07.27.12
It's good news and bad news today regarding the global economy. First the bad stuff. The US economy slowed in the second quarter amid weak consumer spending, government cuts and a rise in imports from foreign countries. Gross domestic product, the broadest measure of the nation's economic health, grew at an annual rate of 1.5% from April to June, the Commerce Department said this morning. Still, that's better than the 1.4% growth many analysts were expecting, but down significantly from a 2% rate in the first three months of the year.
The Commerce Department also released revisions going back to the start of 2009. While the revisions showed that growth in 2010 was weaker than previously thought, 2009 and 2011 were slightly stronger.
Now for the good stuff. After hemming and hawing for months, German Chancellor Angela Merkel and the German economy appear to be "all in" when it comes to saving the euro. Specifically, Merkel and French President Francois Hollande said they are committed to keeping the euro area together. French newspaper Le Monde reported the European Central Bank was readying to purchase debt.
The news sparked a 100-point rally on Wall Street, as well as stock market gains around the world.
Now for the good stuff. After hemming and hawing for months, German Chancellor Angela Merkel and the German economy appear to be "all in" when it comes to saving the euro. Specifically, Merkel and French President Francois Hollande said they are committed to keeping the euro area together. French newspaper Le Monde reported the European Central Bank was readying to purchase debt.
The news sparked a 100-point rally on Wall Street, as well as stock market gains around the world.