| Date: September 20, 2010 | Source: Sources |
Go ahead and rate this post 
Loading ... The U.S. economic recession ended in June 2009 and lasted 18 months, which makes it the longest since World War II, said in a statement the National Bureau of Economic Research (NBER) , a panel of economists based in Cambridge, Massachusetts.
The longest recessions to date in the post-war took place between 1973 and 1975 and 1981 and 1982, with a duration, in both cases, 16 months.
President Barack Obama, was wary of the NBER's announcement, insisting that the situation remains very difficult for many citizens who are "fighting" to stay afloat.
"The hole was so deep that many people still are hurting," Obama told voters at a meeting organized by CNBC.
He said that it will take more time to solve an economic problem that developed, he said, for years.
The National Bureau of Economics , meanwhile, stressed that any future decline in economic activity represents a new recession and not a continuation of what began in December 2007.
Economists fear that the dwindling spirit of the current surge causes a double-dip recession that began in late 2007 due to the reckless bets on subprime mortgages from banks on Wall Street.
U.S. grew at a rate of five percent in the last quarter of 2009, a push slowed to 3.7 percent in the first quarter of 2010 and fell to 1.6 percent between April and June this year .
At this slowdown is compounded by the high unemployment rate, at 9.6 percent, the highest level of the last 27 years. The economic crisis led to the destruction of more than eight million jobs.
Concern about the economic future has led Americans to spend less, which is a burden for a country highly dependent on consumption.
In this regard, the Federal Reserve (Fed) said Friday that large U.S. companies keep a record of 18.4 billion in cash or other liquid assets, a clear sign of the prevailing wisdom.
Unlike the standard that applies in most countries, the National Bureau of Economic Research does not necessarily considered a recession begins after two consecutive quarters of economic contraction.
In fact, the group believes that this latest recession began in December 2007 although in the second quarter of 2008 the country experienced a growth of 0.6 percent, after which there were four consecutive quarters of negative growth.
The group took into account different variables when rendering its verdict including the labor market situation.
A recession, the association said today in its statement, is "a period of widespread contraction in economic activity lasting more than a few months, normally visible in the gross domestic product (GDP), real income, employment, production industrial and sales. "
Moreover, the NBER said today that its conclusion that the recession ended in June 2009 does not imply that economic conditions since that month have been favorable or that the economy has returned to operating at its "normal capacity".
Far from it, insisted the group, the only thing the panel of economists has determined is that "the recession ended and recovery began that month."
It is expected that given the current morning the Fed will keep interest rates at close to zero to stimulate the current recovery that occurs in an environment of low inflationary pressure. EFE
| Date: August 27, 2010 | Source: Sources |
Go ahead and rate this post Loading ... The Federal Reserve Chairman Ben Bernanke, said that the recovery had lost more strength than expected and the Fed was ready to take further measures if necessary to boost a faltering economy .
"The committee is prepared to provide additional monetary relief through unconventional measures if necessary, especially if the outlook deteriorates significantly," said in remarks prepared for the annual meeting of the Fed
Bernanke's words come just after the country's government has revised downward the economic growth figures for the second quarter in eight tenths to leave it at 1.6%.
Although the data was better than analysts expected, still a very weak growth.
Bernanke admitted that the global economy is recovering more slowly than expected after he suffered a deep recession last year.
"The recovery of growth and employment in the United States has slowed in recent months and is within walking somewhat weaker" than expected, Bernanke said.
Possible measures
In any case, the U.S. central bank chief did not clarify what those measures to boost the economy but has reviewed the effectiveness of some taken so far.
Bernanke said that purchases of longer-term securities by the Fed have been effective in reducing the cost of borrowing and said he thought that the benefits of buying more of those assets, if necessary, would offset any disadvantage.
Other options, such as a commitment to keep interest rates exceptionally low for a period of still greater than it currently expects the market, or increase inflation targets, the Fed would be less effective, he said.
However, he made clear that the Fed has not decided how to carry out this additional relief.
Recovery in 2011
Still, Bernanke said that the conditions for an acceleration next year.
Thus, in his speech, Bernanke noted some positive aspects of U.S. economic conditions, including "an increase in recent quarters the rate of household savings in an average of almost 6% of disposable income, more than 4 % calculated above. "
"In the business sector, real investment in equipment and software (computer) rose at an annual rate of over 20% in the first half of the year," he said.
But it remains the high unemployment rate and, according to Bernanke, "is likely to decline only slowly"
Information published in elmundo.es .
| Date: August 23, 2010 | Source: Europa Press |
Go ahead and rate this post Loading ... Surpass China in 2010 to Spain in the ranking of international tourist arrivals to 54.6 million compared to 52.7 million planned for Spain in the estimates of the World Travel Tourism Council (WTTC).
Complied with the agency estimates, Spain, therefore, lost the third position in which was placed in 2008 and placed in fourth position, behind China, USA, and France.
France will continue to hold leadership mundual with 70.9 million international visitors, followed by the U.S., with 55.5 million.
WTTC estimates that fourth place in Spain at least until 2020, when record 65.7 million visitors, far behind the 81.1 million U.S., which remains third.
This year China will have already taken to France's leadership potential first world tourist arrivals, with 1.0346 billion, up from 92.5 million the Gallic country.
