China says local government debt soars

BEIJING: China on Monday announced the results of a long-awaited debt audit, revealing that liabilities carried by local governments ballooned to 17.9 trillion yuan ($2.95 trillion) as of the end of June.

Eurozone set for volatile 2014 as it tackles banks

Paris (AFP) - The eurozone is finally set to return to growth in 2014 but the single currency bloc may not have put its crisis behind it as efforts to shore up its banks could boomerang.

March of state companies resets global trading patterns

(Reuters) - As U.S. and European banks drop out of commodity trading, Russian, Chinese and Gulf state firms are filling the gap in an attempt to exert greater control over the pricing of the raw materials on which their economies so heavily depend.

Lending to small businesses receives boost

New "challenger" banks will find it easier to check the credit-worthiness of potential business customers under new proposals published by the government , which it hopes will lead to an increase in lending to businesses in deprived areas.

Roubini, The Oracle Of 2008, Sees No Bubbles In The U.S. Financial Markets

The brilliant Nouriel Roubini, the swashbuckling NYU economist who predicted the disastrous credit and housing bubble in the U.S. during 2008, told me yesterday he sees “frothiness” not a bubble in some sectors of the U.S. bond market and in the housing markets of 17 foreign nations like Switzerland, Sweden, Norway, Hong Kong, Indonesia, China and Brazil that could become “outright bubbles” someday if they are not reigned in.

Ukraine Upheaval Spurred by 28% Rates Limiting Buyers

On most days after work, Valentine Diatlenko joins the thousands of anti-government protesters in Independence Square who demand that Ukraine link its future to the European Union.

Insight: U.S. early warning system for financial crises gets low marks

WASHINGTON (Reuters) - In June 2009, a small group of academics sent an envoy to a Washington, D.C., think tank to pitch their vision for a research office to help the nation avoid the next financial crisis.

Cyprus approves first post-bailout budget

NICOSIA: The Cyprus parliament has approved the island's first post-bailout budget providing deep spending cuts in 2014 of about 10 per cent to ensure international bailout targets are met.

Fed's Rosengren would have waited until March to taper

(Reuters) - The lone dissenter this week on the Federal Reserve's landmark decision to begin to pare its massive bond-buying program said he would have preferred to wait until March to be sure the recovery is on firm footing.

Japan Stays Aggressive on Stimulus

TOKYO — Japan’s central bank decided on Friday to hold steady on its aggressive monetary stimulus program and said the nation’s economy continued to recover moderately.

European markets rally on news of Federal Reserve move

European markets rallied on Thursday after the US Federal Reserve pledged to keep the cost of borrowing at rock-bottom levels for longer than expected, offsetting its decision to begin trimming back its massive $85bn a month stimulus programme.

EU ministers seal banking agreement on eve of Brussels summit

EU finance ministers announced late on Wednesday night that they had reached agreement on a new system for dealing with eurozone banks, under intense pressure to seal the accord on their new flagship policy in advance of a two-day Brussels summit opening on Thursday.

U.S. factory activity gaining steam as production broadens

WASHINGTON (Reuters) - U.S. manufacturing output rose for a fourth straight month in November as production increased almost across the board, in the latest suggestion the economy is gaining steam.

Russia likely to give Ukraine financial aid, official says

MOSCOW, Dec. 17 (UPI) -- Russia will likely give Ukraine vital financial aid when President Viktor Yanukovych meets with President Vladimir Putin at the Kremlin Tuesday, officials said.

Pound Falls Most in Six Weeks as BOE Counters Rates Speculation

The pound had the biggest weekly decline against the dollar in six weeks after Bank of England officials sought to damp speculation that they will raise interest rates sooner than they have previously indicated.

World led by US poised for fastest growth since 2010

The world economy is primed for its fastest expansion in four years, with the US propelling the improvement in output.

Bank of England adviser queries forward guidance policy

A senior Bank of England adviser has questioned the efficacy of one of governor Mark Carney's key policies.

European Union inches towards 'Banking Union'

BRUSSELS: EU finance ministers on Tuesday edged towards a difficult compromise on a Banking Union they hope will prevent a repeat of crippling crises and inject new impetus into the economy.

'Volcker rule' to curb banks set for vote by regulators

Five US regulators are voting on the Volcker rule, designed to restrict the finance industry in the wake of the 2008-09 financial collapse.

Canada Consumer Confidence Rises on Resilient Housing

Canada’s economic mood rebounded last week as consumers head into the holiday season buoyed by rising house prices, according to the Bloomberg Nanos Canadian Confidence Index.

Public donations to national debt payoff total nearly £900,000

Members of the public have donated almost £900,000 to the government so far this financial year to help pay off the national debt or boost public spending, figures from the Treasury show.

Faster Pace of Growth May Not Last Long

Stoked by rising inventories, the American economy grew at a significantly faster pace in the third quarter than first estimated, but probably at the expense of economic activity during the current quarter as businesses work off some of the excess stock on their shelves and in warehouses.

Autumn Statement: UK growth 'hides disappointing news'

Higher UK growth forecasts "hide some more disappointing news for the chancellor", warns the influential Institute for Fiscal Studies (IFS). It says the increased forecast is just a result of growth coming a bit sooner than had been expected.

European Central Bank keeps rates at record 0.25% low

The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%.

Bank of England committee flags up housing market concerns

The Bank of England is continuing to closely monitor the affordability of mortgages and the lending policies of banks after taking steps last week to cool the housing market.

Bank of Montreal Falls on Profit Post: Toronto Mover

Bank of Montreal, Canada’s fourth-largest lender by assets, fell the most in two years after profit excluding an accounting gain missed analysts’ estimates.

Derivative markets have already upgraded Britain to AAA

The cost of insuring British debt against default has fallen below the levels for the US, Switzerland, Japan and every major eurozone state except Germany, marking a dramatic change of view on UK’s economic prospects.

Bank of America Predicts Stock Drop on Yield Jump: China Credit

China’s borrowing costs are climbing at the fastest pace since late 2010 and Bank of America Corp. says that’s making stocks vulnerable, just as it did back then.

ECB fin stability chief pledges rigorous bank tests

FRANKFURT (Reuters) - The European Central Bank will not let banks off the hook easily in its upcoming health checks, the head of the financial stability department said on Friday.

Business lending drops in October as BoE adjusts Funding for Lending

Just a day after Mark Carney overhauled the Funding for Lending scheme to refocus it on business finance only, new Bank data has shown a fresh drop in lending to UK businesses.

Euro zone loans contraction increases pressure on ECB

(Reuters) - A contraction in loans to households and companies in the euro zone quickened in October, piling pressure on the European Central Bank to do more to buoy the euro zone's weak recovery.

Osborne asks BoE to consider extra powers to curb banks

(Reuters) - Chancellor George Osborne has asked the Bank of England to decide whether it needs more powers to control banks' risk-taking.

Norway Poised to Relax Rules to Fight House Price Deflation

Norway is moving closer to easing mortgage lending standards as the nation’s deflating property market prompts concern among lawmakers that existing regulations are too tight.

ECB’s Hansson Says Rate Cut Options Not Fully Exhausted

Japanese Prime Minister Shinzo Abe’s reliance on fiscal and monetary easing to defeat deflation may precipitate a “plunge” in the yen and sovereign bonds, said Noriko Hama, an economics professor at Doshisha University’s Business School in Kyoto.

Fed's Tarullo wants more tools to counter shadow bank risks

(Reuters) - Global financial watchdogs should have more policy tools and powers over firms such as hedge funds to counter the risk of a devastating run on investment banks, the U.S. Federal Reserve's top regulator said on Friday.

Italy, Spain Face Budget Scrutiny as Euro Ministers Meet

Italy and Spain will defend their 2014 spending plans at a meeting of euro-area finance ministers today, risking a clash over economic frailties that could undermine efforts to pull the currency bloc out of a debt crisis now in its fifth year.

US Federal Reserve to trim stimulus in coming months

Federal Reserve officials said they plan to begin trimming the central bank's stimulus efforts in "the coming months".

BOE Sees Case for Keeping Record-Low Rate Beyond 7% Jobless

Bank of England officials voted unanimously to keep policy unchanged this month and said a record-low interest rate may be needed even after unemployment falls to the threshold set under forward guidance.

OECD sees economic rebound in CEE, Russia in 2015

Nov 19 (Reuters) - The OECD expects Russia and central and eastern Europe's economies to advance in 2015 after a mixed picture next year as the region tries to overcome the impact of a slump in the euro zone, it said on Tuesday.

