Week Nov 26 2010 – Weekly Recap & The Week Ahead
“It is not how right or how wrong you are that matters, but how much money you make when right and how much you do not lose when wrong” — George Soros
1. GDP rate revised to 2.5% — the economy grew at a 2.5% annualized pace in the quarter, revised up from the initial estimate of 2.0%, the government said in its second estimate of quarterly gross domestic product. Growth in gross domestic product was 1.7% during the second quarter.
2. North Korea fires rockets at South Korea — North Korea fired artillery rockets at the South Korean island of Yeonpyeong, killing two soldiers, and wounding 16 soldiers and three civilians.
3. Irish PM to dissolve government — Irish Prime Minister Brian Cowen said he would dissolve the government after the country passes its crucial 2011 budget in early December, paving the way for new elections that will almost certainly see Cowen voted out. The announcement came just a day after Ireland agreed to seek an estimated €80B ($110M) bailout from the EU and IMF, and adds the threat of political instability to the eurozone’s financial crisis.
4. S&P cuts Ireland’s sovereign credit rating — Standard & Poor’s Ratings Services late Tuesday cut its long-term sovereign credit rating on Ireland to A from AA-, and its short-term rating to A-1 from A-1+. The new ratings reflect the agency’s view that the Irish government appears likely to borrow “over and above” the agency’s previous projections to fund further bank capital injections into Ireland’s banking system.
5. Portugal passes budget, denies bailout talk — Portugal’s parliament passed its 2011 budget plan, as expected, adding to controversial austerity measures. The epicenter of Europe’s sovereign-debt crisis shifted from Ireland to the Iberian peninsula on Friday, with European Union, Portuguese and Spanish officials scrambling to head off speculation that Lisbon or Madrid could soon be forced to seek help to meet their borrowing needs.
The week ahead — Economic data from Econoday.com:
