the fiscal health of the countr. cost of the bail out could reach Euro 50 Billion which makes Deficit to GDP as 32%
Greece will contract by 4% in 2010
Greece government plans further expenditure cuts and increse in revenue to close fiscal deficit to 7% of the country’s GDP. The EU target is 7.6%
General Electric would buy Dresser- a maker of oil and gas equipment for $3 billion. GE Revenue $40 billion, expanding in energy business
HTC 3rd quarter profit $360 million, twice as much as they did last year. HTC is the world’s largest maker of handsets that use msft and google operating systems. the strong results were driven by its newest models that use google’s android software