Jumat, 06 Juli 2012

Euro crisis fall-out is global, IMF chief warns as situation deteriorates even in fast-growing China and India

Euro crisis fall-out is global, IMF chief warns as situation deteriorates even in fast-growing China and India

  • Christine Lagarde says growth will be weaker than predicted
  • Bank of England tells banks to keep more reserves
  • Washington releases disappointing employment figures
  • Spanish bonds return to perilous 7% rate

By Hugo Duncan

PUBLISHED: 15:01 EST, 6 July 2012 | UPDATED: 17:29 EST, 6 July 2012

Fears over the global economy intensified yesterday as the escalating crisis in the eurozone took its toll on the rest of the world.

The International Monetary Fund said the situation has deteriorated in Europe and America as well as in emerging markets such as China, India and Brazil.

Christine Lagarde, managing director of the IMF, said growth around the world will be weaker than the 3.5 per cent predicted just three months ago.

Warning: Christine Lagarde, the managing director of the International Monetary Fund, says the eurozone crisis has escalated globally The Bank of England, headed by governer Sir Mervyn King, has told UK banks they need to keep more money in reserve to shield them from the crisis

Warning: Christine Lagarde, left, the head of the IMF, says the eurozone crisis has escalated.The Bank of England, headed by governor Sir Mervyn King, has told UK banks they need to keep more money in reserve to shield them from the crisis

It came as the Bank of England warned that UK banks needed to keep more money in reserve to shield them from the euro crisis.

The Financial Policy Committee, the Bank’s risk watchdog, said it was concerned that in the event of ‘severe but plausible’ developments in the debt crisis ‘some UK banks could face large losses’.

Miss Lagarde said: ‘The outlook has, regrettably, become more worrisome. Many indicators of economic activity â€" investment, employment, manufacturing â€" have deteriorated.

‘And not just in Europe or the United States. Also in key emerging markets: Brazil, China, India. For make no mistake: this is a global crisis. This crisis does not recognise borders. This crisis is knocking at all our doors. No one is immune.’

The warning came as figures in Washington showed just 80,000 jobs were created in the US last month, far fewer than expected â€" leaving unemployment at 8.2 per cent of the American workforce.

Chinese rateExperts have warned that the eurozone crisis will have international impact cut: Beijing is rattled

Experts have warned that the eurozone crisis will have international impact

Chris Williamson, chief economist at research group Markit, said: ‘The US recovery has slowed. Much of this can be attributed to the eurozone debt crisis, which is clearly having a growing impact on business sentiment around the world.’

The crucial ten-year bond yield in Spain â€" the amount the government in Madrid pays to borrow â€" soared back above seven per cent into the danger zone that triggered bailouts in Greece, Ireland and Portugal.

It is feared that the £80billion rescue package agreed for Spain’s broken banks is merely a prelude to a full-blown bailout of the state. Cyprus has also asked for emergency funds.


Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have not been moderated.

  • Newest
  • Oldest
  • Best rated
  • Worst rated

Stop being greedy an cancel intrest rates then

Report abuse

The way I see it is, every country in the world owes shed loads of money and must therefore make everyone redundant and close down all public services as they can no linger be afforded. Workers that are left with a job must all work harder and longer hours and never expect to retire. Those that do not have a job will have no hope of getting one as everywhere is downsizing and they must expect their benefits reduced. Only the politicians and bankers that have failed miserably in their responsibilities can expect their pay and bonuses to remain or go up. Has in the words of the great Johnny Totten "ever suspect that you have been had?"

Report abuse

Well i will go to the top of our stairs,the eurozone crisis is escalating says christine largarde.Now for an expert in money and finance she is quick on the draw.

Report abuse

Is she paying tax on her earnings yet ?

Report abuse

Quick, arrange another summit meeting.

Report abuse

Is the EURO bubble about to burst?

Report abuse

It is about time these highly paid experts started coming up with solutions to the problem rather than telling us how bad things are. WE KNOW

Report abuse

The White Witch is threatening the whole world with eternal winter if all the central banks ignore her. Where is Aslan when you need him to breathe on our petrified leaders and bring them to their senses.

Report abuse

Pay your taxes Christine!

Report abuse

And their solution? Tax the poor, strip the worker pension funds and give the money to the banks.

Report abuse

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Diposting oleh di

Tidak ada komentar:

Posting Komentar

Langganan: Posting Komentar (Atom)