Spain's banks 'need 59.3bn euros of eurozone loans'

Spain's banks will need an injection of 59.3bn euros ($76.3bn; £47.3bn) to survive a serious downturn, an independent audit has calculated.

US consumer spending rose 0.5 per cent in August

WASHINGTON: Americans boosted their spending in August even though their income barely grew. Much of the spending increase went to pay higher gas prices, which may have forced consumers to cut back elsewhere.

Confidence Weakens in Euro Zone's Core

European Central Bank President Mario Draghi's new campaign to save the euro has had little or no immediate impact on the region's shrinking economy, figures published Thursday showed.

Spanish Scare Roils Europe Markets

Spain's borrowing costs rose and its stock market fell sharply on the eve of Madrid's announcement of new austerity measures, putting the shaky economy again at the center of Europe's race to preserve its currency union.

S&P warns of new eurozone recession

The eurozone economy will not grow for two years, according to a gloomy assessment of the outlook for the single currency bloc from Standard & Poor’s.

Spain's bad bank pricing to favour lenders over investors

MADRID: Spain's so-called "bad bank" is planning to take over soured property assets from struggling lenders at a modest additional discount to book value in order to protect struggling banks from further losses, three senior banking sources told a news agency.

China delays diplomatic reception with Japan

(Reuters) - China has postponed a ceremony marking the 40th anniversary of the resumption of diplomatic ties with Japan as a result of a territorial row between the two countries, the official Xinhua news agency said on Sunday.

Bernanke wants you to buy stocks, but risk is high

Ben Bernanke hopes his latest plan to stimulate the economy will get you to buy stocks and other risky assets. Maybe you should. People who did that after two similar Federal Reserve efforts are sitting on big gains today.

IMF to Boster Financial Oversight, But Won't Become Global Policy Arbiter

The International Monetary Fund said Friday it plans to bolster its oversight of the global banking system, but the IMF isn't likely to soon replace the other institutions such as the Financial Stability Board as the global arbiter of industry policy, as some in the fund had hoped.

Mervyn King gives green light for George Osborne to miss UK debt target

Sir Mervyn King has cleared the way for the Chancellor to ditch one of his cast-iron fiscal rules and miss his target to get the national debt under control by 2016.

Debt crisis: central bank action is work of the devil, says Germany's Jens Weidmann

The head of Germany’s Bundesbank has raised eyebrows across Europe after he appeared to compare Mario Draghi’s bond buying programme with the "devil’s work".

Policy euphoria makes way for humdrum data

LONDON (Reuters) - The world's top two central banks have administered extra-strong monetary painkillers, but the global economy will still need a lot more time to recover from its thumping debt hangover.

Barack Obama to launch auto trade case against China: Official

WASHINGTON: President Barack Obama will launch a trade complaint against China over what his administration says is Beijing's unfair government backing of its auto industry, a White House official said on Sunday.

Germany says further steps needed before banks tap ESM

(Reuters) - Handing bank oversight to the European Central Bank is not in itself sufficient to allow the euro zone's rescue fund to directly assist banks, Germany's Finance Minister said, warning he expected no such deal on supervision in 2012.

Spanish bailout stance to dictate demand

(Reuters) - A Spanish bond sale next week will be a gauge of investor confidence in euro zone policymakers' latest efforts to defuse the region's debt crisis, with markets on the lookout for signs of stronger demand.

New rate-setter backs austerity, reserves view on QE

LONDON (Reuters) - New Bank of England policymaker Ian McCafferty took a cautious line on the need for another cash boost to the recession-hit British economy, saying his decision would hinge on a clearer view of the economy's health.

ECB's first bond programme goes out with a whimper

(Reuters) - The European Central Bank bought no government bonds last week before terminating its Securities Markets Programme (SMP) and replacing it with a new plan it hopes will be more effective in lowering struggling euro zone countries' borrowing costs.

Monti Says Italy Seeks Stability

CERNOBBIO, Italy—Mario Monti, the technocrat drafted to save Italy from insolvency, on Sunday inched closer to signaling he would be open to remaining prime minister of the euro zone's third-largest economy after elections next year.

IMF backs Draghi; says Spain, Italy have done enough

(Reuters) - The International Monetary Fund on Sunday strongly backed the European Central Bank's plan to staunch the euro zone debt crisis with unlimited bond purchases, saying it was ready to get involved in designing and monitoring its implementation.

Greece prime minister says country must stay in euro to be "modern and credible"

Antonis Samaras, the prime minister of Greece, says the European Central Bank's decision to start buying eurozone bonds has proved the beleaguered country must stay in the euro.

French President Francois Hollande pledges spending cuts, tax reforms

PARIS: French President Francois Hollande insisted on Friday he would press ahead with spending cuts and promised tax reforms next year, amid reports his Socialist government was watering down flagship measures such as a 75 percent tax on the rich.

ECB's Mario Draghi unveils bond-buying euro debt plan

Mario Draghi, president of the European Central Bank, has unveiled details of a new bond-buying plan aimed at easing the eurozone's debt crisis.

Bank of Canada sticks to rate-hike message

OTTAWA (Reuters) - The Bank of Canada doggedly stuck to the message on Wednesday that it may have to raise interest rates despite a global slowdown, predicting the domestic economy would gain momentum this year and next and inflation return to target within a year.

Italy's Mario Monti calls on EU to bring down borrowing costs

ROME: Italian Prime Minister Mario Monti called Tuesday on the European Union to recognise efforts made by countries to overcome the economic crisis by moving to bring down punishing borrowing costs.

ECB's Mario Draghi defends euro rescue measures

BRUSSELS: European Central Bank chief Mario Draghi defended on Monday controversial measures taken to tame the eurozone debt crisis, including buying up government bonds, European MPs said.

U.K. Sticks to Budget Cuts as Coalition Eyes Speedier Investment

U.K. Prime Minister David Cameron said his government will continue with its deficit-cutting plans amid calls from opposition lawmakers for a rethink as the economy struggles to recover from a double-dip recession.

ESM Intends to Aid Spanish Banks in ‘Near Future,’ Regling Says

The European Stability Mechanism is on track to become operational in October and intends to work directly with Spanish banks in the “near future,” said Klaus Regling, who heads the euro area’s bailout funds.

Euro leaders must act, warn reluctant EFSF investors

LONDON: Investors sent a warning shot to eurozone leaders that they are not out of the woods yet when they shunned the European Financial Stability Facility's latest bond issue, just six weeks after the eurozone's rescue fund priced its largest syndicated deal.