This night the US Senate accepted to support the revised US financial rescue plan.
Thanks to this decision the European stocks have risen in morning trading.
For example the UK’s index raised 73 points and the German index raised with 1 percent. But the Asian stocks finished with mixed feelings, the Nikkei, the Japanese index, lost 1.9 percent. But the index of Hong Kong raised with 1 percent.
But after morning trade France said they want to help the banks who are hit by the crisis.
Thanks to this the shares have fallen. For example the UK’s index lost 1.8 percent and the German index lost 2.5 percent.
The French president wants to talk about an European intervention for banks hit by the crisis, but the EU members are divided. France and Holland wants that Europe helps the banks who are hit by the crisis while Germany and Luxembourg believe a plan is not necessary.
The European investors are hopeful the US House of Representatives will now support the revised rescue plan. Monday the US House of Representatives rejected the first rescue plan off the Republicans, there was a financial support off 700 billion dollars. The Republicans changed a few things in the first rescue plan, they raised the government's guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses,… Now they hope the Democrats are persuaded.
George W. Bush said that the package was "essential to the financial security of every American" but investors are concerned about how this rescue plan can help the global economy.
Also US presidential McCain and Obama said the rescue plan is a good thing.
I think it is good that the US Senate accepted the revised rescue plan, it will bring some rest on the markets. Rest is a good thing on short term but I don’t think this whole crisis is over yet. George W. Bush said that this plan is essential for the American economy, but it’s not only essential for the American economy, it is also essential for the global economy. I hope that after the crisis the European financial market will see how dependent they are from the American financial market and I hope that they will do a lot to be more independent from America. But the most important thing now is that every government will help his financial system to save the money from the savers.
Source: http://newsvote.bbc.co.uk/2/hi/business/7647662.stm
Abonneren op:
Reacties posten (Atom)
2 opmerkingen:
As I mentioned in my blog, I also think that the rescue plan is a good thing. Maybe it's not a solution on long term, but it's a start. Wouter is right when he says that the plan will not only help the American economy but also those of other countries. They all strongly depend on America, maybe sometimes a bit too much.
I think you have reason when you say that the European financial market needs to realise how dependent it is from the US financial market. But I think that there is no easy solution for that problem. I also think it is innevitable that the European market is depending on the US market. But on the otherhand, thanks to the close relation between the two markets, the European market will also benefit from the actions taken by the US government
Een reactie posten