Evening roundup: More worries in Greece; U.S. economy mixed

Greece now claims recently adopted austerity measures are hurting its economy and helping send the in-country unemployment rate to double that of the Eurozone average. The incoming World Bank president has offered to send in teams to help sort the books.

The development comes as the head of the European Central Bank has been given powers more akin to those wielded by the Federal Reserve chief in the U.S. and the president of the European Commission called on Britain to step up and help, rather than laying the blame at the feet of common-currency countries and hiding behind the Pound.

Investment banks practice crisis management

It was all about damage control at Barclays, where the Libor crisis settlement sent ripples leading to high-profile resignations. And, JP Morgan is now being subpoenaed over its role in U.S. markets for electric power.

Mixed signals from the U.S.

As the International Monetary Fund warns automatic tax hikes and spending cuts risk throwing the U.S. back into recession, other signs point to improvements in the economy of our biggest trading partner.

First, June numbers for auto sales were on the rise, with GM and Chrysler reporting double-digit increases. Falling fuel prices get some of the credit.

And, new factory orders posted gains for the first time in three months, while improving home sales indicate the long-term policy of holding down interest rates is starting to work. Improvements in both sectors should favourably impact Canadian resource concerns that feed into U.S. manufacturing and housing.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.