Euro debt crisis

The ongoing debt crisis in Greece continues to spur unrest, move markets and threaten the very fabric that connects the eurozone. Exactly how much effect a Greek default — and the domino effect in lending costs it would have throughout Europe — would have on the U.S. business world remains unclear.But a good rundown from CNN Money offers a list of the three biggest risks Greek default presents for the United States: (1) U.S. bank exposure to sovereign debt, (2) a pullback in U.S. exports, and (3) U.S. business slow down.To me, the last one seems the most threatening. Only now is the U.S. economy beginning to make any headway on replacing the jobs lost after the 2008 meltdown — and even this “recovery” remains mild, at best.Here is how CNN breaks down that risk.Many products sold by U.S. companies in Europe are made in Europe.And losses there are already taking a bite out of U.S. multinational firms, from automakers General … [Read more...] about The Greatest Risks of the Greek Debt Crisis to the U.S. Economy

Giuseppe Conte arrives to address the media after meeting Italian President Sergio Mattarella, at the Quirinale presidential palace in Rome. AP/Gregorio Borgia Italy's 5-Star Movement and League have been accused of making a plan to abandon the euro. That could pose major risks to Italy's economy in the short run. Some Italians don't like the euro, but doubt dropping the currency is plausible. Italy's antiestablishment 5-Star Movement and the far-right Northern League, populist parties that came out on top in an inconclusive election earlier this year, have been accused of making a plan to abandon the euro. Here's what you need to know.  Is it legal? The eurozone was designed to be a "one-way street," according to a recent report from German think-tank Bertelsmann Stiftung. And the treaty laying out ground rules of the eurozone doesn't include any provisions for an exit from the currency system, which has been labeled  "irreversible" and "i … [Read more...] about Italy’s populists reportedly drew up a plan to drop the euro — here’s what you need to know

Jun 11, 8:54 AM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Opinion By Bruno Pellegrino 06/04/18 AT 6:04 AM Italy managed to form a government after briefly slipping into political crisis, which sent markets around the world into a panic as investors fretted about the fate of the European Union. The crisis began on May 27 when the political party that won the most seats in March elections initially failed to form a government.Economist Bruno Pellegrino, who has previously written on Italy’s economy, explains what’s going on and why it matters.1. What’s driving the political chaos?The March 4 election dramatically tilted the balance of power in the country.It was a true political earthquake: The Italian electorate resoundingly rejected the political establishment that has held power since the mid-90s in favor of populism, as happened in the 2016 U.S. … [Read more...] about What’s Behind Italy’s Crisis And Why It Matters

Opening a meeting of his far-left Syriza party, Tsipras said he was confident a solution over repayments would be found, despite talks between Greece and its creditors ending in Brussels with no breakthrough on Friday. Months of feuding with the IMF has rattled markets and raised fears of a new debt crisis, with Athens resisting pressure to cut public services any more than has already been agreed with creditors. The Greek premier urged a change of course from the IMF. "We expect as soon as possible that the IMF revise its forecast.. so that discussions can continue at the technical level," he said. And referring to Germany's Wolfgang Schäuble, Tsipras called for Chancellor Angela Merkel to "encourage her finance minister to end his permanent aggressiveness" towards Greece and "stop playing with fire". "The IMF is playing a game of poker by dragging things aside because it does not want to blame the intransigence of the German minister," Tsipras said, criticising the "new … [Read more...] about Tsipras hits back at Germany, IMF over debt impasse

A German trader is masked as the magician Merlin on the floor of Frankfurt's stock exchange as part of Germany's carnival season Reuters European markets are bouncing back on Wednesday after being routed by Italy's political crisis on Tuesday. Global market turbulence reached Asia overnight, with major Asian stock indexes losing substantial ground. You can follow the latest developments at Markets Insider. Having fallen almost 3% on Tuesday, Italy's benchmark share index, the FTSE MIB is up more than 2% early on Tuesday afternoon, while other European bourses are seeing gains of as much as 1%. Italy's political situation deteriorated rapidly over the weekend, with the prospect of a fresh general election in the next few months now looming large. Many commentators fear a vote could effectively become a referendum on Italy's membership of the euro. Given Italy's status as one of the key pillars of the single currency area, investors are worried about the possible collapse … [Read more...] about Markets are bouncing back as fears over Italy’s political crisis subside