Europe sneezes and the US catches a cold

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Europe sneezes and the US catches a cold

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Losses hitting European car makers are also being felt by the industry in the US. Ford, which is America’s second biggest car company has reported a 57 percent fall in its operating profit for this year.

The poor figures are down to a one billion dollar loss in Europe with the crisis reducing sales.

In Washington, Treasury Secretary Timothy Geithner has warned the US faces significant economic threats due to the turmoil in the eurozone.

“The ongoing European crisis presents the biggest risk to our economy,” said Geithner.“The economic recession in Europe is hurting economic growth around the world. And the ongoing stress in financial markets in Europe is causing a general tightening of financial conditions, exacerbating the slowdown in growth.”

And once again the credit rating agency Moody’s has delivered a gloomy assessment. After earlier this week putting Germany, which is Europe’s largest economy on the ‘watch list’, it has now announced a negative outlook for 17 German banks.