meanwhile both men criticized AIG for the bonuses announced, especially after AIG had received its third bailout from the U.S. government.
Stocks in Asia followed the same path as American stocks, while pessimism dominated todayâ€™s session and investors sold stocks and headed for safety measures once again, especially as Japan announced that its Februaryâ€™s exports dropped a record 49.4 percent, which ignited fears that the worldâ€™s second largest economy is falling deeper in recession.
Global economies continue to feel the pinch from the credit crunch which so far caused banks to report more than $1 trillion of losses and write-downs, meanwhile economies all around the globe are slowing down heavily, especially major economies that continue to fall deeper and deeper in recession.
Germany will release their IFO confidence index for the month of March, the IFO business climate index is expected to drop further to 82.2 from the prior estimate of 82.6, while the IFO current assessment index is expected to drop as well to 82.5 from 84.3 the previous reported estimate back in February, however the IFO expectations index is expected to bounce back to 81.5 from the prior estimate of 80.9.
The current outlook for Europeâ€™s largest economy remains subdued, as economic conditions continue to worsen and the recession continue to deepen, meanwhile domestic spending is faltering in addition to slowing global demand, which has been taking its toll on European exports, especially Germanyâ€™s which is highly dependant on its exporting sector.
Germany is not the only economy within the 16-nation economy to feel the heat from the credit crunch, as France, Italy and Spain, the areaâ€™s second, third and fourth largest economies respectively are also experiencing recession and the outlook suggests that those economies will continue to under perform over the upcoming few months.
Moving on to Europeâ€™s second largest economy, the U.K. economy remains in recession as tightened credit conditions, rising unemployment and falling home values continue to weigh down on economic growth and indeed continue to lead the economy deeper in recession.
The CBI distributive trades for the month of March will be released today, the index is expected to weaken further to -35 from the prior estimate of -25 reported back in February, the index is not considered to be rather important but it does give a general idea over the current conditions.
Moving on to the worldâ€™s largest economy, the U.S. economy remains under huge stress caused from the worst financial crisis since the Great Depression and led the economy to fall deep in recession, as tightened credit conditions, falling home values and rising unemployment continue to weigh down heavily on economic growth.
The U.S. will release the durable goods orders for the month of February, durable goods are expected to drop further as tightened credit conditions continue to suppress consumer spending, the index is expected to fall by 2.5% following a prior revised drop of 4.5%, meanwhile durable that exclude transportation are expected to fall 2.0% following the prior revised drop of 3.0%.
The U.S. will also release the new home sales index for the month of February, the index is expected to drop by 2.9 percent to 300,000 from the prior estimate of 309,000, yet thereâ€™s some room for an upside surprise there, especially after the surprising rebound in the existing home sales index, which was ignited by falling home values that lured buyers who are seeking bargains to benefit on such low prices.
The housing sector continues to suppress economic growth in the worldâ€™s largest economy inline with other sectors that continue to lead the economy deeper into recession; the government and the Fed are trying everything they can in order to help revive economic growth, yet so far all those measures failed.
The U.S. government and the Fed decided to take this to a new level, as the Fed decided to start quantitative easing after the aggressive monetary policy easing, while the government on the other hand decided to increase spending, which indeed marked unprecedented levels and might as well pave the road back to economic recoveryâ€¦