Mexican President Felipe Calderon, head of the G20 group of countries, brandished the word with gusto at the World Economic Forum in Davos, declaring “we need to take out the bazooka immediately before the powder gets wet.”
Calderon compared the European situation to the economic crisis in Mexico in 1995. That crisis – referred to as “the first financial crisis of the twenty-first century” – exploded after a boom time and the influx of capital. The country was then bailed by the International Monetary Fund, and another country’s money – in this case the U.S. So far, so familiar.
Calderon pointed to the return of confidence that followed the international aid package, noting the same needed to occur in Europe. “The problem is not the money, the problem is the confidence,” he said.
Davos, Switzerland (CNN) – The secret of a good igloo is its spiral structure, with snow blocks slotting into each other to protect against sub -zero temperatures.
But here at Davos, the Occupy WEF organizers - who’ve built seven igloos as they settle into protests against the World Economic Forum - have found rising temperatures a greater challenge.
Despite the biggest snow dump in decades, one day’s five degree high collapsed an igloo while a protestor was sleeping inside. Apparently it only sunk five centimeters at a time, and created entertainment rather than panic. FULL POST
London (CNN) – Greece’s future – and that of Europe – is in disarray after the decision by Prime Minister George Papandreou to call a referendum on its bailout. Now Italy’s soaring funding costs are injecting fresh anxiety into the crisis.
Italy is being crushed by investors, who are now insisting on yields of up to 6.4% to invest in its 10-year bonds. Markets regard 7% as a benchmark which, if breached, makes it extremely difficult for countries to fund themselves.
So these levels are now sending red alerts: Italy is flirting with the danger zone. This, over and above the sheer panic and difficulties which would ensue should Greece decamp to the drachma, is a very real problem.
London (CNN) – The Greek government’s call for a referendum on its aid package is effectively a high-risk game of chicken with its people - and the eurozone peers who have kept the country afloat, analysts say.
Last night’s surprise move by Greek Prime Minister George Papandreou to seek the people’s voice on the unpopular rescue package plunged European markets deep in the red on open Tuesday, as they scrambled to understand the sudden lurch away from last week’s acceptance of the triple-pronged euro crisis response plan.
The European rescue plan - despite a lack of detail - was the substantive response markets had been seeking for months. But Papandreou’s move has thrown the plans into disarray.
Eurozone crisis fears are again sweeping the world - but this time, with more urgency than ever.
London, England (CNN) – Mobile phone giant Nokia unveiled two new smartphones in London Wednesday as it sought to boost its flagging fortunes in the booming market.
The Lumia 800 and Lumia 710 - Nokia's first handsets using the Windows Phone operating system - are the company's attempt to gain traction in the smartphone market, dominated by Apple's iPhones and Google's Android operating system.
As he revealed the Lumia 800 Nokia, Chief Executive Stephen Elop said the company was "signaling our intent right now here today to be today's leaders in smartphone design and craftsmanship."
About Business 360
CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.