In 2009, Spain retained the third spot on the podium of world tourism with 52.2 million visitors, up from 50.9 million arrivals from China, according to the latest barometer of the World Tourism Organization (WTO) , published in June.
The statistics of international tourist arrivals are moving upward in recent months. So, this morning the Ministry of Industry revealed that the arrival of foreign tourists to Spain increased by 4.5% in July, up nearly seven million, the largest increase since May 2008.
However, the general secretary of Tourism and Domestic Trade, Joan Mesquida, was today told Europa Press, more concerned about the increase in tourist spending in the sector while health is measured in numbers of arrivals.
With regard to the progress of China, Mesquida said that Spain's leadership in international tourism is "very clear", but acknowledged that efforts should be made to "improve competitiveness".
| Date: August 20, 2010 | Source: REUTERS |
Go ahead and rate this post Loading ... The United States took an unprecedented decision in the International Monetary Fund to try to force Europe to yield some of its power on the executive board of the IMF for emerging economies.
United States, frustrated by the refusal of Europe to sharing more power, declined this month to support a resolution that would have kept the European dominance in the council of 24 members, diplomats told Reuters several members of the fund.
Washington has been trying for a long time, and unsuccessfully, to reduce the number of seats on the IMF board to 20 from 24 as part of a comprehensive reform that would give developing economic powers a greater say in the decisions of the fund, reflecting its growing global influence.
Europe has hindered the idea of giving one of nine seats is currently on the board. Emerging economies such as Turkey have expressed interest in a seat.
European countries and United States dominate the IMF in a reflection of the postwar world order, which is being threatened by the advance of nations like China.
Advice is a major decision making bodies of multilateral lending agency. Has approved billions of dollars in emergency loans to countries hit by the global financial crisis and oversees the way it administers the fund.
Domenico Lombardi, former director of the IMF's board, said the U.S. decision, in the August 6th meeting of the IMF board, reflected the frustrations with Europe not only by the issue of governance of the fund but by broader economic matters.
These issues include differences about new liquidity rules for global banks and the European emphasis on austerity measures as Washington reiterates the need to ensure economic recovery before tightening the belt.
United States had not shown his muscles so openly before.
"It is an aggressive measure generated by a strong sense of frustration at what the U.S. sees as a failure of Europe to speed up the process of reforming the IMF," said Lombardi, president of the Oxford Institute for Economic Policy and member of the Brookings Institution in Washington.
A senior U.S. Treasury official said the election of the executive board of the IMF was an opportunity to explore ways to change the composition and make it more representative.
"Secretary (Timothy) Geithner supports reform of the IMF executive board to better reflect the reality of today's global economy and ensure that the representation of emerging market countries and developing stronger," said the official Treasury.
After the surprise U.S. action, the ball is now in the European side, where discussions will probably finance ministers at their next meeting, officials said.
EUROPEAN DIVISIONS
European officials have hinted that they are willing to change in the representation of Europe in the IMF, but there is no unanimity on how to do.
Germany, France and Britain have their own seats. Other European nations like Belgium, Holland, Spain, Italy, Denmark and Switzerland represent a constituency of nations, including many emerging economies.
A spokesman for the German finance minister, Wolfgang Schaeuble, said the board should continue to have 24 seats.
A senior European Commission official said it made sense that euro area members have a single chair at the IMF, given the recent collaboration between the member states of the euro zone to avoid a sovereign debt crisis with a rescue package 1 trillion dollars.
"But for that we need to show commitment to our member states and to support our position, otherwise it will be very difficult. It will be more difficult after the U.S. play? Is it easier? I hope so," he added.
African representatives are calling for heads of state to resolve the issue. They fear losing the two seats of Africa if Europe refuses to give ground.
"The risk is that poor countries, low-income Africa and some emerging markets are excluded from representation," an African official.
The Group of 20 economic powers and is asking about how to distribute voting power among members of the fund, a parallel debate the size and composition of the board.
As a result of these negotiations, China could overtake France and Britain, standing behind the United States, Japan and Germany.
Lombardi said the U.S. attempt to reduce the number of seats in the hands of Europe seemed to point to the major European countries but that would mean that smaller states like Belgium and the Scandinavian nations have to make way first.
"I would hope that the Europeans put something on the table (...) may lose one or two seats, and there arises a gradual plan that aspires to a more rational consolidation of European chairs," he added.
"They're going to have to put something on the table to sound credible because there is no way that they will keep eight or nine seats if the U.S. does not support this resolution," said Lombardi.
"It's a complicated game for the Europeans who would not want to be the African chairs to remove the directory because they will not cooperate," he said.
| Date: August 2, 2010 | Source: Europa Press |
Go ahead and rate this post Loading ... Sales of new U.S. homes rebounded in June after the downward trend recorded in May, the Commerce Department said the country. Growth in sales of new homes increased by 23.6% in June from May, up 330,000 homes, compared to 316,000 estimated by economists surveyed by Market Watch . New home sales had fallen in May by 36.7% to a record high of 267,000 in comparison to the expected drop of 32.7% to 300,000. The average selling prices, meanwhile, fell 9.8% from May and 11.6% from June last year, to stand at $ 242,900.
