Wednesday, June 26, 2002

Gloom for the world economy The world’s financial markets are in turmoil after the revelation of a massive accounting fraud at WorldCom. Is the collapse in share prices and the dollar a short-term reaction: or might policymakers now find themselves struggling to keep the economic recovery on track? 1:29:38 PM  Google It!  comment  []

Euro nearly reaches parity with dollar "The euro flirted Wednesday with parity to the U.S. dollar, which was dragged down by falling stocks on Wall Street and another scandal over corporate accounting." "The euro reached 99.43 U.S. cents early Wednesday, before slipping back to 98.5 cents, its latest climb in a rally that began in early April and has sent the currency up 14 percent." "Many economists predict the euro will reach parity - one euro to the dollar - in the next weeks or months. That would be a public-relations boost for the 3-year old currency, which has so far played a distinct second fiddle to the dollar as the preferred vehicle for investors and central banks around the world." "At the same time, experts say it's mostly the dollar's weakness - not a sudden improvement in the euro-zone economies - that is driving the rally. In the 12 countries that use the euro, second quarter growth was only 0.2 percent." 1:25:14 PM  Google It!  comment  []