Dow falls 300 points on Friday due to European debt crisis. Asian stocks down on Monday. European stocks tumbling.
According to Bloomberg, the Dow fell 303 points to 10,992. The downturn was blamed upon an apparent disagreement among German officials regarding how to handle a potential Greek default. German papers indicated the Germany had been preparing a series of measures should a Greek default occur. The Germans are insisting that Greece meet the terms of the first bailout. On Friday, the German top official at the European Central Bank resigned. The New York Times reports that German Chancellor, Angela Merkel, continue to insist that Germany will support the euro and reminding citizens of the challenges of implementing new systems. Her party, however, has lost several elections this year. U.S. Treasury Secretary, Tim Geithner, has been urging Europe to speak with "one voice" to keep the financial markets steady.
Bloombergindicates that Moody's may downgrade the two largest French banks, Societe Generale and Credit Agricole, this week because of the amount of Greek debt they hold. Societe Generale is apparently trying to unload some of its debt today.
A report issued by a British commission has recommended the UK and other European banks separate their retail and investment divisions and raise the required capital standards for European banks. Currently it is only 7%, according to the Wall Street Journal.
Greece to impose new property tax
Under pressure to meet its debt obligations, Greece will impose a new property tax on citizens for the next two years and government officials will dock a month of their pay, according to the Associated Press. Greece owes $302 billion in loans.
Retailers trim holiday hiring
About a quarter of U.S. retailers will trim their seasonal hiring plans this holiday season, according to a survey by Hay Group, as reported in USA Today. About 68% of 21 major retailers will hire the same amount as last year. Retailers blame the poor economy as well as an increase in online sales.
Airlines increasing fees again
For the tenth time this year, airlines will increase their fees, according to USA Today. The travelers most affected will be the last minute business travelers. Airfares in June and July were 9% higher than the same time in 2010.
Retailers targeting college students
College students spend about $36 billion each year, according to the New York Times. To take advantage of that spending power, retailers are actively soliciting students, especially as they move into college dorms. Firms such as Target are offering free busses to take students to the nearest target to stock up on items for their rooms. They are also hosting welcome dinners for students. American Eagle is providing students to assist other students while moving boxes and other items into their rooms. About 10,000 college students are helping to market retail services nationwide. Other companies actively soliciting students include Red Bull, Hewlett Packard and many others.