Banks' book-keeping leaves investors in the dark - watchdog

LONDON (Reuters) - Big variations in how major European Union banks do their accounts can leave investors guessing over their financial health and could also undermine financial stability, a top regulator said on Monday.

U.S. Fed's Rosengren advocates streamlining bank capital rules

(Reuters) - U.S. regulators should consider streamlining rules now being adopted that force big banks to hold more capital, a top Federal Reserve official said on Monday.

Yellen signals new emphasis on Fed policing role

(Reuters) - Move over inflation and job growth. The next Federal Reserve chief appears set to direct the central bank's might at ensuring financial stability and stern banking oversight with the same vigor it currently applies to its traditional mandates of fostering price stability and maximum employment.

EU ministers agree euro zone bailout fund can be used as ultimate backstop for banks

(Reuters) - European Union finance ministers agreed on Friday that, as a last resort, the euro zone ESM bailout fund will be able to buy stakes in banks that need rescuing if neither investors nor the government are able to provide funds.

EU seeks to increase influence on global accounting rules

(Reuters) - The European Union is seeking to increase its influence over global accounting standards by beefing up the agency that scrutinizes new rules and in certain cases tweaking how they are applied in the bloc.

Fed's Kocherlakota: No need to fear monetary stimulus

(Reuters) - With inflation running well below the level that the Federal Reserve sees as desirable, there is little cause for concern that super-easy monetary policy will lead to runaway price rises, a top Fed official said on Tuesday.

Inflation falls to 2.2% in October

The UK's inflation rate, as measured by the consumer prices index (CPI), fell to 2.2% in October from 2.7% the month before.

Euro can only succeed via political union: Greenspan

FRANKFURT: The euro can ultimately only succeed if EU countries agree to a political union, the former head of the US Federal Reserve, Alan Greenspan, said in an interview Sunday.

Central Banks Renew Reflation Push as Prices Weaken

Central banks around the world renewed efforts this week to reflate their economies as slowing prices emerge as a threat to global prosperity.

France Credit Rating Cut to AA by S&P on Growth Outlook

France’s credit rating was cut by Standard & Poor’s, which said President Francois Hollande’s policies will fail to spur growth and fix the public finances.

ECB cuts rates to new low, sees protracted low inflation

(Reuters) - The European Central Bank cut interest rates to a new record low on Thursday and said it would prime banks with liquidity into 2015 to prevent the euro zone's recovery from stalling as inflation tumbles.

Ahead of ECB, evidence mounts of weak recovery

LONDON: A day before the European Central Bank meets to decide whether to cut interest rates, further evidence emerged Wednesday to indicate the economic recovery in Europe is muted.

BOJ Struggles to Convince on 2% as Abenomics Shine Fades

Half a year after Bank of Japan Governor Haruhiko Kuroda unleashed record monetary easing, economists see the bank failing to meet its inflation target, underscoring the case for stronger steps to revive the economy.

British banks face new bill for past investment advice

LONDON: HSBC has set aside $149 million to review how it advised about 200,000 UK customers on investing a lump sum of money, the first British bank to do so and signalling another potential costly mishap for lenders.

Fed to Test Banks for Interest Rate Rise, Housing Collapse

The Federal Reserve said it will examine how the biggest banks might react to a jump in long-term interest rates and another housing crash as it released the next round of stress-test scenarios designed to monitor the ability of the U.S. financial system to withstand economic shocks.

Regulators contact more banks over currency market manipulation

A global investigation into allegations of manipulation in the £3tn-a-day currency markets appeared to be deepening with more banks admitting they were co-operating with regulators and Barclays suspending six of its traders.

Emerging markets take record share of FDI inflows in H1 2013: UNCTAD

LONDON: A record share of foreign direct investment flows went into emerging markets in the first half of 2013, while Britain became the world's largest recipient of FDI, a UN survey released on Thursday showed.

Malaysia PM says curb on use of 'Allah' key to stability

LONDON (Reuters) - Malaysia's Prime Minister Najib Razak defended a court ruling banning a Christian newspaper from using the word "Allah" to refer to God, saying on Thursday it would help ensure stability.

Asian countries seek to boost oversight on rating agencies

SINGAPORE: Asian countries, including India, today discussed efforts being initiated to bring down their "mechanistic" reliance on credit ratings and to strengthen oversight of rating agencies.

Osborne RBS Decision Seen Weighing on Legacy as U.K. Chancellor

George Osborne is about to take a decision that will help determine his legacy. While the fastest growth since 2010 is boosting voter confidence in his stewardship of the U.K. economy, his ruling on the future of Royal Bank of Scotland Group Plc may yet mar that achievement.

India raises interest rates for the second month running

India's new central bank governor has raised interest rates for the second consecutive month by a quarter of one percent to 7.75% to try to fight inflation.

Banks in Spain, France and Italy sell govt bonds in Sept: ECB data

FRANKFURT: Spanish, Italian and French banks offloaded some of their government bonds in September, European Central Bank data showed on Friday.

Thai Central Bank Cuts Growth Forecast, Rules Out More Stimulus

The Bank of Thailand said risks to financial stability, including high levels of household debt, have reduced the scope for further monetary easing, even as it cut its growth forecast for the second time this year.

Euro Hedging Jumps as Europe Exporters Bemoan Gains: Currencies

The euro’s unexpected rally this year is spurring a jump in hedging as the currency’s strength threatens to damp earnings at companies from Deutsche Lufthansa AG (LHA) to luxury-goods maker LVMH Moet Hennessy Louis Vuitton SA. (MC)

ECB to begin bank stress tests under new role

FRANKFURT: The European Central Bank said Wednesday it will start next month to check the balance sheets of 124 eurozone banks and "stress-test" them before it becomes the sector's supervisor next year.

Japan posts trade deficit for 15th consecutive month

Japan has posted a trade deficit for the 15th month in a row in September as a weak yen pushed up import costs.

Not Bank of England's role to regulate house prices - policymaker

Oct 21 (Reuters) - It should not be the Bank of England's job to regulate house prices, a BoE policymaker said on Monday.

ECB President Mario Draghi asked EU to keep state aid rules for banks flexible

MILAN: Banks that are still viable but need state aid to boost their capital base should be allowed to receive help without inflicting losses on their junior bondholders, European Central Bank President Mario Draghi told the European Commission.

UK's George Osborne says actively considering RBS 'bad bank': Report

LONDON: British finance minister George Osborne said his ministry was actively looking at breaking up the state-backed Royal Bank of Scotland to create a "bad bank" to house its problem loans, the Daily Telegraph newspaper reported on Friday.

Fed should not raise rates to fight financial risk: Evans

CHICAGO (Reuters) - The Federal Reserve should be "extraordinarily careful" about hiking interest rates to head off potential risks to financial stability when more effective tools, like supervision, are available, a top Fed policymaker argued on Friday.

Italy's Monti quits party as budget opposition mounts

ROME (Reuters) - Former Prime Minister Mario Monti on Thursday left the party he founded this year as political tensions over Italy's 2014 budget raised a new threat to the stability of Enrico Letta's government.

RBNZ Deputy Governor: New Zealand House Prices Are Risk to Future Financial Stability

WELLINGTON, New Zealand--High New Zealand house prices are a risk to future financial and price stability, Reserve Bank Deputy Governor Grant Spencer said Tuesday.

Abe Aide Urges BOJ Law Revision to Boost Inflation Expectations

Japan should revise its central bank law to make it accountable for job creation and ending deflation, said Etsuro Honda, an economic adviser to Prime Minister Shinzo Abe.

World top bankers warn of dire consequences if U.S. defaults

(Reuters) - Three of the world's most powerful bankers warned of terrible consequences if the United States defaults on its debt, with Deutsche Bank chief executive Anshu Jain claiming default would be "utterly catastrophic."

Central banks must be careful when tightening policy: IMF

WASHINGTON: Central banks of advanced economies must try to limit collateral damage to emerging markets when the time comes to tighten monetary policy, the International Monetary Fund's steering panel said on Saturday.

Draghi Says ECB Guidance Allows Rate Cuts on Volatility

European Central Bank President Mario Draghi said policy makers’ pledge to keep interest rates low explicitly allows for cuts in borrowing costs if market volatility resumes.

