Effects of global crisis

The European economy into recession was a global crisis. European Union (EU) partners of the euro currency used in 15 countries, including the Euro Area, in a thousand in the second quarter after shrinking 2 in the third quarter narrowed to 2 per mil, 15 years after the entry into recession. 

According to official statistics agency Eurostat'ın data, in the second quarter with zero growth, has taken the 27 members of the EU economy, in a thousand in the third quarter was 2 smaller. Eurostat, strong economic performance in the first quarter annual growth rate of the end of the third quarter because of the Euro Area in a thousand and 7 thousand in the EU 8 is announced. All EU members, the third-quarter growth figures are not clear. However, according to data Eurostat'ın, smaller percentage of the economy between 1'le Estonia, millesimal 5'le Germany and Britain, hundreds and hundreds 1'le Hungary is 2'yle Spain. In the economy, a country reduced to a quarter of two in a row, means stagnation. 


Decline in inflation 

Euro area growth in the bad signals coming from the inflation rate was declining. Euro Area in October at 3.6 percent from 3.2 percent to down. European Central Bank's inflation and economic contraction in the fall to take into account the interest rate reduction by 4 At its meeting in December is expected to continue the policy. Economists per cent 1.5 per cent next year 3:25-level indicators of interest 'is predicting it will be reduced. 

U.S. at the start of the crisis impact on the European economy was great. State in the country as follows: 

GERMANY: Europe's biggest economy shrinking 0.5 percent in the third quarter of Germany five years after the re-entry into recession. Economy, 0.4 percent in the second quarter was smaller. 

ITALY: Germany, then Italy's entry into the official recession. Euro area has the third largest economy, Italy has been narrowed 0.5 percent in the third quarter. Italian economy shrinking at a rate of 0.4 percent was in the second quarter. 

FRANCE: France has a close shave from recession. France Finance Minister Christine Lagarde, the French economy in the third quarter by growing recession 0:14 percentage was recorded in the escape. Make a statement to a French radio that Lagarde, the economy in the consumption and investment growth in the surprise effect was noted. France 0.3 per cent in the second quarter had narrowed. 

SPAIN: Spain get rid of the stagnation among the countries. The economy grew 0.1 percent in the second quarter of Spain, has been shrinking 0.2 percent in the third quarter. 

NETHERLANDS: Dutch economy in the second and third quarter growth to zero, and the deadlock has occurred. 

Citigroup's 10-thousand people will stop to work more 

U.S. 'li financial group Citigroup, return to profitability within the framework of studies on other large-scale removal from work, it's millions of credit card interest rates are also preparing to upgrade. These decisions, the group CEO Vikram Pandit'in, described the damage as 20 billion dollars has been received. New York-based company's shares, the single digits in the dollar was 9:45. Citigroup to start this week, investment banking and other parts of the world at least the last 10 thousand employee's job vereek. Pandit and assistants, running from the authorities about the charges at a rate of 25 percent budget reduction asked. Meanwhile, the Wall Street Journal in the Citi Board of Directors Chairman in relation to news release pursuant to the Citi Board of Directors, the company's Chairman Sir Win Bischoff'a full support to underline again, Sir Win Bischoff'un continue to be pleased by the leadership says. 

Paulson, the package of democratic revolt was changed 

U.S. Treasury Secretary Henry 700 billion dollar rescue package Paulson'ın buy risky assets is not her description of the Democratic party. Democratic senators will use the package to increase the consumption Paulson'ı explaining, "Comments before you tell us why did not" diyerek criticized. In September, senators and the Treasury's two-week talks with the astonishment of the order creating the senator said, "The government's 700 billion dollar rescue plan has evolved. Paulson package using numerous performances in front of could not be passed. The U.S. was very disturbing" said. Republican senators Tom Coburn, Richard Burr and David Vitter wrote a letter to the Paulson'a "on the use of the package so a quick transformation to go, how to use funds to create a serious question mark was" alert has. 

We have given information 

Treasury spokesman, however, "Congress authorized for us to provide stability in financial markets did. Moreover, this package of recommendations of the congress was" The Paulson'ı said. The same spokesman in recent days to explain the whole problem of protection of assets (TARP) program was expressed that the scope of work rapidly. Indeed, Treasury's program to work with asset managers, said work would take. However, according to sources close to the government backstage Paulson, was away on September 29 of this idea. Congress rejected the 700 billion dollar package after readmission to the market yet, not moral. 

Dexia'dan 1.5 billion loss 

THE GLOBAL financial crisis in Belgium, France and Luxembourg 6.4 billion euros of capital by transferring their banking giant Dexia rescued, 1 billion 544 million euros in the third quarter was hurt. Bank in the same period of last year profit was 439 million euros. Dexia'dan made with 2.2 billion in losses in the third quarter balance sheet losses of global financial crisis is set to be effective, it does not take into account the bank's reported profit was 647 million euros. The Bank in the framework of the restructuring plan, the New York-based bond insurance Financial Security Assurance Inc.. (FSA) to sell unit for $ 722 million was announced for the final agreement reached. Dexia, the global crisis by explaining the large loss of capital in 2000, 2.6 billion dollars eriten FSA'yı was purchased. 

Hedge funds: We should be taxed higher 

World's biggest hedge fund managers in Congress on Thursday irregular financial instruments bigger losses may lead to excessive attention to strict rules on the warning has. George Soros of the leading hedge fund managers, the question of crisis and not to their financial system arising from the said. James Simons of Renaissance Technologies managers also draw attention to the problem was caused by the rating agencies. Citade'in manager is Kenneth Griffin, "The problem really stems from the irregularity had more rigid rules related to institutions affected by the crisis," he said. Committee chairman Henry Waxman of the Democrats say, "The problem was caused by funds provided tax reductions," he said. 

U.S. 'li racing clutch of banks deposits 

U.S. 'deposits between banks in the race are increasing contraction. Citigroup, the largest of which, with 55 branches all bank deposits to S & T Bancorp'a much sharper increase in their interest rates do. This competition, to ensure that customers get more benefits, the United States in large and small banks to compress profit margins are causing hardship to live. Financial services consulting firm Oliver Wyman, "Deposit Taking race is speeding up the national price war. Something like this in the past 15 years have not lived. Unable to predict at this time the degree of competition," he said. 

Credit Suisse asset management partner is to 

Swiss bank Credit Suisse, traditional asset management is part of continuing negotiations for the possible partnership. According to sources close to the subject of the information, the Swiss bank, one of the three branches of franchise'larından asset management by Global Investors'ı smaller, better serve customers and to provide. Global Investors 212 billion U.S. dollars (255 billion Swiss Francs) to manage assets. 

Sun Microsystems, just 6 thousand workers will remove 

U.S. 'li IT firm Sun Microsystems at global level is between 5 and 6 thousand workers who will dismiss. Made, the employees of Sun Microsystems company is approximately 18 percent is between 5 to 6 thousand jobs next year, just out of practice to the preparation are explained. President of Software Rich Green of the company has resigned from the task. Noted that dismissal of the company to Sun in a year between 700-800 million dollars to savings specified.