German Parliament agrees to pay more into Europe's bailout fund for Greece and other debt-ridden nation's, providing at least a temporary fix for Europe's debt crisis.
Germany Will Pay More into Euro Bailout Fund
The German Parliament today agreed to increase its contribution to the bailout fund for Greece and other debt-burdened European countries to $285 billion dollars, or 211 billion euros, The New York Times reports. The step is seen as key to containing Europe’s debt crisis as Germany, the continent’s largest economy, is the only country with the resources to rescue its cash-strapped neighbors.
Stock Markets Falter On Renewed Worry over Europe’s Debt Crisis
Stock markets yesterday lost gains made over the past three days on renewed worries over Europe’s debt crisis, The New York Times reports. All but 17 of the stocks in the S&P 500 index fell, leading to a 2.1 percent decline in the index. The Dow Jones Industrial Average fell 1.6 percent and the Nasdaq Composite Index fell 2.2 percent.
Typhoon Nesat Forces Hong Kong Markets to Close
Gale-force winds and rain brought on by Typhoon Nesat forced Hong Kong financial markets, as well as schools and government offices, to close in morning trading. The city is home to the world’s fifth-biggest financial market.
The typhoon, blamed for the deaths of at least 20 people in the Philippines, was heading towards Hainan Island in China.
Semiconductor Industry Growth Will Slow, Says Samsung
In comments made to reporters today, a top executive at Samsung Electronics predicts a low rate of growth for the semiconductor industry in 2012 as a global economic slowdown weakens demand, the New York Times Reports.
Falling consumer demand amid growing economic uncertainty has prompted chip maker Advanced Micro Devices Inc. to lower its third-quarter revenue and gross margin forecasts.
Long-term Unemployment Is National Crises, said Bernanke
Congress should take further action to combat long-term unemployment, which is a national crisis, said Federal Reserve Chairman Ben Bernanke following a speech in Cleveland yesterday, according to TheStreet.com.
The long-term unemployed, which account for about 45 percent of the nation’s jobless, are losing skills and “their attachment to the labor force,” said Bernanke, calling for government programs to retrain workers and help them find jobs. He also urged legislators to take steps to boost the depressed housing industry and said the Fed’s new plan to lower long-term interest rates can only do so much to stimulate the economy.
Health Care Law Challenged by States
A group of 26 states has asked the U.S. Supreme Court to intervene in a federal court of appeals decision that the states claim didn’t go far enough in invalidating the federal health care law, Bloomberg News reports. The Justice Department has indicated it will file its own Supreme Court appeal.
The states received a partial victory when the Atlanta court of appeals ruled that Congress lacks the constitutional power to mandate health insurance and impose a penalty on the uninsured, but the court left standing other provisions of the health care law. The states are asking the Supreme Court to review the requirement that insurer’s accept applicants with pre-existing conditions and the law’s expansion of Medicaid.
Ford May Add 10,000 Jobs in U.S.
Ford Motor Co. is considering creating up to 10,000 new jobs as part of high-level negotiations with the United Auto Workers union over a new four-year contract, Bloomberg News reports. Up to 40 percent of the jobs could be realized by moving production of the Fusion from Mexico to the United States.