ECB raps Hungary for neglecting central bank independence

FRANKFURT (Reuters) - The European Central Bank has warned Hungary against tampering with central bank independence and pushed it to take the ECB's opinions more seriously.

IMF warns that any US default on its debt obligations would imperil global economy

WASHINGTON — A U.S. debt default in the event that a politically divided Congress fails to raise the federal borrowing limit would imperil the entire global economic recovery, a senior International Monetary Fund official warned Wednesday.

U.S. financial stability group discusses debt ceiling, shutdown

WASHINGTON (Reuters) - U.S. financial regulators discussed the federal debt ceiling and the effect of the government shutdown on market monitoring during a phone conversation on Tuesday, a Treasury Department spokesman said.

Greece forecasts it will emerge from recession in 2014

Greece has predicted that it will emerge from its six-year long recession next year, in a sign it may be finally recovering from its debt crisis.

US shutdown is starting to hit business, says Commerce Secretary

US Commerce Secretary Penny Pritzker has warned that business is starting to suffer from the federal shutdown.

Euro zone inflation pressures ebbed further in August: ECRI

BANGALORE: Euro zone inflation will ease further in coming months after price pressures fell to their lowest in almost four years, an indicator designed to predict cyclical trends showed on Friday.

RBC Sells Largest Structured Note Tied to Blackstone Shares

Royal Bank of Canada sold $18.3 million of three-year notes tied to Blackstone (BX) Group LP, the largest offering linked to the buyout firm since at least January 2010.

US shutdown risk to global economy if protracted: ECB

The US government shutdown could threaten not only the United States but also the global economy if it lasts, European Central Bank chief Mario Draghi said Wednesday.

George Osborne: We'll run a budget surplus

Chancellor George Osborne has said he wants the government to be running a surplus in the next Parliament and can get there without raising taxes.

EU's Rehn: Italy needs political stability for reforms, growth

PARIS (Reuters) - Italy must quickly restore political stability to make the reforms it needs to return to growth, the European Union's top economic official said on Tuesday.

EU, US aim to overcome key trade talks barrier by January

Differences on norms set for anything from food and aviation safety, to standards for electric cars or the regulation of financial services, stand in the way of efforts to strike an ambitious transatlantic deal creating the world's largest free trade area.

Europe's plan to address weak banks risks unraveling

(Reuters) - The European Central Bank's (ECB) plan to test the health of the euro zone's largest lenders without the means to plug any holes it uncovers risks foiling what some see as the bloc's final chance to put its financial crisis behind it.

Lecture examines financial stability politics

Notre Dame undergraduates had an opportunity to get an insider’s perspective on the handling of the recent recession when Nellie Liang, a director of the Federal Reserve Board (the Fed) of Governors, came to campus to give a lecture aimed at economics majors on financial stability politics after the financial crisis.

Federal Reserve can have some flexibility with inflation goal: Charles Evans

OSLO: The U.S Federal Reserve can be flexible with its inflation objective and there is a risk it would overshoot its goal, but this is not an issue as long as price growth remains below three percent, a top Fed official said on Friday.

Portugal Holds Local Elections as Deeper Spending Cuts Approach

Portugal holds local elections on Sunday, two weeks before the government hands in a budget proposal for 2014 that will include new spending cuts.

BOE Says It’s Alert to Stability Risks From Housing Market

The Bank of England said Britain’s housing-market recovery is gaining momentum and its Financial Policy Committee is ready to act if any risks to stability emerge.

Bank of Canada says economy no excuse to delay financial reforms

OTTAWA (Reuters) - A senior Bank of Canada official urged global policymakers on Tuesday to push ahead with financial system reforms despite economic weakness, saying financial stability is an important precondition for growth.

Ireland officially exits recession

The recession in Ireland has officially ended.After a downturn hit the country at the end of last year and the first few months of this year, the widest measure of the economy has now revealed a slight upturn.

The Economist: “The Fed's have-it-both-ways policy”

R.A., regarding Bernanke’s Jackson Hole speech, your column notes that you “found the tone on monetary policy to be confusing and timid.” Expectations now turn to what President Obama will say next week and what the Fed will do (or not do) when they next meet. Uncertainty again prevails.

Alexander Mirtchev

Interest rates to remain at present or lower level: ECB's member Erkki Liikanen

HELSINKI: European Central Bank council member Erkki Liikanen reiterated on Friday that the bank is committed to keeping its interest rates low for a longer period of time.

Fed's decision not to cut stimulus 'prudent' - China's Xinhua

(Reuters) - The U.S. Federal Reserve's decision to delay reducing its massive monetary stimulus appears prudent, China's Xinhua news agency said on Thursday.

Prudential Financial designated 'too big to fail'

US regulators on Friday named insurer Prudential Financial to its list of "too-big-to-fail" institutions, the third non-bank placed under a tighter regulatory regime to reduce risks to the financial system.

Deep Thoughts by Alexander Mirtchev

Ashby Monk

For a variety of reasons, SWF employees are typically quite reserved and guarded when speaking to the press. Not so for Dr. Alexander Mirtchev, who is the Independent Director and a member of the Board of Directors of Kazakhstan’s $30 billion National Welfare Fund Samruk-Kazyna.

Alexander Mirtchev

Ireland exits recession as economy grows

The Irish Republic's economy has emerged from recession, according to official figures.

US Fed expected to announce stimulus slowdown

WASHINGTON: Many investors expect the U.S. Federal Reserve to announce a shift in course Wednesday and take its first step toward slowing the economic stimulus it has supplied since the financial crisis and the Great Recession swept through the economy five years ago.

Securing global economic security

Inflation is a significant factor of global economic security and has the innate capacity to upend carefully laid plans

Sir, Further to the article by Sam Fleming, “Incomes will plummet as inflation soars, report claims” (May 3), I agree that the erosion of earnings by inflation should move higher on the economic agenda.

Alexander Mirtchev

Eurozone govts must do more to stimulate investment: ECB chief, Mario Draghi

European Central Bank chief Mario Draghi called on eurozone governments Monday to do more to encourage investment in order to boost competitiveness.

Rise of British anti-EU party threatens PM's re-election: poll

(Reuters) - British Prime Minister David Cameron's hopes of being re-elected in 2015 suffered a setback on Sunday when a poll showed an anti-European Union party had split the center-right vote in dozens of decisive constituencies.

Budget deficit shrinks in August from year earlier

(Reuters) - America's budget deficit shrank in August compared to a year earlier, with government accounts helped by tax hikes and an improving economy.

Bailouts still key issue as eurozone finance ministers meet

Eurozone finance ministers meet in calmer times Friday but still need to ensure bailed-out member states meet their targets amid growing speculation some will need more help to get back on track.

Financial stocks near monthly highs

NEW YORK (MarketWatch) — Financial stocks traded near monthly highs on Friday as leading money-center banks advanced.

ECB's Draghi says level of money market rates unwarranted

RIGA: European Central Bank President Mario Draghi said on Thursday that the euro zone recovery was still "very, very green" and the recent rise in short-term money market interest rates was unwarranted.

BOE Orders Review of Risk to Banks From Interest Rates

The Financial Stability Board, led by Bank of England Governor Mark Carney, said that his central bank may need to boost the number of regulators focusing on small lenders.

Consumer credit grows, but held back by weak credit card use

(Reuters) - Growth in U.S. consumer credit slowed for the second straight month in July, held back by a decline in a measure of credit card usage that hinted at a mood of caution among consumers.

ECB says could offer leniency in ABS loan reporting

FRANKFURT: The European Central Bank said on Monday it could accept some debt paper as collateral against which it lends money to commercial banks, even if they do not fulfil the new reporting requirements.

Greek premier Antonis Samaras says economic pain will ease next year

ATHENS: Greece's economic pain will ease in 2014 as it exits a recession that will be less acute than forecast this year, helping the country meet its bailout targets, Prime Minister Antonis Samaras said on Saturday.

South African gold miners return to work

Most of the 80,000 South African gold miners who have been on strike since Tuesday have returned to work after a new pay offer, union officials say.

Euro zone inflation pressures stable at 40-month low: ECRI

BANGALORE: Euro zone inflation should ease in coming months after price pressures stayed at multi-year lows in July, an indicator designed to predict cyclical trends showed on Friday.

The Global Inflation Wave: Waiting for Constantine?

