Moody's downgrades Portugal again

5 April 2011, last updated at 08: 36 GMT cost-cutting measures to reduce the budget deficit proved deeply unpopular credit rating agency of Moody's has downgraded Portuguese public debt level by A3, Baa1, and warned that a further reduction may be required.

This is the second downgrade by Moody's in less than a month and follows fellow Agency standard & poor's cut last week.

Moody's "first and foremost through greater political, financial and economic uncertainty was driven" said his decision.

Make the move increases, the Portugal is forced, questions its European partners for a financial Bail-Out.

Last week, which had granted the Portuguese Government, it missed its budget deficit target for 2010.

A total was 8.6% of the economic performance of the European Union target of 7.3%.

Moody's said that the increased uncertainty in the country increases the risk that "the Government unable to achieve [its] targets ambitious deficit will in the next three years".

Is the Portuguese government debt rose slightly after downgrading to 8.54% of 8.47% on Monday, which raised concerns about his ability, his debt to pay back.

Are these high rates as not up to unsustainable in the long term.

Portugal has not yet called no financial support, but many analysts believe it is only a matter of time before it is forced to do so, as the country economic situation worsens and increases the cost of borrowing in the markets.

Read more >>

'Daunting' characters

1. April 2011 last New York business editor, BBC News updated at 6:08 P.m. by John Mervin despite the today's good news on the employment, millions of US citizens life are mischief creation by long-term unemployment job and falling unemployment are always good news, never more than when a country is reeling in 80 years from the effects of its worst economic crisis.

So it rough seems, with the applause quibble that meets the latest US jobs report.

But there is no doubt that for any new signs of strength in the United States job market, it is still a big unemployment problem in America, one that thwarted still the lives of millions and could even be the deciding factor in the U.S. policy be in the next two years.

If you see the "strong" numbers this headline April jobs reports can search quickly many other, significantly lower numbers.

Take the unemployment rate.

Like all developed economies, their method has reached the United States who are the people who do not work for many years and some controversial decisions.

As a result, the new and much improved headline unemployment rate of 8.8% is in fact rather a narrow measure.

Below the 8.8% be counted must you be out of work and actively for a job in the last four weeks saw.

Abandoned

This means that many people who have simply given up markets still worse than can remember even their grandparents, are not really looking for work in one of jobs as "Unemployed" is counted.

Mr Obama can be affected that none since Roosevelt was re-elected with a large number of unemployed people

Mach worry, will you they still included in the statistics of the Government, they get marked only as strange things such as "marginally attached" or "discouraged" workers.

So if you are "discouraged" not only from work to see the unemployed not counted.

Their place in the survey is under the administration of "alternative measures of the work of non-utilization".

Of course, such terrible jargon is unemployment for anyone who experienced it, and for those of us who speak English not Economese.

And if such a measure of "laboratory non absorption", which basically everybody, has no full-time job which is one of the widest, and accused the economic reasons (in contrast to sick or in training), currently you have received a rate of 15.7%.

This means that almost one in six people in the United States, full-time to work may be, can find a job.

Headache

What ever the good news this month is still clearly an economy with a huge unemployment problem.

This is a major headache for President Barack Obama.

If he considers the jobs report under the headline numbers, sees what he is an unemployment rate, which will fall; It is simply not fast enough fall to secure his own future employment.

The President will be the fact that since Franklin Roosevelt in the White House, the highest unemployment rate, has a President of chaired aware and it a second term re-elected get in Office is managed to get to 7.2%.

This was in the year 1984 when Ronald Reagan won a second term in the White House.

Based on the forecasts of economists of the Government, for the unemployment rate below 8% by the election of 2012, the 195,000 jobs every month between now and the choice to create

In other words, could the "good news" in the latest job report, must be repeated every month for the next 18 months or President Obama out of a job out.

Not so good

No wonder that the President reacted to the news on the jobs with the words: "More work must be done".

Then the question is what kind of jobs are now created. Jobs monthly report not too deep deepen this topic, but other organizations have.

