The Financials Review
For the week of October 3, 2011
By Frank LaMantia
Greece announcing it will not meet its deficit target this year has sent the markets into the red in the premarket. This may create new doubts over another bailout. European banks are seeing heavy losses because of fears that default could be near. Private investors that holds bonds may have to absorb heavier losses then was agreed to in July. As most know this kind of news affects Italian and Spanish bonds, making yields rise. (1) Since the U.S. government is slow to help those out of work, Starbucks has decided to launch a fund that could stimulate job growth. It will be called the "Create Jobs for the USA" fund and it will be partnering with the Opportunity Finance Network. Starbucks does not want to wait for Washington and believes that small businesses need access to credit. Every $5 donated may create up to $35 that may be helpful to a small business. The foundation will be created with $5 million donated by Starbucks. (2) Fitch downgraded its growth forecasts for major economies and expects emerging markets to slow down. Euro growth is expected to be zero until the first quarter of 2012. Again, a long-lasting solution has not been found for Europe, leaving a question market for traders. (3)
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