A look at economic developments around the globe

AP News
|
Posted: Nov 09, 2011 1:07 PM
A look at economic developments around the globe

A look at economic developments and activity in major stock markets around the world Wednesday:

___

ROME _ Financial markets pounded Italy as investors hoped that Premier Silvio Berlusconi would not linger in office and delay reforms. Italy's president responded by declaring there was no doubt that Berlusconi would leave soon, appearing to soothe investors.

___

ATHENS, Greece _ Greece's outgoing Prime Minister George Papandreou said that an agreement had been reached with the opposition on the creation of an interim government that will secure the country's new debt deal.

___

LONDON _ Uncertainty over who will lead Italy through the debt crisis once Premier Silvio Berlusconi resigns sent Italian borrowing rates through the roof and slammed stock markets and the euro.

In Europe, the main Milan stock index closed down 3.8 percent while Germany's DAX was down 2.2 percent. The CAC-40 in France fell 2.2 percent.

___

TOKYO _ In Asia, Japan's Nikkei 225 index closed 1.2 percent higher. South Korea's Kospi added 0.2 percent and Hong Kong's Hang Seng jumped 1.7 percent.

___

BEIJING _ China's stubbornly high inflation fell in October, giving Beijing room to stimulate the world's No. 2 economy amid weak U.S. and European growth.

LONDON _ Thousands of students marched through central London to protest cuts to public spending and a big increase in university tuition fees.

___

BERLIN _ Germany's economic growth will slip below 1 percent next year amid increasing global uncertainty and pressure on rich nations to reduce debts, the government's panel of independent economic advisers said.

___

WARSAW, Poland _ The central bank kept its main interest rate unchanged at 4.5 percent, an expected move as it watches what impact the eurozone debt crisis will have on the Polish economy.

___

JOHANNESBURG _ Moody's rating agency changed its credit rating outlook from stable to negative for South Africa, expressing concerns that politicians overseeing the continent's largest economy won't be able to stick to strict fiscal policies.

___