The search for a new job expected to be a bad is paid a than before, according to research

In February, the national employment law project (NELP) released research that showed that the new jobs, who went to America in General not as good as those who lost.

NELP found that lower wages industry, retailing and preparation of food, 23% of the jobs that were lost in the recent recession.

However, they are 49% of the jobs gained in the last year the economy.

There were also only 14% of new jobs in the U.S. economy, as of February, in the so-called "higher wages".

In other words, it seems what that while people work again they may have to work for less pay.

Bedrock

If it continues to be deeply disturbing for economists and policy makers, and not only in the United States this trend.

Well-paying jobs are the foundation of the American middle class, of course.

The middle class, with all its purchasing power is the foundation of the U.S. economy for decades.

It was also one of the major drivers of economic growth around the world.

After all, are the most countries whose wealth on exports created is sold to the American middle class.

If the wealth of this class by a decline in the quality of jobs is eroded, spell then finally, the hardness for people far beyond America's shores.

Read more >>

Shares jump 41% Bank of Ireland

1. April 2011 last updated at 16: 47 GMT Bank of Ireland hopes to keep its independence Bank of Ireland shares 41% have jumped on hopes that Government do not have a majority stake in the company.

However Irish life and permanent fell 54%, a day after the results of stress tests on the Irish banking system were announced.

The tests found that the nation's banks need to survive an extra reinsurance segment euros (£ 21 billion), the financial crisis.

Bank of Ireland, said that it would able to its capital requirements and are thus independent.

Closed its shares in the 31 cents. Irish life closed 17 euro cents.

"It seems very likely that the Government have end a controlling interest to Irish life & permanent," Emer lang is banking analyst at stockbroker Davy in Dublin said.

Capital requirements

Bank of Ireland has been appointed, 5.2 EUR ($7 billion, £ 4 billion) from early summer to increase capital requirements. The Bank said, would do it.

"It has potential to some of the more debt management," Ms. lang said, adding that some could be the rest of existing shareholders, to minimize the Government involvement.

The Irish Government currently owns a 36% stake in Bank of Ireland. Investors hope that it will keep its stake below 50%.

"The Bank of Ireland has at least a fighting chance of maintaining their independence," said Ms. lang.

"It has to keep three months from the Government hands".

Fewer banks continue reading the main story

the grievous consequence is that it a lack of capital of £ damage totals in these banks... "This is a huge sum for them to find."

Originally posted at the end Robert Peston, business editor, BBC News Irish life & permanent has to increase euro billion. Emer lang said, that it can to EUR 1.1 billion from the life business and debt management, but, that it would struggle, the remaining were to increase.

Shares in Allied Irish banks first 15% fell but soon aufgeprallt back and closed by 11% to 21 cents.

The Bank is already mostly owned by the Government, and the Government involvement may be thrown, she said.

Allied Irish banks will be merged into expected of a Government plan to reduce the number of the banks of the country building society (EBS) as part of.

Bank of Ireland and Allied Irish banks are expected to stand still on the banking system are the two most important "pillar banks" in the future.

Last month, it was announced that the heavily indebted Anglo Irish Bank would be merged with the Irish nationwide building society and its assets auctioned off.

Economic "Recovery"

Standard & poor's rating agency said the latest round of tests were robust, despite criticism, that the scenarios included in the review were no worse than the current economic situation in the Republic.

Irish Government however, but to a smaller value than expected downgrade it debt under a review.

"It is as positive as a downgrade can be," said Eoin Fahy, Economist at Kleinwort Benson investors.

S & P said that it expected the Irish economy gradually.

"We are of the opinion, which... has reached an end the strong contraction in Ireland's nominal GDP for 2008, and the Irish economy is now on gradually recover," said the Agency in a statement.

Rival agency Fitch, however, said it was larger than expected decline in the economy "considerable uncertainty" about the prospects for growth this year after one at the end of last year.

