The Trading session on the Old Continent ended with divergent movements of major indexes on the background of mixed economic data today. During today’s session of the European Central Bank expected left its main interest rate in the eurozone at a level of 1 percent for the eighth consecutive month in December. Its president, Jean-Claude Trichet surprised markets, however, as announced in December that the planned auction for the granting of loans to commercial banks in the euro area for a period of 1 year will be in the basic rate of 1%. Instead, the interest rate will be indexed to market interest rates in the euro area. Economic data today showed that services sector in Britain and the United States has dropped unexpectedly in November. Moreover, the gross domestic product of the euro area rose by 0.4 percent in the third quarter, but only because of the increase in government spending and exports. Shares of the largest engineering company Siemens in Europe fell by 5.2 percent to 64.08 euros on the stock exchange in Frankfurt, after the conglomerate reported its first quarterly loss for last year. Conglomerate announced that its profit has contracted by 57 percent annually for the preceding fiscal 2009
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Which balloon will burst after Dubai? How the threat of credit echoed Arab Emirates? Is it an isolated phenomenon or a debt crisis heralded a new wave of bankruptcies? These are questions that are trying to find solutions to two analysts from New York Times. So far, investors do not succumb to panic, but the big banks have granted loans to fund state the investment – Dubai World and its subsidiary development company Nakheel anxiously assessing their potential vulnerability to a possible chain reaction of bankruptcies if Emirates not fulfill their promises to help. Does not happen, which was declared by the common central bank of the United Arab Emirates (UAE) to give money to the fund and the construction company, not to fall into a liquidity crisis, with huge debts may prove to be not only individual corporations and banks, but governments and objectives. All creditors from the Baltic to the Mediterranean looking for money, although theirs is the blame for the unprecedented credit boom. Already are piling up deficits in the budgets of not a few countries that drew money for anti-crisis programs. Government debt is growing even in a country like Germany, which has long been a bastion of strict fiscal policy. The external debt of Bulgaria, Hungary and the Baltic countries grew as part of GDP, say the authors of the New York Times. However, they believe that it can be expected similar to the Dubai situation in other countries of the world. But that does not mean that nations will go to save individual companies from bankruptcy.
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