Greece will go bankrupt by the end of the year, as argued by David Beers , head of international public evaluations of the Standard & Poor’s . According to a report in Dow Jones Newswires , the Beers reiterated its estimate of the S & P that Greece can be found a state of bankruptcy later this year after the agreement on debt relief and extension of the maturities of the bonds. recalled that last month the S & P said that Greece would lead to selective default , when enabled the design of Europeans, according to which individuals will participate in the second bailout of the country. This plan “includes a bankruptcy and debt relief,” said Beers . In addition, Beers defended the recent decision by the S & P to downgrade the ratings of U.S. and described the assertion of U.S. Treasury that was wrong 2 trillion. U.S. dollars false. “There is no mathematical error” as claimed by the ministry, stating that the said amount was anyway not affect the decision to regrade as referring to longer-term calculations. The forex traders however continue to see the EURUSD pair over $1.4200 and so far there are no signs of weakness. Finally, in China noted that, like other countries, challenges faced by the aging of inflation. Risks remain controllable, but how to deal with this issue will impact on future assessments of the country.
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Eurozone: In 17 months low the economic climate in August
Significantly less optimistic were consumers and businesses Eurozone in August, as fears of debt crisis and kept the outlook of growth remains weak. According to the monthly survey of the European Commission economic sentiment indicator fell to 98.3 points from the 103 units in July. This figure is the lowest since March last year and was below economists’ expectations for 100.5 points, according to a poll of Dow Jones Newswires. This applied pressures on the Euro in the forex market as the common european currency was declined over 0.50% against all other major currencies. The sixth consecutive drop in the index reinforces the contraction of the eurozone economy and shows that the European Central Bank will probably be reluctant to raise its key interest rate for the third time this year even though inflation remains above target.
In parallel, the industrial confidence indicator declined to -2.9 points in August from 0.9 points in July, the lower size than in July last year, economists expect -2 points. Confidence in the services sector fell to 3.7 from 7.9 points, its lowest level since June last year. The business climate index fell to 0.07 from 0.44 points in July, its lowest level since March last year. Economists expected the index to create on 0.18 points. In addition, consumer confidence declined strongly, though less than anticipated. Specifically, the index declined to -16.5 from -11.2 points, recording the lowest size by June 2010 but higher than the preliminary data for 16.6 points. Confidence in the retail sector fell to -8.7 points in August from 3.6 points last month.
Finally, note that the only improvement in confidence occurred in construction, where the index was less negative at -23.3 points from -24.3 points in July.