Friday, April 22, 2005
Greenspan: Budget Deficits Pose Danger
Yahoo! News |"On the same day that
Federal Reserve Chairman
Alan Greenspan issued a fresh warning about the dangers of bloated budget deficits, Congress considered new tax breaks for the energy industry and an $81 billion measure to pay for U.S. military operations in Iraq and Afghanistan.
The events Thursday illustrated the challenges — 'hard choices,' as Greenspan put it — that policy-makers face in trying to control spending.
Greenspan, who steadily has pressed lawmakers, told the Senate Budget Committee that unless the situation is reversed, the economy in the years ahead could 'stagnate or worse.'"
Thursday, April 21, 2005
Worries over US economy hit Tokyo shares
Yahoo! News | "Japanese shares fell sharply on Thursday morning as investors continued to worry about the US economy.
By midday the technology-heavy Nikkei 225 average fell by 2.3 per cent to 10,828.97, and the broader Topix declined by 2.1 per cent to 1,108.22.
The Ministry of Finance said foreign investors had sold a net value of Y126bn in Japanese shares in the week to April 16 - a reverse of net buying the previous week.
Investors bullish on Japan are afraid of a flight of capital away from Japan as commonly happens during times when economic prospects appear to grow dimmer.
Falls in Japanese stocks followed a slide in the Dow Jones Industrial Average on Wednesday to its lowest close in six months, after news of a jump in consumer prices last month increased fears about sharp interest rate rises at a time when the US consumer spending may be running out of steam."
Tuesday, April 19, 2005
Snow: World Economy Strong Despite Oil
Yahoo! News | "The global economy can shake off the drag from higher oil prices and keep expanding provided that key industrial countries make necessary reforms to spur growth, Treasury Secretary John Snow said on Saturday.
At a press conference following a meeting of group of Seven finance chiefs, Snow aimed to put the best face on an outlook the G7 agreed was buffeted by a 'headwind' from costlier oil.
'Even with the drag, the sense is the global economy will continue to grow at a strong clip,' Snow told a press conference after meeting his counterparts from the Group of Seven industrialized nations.
'We do need to continue to address the over-arching concern, which is lack of sufficient growth in the large industrialized countries,' he said. Snow added the United States was doing its part, leaving little doubt that he meant it was Europe and Japan that had to pick up the pace.
In a subsequent address to the International Monetary Fund, Snow sharpened his message, saying: 'The major economies, particularly continental Europe and Japan, need to act more resolutely to increase economic potential.'"
Fed's Bies says central bank should be 'alert' to inflation signs
Yahoo! News | "The Federal Reserve must be 'more alert' to signs of increasing inflationary pressures, even if prices appear to be contained, central bank Governor Susan Schmidt Bies said.
Speaking in Buffalo, New York, Bies said she expects US growth to remain strong, inflation to remain contained and for the Fed to continue to raise interest rates at a 'measured pace.'"
US fears hit stocks in Europe and Asia
Yahoo! News | "Wall Street stocks closed flat on Monday, hovering near five-and-a-half-month lows, while jitters over the US economy sent shares in Europe and Asia sharply lower, underlining a dramatic shift in sentiment which has seen investors fleeing riskier assets in favour of safe-haven investments."
