World Economy

Well-run Mozambique will avoid worst of funding crunch, says US

Well-run Mozambique will avoid worst of funding crunch, says US Maputo - The international financial crisis is unlikely to lead to a significant fall-off in foreign aid and investment in Mozambique because it is well-governed, a senior US diplomat told a press conference in the capital Maputo Monday.

Todd Chapman, business affairs officer at the US Embassy in Maputo said Mozambique stood to receive "much more financial support" because of its stable business environment and the commitment of President Armando Guebuza's government to reform.

Financial crisis sends business confidence tumbling

Berlin - German business confidence plunged to its lowest level in more than five years in October, a key survey released Monday said, as the world financial crisis triggered panic selling on global stock markets and fears grew about a looming recession.

The closely watched Ifo business confidence index dropped more than expected to 90.2 points this month from 92.9 points in September, adding to the prospects of the European Central Bank (ECB) cutting rates again possibly as early as next meeting on November 6.

ECB chief Jean Claude Trichet signalled Monday that the bank's rate-setting council might deliver another cut in borrowing costs at its meeting next month.

Resurgent left-wingers invade German stock exchange

Berlin - Anti-globalization demonstrators invaded the Frankfurt Stock Exchange on Monday, chanting, waving banners and scattering leaflets inside Germany's principal financial marketplace.

"We are criticizing the dominance of financial markets," said Stephan Schilling, a member of the Attac Network coordinating circle, in Frankfurt after stock exchange guards had ushered the group outside again.

Although the world financial crisis has not yet affected the bulk of Germans, the daily gloom of the past few weeks has prompted a resurgence of interest in political protest and in leftist remedies in Germany.

ECB chief signals rate cut as economic fears deepen

Frankfurt - European Central Bank (ECB) chief Jean Claude Trichet signalled Monday that the bank's rate-setting council might deliver another cut in borrowing costs at its meeting next month.

"I consider possible that the Governing Council will decrease interest rates once again at its next meeting on November 6," said Trichet in a speech delivered in Madrid and posted on the Frankfurt- based bank's website.

"It is not a certainty, it is a possibility," he said with analysts expecting the ECB to cut borrowing costs again next month by 50 basis points, or half of one per cent.

Financial crisis sends German business confidence tumbling

Berlin - German business confidence fell sharply in October, a key survey released Monday said, as the world financial crisis triggered panic selling on global stock markets and fears grew about a

Japan's premier orders measures to stabilize stock market

Japanese Prime Minister Taro AsoTokyo - Japanese Prime Minister Taro Aso on Monday ordered the government and ruling parties to immediately implement measures to stabilize the stock market.

"Stock prices greatly influence the real economy," Aso said at a press conference. "In that sense, we have to consider various measures and implement them."

The government was expected to implement emergency measures such as a larger government fund to recapitalize ailing banks and help for employees to purchase stock in their companies, Aso said.

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