New hope that the world may not sink back into recession cheered global investors yesterday.
European markets rose 2 per cent and US stocks opened higher after better-than-expected US consumer spending data and news of a merger between two of Greece's biggest banks, backed by Qatar.
Consumers in the US spent 0.8 per cent more last month than in June, the biggest month-on-month increase since February, government data revealed. Spending accounts for about 70 per cent of economic activity in the US.
A planned merger between Greece's second and third largest banks, Eurobank and Alpha, sent Greek stocks up over 15 per cent. The merger is to come with a capital increase funded partly by Qatar's Paramount Services Holding.
It is "important that Qatar participates and invests in Greece, sending a message abroad of confidence" in the Greek economy following recent EU-IMF bailouts, Evangelos Venizelos, the Greek finance minister said.
Worry is still looming, however. Europe's leaders have yet to resolve the continent's sovereign debt crisis despite spending billions of euros on bailouts, and political tensions are running high over the possibility of more aid.
The US has shown few signs of a strong recovery, and investors continue to buy gold. The metal remains at about $1,822 per ounce, not far below its all-time high of $1,913 last week.
"The odds of a US double-dip over the coming year are uncomfortably high, but euro-zone sovereign debt issues are definitely more troubling," said Jaap Meijer, an analyst at AlembicHC in Dubai. "The difference with 2008 is that US and European banks are better capitalised and a bit more liquid, but on the other hand the governments in the developed world can no longer accommodate a recovery, while monetary policy is already very loose."
Jean-Claude Trichet, the president of the European Central Bank, reiterated that European banks were not suffering from a liquidity shortage. He defended the bank's bid to reduce borrowing costs for Spain and Italy by buying their government bonds. But he warned that buying bonds was no substitute for fiscal discipline.
"The purchases made on the secondary market cannot be used to circumvent the fundamental principle of budgetary discipline."
Angela Merkel, the German chancellor, meanwhile, fended off rising opposition to proposals for more fiscal integration in Europe.
While observers have long seen coordination on taxation and budgeting as crucial to solving Europe's debt crisis, such unity does not sit well in Germany.
Ms Merkel's spokesman, Steffen Seibert, said an earlier statement from the French President Nicolas Sarkozy calling for a "European economic government" and a new European finance minister was misinterpreted. There was no plan to create an institution that would supercede national sovereignty on issues of economic policy, he said.
Yesterday's rise in global markets also followed a statement late last week from Ben Bernanke, the US Federal Reserve chairman, that suggested a better long-term outlook for the economy than many observers expected.
afitch@thenational.ae
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MATCH INFO
Euro 2020 qualifier
Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)
TV: Match is shown on BeIN Sports
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
MATCH INFO
Manchester City 3 (Silva 8' &15, Foden 33')
Birmginahm City 0
Man of the match Bernado Silva (Manchester City)
Specs
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Power: 659hp
Torque: 1075Nm
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Price: On request
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UAE currency: the story behind the money in your pockets
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
South Africa v India schedule
Tests: 1st Test Jan 5-9, Cape Town; 2nd Test Jan 13-17, Centurion; 3rd Test Jan 24-28, Johannesburg
ODIs: 1st ODI Feb 1, Durban; 2nd ODI Feb 4, Centurion; 3rd ODI Feb 7, Cape Town; 4th ODI Feb 10, Johannesburg; 5th ODI Feb 13, Port Elizabeth; 6th ODI Feb 16, Centurion
T20Is: 1st T20I Feb 18, Johannesburg; 2nd T20I Feb 21, Centurion; 3rd T20I Feb 24, Cape Town
Fixtures and results:
Wed, Aug 29:
- Malaysia bt Hong Kong by 3 wickets
- Oman bt Nepal by 7 wickets
- UAE bt Singapore by 215 runs
Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
