BY JUSTIN LAHART Europe is a mess, and China has entered a rough patch. But the two could hurt each far more than they could hurt the U.S. For anybody casting about for reasons that Europe could sort out its problems, trade figures have been a good first stop. Tally imports and exports for the 17 countries using the euro, and you will find that they roughly balance, with deficits in countries like Spain offset by surpluses in other countries—primarily Germany. What that says, on paper at least, is that Europe has the means to bail itself out. Germany may not want to ...BY JUSTIN LAHART Europe is a mess, and China has entered a rough patch. But the two could hurt each far more ... Continue reading →
Hey, Germany: You Got a Bailout, Too Illustration by Bloomberg View By the Editors 2012-05-23T23:00:00Z In the millions of words written about Europe’s debt crisis, Germany is typically cast as the responsible adult and Greece as the profligate child. Prudent Germany, the narrative goes, is loath to bail out freeloading Greece, which borrowed more than it could afford and now must suffer the consequences. Would it surprise you to know that Europe’s taxpayers have provided as much financial support to Germany as they have to Greece? An examination of European money flows and central-bank balance sheets suggests this is so. Let’s begin with the observation that irresponsible borrowers can’t exist without irresponsible lenders. Germany’s banks were Greece’s enablers. Thanks partly to lax regulation, German banks ... Continue reading →
By Joseph B. WhiteWhat a difference a year has made to the auto industry. A survey of some 200 auto industry executives by Booz & Co. finds that 94% of the auto maker executives and 92% of automotive-technology-supplier executives are bullish, saying the sector is somewhat better off or much better off than last year. AFP/Getty Images In 2011, according to Booz, 53% of auto company executives surveyed and 37% of supplier-company executives had their bear suits on, describing the state of the industry as �About the Same� or �Somewhat Worse� than a year before. The optimism in the Booz survey (which you can find here) is broad based. Industry executives are projecting profitable growth for 2012 — with 52% projecting revenue will increase by ... Continue reading →
BY JUSTIN LAHART With Ford Motor no longer king of the "junk" heap, high-yield bond funds are going to have some buying to do. Moody's on Tuesday boosted its ratings for Ford to Baa3, bestowing investment-grade status on the company's debt for the first time since 2005. This is good news ...BY JUSTIN LAHART With Ford Motor no longer king of the "junk" heap, high-yield bond funds are going to have some buying to do. Moody's on Tuesday boosted its ratings for Ford to Baa3, bestowing investment-grade status on the company's debt for the first time since 2005. This is good news ... Continue reading →
Evidence of a recovery in the housing market has been piling up since last fall, but there has been a good reason to be skeptical of it: Data from the cold months, when housing activity slows, are a less-than-certain gauge of the market's health. But now the U.S. is entering the thick of the home building and selling season. And the data continue to flash recovery. Adjusted for seasonal swings, an annualized 4.62 million previously owned homes were sold in April, the National Association of Realtors reported Tuesday. That was the best month since January and 10.5% better than a year earlier. Bloomberg News Homes for sale in Lancaster, Ohio, on Sunday. Because April is when sales start to heat up, the figures were adjusted ... Continue reading →
