Sharp fall in government borrowing in April

The Chancellor received a huge lift to his deficit-cutting ambitions today as VAT and income tax takings in April swelled the Treasury's coffers by more than expected.

How the Liberal Democrats 'signed off' Conservative spending cuts for the next Parliament

Danny Alexander, the Chief Secretary to the Treasury (and the person chosen over Vince Cable as the party’s economics spokesman for the general election campaign) this morning has this to say about the Tories' plans: "There is no need to carrying on cutting spending after the books are balanced.

Japan PM Shinzo Abe calls snap election in December

Japan's Prime Minister Shinzo Abe has called an early election, two years ahead of schedule. At a news briefing, he said he would dissolve parliament later this week and was also delaying a planned but unpopular increase in sales tax.

U.S. GDP revised down, but hints of economic thaw emerge

(Reuters) - The U.S. government slashed its estimate for fourth-quarter economic growth on Friday in the latest sign of a loss of momentum, but some tentative signs emerged that suggested the worst of the slowdown may be over.

Fed Shows BOJ Needs More Easing Amid Yen Rally: Chart of the Day

The Bank of Japan’s record policy easing is dwarfed by the Federal Reserve’s efforts, showing Governor Haruhiko Kuroda has plenty of room to expand stimulus after this year’s surge in the yen.

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."

US economy shrinks a surprise 0.1% in fourth quarter

The US economy unexpectedly shrank at an annualised rate of 0.1% in the fourth quarter of 2012, initial official estimates indicate.

Economy Seen Neither Too Good or Bad to Decide Election

Federal Reserve Chairman Ben S. Bernanke is predicting an election-year economy that’s neither here nor there: growth that disappoints yet keeps the U.S. from slipping back into the recession billionaire Bill Gross has indicated may happen.

Bernanke to testify on US economy and deficit

U.S. Federal Reserve Chairman Ben Bernanke will likely tell members of Congress on Thursday that the slowly improving economy may need more help from the Fed and that cutting the deficit too quickly could backfire.