Wall Street Watch: Super Committee Fails, Spain Starts Fresh

The Cheat Sheet

Leaders of the 12-member U.S. congressional “super committee” are expected to announce their defeat in a joint statement today after three months of talks over tax and spending disagreements. The panel’s inability to agree will be another display of a broken Washington. The lawmakers aren’t expected to revisit the issue until 2013 as the 2012 presidential and congressional elections will take center stage.

Mariano Rajoy  and his People’s Party won the biggest majority in a Spanish election in almost 30 years on Sunday, sweeping the ruling Socialists from power after eight years and winning an absolute majority in Parliament, with 186 of 350 seats.

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The Bundesbank , Germany’s central bank, has cut its forecast for 2012′s economic growth. According to its monthly report, the bank projected gross domestic product to expand between 0.5 percent to 1 percent as compared to a previous 1.8 percent prediction. It also said that a “pronounced weak phase” could take place if Europe’s sovereign debt crisis becomes worse as well as potential rough times for Germany’s economy from weakening foreign demand and unrest in the financial markets.

Japan’s parliament passed an additional YEN $12.1 trillion ($157 billion) for its budget including the issuance of new bonds as a rebuilding payment from the country’s March earthquake. The increase will also go to reconstruction spending (YEN $9.2 trillion) with YEN $500 billion toward subsidies to the firms affected by the yen’s rise as an incentive not to move its factories and jobs outside the country.

Western Digital Corp. will pay $525 million in an arbitration to its rival Seagate Technology LLC . The damages come after claims against Western Digital and a former Seagate employee who alleged “misappropriation of confidential information and trade secrets” according to a Western Digital statement.

John Coyne, Western Digital’s CEO said, “We do not believe there is any basis in law or fact for the damage award of the arbitrator.” The company plans to challenge the verdict.

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