The United States department of Commerce reported yesterday that America's trade deficit increased in January by 15% to a level of 46.3 billion dollars from a level of 40.3 billion dollars in December. Economists had predicted a lower deficit of only 41.5 billion dollars.
Moody's credit rating agency downgraded Spain's credit rating yesterday by one level, while warning of additional downgrading, stating that the government's programs aimed at repairing the banking sector will cost more than expected, adding to Spain's heavy debt. Moody's dropped Spain's credit rating from Aa1 to Aa2, while publishing a negative rating prediction for Spain – a move meaning that we should expect additional reductions in Spain's rating. The agency reports that the final costs of the banking sector reogranization in Spain will be more expensive than the government's current evaluations of 20 billion Euros.
Further on the macroeconomic scene, the Department of Labor announced yesterday that the number of new unemployment claims in the United States grew last week by 26 thousand to a total of 397 thousand. Growth was sharper than predicted by economists, who expected a more moderate number of 376 thousand new claims.
