Falling growth, high inflation risks to stability: RBI

MUMBAI (Reuters) - Risks to India's macro-economic stability have increased on the back of an economic slowdown, high inflation, and ballooning fiscal and current account deficits, the Reserve Bank of India said in a report on Friday.

Americans blame Republicans more than Democrats for 'fiscal cliff'

WASHINGTON: Americans blame Republicans in Congress more than congressional Democrats or President Barack Obama for the current " fiscal cliff" crisis, as the deadline approaches for action to avert big tax increases and spending cuts, a Reuters/Ipsos poll showed on Thursday.

Japan PM adviser urges unlimited BOJ easing, higher price goal

TOKYO (Reuters) - The Bank of Japan should buy more long-dated government bonds and a wider variety of risk asset types, including foreign bonds, to achieve 2 to 3 percent inflation, Koichi Hamada, a special economic adviser to Prime Minister Shinzo Abe, said on Thursday.

Stocks Stir After Holiday

Stocks were slightly higher on Wall Street on Wednesday, ahead of the resumption of negotiations over the federal budget in Washington.

Egypt says stability key to fixing economy: PM

CAIRO (Reuters) - Egyptian Prime Minister Hisham Kandil said on Tuesday that political stability was crucial to luring back foreign investors and tourists to help plug a yawning budget deficit and heal the country's ailing economy.

Banking industry's year of shame ends in a blizzard of Libor revelations

The pledge made by one UBS trader – "I'm a man of my word" – seems a fine sentiment, until the realisation dawns that the promise he is making is to do "one humongous deal" with a broker to help him manipulate the Libor rate.

IMF warns French economy vulnerable to downturn

PARIS: The International Monetary Fund warned Friday that the French economy, the eurozone's second-largest, is vulnerable to a downturn because of its shrinking share of the export market and ossified labor market and urged the government to do more, faster to stay competitive and keep its finances under control.

European Stocks Post Fifth Weekly Gain; SBM Shares Surge

European stocks rose for a fifth week, posting the longest stretch of weekly gains in four months, as investors awaited developments in U.S. budget negotiations to avoid automatic tax hikes and spending cuts.

Singapore c.bank seeks to rein in credit card borrowing

SINGAPORE, Dec 21 (Reuters) - Singapore's central bank has proposed changes to rules regarding the issue of credit cards and unsecured loans to individuals, in a bid to prevent those with credit problems from taking on more debt.

UK data point to meager growth, public finances worsen

LONDON (Reuters) - Britain's dominant services sector posted meager growth in October, which may be just enough for the economy as a whole to avoid contraction in the last three months of 2012.

US economy grew at 3.1 per cent in July-September

WASHINGTON: The US economy grew at an annual rate of 3.1 percent over the July-September quarter as consumers spent more and state and local governments added to growth for the first time in nearly three years.

Asian shares slip as US budget talks sour, BOJ eases

TOKYO (Reuters) - Asian shares retreated from near 17-month highs on Thursday and commodities fell as negotiations to avert a U.S. fiscal crunch turned to personal taunts, putting at risk a timely solution as well as the health of the world's largest economy.

Cyprus could default on loan payments due this month

NICOSIA: Cyprus could default on loan payments due this month unless it can reach an agreement on a bailout with international lenders within days, a government official said on Monday.

Moody’s Gets No Respect as Bonds Shun 56% of Country Ratings

The global bond market disagreed with Moody’s Investors Service and Standard & Poor’s more often than not this year when the companies told investors that governments were becoming safer or more risky.

Hungary government, central bank in "alliance" from 2013

BUDAPEST (Reuters) - A leadership change at Hungary's central bank next year will allow the government to build a strategic alliance with the bank to boost the economy, Economy Minister Gyorgy Matolcsy said on Saturday.

Euro zone recession likely deepened in Q4: PMIs

LONDON: The euro zone recession has deepened in the current quarter after the bloc's private sector contracted for the 11th straight month in December, a purchasing managers' index suggested on Friday.

Eurozone moves a decisive step closer to banking union

European leaders were expected to push ahead with plans for winding up or shoring up weak eurozone banks on Thursday night, hours after sealing agreement to put the European Central Bank in supervisory authority over financial institutions in the single currency area.

Markets firm despite ongoing US budget concerns

LONDON (AP) — Stock markets rose on Tuesday as investors hoped U.S. leaders would eventually thrash out a budget deal needed to keep a slew of tax increases and spending cuts from hitting the world's largest economy.

U.S., UK bank seizure plans focus on absorbing losses: regulators

WASHINGTON (Reuters) - Both the United States and United Kingdom have developed viable approaches to seizing and unwinding failing global financial institutions, but more work is needed on the UK side to ensure that losses can be adequately absorbed, American and UK regulators said on Sunday.

Don't Rely on Banking Union to Solve Euro Zone Crisis

Conventional wisdom has it that the euro zone needs a banking union to solve its crisis. This is wrong. Not only are there alternatives to an integrated regulatory structure for the zone’s 6,000 banks, but centralization will undermine national sovereignty.

Consumer confidence plunges on "fiscal cliff" fears

NEW YORK (Reuters) - Americans' outlook on the economy and their finances took a turn for the worse in early December, likely due to anxiety about the potential for higher taxes resulting from contentious discussions in Washington over fiscal issues, a survey released on Friday showed.

ECB sees gloomy 2013, but holds rates

The European Central Bank slashed its growth and inflation forecasts for 2013, raising the prospect of a further easing in monetary policy next year, after it kept interest rates on hold Thursday.

Eurozone downturn may have bottomed out: Markit

BRUSSELS: The eurozone may be past the worst of its economic downturn, a key indicator signalled on Wednesday, probably because the European Central Bank has underpinned confidence and because of underlying strength in the German economy analysts said.

ECB to hold rates, guidance for 2013 eyed

(Reuters) - The European Central Bank may give a guide to next year's policy path when it delivers fresh forecasts for the euro zone economy on Thursday at a meeting where it is expected to leave interest rates at a record low.

Australia lowers key interest rate to 3 percent

SYDNEY (AP) — Australia's central bank cut its benchmark interest rate by a quarter percentage point Tuesday, taking it to its lowest level since the global financial crisis, as slower growth in China, uncertainty over the U.S. outlook and stubbornly weak conditions in Europe undermine the Australian economy.

EFSF, European Stability Mechanism Ratings Cut by Moody’s

The European Stability Mechanism and European Financial Stability Facility were downgraded by Moody’s Investors Service, which cited a high correlation in credit risk present among the entities’ largest financial supporters.

Bank of England fears that financial system needs more capital

Bank of England policymakers have ordered UK banks to make a more "honest" assessment of hidden losses on their balance sheets and warned they will be forced to find ways to fill a shortfall that could be up to £60bn.