MAIN ITEM OF THE DAY
BY NEWSNIGHT BBC – MONEY PRINTING
BY THE GUARDIAN – IRELAND ECONOMY DOUBLE DIP
Irelands recovery from the deepest recession of any eurozone country came to a quick and unexpected end today when the Irish government announced that national output dropped by 1.2% in the second quarter of 2010.
After posting an increase in growth in the first three months of the year, official data showed that the former “Celtic Tiger” sank into a double dip recession in the spring.
News of the relapse rattled the financial markets and put additional pressure on Dublin’s unpopular coalition government, which had previously insisted that its tough budget cuts were helping to stabilise the economy. Ireland has also been hailed by Britain’s coalition government for its decision to tackle the double-digit budget deficit left by the collapse of its property bubble with immediate and deep cuts.
Investors warned that fears about Ireland’s ability to generate growth would push up the interest rates on its debt.
BY BUSINESS AND FINANCE – EURO SLIDE DUE TO IRELAND CONCERN
(Reuters) – The euro retreated from a five-month high versus the dollar on Thursday, stung by worry over Ireland’s banking sector and a contraction in the Irish economy that underlined concern over the euro zone periphery.