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REWIND: International Business News #37

Posted on September 21st, 2012 | Author: admin

  • Will Greece exit the Euro?  This question has hung over the Eurozone since the beginning of the financial crisis in 2008. At present, the EU is committed to maintaining and backstopping Greece’s participation in the Euro. However, some experts are speculating that the sluggishness of other European countries coming to Greece’s aid is at least partially to blame for Greece’s precarious financial position. As CNBC’s Nick Skrekas put it, “Because of the needless delays, the Mediterranean country can’t recapitalize its banks so more businesses will hit the wall for lack of liquidity, causing avoidable economic contraction.”
  • Facts are facts, except when they aren’t. In Germany, a debate is raging within the federal government over the distribution of the country’s wealth. On one side, the country’s Labor Ministry is claiming that the gulf between rich and poor has grown wider in recent years, publishing a report entitled “Poverty and Wealth Report” to support its findings.Germany’s Department of Commerce fired back a strong disagreement, leading many to wonder who’s right. The question is important in the context of the still-looking European debt crisis where Germany has been asked to prop other nations in the EU, while many of the country’s citizens strongly believe Germany should tend to its own internal problems over those of the large European community.
  • On Wednesday, the Bank of Japan announced that it would engage in quantitative easing. The announcement comes on the heels of last week’s announcement by the U.S. Federal Reserve that it would engage in a third round of quantitative easing in the United States. Under the Japanese plan, the country would inject 10 billion Yen into the financial system. The news was well-received by investors in the Far East, as Japan’s Nikkei index rose 1.4% after the Bank of Japan announced its plan.
  • When it rains, it pours. It’s been a rough week for Motorola in the German courts system. Today, a Bavarian court held that Motorola had infringed on a patent held by Microsoft, Corp relating to data input methods for mobile devices. Last week, the same court decided another patent infringement claim against Motorola in a case brought by Apple to enforce its rights to exclusive use of a technology known as “bounce back.”