Untreatable gonorrhoea spreading around world: WHO
Thanks feminists. Thanks queers!
EU, Germany exploring Spanish rescue, no request yet
(Reuters) – Germany and European Union officials are urgently exploring ways to rescue Spain’s debt-stricken banks although Madrid has not yet requested assistance and is resisting being placed under international supervision, European sources said on Wednesday.
Spain, the euro zone’s fourth biggest economy, said on Tuesday it was effectively losing access to credit markets due to prohibitive borrowing costs and appealed to European partners to help revive its banks.
The European Central Bank dashed investors’ hopes of an easing of monetary policy or another flood of cheap liquidity for banks despite saying that the euro zone money market has again become “dysfunctional”. The ECB left interest rates on hold at 1 percent at its monthly meeting.
The move raised pressure on EU political leaders to outline a solution to the bloc’s festering debt crisis at a summit later this month, which is being watched closely in the United States and other global powers anxious about a sluggish world economy.
Spanish Economy Minister Luis de Guindos said after talks at the European Commission on Wednesday there were no immediate plans to apply for a bailout. Spain would await the results of an IMF report and an independent audit of the banking sector, both due this month, before taking decisions on how to recapitalize the banks, he said.
ECB President Mario Draghi said financial markets were not wrong to be worried about the future of the euro zone but they underestimated the political commitment backing the single currency. He welcomed EU leaders’ agreement to step up work on a long-term vision for a full economic and monetary union.
“Some of the problems in the euro area have nothing to do with monetary policy,” he told a news conference. “I don’t think it is right for monetary policy to fill other institutions’ lack of action.”
Acknowledging that the rate-setting governing council’s decision was not unanimous, he said “a few members, I would say not many” had wanted a rate cut on Wednesday.
Asked whether the central bank would take supportive action if the EU summit agreed to move towards a fiscal and banking union, he said there was no such “horse-trading” but the ECB would monitor developments and stood ready to act…
French Unemployment Rate Climbs as Hollande Grapples With Cuts
China Cuts Interest Rates for First Time Since 2008
China cut borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates, stepping up efforts to combat a deepening slowdown as Europe’s debt crisis threatens global growth.
The benchmark one-year lending rate will drop to 6.31 percent from 6.56 percent effective tomorrow, the People’s Bank of China said on its website today. The one-year deposit rate will fall to 3.25 percent from 3.5 percent. Banks will get extra freedom to set the amounts they pay on deposits and charge for loans in a move UBS AG calls a “milestone.”
European stocks and U.S. index futures extended gains as China’s move added to an Australian rate cut this week and expressions of concern from European and U.S. central bank officials that fanned expectations for more stimulus. The announcement, two days before China is due to report inflation, investment and output figures, may signal that the economy is weaker than the government expected.
“This will be the beginning of a rate cut cycle and there will be at least one more reduction this year,” said Shen Jianguang, a Hong Kong-based economist with Mizuho Securities Asia Ltd. “The data to be released over the weekend must be very weak and inflation must have eased sharply.”
The MSCI All-Country World Index added 0.9 percent at 8:31 a.m. in New York. The Stoxx Europe 600 Index jumped 1.4 percent, extending yesterday’s biggest rally in six months, while Standard & Poor’s 500 Index futures advanced 0.8 percent. Oil gained 1.4 percent in New York, reversing a 0.6 percent drop…