Morning papers: Eurozone leaders delay Greece aid decision
Eurozone leaders have reiterated that they will not make decisions about supplying fresh aid to Greece until after international lenders have completed a review of the country’s finances – which is not expected before September, reports the Financial Times.
The comments, from Angela Merkel, the German chancellor, and Jean-Claude Juncker, the Luxembourg prime minister and president of the eurogroup of finance ministers, were meant to lower expectations as they embarked on a round of potentially pivotal meetings this week with Antonis Samaras, the Greek prime minister.
Stakes rise as US warned of double-dip - Fed says further easing ‘warranted soon’
The stakes in the political stalemate over the US’s looming “fiscal cliff” are rising – with the country facing a much deeper contraction in economic activity early next year than previously estimated, reports the Financial Times.
That was the message from the Congressional Budget Office – a non-partisan agency that calculates the impact of legislation on the finances of the US government – in its semiannual report on the economic and budgetary outlook.
According to the Financial Times, the US Federal Reserve is set to ease policy unless there is a sharp change in economic data after the minutes of its August meeting revealed a strong consensus for action.
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” say the minutes of the rate-setting Federal Open Market Committee.
Another tech bubble is set to deflate
After the dotcom bubble popped so spectacularly in 2000-2001, a few glum years for the technology industry have been followed by an equally spectacular run. Apple has roared back from near extinction and this week became the most valuable company in history. Facebook amassed users and mesmerised investors for years before Wall Street staged what now seems a wildly overpriced initial public offering, reports the Financial Times.
Predicting the demise of social media has turned out to be a mug’s game. Companies may have risen (Facebook) and fallen (MySpace) but the sector has grown and morphed in endlessly surprising ways. The habits of at least one generation, and significant parts of others, are now irreversibly changed when it comes to sharing, recommending and locating each other in real time. Cloud computing has compounded the speed of technological change. Even while the rest of the US has wallowed in recession, Silicon Valley and other high-tech pockets have thrived.
China concerns mount as ‘awful’ data see manufacturing fall to nine-month low
China’s factory activity in August contracted at its fastest pace in nine months, in a sign that a persistent slowdown in economic growth extended deeper into the third quarter, reports The Telegraph.