Business Highlights

The Associated Press

___

Bernanke signals no imminent steps to aid economy

WASHINGTON (AP) ⿿ Slumping job growth has alarmed some economists who fear the U.S. economy is in trouble.

Ben Bernanke doesn't appear to be one of them.

The Federal Reserve chief sketched a hopeful outlook in testimony to a congressional panel Thursday and sent no signals that the Fed will take further steps soon to aid the economy.

Bernanke acknowledged that Europe's debt crisis poses risks to U.S. financial markets. He also noted that U.S. unemployment remains high at 8.2 percent. And he said the Fed is prepared to take steps to boost the U.S. economy if it weakens.

___

Spain's hurting banks at heart of eurozone chaos

MADRID (AP) ⿿ Spain is under increasing pressure to find a quick way to save its troubled banking sector from collapse.

Politicians and investors around Europe are worried that the economically battered country will not find the money to cover the toxic property loans weighing its banks down. The expectation now is that Spain's government will have no choice but to seek an international bailout to help bolster its lenders.

The concerns have sent Spain's borrowing costs on the international bond markets to worrying levels ⿿ close to the points where most market-watchers say a country cannot maintain its debt. Spain, previously rated A by credit-rating agencies, may need as much as ⿬100 billion ($126 billion) to bolster its banking system, compared with an earlier estimate of about ⿬30 billion, U.S credit rating agency Fitch said Thursday. Fitch went on to downgrade the country to BBB, two notches above junk, and warned that Spain faced further downgrades. In its most recent debt auction Thursday Spain managed to raise ⿬2 billion ($2.52 billion) ⿿ but at much higher rates than in previous bond sales.

1 2 3 4 5 Next › Last »