By Paolo G. Montecillo
The global economy faces dire consequences rivaling the effects of the 2007 global financial crisis if the US government fails to raise its debt ceiling and default on some of its loans by the Oct. 17 deadline.
Global stocks remained jittery Wednesday on fears that a partial shutdown of the U.S. government could undermine the country’s fragile economic recovery.
Cast as the sick man of the eurozone a year ago, Spain seems at last to be luring back investors despite lingering threats to its recovery.
Europe’s recession is over, thanks to second-quarter growth in big countries Germany and France and an improvement in some of the smaller ones that have been hit hard by the financial crisis. But the pain is not over as many still have mountains of public debt to pay off and record unemployment. It’s also uncertain how long a recovery can be sustained.
Barclays plans to sell 5.8 billion pounds ($8.9 billion) in new shares to bolster its balance sheet amid new regulatory requirements meant to prevent a repeat of the 2008 financial crisis.