May 10
13
Spain Government Cut State Employee Wages
International Report 13th May 2010
The Nikkei was up 2.2% or 232.36 points closing at 10,626.76. The Topix gained 1.7% to close at 948.51. The Dow Jones gained 148 points to close at 10,896, on the other hand the Nasdaq was up 49 points to close at 2,425. The S&P 500 closed 15 points higher at 1,171.
Yesterday, Greek unions announced that they would stage a 24-hour nationwide strike on 20th May, this will be the second major protest against the tough austerity measures pledged. A week ago the main public and private sector unions led a 50,000-strong march in which hundreds of angry Greeks fought with the police in the streets of Athens, three people were killed. Investors are concerned over the public reaction to government wage and pension cuts. The austerity measures, were proposed in return for €110bn (£93.6bn) in emergency aid from the EU and IMF, these are expected to keep the economy in recession throughout 2011. Spain will cut state employee wages and slash investment spending, sparking union anger at the government. In April, the United States posted an $82.69bn (£55.74bn) deficit in April, this was almost 4 times the shortfall recorded a year earlier.
Due for release is GBP Trade Balance, USD Unemployment Claims, USD Fed Chairman Bernanke Speaks, NZD Retail Sales m/m.