Source: The Globalist

Alexander Mirtchev and Norman Bailey,

In the wake of the global economic crisis, the world is trying to chart an economic path to the future and find a "new normal." As Alexander Mirtchev and Norman A. Bailey explain in the first installment in their series "The Search for a New Global Equilibrium," inflation as a factor of global economic security has the innate capacity to upend carefully laid plans and further upset the equilibrium.

Weak spending, inflation data point to soft U.S. economy

(Reuters) - U.S. consumer spending barely rose and inflation was tame in July, offering a cautionary note on the economy as the Federal Reserve weighs cutting back its massive bond-buying program.

South Africa backs "global collective action" against market turmoil

JOHANNESBURG: South Africa would like to see better global coordination to tackle volatility in emerging markets caused by an expected scaling back of US monetary stimulus, President Jacob Zuma's office said on Monday.

Will G-20 Counter Power of Uncertainty?

By Alexander Mirtchev 

In 2009, G-20 leaders met in Pittsburgh and emerged with a mandate ‘to be the premier forum for international economic cooperation,' endowing the G-20 with a leading economic role on the global stage. It appeared at the time that the leaders of the G-20 had successfully defeated pessimism. However, the rising tide of global economic turmoil and problems ranging from sovereign indebtedness to consumption and saving imbalances have created a ‘perfect storm' that is far from abating.

Swiss economy powers ahead in second quarter

ZURICH (Reuters) - Switzerland's economy grew by a robust and better-than-expected 0.5 percent in the second quarter, data showed on Tuesday, driven by private consumption and spending on machinery.

Bank of Japan to hold policy, debate emerging market risks

TOKYO: The Bank of Japan may hold off on declaring the world's third-largest economy has cemented its recovery at a policy review this week as it waits to see the fallout on activity from slowing growth and capital outflows in emerging nations.

France signals shift to tax cuts in boost to business

France's Socialist government is hinting it may appease discontent at tax rises by putting more stress on spending cuts in its fight to control the budget and boost growth.

European banks pick up capital plans

LONDON: European banks are finally getting to work on upgrading their capital buffers, on the back of the regulatory certainty which the European Banking Authority finally granted at the beginning of June.

Indonesia Raises Interest Rate as India Aids Rupee

Bank Indonesia raised its benchmark interest rate by half a percentage point in an unscheduled move, joining India in implementing measures to shore up slumping currencies.

We Are All Europeans Now

Alexander Mirtchev, Contributor

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The broadening cracks in the European economic framework now appear to be undermining the whole European structure, as if a ‘contagion’ is spreading from the Southern European economies outwards.

Bank of Japan's Yoshihisa Morimoto warns emerging markets may see more outflows

MORIOKA, JAPAN: The global economy could be hurt if the withdrawal of funds from emerging markets picks up ahead of an expected reduction in the U.S. Federal Reserve's monetary stimulus, a Bank of Japan board member said on Thursday.

Will Financial Regulation Trash Global Economic Security?

Alexander Mirtchev, Contributor

Under the auspices of the Financial Stability Board, more than 30 recommendations have been set out as part of a massive and far-reaching G-20 financial regulatory reform package to ostensibly minimize risk in the financial system and maximize consumer protection.

Sweden Government To Propose New Measures To Enhance Financial Stability

STOCKHOLM--Sweden's government said Monday that it intends to propose a series of new measures to enhance financial stability, with responsibility for the new tools handed to Finansinspektionen, the Financial Services Authority.

Lagarde Calls for More Global Coordination as QE Exits

International Monetary Fund Managing Director Christine Lagarde urged policy makers to work more closely together as they plan eventual exits from unconventional monetary policies, endorsing swap arrangements between central banks as an instrument to weather instability.

Fitch downgrades Poland's rating outlook on budget revision

WARSAW: Fitch Ratings downgraded its credit outlook for Poland to stable from positive on Friday for the first time in years, citing the government's decision to soften its fiscal discipline and let the budget deficit widen this year.

Canada Inflation Advances 1.3% in July on Gasoline

Canadian consumer prices advanced 1.3 percent in July from a year earlier on gains in gasoline and shelter, remaining below the central bank’s target for a 15th month.

IMF's Lagarde urges caution over withdrawing stimulus

The head of the International Monetary Fund has warned central banks not to end their stimulus measures too soon.

UK government borrowing rises unexpectedly in July

The Treasury ran up a rare July deficit on the public finances last month, raising doubts about the coalition's progress in tackling the black hole in Britain's public finances.

Banks are falling short in planning for the worst: Federal Reserve

Most large banks appear to have been sailing through the annual "health checkups" they have had to undergo since the financial crisis.

China to create agency to align financial supervision

BEIJING (Reuters) - China is set to create an agency led by the central bank to coordinate financial supervision, without changing the roles of existing industry watchdogs, the cabinet said on Tuesday.

French government predicts rosy future in 2025

PARIS: Full employment, plenty of cheap housing, a new Industrial Revolution and Police 3.0. Those are the French government's predictions for the year 2025.

The Other Big Brake on Euro-Zone Growth: Private-Sector Debt

BRUSSELS—The euro-zone economy is showing signs of sputtering to life, but doubts abound about whether growth can pick up.

U.S. consumer confidence dips; housing starts miss forecasts

(Reuters) - U.S. consumer sentiment ebbed in August and residential construction rose less than expected last month, potentially dimming hopes of an acceleration in economic activity in the third quarter.

The Dutch, Europe's apostles of austerity, feel the economic pain

(Reuters) - The Netherlands, outspoken advocate of fiscal pain as a cure for euro zone ills, found itself in unwelcome company this week as the bloc's economic recovery left it among a handful of laggards still in recession.

Global economic outlook dims while US recovery continues, ICC-Ifo survey reveals

Paris – The world economy has weakened slightly this quarter, mainly due to declining optimism in Asia and Latin America, while North America shows signs of continuing recovery, according to a World Economic Survey published today by the International Chamber of Commerce (ICC) and the Munich-based economic research institute Ifo.

Bank of England divided on forward guidance, outlook for asset purchases

LONDON: Bank of England policymakers proved to be unexpectedly split on new governor Mark Carney's long-run commitment to keep interest rates low earlier this month, minutes of their August meeting showed on Wednesday.

ECB to have more room for rate hike as crisis ebbs: ZEW economist

MANNHEIM: Growing optimism that the euro zone crisis is over the worst will give the European Central Bank more room for an earlier rise in interest rates, an economist at Germany's ZEW economic research institute said on Tuesday.

No need to hurry with sales tax hikes: Japan PM adviser Koichi Hamada

TOKYO: Japan's government has no need to hurry to raise the sales tax and could consider delaying its scheduled increase by one year, an adviser to Prime Minister Shinzo Abe said after data showed the economy expanded less than expected in the second quarter.

Resurgent business activity in England and Wales recorded for July

Two surveys have reinforced prospects for an upturn in Britain's faltering economy, with resurgent business activity and confidence recorded in July.

Germany grew by 0.75 per cent in Q2: Deputy minister

BERLIN: The German economy expanded by 0.75 percent in the second quarter, its strongest rate in more than two years, but growth will slow in the second half of the year, German Deputy Economy Minister Bernhard Heitzer told Reuters on Friday.

Mark Carney: banks need to reconnect with society

Bank of England governor Mark Carney warned Britain's high street banks that they risk becoming socially useless unless they focus on the real economy and help businesses invest and create jobs.

Government panel reviews potential risks to financial system: RBI

MUMBAI (Reuters) - A government-appointed panel on financial stability, including incoming Reserve Bank of India (RBI) chief Raghuram Rajan, assessed risks to the financial system at a meeting on Wednesday, the central bank said, without elaborating on any possible measures.

British retailers enjoy best July since 2006: BRC

LONDON: British retailers enjoyed their best July in six years as a summer heat wave, sporting triumphs and the arrival of a royal baby gave consumers an excuse to splash out, industry data showed on Tuesday.

Bank of Scotland's fined for repeated fax blunder

LONDON: Bank of Scotland has been fined 75,000 pounds after repeatedly faxing customers' account details and payslips to wrong recipients for three years.

Consumer confidence in economy leaps after growth improves

Research from YouGov found that 32pc of people surveyed in July believed they will be satisfied with the economy in a year’s time. This is against 21pc in June.

New jobs disproportionately low-pay or part-time

WASHINGTON (AP) -- The 162,000 jobs the economy added in July were a disappointment. The quality of the jobs was even worse. A disproportionate number of the added jobs were part-time or low-paying — or both.

