Bernanke speech may offer clues to Fed's next step

WASHINGTON (AP) — Few expect Chairman Ben Bernanke to signal at a Federal Reserve conference Friday in Jackson Hole, Wyo., that the Fed is about to take major new action to boost the economy. No one is sure, though.

German inflation accelerates to 2.0% in August

FRANKFURT: Rising fuel prices pushed German inflation back up to the key level of 2.0 percent in August, the first time this year that inflation in Europe's top economy has risen, data showed on Wednesday.

Indian PM drowned out in growing furor over "coalgate"

NEW DELHI (Reuters) - Indian lawmakers chanting "quit prime minister" drowned out Manmohan Singh on Monday as he sought to defend his government's role in an affair dubbed "coalgate" that has paralyzed parliament and created a sense of political crisis.

Weak U.S. recovery means pay cuts for unemployed who find jobs

WASHINGTON — The U.S. economic recovery hasn’t felt much like one even for people who managed to find new jobs after being laid off.

IMF advises delaying austerity until growth returns

Cutting government spending in a crisis will condemn a country to an even deeper recession and inflict “permanent” damage on the economy, the International Monetary Fund has warned.

German Leader Says Greece Must Remain in Euro Zone

BERLIN — Angela Merkel, the German chancellor, pledged Friday to support the new Greek government as it struggled to overhaul its economy, saying that the heavily indebted country must remain in the euro zone.

Global economy: Euro zone flounders, China brakes, US may slow

World business surveys on Thursday painted a picture of economic malaise stretching from Beijing to Berlin, adding to concerns that the world economy was slowing down.

Report Sees Risk of Recession if Budget Stalemate Persists

WASHINGTON — The Congressional Budget Office said Wednesday that the economic recovery would continue “at a modest pace” for the rest of the year, but that if Congress takes no action to stave off tax increases and automatic budget cuts scheduled for Jan. 1, the economy could fall into a recession.

Berlin douses hopes of quick euro crisis fix

BERLIN: Germany on Monday dampened hopes for powerful action from the European Central Bank to fix the euro crisis and slapped down speculation of an immediate breakthrough on debt-wracked Greece.

It's time to try something radical to save the UK economy

This Friday, the Office for National Statistics (ONS) will publish its second estimate for GDP growth and, for once, the economic news is expected to be encouraging.

Eurozone hurtling back into recession: Economists

FRANKFURT: The eurozone is hurtling back into recession, economists declared this week after official figures portrayed a shrinking economy.

Italy's Monti says not planning income tax cut

ROME (Reuters) - Italian Prime Minister Mario Monti said on Thursday his government is not considering cutting income taxes, denying a newspaper report that he was looking to such a move to revive the stagnant economy.

Foreign investment in China declines in July

Foreign direct investment in China fell 8.7 percent in July, the government said on Thursday, as the economy continues to feel the pinch of slowing global growth and the European debt crisis.

US retail sales jump unexpectedly in July

US retail sales jumped unexpectedly in July and by the biggest amount in five months, the Commerce Department said.

Germany's economy grows by 0.3%

Germany's economy grew 0.3% in the second quarter of the year, helped by exports and domestic consumption.

Japan GDP Points to Shaky Recovery

TOKYO—The Japanese economy slowed more sharply than expected in the April-June quarter as exports and consumer spending lost steam, raising the specter of further deceleration for the rest of this year.

London 2012: Mervyn King says banks 'could learn a thing or two' from Olympics

Banks could "learn a thing or two about fair play" from the Olympics, according to the governor of the Bank of England, who claimed that the Games' impact on confidence could boost the economy.

Spanish, Italian Two-Year Notes Drop on ECB Plan, Growth Concern

Spanish and Italian two-year government notes fell for the first time in three weeks amid concern a plan by the European Central Bank to cap the nations’ borrowing costs by buying their debt may founder.

Economy might be gaining traction, new data suggest

After a spring and summer of weak economic indicators, a flurry of fresh data suggest key sectors of the economy might be gaining traction, just as the battle for the White House enters the final round.

Shock trade figures deal a blow to UK recovery hopes

Britain's trade deficit widened sharply to a record high in June as exports collapsed amid the eurozone crisis, dealing a blow to hopes that trade will drive a recovery.

Sudan's pounds rises after oil deal with S.Sudan

KHARTOUM (Reuters) - Sudan's currency rose against the dollar on the key black market on Monday for the first time in several months after the government reached an agreement with South Sudan on oil fees, dealers said.

Manufacturing slowdown dents hopes for recovery

Britain's small and medium sized manufacturers have seen their biggest fall in output since October 2009, in a blow to hopes the sector will help drive economic recovery.

Italy's Monti warns Europe of 'psychological break-up'

Italy's Prime Minister Mario Monti has warned of a "psychological break-up" of Europe that must be contained.

Hiring picks up but not enough to sideline Fed

WASHINGTON (Reuters) - Employers hired the most workers in five months in July, but an increase in the jobless rate to 8.3 percent kept prospects of further monetary stimulus from the Federal Reserve on the table.

Shares surge after markets reappraise Mario Draghi's eurozone debt plans

Financial markets ended the week on a high note on both sides of the Atlantic after better US jobs news and renewed faith in the European Central Bank sent shares, bonds and oil prices surging.

U.S. housing market recovery key to boosting growth: IMF

WASHINGTON (Reuters) - The International Monetary Fund said on Thursday it believes a recovery in the U.S. housing market is key to eventually boosting economic growth in the United States and bringing down the country's unemployment rate.

Recovery hopes dented by weak manufacturing

Hopes that the economy will rebound strongly from recession have been dealt a severe blow by figures showing that the manufacturing sector shrank at its fastest pace in three years in July.

Economy to shrink in 2012: OECD economist

LONDON (Reuters) - Britain's economy looks set to shrink in 2012 after a surprisingly deep slump between April and June, as the euro zone debt crisis and weak domestic demand make a vigorous return to growth unlikely, the OECD's economist for the UK said.