Thursday, July 26, 2012

Now even superpower China is 'at risk' from eurozone crisis, IMF warns

China has been warned that meltdown in the eurozone poses a ‘key risk’ to its economy as the crisis in the single currency reverberates around the world.

Alarm bells also rang in Japan, the United States and Germany as the world’s four biggest economies felt the impact of the financial storm battering Europe.

The warning came as borrowing costs in Spain – widely seen as on the brink of needing a full-blown international bailout – soared to a new euro-era high of 7.7 per cent before easing back slightly.

French President Francois Hollande urged fellow eurozone leaders to press ahead with the reforms set out last month to shore up the European banking system and prop up Spain. Read More