He said "The weaker GDP baseline, as well as increased capital bank charges mean on the 31 March 2011, that the Government is debt to GDP ratio higher than in the December 2010 Fitch's projection from a peak of 103% of GDP from rising".

'Burn' bondholders

Most of the restructuring of the Irish banking system costs shall be borne by the taxpayer.

Finance Minister Michael Noonan had tried, to get to share German, US and UK investors in Irish bank bonds, in the last, but this his plan by the European Central Bank (ECB).

The ECB was large investors panic and it might be difficult bond issuers of to raise funds, which a damaging credit crunch.

This would also mean Irish banks it might be difficult to find money in the future through the issuance of bonds.

"It would inhibit means abzurufenden their capacity on the market in two and a half, three years time, when people, they are going, be the means of search have split, the last - by burning the bondholders - the expression to use in" Mr. Noonan said.

Read more >>

Portugal misses bond target

March 31, 2011 last updated at 20: 00 GMT losses nationalised bank BNP had admitted in the public deficit, according to European rules which has Portuguese Government, is missing that 2010 budget deficit target will be included.

A total was 8.6% of economic output, about 7.3% of the EU target. Lisbon blame the inclusion of losses in State transport company and a bank.

Portugal's cost of borrowing has increased sharply as bond markets increasingly expect a debt default.

Fresh elections will be held on 5 June, which announced the Portuguese President. A vote of confidence was the minority Government last week after the loss.

Bail-Out delay

The Government short and medium term cost of borrowing has increased rapidly in the last few days as the prospect of a debt restructuring over the next two increasingly looks likely.

The return of the Portuguese two-year bonds hit 8.6% on Thursday - highest since Portugal joined the euro in 1999. The yield has increased and a half by 2.5 percentage points in the last week.

The five year cost of borrowing increased to 9.5%.

The caretaker Government - free of charge after the resignation of Prime Minister Jose Socrates last week until elections expected in may or early June - blame the revised deficit for accounting changes.

Continue reading the main budget deficit: 8.6% (2010) borrowing costs: 8.6% (two year bonds) growth: 1.2% inflation (2010): 3.5% (Feb 2011) unemployment: 11.1% (Dec 2010)

Data source: Bloomberg

Around EUR 1.8 billion ($2 billion, £ 1 billion) in losses at nationalised bank BNP were added, the deficit after a visit to the Ministry of finance by Eurostat, the Statistical Office charged with strict rules for Governments that set financial accounting.

The 8.6% level an improvement on the 10% deficit is recorded yet in 2009.

The Government said that it was targeted still a deficit of only 4.6% for the current year.

Meanwhile said the Finance Minister, Fernando Teixeira dos Santos, that the Transitional Government request not the legal authority to a financial rescue package by the European Union and the International Monetary Fund.

However, he said, they expected, took office - some of this summer "the necessary financing conditions" until a new Government.

Inflation vice

Portugal has been put in an even tighter spot by rising inflation.

On Thursday, it was revealed that this inflation increased to 2.6% in the euro area as a whole, consumer prices.

Inflation at 3.5% is in Portugal.

Not only is this put pressure on household finances, but is also the prospect of an imminent interest rate rise by the European Central Bank.

Market expectations of higher interest rates have added also the increase in Portugal's borrowing costs.

Read more >>

U.S. unemployment rate hits two year low

1. April 2011 last updated to see 15: 49 GMT: U.S. group forced low-paid JobsThe U.S. unemployment rate fell to a new two year low in March by 8.8%, from 8.9% in February.

It was the fourth monthly drop in a row. The unemployment rate declined in the last four months by one percentage point.

Employer jobs 216.000 in March, the US Department of labor said, higher than the market expected.

Other economic data showed a slight dip in manufacturing in March, although largely positive report was.

The Institute for supply management's (ISM) index of national factory activity plunged to 61.2 last month of 61.4 in February.

February was the highest since May 2004. Any reading above 50 indicates growth.

U.S. and European stock markets were increased by the economic news. London, Paris and Frankfurt closed with profits of more than 1.5%, while the Dow 1% until the late afternoon.

