Americans react to last-minute 'fiscal cliff' deal

Published on Jan 2, 2013

http://www.euronews.com/ After months of budget brinkmanship, Americans are digesting news that the country has been pulled back from the edge of a so-called "fiscal cliff."

In what is seen as a clear victory for president Barack Obama, painful tax hikes for almost all US households have been averted.

Obama cut short a Christmas holiday to help finalise the deal.

The agreement raises taxes for the wealthy, while spending cuts have been delayed for two months.

Ordinary Americans will not emerge completely unscathed though. A temporary payroll tax cut is coming to an end.

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Eurozone's new year challenges

Published on Jan 2, 2013

http://www.euronews.com/ It may be a new year, but there is little new hope for the eurozone.

Having headed off a break up - through Greece and maybe others dropping out - the currency bloc's leaders now face a challenging year ahead as growth stagnates.

There was a return to recession while unemployment rose in 2012.

The outlook for 2013 is darker with the Organisation for Economic Co-operation and Development predicting weak growth for the region's two biggest economies, Germany (0.6%) and France (0.3 %), and further contraction for the next two largest Italy (-1%) and Spain (-1.4%).

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Eurozone factory slump deepens

Published on Jan 2, 2013

http://www.euronews.com/ Eurozone factories sank deeper into recession in December as new orders tumbled.

Surveys of the region's businesses showed economic decline spread further into the core members of the bloc.

Germany's crucial manufacturing sector shrank for the 10th straight month and at a faster pace.

French data has declined in all but one of the past 17 months.

Ireland was the only member of the currency union to register growth in December.

British factory activity however unexpectedly jumped.
It grew at its fastest pace since September 2011, raising the chance that the UK economy eked out some growth at the end of 2012.

"The eurozone manufacturing sector remained entrenched in a steep downturn at the end of the year. The region's recession therefore looks likely to have deepened, possibly quite significantly, in the final quarter," said Chris Williamson, chief economist at Markit, which carried out the surveys.

"Manufacturers look to be in for another tough year in 2013, though prospects have brightened a little, as producers should benefit from signs of stronger demand in key export markets such as the United States and China," Williamson said.