Japan Stocks Rise as Yen Drops, U.S. Manufacturing Climbs

Japanese stocks rose, with the Topix index posting its biggest advance in five weeks, as the yen touched its lowest against the dollar in a week and U.S. factory activity surged.

US hiring slows in July but jobless rate falls to 4-yr low

WASHINGTON: US employers slowed their pace of hiring in July but the jobless rate fell anyway, mixed signals that could make the U.S. Federal Reserve more cautious about drawing down its huge economic stimulus program.

Stocks drop back on mixed US jobs figures

LONDON (AP) — A mixed U.S. jobs report took the edge off global stock markets Friday as it raised questions over the pace of growth in the world's largest economy and when the U.S. Federal Reserve will start reducing its monetary stimulus.

First bailout assessment positive: Cyprus FM Haris Georgiades

NICOSIA: Cyprus' finance minister says that a first assessment by the country's international creditors on whether it is adhering to the terms of its financial rescue is positive.

China central bank injects funds, eases fears of repeat cash crunch

SHANGHAI: China's central bank injected funds into money markets via open market operations on Tuesday for the first time since February, easing fears of another cash crunch ahead of the month end after a severe cash squeeze in June caused market panic.

Japan's PM Shinzo Abe may rethink tax hike; could shake markets, unsettle support

TOKYO: Japan's most significant fiscal reform in years - a planned increase in the country's sales tax - could be delayed or watered down in a move that might rattle financial markets and ultimately undermine support for the prime minister.

Improving economy gives ECB breathing space on rates

FRANKFURT: An apparent improvement in the eurozone economy will allow the European Central Bank to hold its fire on interest rates for the time being at its meeting this week, analysts said.

Obama says choices now will govern future economy

WASHINGTON (AP) — President Barack Obama says Washington's top priority must be to reverse trends like economic inequality, weakened middle-class security and global competition.

Euro zone lenders approve Greek aid tranche, payment on Mon: Sources

BERLIN/ATHENS: Officials working for euro zone finance ministers signed off on the payment of the next batch of aid for Greece on Friday and the money will be disbursed on the approval of member states on Monday, euro zone officials said.

A year on, Mario Draghi's 'save the euro' pledge remains untested

FRANKFURT: A year after Mario Draghi vowed to do "whatever it takes" to save the euro, the European Central Bank president can claim to have staved off disaster - but he may have to back up his words with action before long.

Australia tells Britain not to forsake the European Union

(Reuters) - Australia has told Britain it hopes it will remain part of the European Union, becoming the latest country to intervene in an emotive domestic debate that may culminate in a referendum to decide if Britain leaves the 28-nation bloc.

Consumers more confident, less worried about jobs: Survey

LONDON: Global consumer confidence rose in the second quarter with more optimistic perceptions about jobs, personal finances and spending intentions in the United States, China and Japan, a survey shows.

Bundesbank Says German Growth Slows After Strong Second Quarter

The Bundesbank said the German economy, Europe’s largest, is set to slow after a rebound in the second quarter of the year. “Signs of a slowdown in economic growth are increasing” in line with expectations, the Frankfurt-based central bank said in its monthly report today.

China's yuan reform "brave", next targets-land, monopoly, tax: Xinhua

SHANGHAI: China's moves to liberalise its currency have been courageous given the economic risks, and next areas for reform include land policy, state-owned industries and taxation, the official Xinhua news service said in a commentary published on Sunday.

Euro Stability in the Face of Financial Trouble a Sign of Strength?

The euro has suffered through more than its fair share of fundamental threats through the past weeks; and yet, the currency has managed to maintain an impressive strength.

China's test; controlled slowdown or unemployment nightmare

BEIJING: The success or failure of China's efforts to revamp its giant economy may rest with workers like Hu Zhao and Deng Jindong.

Factory, labor market data offer bright sign for US economy

WASHINGTON: New claims for U.S. jobless benefits fell last week and factory activity picked up in the Mid-Atlantic region in early July, signs of a stronger economy that could help push the Federal Reserve to ease its monetary stimulus.

Senate approves head of Ex-Im Bank for second term

(Reuters) - The Senate on Wednesday voted 82-17 to approve Fred Hochberg for a second term as president of the U.S. Export-Import Bank, a move that will allow the government-run lender to keep operating past Saturday, when it faced a possible shutdown.

Lew says delays on rules may mean big bank risk

WASHINGTON (AP) — U.S. Treasury Secretary Jacob Lew says delays in writing rules to put the 2010 financial overhaul law into effect have raised the prospect that big banks could still threaten the financial system's stability.

Inflation shows signs of stability after downward drift

WASHINGTON (Reuters) - Consumer prices picked up in June and underlying inflation pressures showed signs of stabilizing, keeping on course expectations the Federal Reserve will start reducing its bond purchases later this year.

Gold's gyrations deter investors even at near three-year lows

LONDON (Reuters) - Investors are awaiting greater stability in gold prices before returning to an asset that has slumped this year, even though concerns over the economic recovery are burnishing the metal's longer-term appeal.

SEC frustrated over pace of U.S. financial crisis reforms

(Reuters) - Top Securities and Exchange Commission officials are frustrated over lack of progress in finalizing rules for credit rating agencies and asset-backed securities (ABS), seen by regulators as major drivers of the 2007-2009 financial crisis.

Banks to repay $1.58 bn of ECB crisis loans

FRANKFURT: Banks will return 1.215 billion euros ($1.58 billion) of crisis loans early to the European Central Bank next week, after the central bank assured markets it would keep interest rates low for an extended period.

Bernanke: No economic stability without financial stability

CAMBRIDGE (SES: E1:J91U.SI - news) , Massachusetts (Reuters) - Federal Reserve Chairman Ben Bernanke, in a speech on the 100-year history of the U.S. central bank that made no direct reference to current monetary policy, said on Wednesday that policymakers have learned the hard way to treat financial stability as a top goal.

Fed buys $13.3 billion of mortgage bonds, sells none

(Reuters) - The Federal Reserve bought $13.3 billion of agency mortgage-backed securities from July 4 through July 11, less than the $16.9 billion it purchased last week, the New York Federal Reserve Bank said on Thursday.

Banking stocks under pressure as weak rupee fade rate cut hopes

NEW DELHI: Banking stocks including Axis Bank, ICICI BankBSE -1.86 %, State Bank of India, HDFC BankBSE -2.54 % and most of the PSU banks slipped over 1 per cent weighed down by a weak rupee which further bleaks the outlook on rate cut hopes by the RBI.

Obama’s Opportunity to Improve U.S. Investment in Africa

Which continent is home to six of the world’s 10 fastest-growing economies and is projected to grow by 5 percent in 2013, more than twice the U.S. rate? And which one gets only 1 percent of U.S. foreign direct investment?

China says banks to help wind down overcapacity

BEIJING: China's government vowed on Friday to harness its financial sector to help bring about an orderly closing of some factories in industries plagued by overcapacity, as it seeks to move the economy up the value chain.

Investors flee commodities in June as Fed signals end to stimulus

LONDON: Investors sold out of commodity exchange-traded products (ETPs) in June after the U.S. Federal Reserve signalled it would wind down its economic stimulus programme, pushing up real interest rates and making gold less attractive.

Stocks rally on European central banks' comments

AMSTERDAM (AP) -- World stocks shrugged off worries over political turmoil in Egypt and rallied strongly Thursday on optimism that easy monetary policy from central banks in Europe is set to continue for some time to come. U.S. markets were closed for Independence Day.

EU to start trade talks with US despite scandal

BRUSSELS: The European Union confirmed Tuesday that free-trade negotiations with the United States should kick off as planned next week, despite widespread concerns over the alleged eavesdropping of EU diplomats.

Analysis: Euro zone survival? Depends on where you work

(Reuters) - Three years into an unresolved euro zone crisis, Reuters polls show a marked split on the future depending on whether forecasters are based inside or outside the currency bloc.

UK voters want chancellor to act now to boost economy

The chancellor is content to let the economy recover at its own pace, without further intervention from the government, but voters want him to boost growth.

Exclusive: Somalia Central Bank a 'slush fund' for private payments - U.N.

(Reuters) - Money at the Central Bank of Somalia is not used to run government institutions in the war-torn Horn of Africa country, with an average 80 percent of withdrawals made for private purposes, according to a U.N. report seen by Reuters on Monday.

UK double-dip recession revised away

The UK economy did not experience a double-dip recession at the beginning of 2012, official figures have shown.

