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Market News – Crisis Talks Resume For European Union

The EU is getting put in a pretty dangerous position – their debt crisis is starting to spiral out of control, and if nothing is done soon to stop it, no one really knows where it could be heading.

Other major players in the world economic game, like China and Japan, have called for other international counties (Outside of the EU) to step up and help – if the EU goes down, the rest of the world will feel some really drastic effects.

We will have to stay tuned to see what happens next…

 

Japan Ready To Continue Market Intervention?

After intervening in the Japanese markets on Thursday and selling over 4.5 trillion yen, Japanese authorities continue to watch the situation closely and have gave hints that they are willing to do more if things don’t stabilize.

While the Yen did initially fall after the initial intervention, it rebounded rather quickly – a sign that maybe the intervention wasn’t successful or that more needed to be done to have a lasting effect.

Another issue that needs to be addresses is whether Japan had consent from their G7 counterparts to conduct this currency intervention – it is frowned upon if a country goes off and does major things like this alone without “permission”. When a country intervenes in regards to their currency, it has worldwide effects and can immediately have a negative effect on another countries economy. While the Japanese say they are communicating with other countries in regards to what they are going, they won’t say how each country feels about their actions. This may lead us to believe that not everyone is happy with it.

 

Credit Rating Agencies In Italy Raided?

It appears as though Italian authorities are concerned about some irregularities in the way Moody’s and S&P has been conducting their business in relation to the Italian situation. They raided the offices of both agencies in Italy to get more information and conduct an investigation.

This all stems from downgrade talks that have plagued Italy for quite some time now. All the details of the situation have yet to be released, but one may be led to believe that there was some form of inappropriate communication or conduct between analysts at these firms.

Most people don’t really understand how big of an impact these rating agencies have on the economies they rate. A downgrade for a major country like Italy is a huge deal, and if not everything was done in an honest way, there could be trouble on the horizon.

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