On recovery of the main story John Mervin next New York business editor, BBC News read

With this jobs report, it seems that the economy has achieved a real turning point.

Not just a theoretical one, only of interest to economists either, but one that could actually lead to an improvement in the lives of millions of people. Because when about 200,000 new jobs per month, created then, slowly, get America back to work.

Apart from the unique setting of census workers in 2010, is four years ago in two consecutive months more than 150,000 jobs have been created.

Can the United States way from the worst finally be draw economic collapse since the great depression. But it is only a turning point. It is a long way to go. More than 13 million Americans want to work full time, it still found.

The most new jobs were in the private sector, in factories, shops and health care and education- and created several professional and financial services.

David Sloan said IFR Economics: "this [the jobs report] suggests the recovery is."

The new private sector jobs offset job losses in the public sector, mainly due to the cuts by the local government.

"Are of course good and can one hope that we continue to increase the market in the months to see", said Bernard Baumohl, Managing Director and global Chief Economist of the Economic Outlook Group.

If employers keep on job creation in this rate, how many economists expect, it will more 2.5 million new jobs in the United States by the end of the year.

"The steep decline in the unemployment rate and the solid employment growth in the last months are encouraging," said the Chairman of Council of economic advisers, Austan Goolsbee, in a post on the White House blog.

That little, but do widespread worry about to relieve, which is to make not enough jobs for the 7.5 million lost during the recession to create the economic recovery in the United States.

"As long as millions of people are looking for jobs, there are still lot of work doing the jobs replace lost in the downturn," Mr. Goolsbee confirmed.

Inflation fears that read main story analysts you further were also concerned about the possible impact of rising oil and other commodity and energy markets.

"There's a nagging concern, which may put at risk the job Outlook as energy prices to keep escalating," said Mr Baumohl.

", Is a squeeze on household spending and business investments, and one questions must be, if we see this slow the pace of hiring."

However, others to slow wage growth, which could offset the impact of higher energy and commodity prices had.

"Soft result mark yet, that underlying inflationary pressures are held back," said David Mann, regional head of research for the Americas at Standard Chartered in New York.

Earlier this week, the U.S. Department of Commerce cut unexpectedly its estimate of fourth quarter growth to an annualized rate of 2.8%, by 3.2% previously.

Read more >>

Irish banks need additional reinsurance segment euro

March 31, 2011 last updated at 20: 56 GMT Patrick Honohan, Governor of Ireland's Central Bank announces reinsurance segment euro ShortfallThe Republic of Ireland banks need to survive an additional reinsurance segment euros (£ 21 billion), the financial crisis.

The figure follows a stress test on the Irish banking system by a group of independent experts and Central Bank of the country.

Four lenders have been tested - Allied Irish banks, Bank of Ireland, educational building society (EBS) and the Irish life & permanent.

Allied Irish banks takes the most money and have to increase 13.5 euro.

Bank of Ireland required 5.2 euro, EBS 1.5 euro and Irish life billion euro.

The total amount in the Irish banks cast, as the financial crisis will newly be euro near 70bn.

Professor Patrick Honohan, Governor of that Central Bank, said: "the new requirements are necessary to restore market confidence, and banks have to meet enough capital to ensure even the markets darkest estimates."

The most important story of

, that the grievous consequence is, that it a lack of capital of £ damage totals in these banks read more... "This is a huge sum for them to find."

Originally posted at the end Robert Peston business editor, BBC News Dublin already has the most Anglo Irish Bank, Allied Irish banks and the EBS after previous save the banks.

Mr Honohan said it was likely that in the context of the next infusion of funds, the other two banks, nationalization - Bank of Ireland and Irish life & permanent - would now have to avoid taken in State control.

Insert money apart from the 85bn euro EU IMF Bail-Out agreed to in November be used to finance the latest recapitalisation.

The banks will be determined six months - unreleased - goals to reduce their huge borrowings in the next few years through a process of asset sales.