RBS to decide on branch sale plan in July: Sources

LONDON: Royal Bank of Scotland will make a decision on how to offload hundreds of branches it has been ordered to sell by European regulators in the next month, industry sources told Reuters on Friday.

Bank of England calls for assessment of interest rate rises on borrowers

Significant numbers of households could have to pare back on spending or work longer hours to keep up their debt repayments if interest rates were to rise suddenly, the Bank of England warned, as it called for an urgent assessment of the impact from a sharp rise in rates after four years of low borrowing costs.

France confirms to cut spending for first time since 1958

PARIS: French government spending will fall next year for the first time since 1958, Prime Minister Jean-Marc Ayrault said Tuesday, as the country begins shifting the austerity effort away from tax hikes.

Dudley Says Financial Stability Critical to Policy

NEW YORK--A central bank official at the heart of the monetary policy-making process said on Sunday that the Federal Reserve must consider the state of financial markets when making monetary policy.

BIS: Central banks must end 'whatever it takes' policy

The Bank for International Settlements (BIS) says banks have done their bit to help economic recovery and now governments must do more.

Accounting rules mask banks' financial health: investors

LONDON (Reuters) - Major UK shareholder groups took a fresh swipe at "unreliable" accounting rules which make it harder for them to assess the strengths of the companies they invest in.

Euro zone business slump eases but second quarter contraction likely: PMI

(Reuters) - The euro zone's private sector slump has eased more than expected this month, business surveys showed on Thursday, but a continued slide in new orders suggested a full recovery is still some way off.

World stock markets fall after Ben Bernanke hints at easing stimulus

World stock markets fell sharply on Thursday and UK government borrowing costs hit a 15-month high after the chair of the Federal Reserve gave the clearest signal yet that America's huge stimulus package will be slowed this year.

IMF says Spanish recession 'may end soon'

MADRID: Spain's biting recession may end soon but the outlook is tough and Madrid must do more to battle the country's unacceptably high unemployment rate, the IMF warned Wednesday.

G8 countries agree to tackle tax evasion

The west's leading industrial countries have agreed a set of core principles designed to combat tax evasion and reveal the true owners of shadowy companies.

German economy to slow in summer: Central bank

FRANKFURT: The German economy will slow this summer after a spring recovery, the central bank predicted in a report on Monday, citing weaker industrial orders and export data.

Egypt in late stages of verifying reform plan with IMF

ABU DHABI (Reuters) - Egypt's government is in the late stages of verifying its economic reform programme with the International Monetary Fund before obtaining a $4.8 billion IMF loan, its central bank governor said on Saturday.

Riksbank Chief Highlights Monetary Policy's Role in Financial Stability

STOCKHOLM--The governor of Sweden's central bank said Wednesday that the recent global financial crisis has shown monetary policy needs to play a greater role in maintaining financial stability.

Royal Bank of Scotland faces struggle to find CEO amid political meddling

LONDON: Royal Bank of Scotland will struggle to recruit a suitable replacement for ousted chief executive Stephen Hester, someone who must steer it through privatisation and accept that political interference comes with the job.

EU Parliament, IMF defend ECB's bond-buying scheme

KARLSRUHE: Germany's highest court wrapped up its examination of the legality of the European Central Bank's key anti-crisis measure on Wednesday, with both the European Parliament and the International Monetary Fund riding to the ECB's defence.

Unemployment rate rises in eurozone, eases in US: OECD

PARIS: A total of 48.5 million people were unemployed in advanced countries in April, an increase of 200,000 from the March level, the OECD said on Tuesday.

Fitch warns on risks from shadow banking in China

FRANKFURT (Reuters) - China's unregulated shadow banking sector poses an increasing risk to the country's financial stability that could spread to other countries, credit rating agency Fitch said on Monday.

Japan PM Shinzo Abe hints at possible tax hike delay

TOKYO: Japan's Prime Minister Shinzo Abe said Sunday an upper house election will take place on July 21 and voiced the possibility of delaying a consumption tax hike scheduled for next year if the economy remains weak.

China’s Export Growth Slows Amid Concern of Slowdown

HONG KONG — Chinese exports showed only modest growth in May, rising just 1 percent from a year earlier, officials said Saturday, an increase that was much lower than analysts’ expectations.

Fed's Plosser says jobs report another reason to trim QE3

(Reuters) - The latest U.S. jobs report on Friday showed that government spending cuts have so far not been as damaging as some feared, Philadelphia Fed President Charles Plosser said, adding it only entrenched his opinion that the central bank should reduce its bond buying "now."

Bank of England keeps rates at 0.5% and QE steady

The Bank of England has kept its stimulus programme of quantitative easing (QE) unchanged and also held interest rates at 0.5%.

ECB searches for ways to boost sagging eurozone

FRANKFURT, GERMANY: Europe's economy badly needs a push. The European Central Bank says it stands ready to help.

Franco-German EU deal puts onus on Francois Hollande to reform

PARIS: A Franco-German deal to strengthen the euro zone has ended months of bickering between Paris and Berlin and raised the onus on French President Francois Hollande to embark on potentially explosive social and economic reforms.

Fed may need to let inflation rise to boost jobs: Kocherlakota

(Reuters) - The Federal Reserve may need to let inflation run a little higher than its 2-percent target in order to bring down unemployment faster, a top Fed official said on Saturday.

IMF Approves Greek Disbursement and Seeks Better Tax Collection

The International Monetary Fund agreed to disburse 1.7 billion euros ($2.3 billion) to Greece under its second bailout to the country after the government took measures including a bill to dismiss public-sector employees.

Russia's economic outlook worsens, rate cuts seen in Q3: Poll

MOSCOW: Russia's central bank will resist political pressure to lower interest rates in June as the economy slows, but will cut in the third quarter if inflation returns to target as expected, a Reuters poll showed.

Fed's Pianalto: Financial Stability Mandate Should Be Made Clearer

WASHINGTON--A U.S. Federal Reserve official said on Friday there's scope to extend bank stress tests beyond the companies already involved in the process, and added that the central bank's new financial stability mandate needs to be made clearer.

ECB: Financial Sector In Best Condition Since 2011

The euro zone’s financial sector is in better health now than at any time in the last two years, the European Central Bank said Wednesday in its half-yearly Financial Stability Review.

Japan Risks Yield Jump Undermining BOJ Easing, Fiscal Panel Says

A Japanese government fiscal advisory panel warned that a failure to improve the nation’s finances could trigger a spike in bond yields that makes central bank easing less effective.

John Kerry unveils $4 billion Palestinian investment plan

AL SHUNAH: US Secretary of State John Kerry unveiled a plan to boost the Palestinian economy by attracting $4 billion in private investment, saying it could transform the lives of the people.

Coeure says ECB ready to help set up financial transaction tax - FT

FRANKFURT (Reuters) - The European Central Bank is willing to offer help setting up Europe's planned financial transaction tax to ensure the levy does not destabilise financial markets, the Financial Times quoted a policymaker on Monday as saying.

Fed History Shows Punch Bowl Goes as Jobs Rise: Cutting Research

An improving labor market rather than accelerating inflation made the Federal Reserve decide to end its last three episodes of easy monetary policy. It may be about to happen again, says Barclays Plc strategist Barry Knapp.

Portugal warns of deficit target miss

LISBON: Portugal may request a third revision to deficit targets agreed with EU-IMF creditors as part of its 78-billion euro international bailout, Prime Minster Pedro Passos Coelho warned Friday.

Europe needs Britain, says ECB president Mario Draghi

Mario Draghi, president of the European Central Bank, has issued a plea for a more co-operative Britain to stay in Europe.With the political row over Europe escalating in the UK, Mr Draghi suggested a British exit would be bad for both sides.

Swiss banks facing huge fine over US assets: report

GENEVA: Swiss banks holding US citizens' funds that are not declared to American tax authorities are set to have to pay a massive fine, under a deal between Switzerland and Washington, a newspaper reported Wednesday.

IMF raises Egypt 2013 CPI forecast to 10.9%, highest since 2010

DUBAI: Inflation in Egypt is expected to climb to 10.9 percent this year, the highest level since 2010, the International Monetary Fund said on Tuesday, more than it expected in April.

Vince Cable urges British business to explore non-bank funding

British businesses should look for funding outside the banking sector, Business Secretary Vince Cable has said, marking the latest effort to generate growth among small-and medium-sized businesses.

