The Wall Street Journal-20080118-Politics -amp- Economics- In Brief
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Politics & Economics: In Brief
Euro Zone Trade Surplus Narrows,
Reflecting Strong Currency
The euro zone's foreign-trade surplus narrowed in November, indicating the euro's strength is starting to weigh on the currency block's manufacturers. The trade surplus for the nations using the euro currency was 2.6 billion euros ($3.8 billion), compared with 5.2 billion euros in November 2006 and the 5.4 billion euro surplus in October 2007, data from Eurostat showed. While demand for manufactured products remained fairly strong, imports grew at almost twice the rate. "This suggests that the strong euro and slowing domestic demand in some key euro-zone markets may be starting to increasingly weigh down on euro-zone exporters," said Howard Archer, chief United Kingdom economist at Global Insight.
U.K. Business Confidence Wanes
A report by the British Chambers of Commerce, a leading business lobby, and a survey of business leaders by Lloyds TSB Commercial painted a picture of fading optimism and redoubled calls for lower official interest rates. Meanwhile, Bank of England Deputy Gov. John Gieve weighed in with a warning to business leaders that the global credit crunch had increased the risk that the U.K. economy would undergo a "deep and painful" slowdown this year. Official December retail-sales data to be released today were expected to reflect a sharp drop in consumer spending.
Bolivia's Morales Faces Setback
In a sign of growing opposition to Bolivian President Evo Morales, senior judges said his proposed new constitution is illegal and told him it must be redone if he hopes to avoid a deeper political crisis. The judges' letter puts political pressure on a constitutional tribunal which will have the ultimate say on the proposed charter.
-- Reuters