Mr Honohan said, however, that the banks should be able to ' fire sales' to avoid that would be thrown by the amount of money from the disposal.

Marchel Alexandrovich, European financial economist, Jefferies international, said the results of the stress tests, which were expected in the financial markets.

"Our first impression is that the question of whether this is enough remains to stay one," he said.

He also pointed that it was on no indication how the banks senior of bondholders, handle, the fear that they may be forced to create greater losses on their loans.

Trading in shares of the banks was suspended for the day to the stress test announcement.

The European Central Bank (ECB) had been expected, a new 60bn euros in the medium term financing agreement, the Irish banks offer to give a reliable source of cash.

Continue reading the most important story

Ireland's 2010 Bail-Out:

Loss potentials from EU22bn of IMF18bn of Irish State pension fund35bn for banks50bn provided for budget deficit

Support for Irish banks:

70bn euro recapitalisation of, of which: 46bn, date24bn after latest stress150bn euro short-term financing, of which tests added: 70bn of Irish Central bank80bn of ECBBut the announcement that announcement was due at the same time as the Irish Central Bank, has been moved now because of the disagreement among the Governing Council of the ECB, according to a report by news agency Reuters.Mortgage Meltdown

Losses in the Irish banking system from collapse of a speculative bubble in commercial real estate have so far surrendered where the banks for the financing of hotels and shopping malls billions were borrowed.

But the latest stressing one emerging housing meltdown instead focused on.

The stress tests assumed that a level already reached a cumulative breakdown of real estate prices by 62% - in some parts of the Republic.

It also adopted the unemployment rate peaking at 14.9%, a projection of some economists as too weak, given the fact that the most recent data is the rate at 14.7% already criticised.

However US asset manager BlackRock provided the Irish Central Bank, the this year's stress tests to verify their credibility increase.

A previous round tests could spot serious problems as regards the banks just before some of them financial support required.

Haircuts

The 70bn euro poured into the banks, almost half of the Irish economy is annual output or about 17,000 euros per Irish citizens - a burden that the Government is considered unacceptable.

The newly elected Taoiseach, Enda Kenny, lenders, banks losses to parts asked was, but this is probably resisted to other European countries are.

In the early stages of the banking crisis in 2009, the Government gave a blanket guarantee for their banks debts.

Newly elected Taoiseach, Enda Kenny, wants lenders to a share of the losses of the banks

The Republic feared European partners a standard of Irish banks one European banking crisis could trigger.

You insisted that Dublin still the guarantee as a condition of last year's Bail-Out - much to the chagrin of the opposition parties to honour, who have now taken by the Government.

But only on the amount of damage euro of banks remaining long-term debts yet the guarantee, to the Irish Central Bank fall under.

There remain around 40 euro debt, potentially a "haircut", forcing creditors - including United Kingdom, to could given us and German banks - losses.

And the Government guarantees and capital injections were also the recipients of 150bn Irish banks euro of short-term financing from the Irish Central Bank and the ECB.

Read more >>

Is the euro-zone unemployment rate

1. April 2011 last updated at 11: 13 GMT Spain has always or the highest rate of unemployment in the euro area the unemployment rate in the euro area, began to fall, official figures show.

The proportion of unemployed below 10%, appeared for the first time in more than a year after sunk in February to 9.9%.

However, the unemployment rate far within the 17 countries of the euro area is, Eurostat figures show.

Spain's unemployment rate is 20.5%, while 4.3% of the Netherlands population is unemployed.

Have Spain's unemployment rate edges up in February amounted to 20.4% in the previous month.

But in Germany the unemployment rate fell further and now stands at 6.3%.

Eurostat, to compile the official figures had estimated previously unemployment rate for January the euro area to 9.9%, but this was revised up to 10%.

Eurostat estimates that 15.8 million people in 17 countries are unemployed, which have adopted the euro.

The unemployment rate for men fell to 9.7% in February from 9.9% twelve months earlier.

But rose over the same period, the female unemployment rate of 10.1% to 10.2%.

Read more >>