Unemployment falls in 40 US states, rises in 3

WASHINGTON (AP) — Solid hiring helped lower unemployment rates in 40 U.S. states last month, the most since November.

BOE Will Keep Reviewing Performance of Economic Forecast Model

The Bank of England said that it will continually review its forecasting framework and has made it flexible enough to change its central model if needed, according to a research paper published by the central bank today.

EU Bank Stress Tests Delayed to 2014 on Asset-Quality Review

The European Union’s top banking regulator delayed stress tests until 2014, allowing time for a European Central Bank-led probe into the quality of assets held by some lenders in the debt-laden bloc.

Bank of England offers ray of hope for UK economy

LONDON: Britain's central bank lifted a bit of the gloom hanging over the economy on Wednesday, issuing a slightly improved outlook for inflation and growth for the first time since the financial crisis.

France Leads Europe in Growing Disillusionment With EU

France’s frustration with Europe has soared as French attitudes diverge from German public opinion, a Pew Research Center report shows.

Spain, Portugal push for full banking union as Germany finds hurdles

(Reuters) - Spain and Portugal called on Monday for the euro zone to complete a banking union as Germany underscored legal hurdles before a central element of the plan to deal with failing banks can be introduced.

Fed's Bernanke warns shadow banking risks persist

(Reuters) - Federal Reserve Chairman Ben Bernanke said on Friday that the shadow banking system still posed a threat to financial stability, and funding markets might still not be able to cope with a major default.

G7 nations agree to target tax evasion and avoidance

LONDON: The Group of Seven industrialised nations today agreed that collective action was needed to target tax evasion and avoidance, including by multinational companies using transfer pricing rules to shift profits into tax havens.

Central Banks Keep Easing After Cuts Fail to Spur Growth

Global central bankers are poised to ease monetary policy even further after a wave of interest-rate cuts from India to Poland.

ECB won't cut deposit rate below zero: Poll

LONDON: The European Central Bank will not cut its deposit rate below zero in the next few months, even if some policymakers have talked openly about the possibility, says a firm majority of economists polled by Reuters.

Reinhart and Rogoff correct austerity research error

Two Harvard economists whose widely-cited research on austerity was called into question last month have published a formal correction.

European banking union? Don't hold your breath

BRUSSELS: In June last year, European Union leaders made a great fanfare of committing to 'banking union', a three-step plan to shore up the region's 8,000 banks and prevent a repeat of the debt and financial crisis.

Mario Draghi and the ECB haven't saved the eurozone

Financial markets have a lot of faith in Mario Draghi. Too much faith, in all likelihood. They rallied last summer when the president of the European Central Bank said he would do "whatever it takes" to save the euro.

Israel 2023 Benchmark Bond Yield Jumps After S&P Rating, Syria

Israeli government bonds fell, lifting the yield on the benchmark 10-year debt the most in almost nine months, after Standard & Poor’s cut the country’s rating and amid reports Israel attacked targets in Syria.

Recovery from recession: For US businesses, it has been the best in decades

The economic recovery from the recession that officially ended in 2009 has been extremely disappointing for US consumers.

Banks to repay ECB 616 million euros of crisis loans

FRANKFURT: Banks will return early 616 million euros ($805.29 million) of crisis loans to the European Central Bank next week, the lowest amount since banks started to repay the funds earlier this year.

ECB's Draghi 'ready to act if needed'

The European Central Bank (ECB) said it was "ready to act if needed", should more be required to boost the eurozone's economic health.

Global consumer confidence improves, noticeably in U.S., Japan

LONDON (Reuters) - Global consumer confidence rose in the first quarter, with a marked increase in sentiment in the United States, Japan and northern Europe, a survey showed on Wednesday.

Cyprus parliament readies for bailout vote

NICOSIA: Cyprus' lawmakers are voting Tuesday on a multi-billion bailout agreement aimed at preventing the country from going bankrupt.

European Union considers protecting savers against future bank collapses

BRUSSELS: Depositors should be the very last to suffer losses when a bank collapses, according to a proposal being discussed by European Union countries and seen by Reuters, which would shield savers from the kind of losses they face in Cyprus.

Euro zone sees light at end of tunnel, pitfalls remain

(Reuters) - There are no calls for celebration, no desire to relax in the corridors of Brussels but some officials believe the euro zone has turned a corner, sharpening the focus on longer-term reforms and structures.

Spain cuts growth forecasts but says no need for 'major reforms'

The eurozone’s fourth-largest economy had previously forecast that growth would fall by 0.5pc this year.

U.S. council warns of threat of cyber attacks, market runs

WASHINGTON (Reuters) - Regulators should guard against runs on the shadow banking system and watch out for cyber attacks on banks in coming months, the top U.S. financial stability group said on Thursday.

ECB would have to raise rates if looking at Germany only: Merkel

DRESDEN, Germany (Reuters) - The European Central Bank would have to raise interest rates if it were looking at Germany alone but is in a difficult position because economic performance across the euro zone varies widely, German Chancellor Angela Merkel said on Thursday.

European rate cut hopes shore up markets

LONDON (AP) — Growing hopes that the European Central Bank will cut interest rates next month shored up markets Tuesday despite more evidence that the Chinese economy is slowing down.

Spain Has EU’s Largest Deficit, Undermining Rajoy Pickup

Spain’s budget deficit was the largest in the European Union last year, underlining the challenge faced by Prime Minister Mariano Rajoy as he prepares a new plan to foster an economic recovery.

World Bank sets 'expiration date' on poverty

WASHINGTON: The World Bank gathered the might of the international community Saturday behind its audacious plan to eradicate extreme poverty within a generation.

Britain is a 'crisis economy', says Mark Carney

Speaking on the fringes of the International Monetary Fund’s spring meetings in Washington, he said: “The US is breaking out of the pack of crisis economies that include the eurozone, the UK and Japan.”

German court to hear case against ESM, ECB bond-buying in June

(Reuters) - Germany's Constitutional Court will hold a public hearing on June 11 and 12 on complaints against the euro zone's bailout fund, the European Stability Mechanism (ESM) and the European Central Bank's bond-buying program.

Christine Lagarde warns UK growth 'not good'

The head of the International Monetary Fund (IMF), Christine Lagarde, has expressed renewed concern over the health of the UK economy.

Inflation sticks at highest level since May 2012

The rate of inflation stayed at its highest level for almost a year in March, keeping up the squeeze on consumers.

BOJ Chief Says Japan's Financial System Stable

TOKYO--Bank of Japan Gov. Haruhiko Kuroda said Monday the country's financial system remains stable, despite continued high volatility in the Japanese government bond market after the central bank's introduction of aggressive monetary easing measures earlier this month.

Analysis: Euro zone bank troublespots don't come down to size

DUBLIN/LONDON (Reuters) - Though the implosion of Cyprus's bloated banking system has put other euro zone economies with outsized financial sectors such as Luxembourg and Malta in the spotlight, loan quality is the real litmus test of a country's financial stability.

G20 to consider cutting debt to well below 90 pct/GDP: Document

DUBLIN: Financial leaders of the world's 20 biggest economies will consider next week in Washington a proposal to cut their public debt over the longer term to well below 90 percent of gross domestic product, a document prepared for the meeting showed.

Euro ministers back 10 billion euro Cyprus bailout

DUBLIN (Reuters) - Euro zone finance ministers backed a 10 billion euro bailout for Cyprus on Friday and the European Commission said it would try to help the island's economy grow again with better use of EU structural funds.

Cyprus reports sharp cut in size of banking sector

NICOSIA/CYPRUS: A draft bailout document between Cyprus and its international creditors shows that the size of the country's banking sector has been sharply reduced since the country's rescue package was agreed last month.

OECD warns Slovenian banks on volume of bad debts

LJUBLJANA: The OECD sounded the alarm Tuesday over the huge volume of bad debts strangling Slovenian banks but said that there was no immediate prospect of the country becoming the latest eurozone member after Cyprus to need a bailout.

Bernanke: US economy 'still far' from desired state

WASHINGTON: Federal Reserve Chairman Ben Bernanke said Monday that the US economy still has far to go to recover to an acceptable state of health.

Banking union a priority for Lew in Europe

BRUSSELS (Reuters) - Europe's economic weakness and financial turmoil affect the U.S. economy, U.S. Treasury Secretary Jack Lew told EU leaders on Monday, stressing the need to boost demand and move ahead with a euro zone banking union.

Portugal to cut spending after court ruling

LISBON (Reuters) - Portugal's government will cut spending to meet targets agreed with its lenders after a court overturned key austerity measures, Prime Minister Pedro Passos Coelho said on Sunday.

U.K. Says Bonus Curbs It Fought Threaten Financial Stability

Banker bonus curbs backed by the rest of the European Union imperil efforts to make lenders more resilient in crises, the U.K. said in a new attack following Chancellor of the Exchequer George Osborne’s defeated bid to block the measures.

ECB says first Cyprus bailout plan 'not smart'

The initial plan to make small savers pay for the Cyprus bailout was "not smart", the European Central Bank (ECB) president has said. ECB president Mario Draghi said a proposal to make "insured depositors" pay did not come from the ECB, the European Commission or the IMF.

Portugal faces no-confidence austerity vote

Portugal's government faces a no-confidence motion on Wednesday, brought by opposition Socialists amid mounting unhappiness with the country's austerity measures.

EU, IMF to resume inspection of Greek reforms this week

ATHENS: Auditors from the EU and IMF will resume an inspection of Greek reforms this week that was suspended just days before the banking crisis erupted in Cyprus.

Euro zone factories suffer in March, but no Cyprus impact yet: PMI

LONDON: Manufacturing across the euro zone fell deeper into decline in March, although the Cyprus bailout crisis has yet to take a toll on factory activity, a business survey showed on Tuesday.

Investors peg hopes on global economic recovery

Signs of a rebound in the US and a return to strong growth in Chiina have seen bets by hedge funds and other major investors on rising commodity prices - a proxy for a global economic recovery - climb sharply, according to figures from the Commodity Futures Trading Commission in the US.

Calculating the Impact of Cyprus’s Bailout

WHAT are the implications of the huge losses — 60 percent — that the Cypriot bailout is imposing on the biggest depositors of that country’s two largest banks?

Big depositors in Bank of Cyprus to be hit much worse than feared

Under an arrangement expected to be announced on Saturday, depositors in Bank of Cyprus will receive shares in the lender worth 37.5pc of any savings over €100,000, while the rest may never be paid back, according to Reuters, citing a source with direct knowledge of the terms.

Economy posts sluggish growth in fourth quarter

WASHINGTON (Reuters) - The economy expanded at a sluggish pace in the fourth quarter although a big gain in business investment and higher exports of services led the government to push up its previous estimate for growth.

BRICS 'Big Five' find it hard to run as a herd

DURBAN, South Africa (Reuters) - At a summit in South Africa on Wednesday, Vladimir Putin likened the BRICS nations - Brazil, Russia, India, China and South Africa - to Africa's "Big Five" game beasts of trophy hunting lore - the lion, elephant, buffalo, leopard and rhinoceros.

IMF Reaches Staff-Level Agreement with Samoa on Economic Recovery Program to be Supported under Rapid Credit Facility

A staff team from the International Monetary Fund (IMF) led by Yongzheng Yang visited Apia during March 13-22 to hold discussions on the recovery plans in the aftermath of the tropical cyclone Evan that caused many deaths and extensive damage to the country’s infrastructure and productive capacity.

U.S. backs Cyprus protection for insured depositors

WASHINGTON (Reuters) - The U.S. Treasury Department said Cyprus' last-ditch agreement withinternational lenders could help avert an economic meltdown, adding that it protects insured depositors and shutters troubled banks.

Cyprus bailout talks go to wire in Brussels

NICOSIA: EU economic chief Olli Rehn warned Cyprus it was essential to reach a deal in Brussels Sunday to save its economy from imminent bankruptcy, saying "there are only hard choices left" for the country.

Analysis: Easy Fed softens fiscal policy punch on economy

WASHINGTON (Reuters) - The Federal Reserve's aggressive easing of monetary policy is proving surprisingly effective at blunting the blow to the economy from tighter fiscal policy, according to economists who have been scrambling to raise their growth forecasts.

S&P cuts Cyprus credit rating one notch to 'CCC'

WASHINGTON: Ratings firm Standard & Poor's dealt a further blow to reeling Cyprus Thursday, cutting its credit rating as the eurozone country struggles to avoid a banking sector meltdown.

Spain borrowing costs dip despite Cyprus crisis

MADRID: Spain's borrowing costs dipped in a bond auction Thursday, easing concerns that a feared banking meltdown in Cyprus could scare investors away from other troubled eurozone states.

Britain halves 2013 economic growth forecast to 0.6%

LONDON: Britain on Wednesday halved its economic growth forecast for 2013, finance minister George Osborne revealed in his annual budget.

Asia currencies gain as Cyprus bailout fears hurt euro

Asian currencies have continued to strengthen as uncertainty over the developments in Cyprus hurt the euro.

EU wants to include financial services in US trade talks

BRUSSELS: The European Union's top trade official said on Saturday he wants financial services to be included in negotiations on an ambitious EU-U.S. free trade pact.

IMF says Europe's banking sector still fragile

PARIS: Europe's banks are still fragile and the European Union has a way to go to make them stable, the International Monetary Fund said Friday in its first assessment of the continent's financial sector.

Cyprus Bank Deposits to Be Taxed in $13 Billion Bailout

Euro-area finance ministers agreed to an unprecedented tax on Cypriot bank deposits as officials unveiled a 10 billion-euro ($13 billion) rescue plan for the country, the fifth since Europe’s debt crisis broke out in 2009.

Fragile Portugal gets more time on bailout goals

LISBON (Reuters) - Portugal's lenders eased its budget goals on Friday and gave it more time to make unpopular spending cuts, acknowledging the country's compliance with its bailout program will not prevent its economy from slumping further.

Private equity crash could trigger next wave of financial crisis, Bank warns

The Bank of England warned on Thursday that the next phase of the UK's six-year financial and economic crisis may be triggered by the collapse of debt-laden companies bought by private equity firms in the boom years before the crash.

Pound drops to new two-and-a-half year low

Sterling fell below $1.49 on Monday morning, as a strong dollar and fears over easing continue to hammer the British currency.

Greek reforms hit new setback as privatisation chief resigns

In another setback for Greece's reforms, the country's privatisation chief Takis Athanasopoulos has resigned after only a few months in the job, after being charged with dereliction of duty in his former role as chief executive of the public utility PPC.

Thailand Raised by Fitch on Yingluck Stability: Southeast Asia

Thailand’s credit rating was restored to BBB+ by Fitch Ratings four years after political turmoil prompted a cut, signaling confidence in Prime Minister Yingluck Shinawatra’s ability to maintain social stability.

Cameron put on spot by watchdog over austerity remarks

LONDON (Reuters) - Prime Minister David Cameron was reprimanded by a budget watchdog on Friday for claiming that it did not see his austerity agenda as a drag on Britain's economy.

IMF's Lagarde keeps pressure on ECB

The European Central Bank has room to cut interest rates further to support demand in the eurozone, the head of the International Monetary Fund said Friday.

ECB offers no helping hand for Italy, says markets calm

FRANKFURT: Markets have settled quickly after Italy's fractured election result and any threat of contagion has been muted, the European Central Bank's chief said on Thursday, suggesting it is in no rush to take any action.

Global economic growth slows, but stocks rally

Global economic growth slowed to a four-month low in February, according to service sector surveys on Tuesday, but China's pledge to boost government spending to achieve 7.5 percent growth this year may help support activity in Europe and the United States also.

EU ministers discuss Cyprus bailout, bank rescues

BRUSSELS (AP) — European Union finance ministers were discussing Monday how to fund a long-delayed bailout for Cyprus, which creditor nations want to commit to tougher conditions, and get a region-wide bank rescue fund working.

Banks to repay 8 bln euros of ECB crisis loans next week

BANGALORE: Political uncertainty in Italy means early repayments of European Central Bank crisis loans will likely keep falling next week, with banks returning around 8 billion euros, a Reuters poll of money market traders showed on Monday.

ECB's Benoit Coeure says central banks cannot replace government inaction

CAMBRIDGE: Governments are in a key role in solving the sovereign debt crisis, and central banks can buy time, not replace their actions, European Central Bank Executive Board member Benoit Coeure said on Saturday.

Spanish Bonds Rise in Week on ECB Faith After Italian Election

Spanish bonds rallied this week, in spite of a political impasse sending Italian yields to a three- month high as investors bet the European Central Bank will prevent a fresh debt crisis in peripheral bond markets.