Slowing inflation paves way for more ECB action

Slowing eurozone inflation is likely to make the European Central Bank increasingly nervous and pave the way for further monetary easing, analysts say.

U.S. stocks are resuming a steady climb amid humdrum economic recovery

Stagnant wages. Slow economic growth. Stubborn unemployment. Economists call the prevailing gray economic landscape the new normal.

Breakdown of Brazilian GDP ugly for Rousseff

Brazil might have limped out of a recession during the third quarter - but a breakdown of Friday's GDP numbers suggests that the growth is likely to be short-lived.

ECB's Draghi warns countries to reform as clouds gather over euro zone

(Reuters) - Failure to reform and shield weaker members threatens to divide the euro zone, the head of the European Central Bank warned on Thursday, amid fresh signs the currency bloc's economy is losing speed.

U.S. economy picks up speed

The U.S. economy grew at a faster pace in the third quarter than originally reported, another sign that the recovery is picking up speed.

Slow economic growth to be 'prolonged', says Bank economist

Many of the world's major economies face a prolonged period of slow growth, according to the Bank of England's chief economist, Andy Haldane.

Falling inflation a worry for Europe but also the world

(Reuters) - European Central Bank President Mario Draghi has moved closer to launching sovereign debt purchases and data this week will show just how dangerously low inflation has fallen in the $13 trillion euro zone economy.

China's rate-cut likely to hurt banks, curb new loans to small borrowers

SHANGHAI (Reuters) - China's latest interest rate cut is set to dent the profitability of domestic lenders, especially mid-sized banks, which are already suffering from higher bad loans and a slowdown in profit growth.

How Major Cities Dragged Down the Economic Recovery

In yet another reminder of how uneven the U.S. economic recovery has been in recent years, a new study shows that many large cities continue to reel from a fiscal crisis that has forced serious cuts in services that affect everyday Americans – including police and fire.

Aso Warns on Speed of Yen Drop While Saying Rate Is Up to Market

Japan’s finance chief said the yen has been weakening too fast over the past week, the strongest statement yet by one of the nation’s top policy makers as the central bank’s expanded stimulus drives down the exchange rate.

Gradual U.S. housing recovery on track as single-family starts rise

(Reuters) - Starts for U.S. single-family homes rose for a second straight month in October and building permits neared a 6-1/2-year high, suggesting the housing market was still on a recovery path.

Ghana Seen Cutting Budget Gap in 2015 as IMF Program Unfolds

Ghanaian Finance Minister Seth Terkper is set to outline plans today to rein in the budget deficit that may include spending cuts requested by the International Monetary Fund.

U.S. producer inflation up, but underlying trend muted

(Reuters) - U.S. producer prices unexpectedly rose in October, but the underlying trend continued to point to a benign inflation environment that could bolster the Federal Reserve's resolve to keep interest rates very low a bit longer.

Euro zone's troubles, gold vote test Swiss central bank

(Reuters) - The Swiss National Bank faces the biggest test of its cap on the franc in two years but may find it easier to defend now than when euro zone breakup fears were rampant and the strategy unproven.

U.S. data points to strong spending ahead of holiday shopping frenzy

(Reuters) - Most U.S. retailers reported strong sales in October, a sign American consumers were spending with more gusto and could help keep the economy growing at a brisk pace.

After plea deal, Credit Suisse faces U.S. hearing on pension business

(Reuters) - Credit Suisse AG will face a public hearing over whether or not the U.S. government should allow the Swiss bank to manage Americans' retirement funds after its decision to plead guilty to tax crimes.

India and US reach WTO breakthrough over food

India and the US have resolved their disagreements on food security issues, paving the way for the implementation of a global trade pact.

Pay growth beats inflation as jobless total falls, ONS says

Growth in average pay for UK workers overtook inflation for the first time in five years, according to data from the Office for National Statistics.

China pays big to expand its clout along the new Silk Road

(Reuters) - China, already at the centre of world trade, plans to spend billions of dollars to revive intercontinental land routes and develop maritime links to expand commerce and give it more weight in a freight system dominated by European shipping lines.

Senior EU aide defends Juncker on Luxembourg tax deals

(Reuters) - A senior aide defended European Commission President Jean-Claude Juncker on Monday against charges of having provided a haven for corporate tax avoidance in Luxembourg, saying the entire new EU executive was committed to stamping out tax evasion.

Why interest rates won't rise any time soon

Interest rates will remain on hold beyond next year’s general election, the Bank of England is expected to signal this week, in an environment of lower inflation, weak wage growth and increasing eurozone headwinds.

US unemployment rate falls to lowest level since 2008

The US unemployment rate fell to its lowest level since 2008 on Friday, in a move hailed as a sign of progress by economists despite 9 million people remaining out of work.

ECB could pump €1tn into eurozone in fresh round of quantitative easing

The European Central Bank is ready to pump up to €1tn (£782bn) of fresh stimulus into the flagging eurozone economy to ward off a dangerous deflationary spiral, Mario Draghi has signalled.

House prices slow amid rate worries, says the Halifax

Concern over interest rate rises could "curb" house buying intentions, the Halifax has said, as it reported slowing house price growth.

India Said to Pull Warships From Kolkata on Terror Threat

India pulled two naval warships out of the Kolkata port yesterday after receiving intelligence that they might be targeted by terrorists, a navy officer familiar with the matter said.

Obama, Fed's Yellen to discuss long-term U.S. economic outlook: White House

(Reuters) - President Barack Obama and Federal Reserve Chair Janet Yellen were set to discuss the long-term outlook for the U.S. economy and the outlook for the global economy during an Oval Office meeting on Monday afternoon, Obama's spokesman said.

Britain's Islamic finance market widens with government, private moves

(Reuters) - The scope of Britain's Islamic finance market is widening with several initiatives from the government and private sector, although the country is about to lose one of its six full-fledged Islamic banks.

Fed's Kocherlakota defends dissent, cites drop in inflation outlook

(Reuters) - The lone Federal Reserve policymaker to dissent against the U.S. central bank's decision this week to end its bond-buying stimulus said Friday that the Fed was risking its credibility by failing to take action against a worrisome drop in inflation.

Royal Bank of Scotland sets aside £400m for forex-rigging fines

Royal Bank of Scotland is the latest bank preparing for a fine for rigging the currency markets, by setting aside £400m to cover the cost of the investigation into the £3.5tn-a-day market.

US economy grew at 3.5 percent rate in Q3

WASHINGTON (AP) -- The U.S. economy grew at a solid annual rate of 3.5 percent in the July-September quarter, propelled by solid gains in business investment, export sales and the biggest jump in military spending in five years.

Asia's travel and tourism industry 'to face talent crisis'

Asia's travel and tourism sector is booming but will faces a severe shortage of skilled workers in the next 10 years, a top industry executive said Wednesday.

Rousseff says Brazil will recover, avoid credit downgrade

(Reuters) - Newly re-elected President Dilma Rousseff said on Tuesday that the Brazilian economy will recover in her second term and avoid a downgrade of its credit rating.

German business confidence falls again, Ifo says

German business confidence has fallen to its lowest level in almost two years, a survey suggests, raising concerns about the strength of Europe's largest economy.

African oligarchs splash out on London homes

A new wave of African oligarchs are following the trail blazed by Russian billionaires, buying up luxury properties in some of London’s most exclusive postcodes, according to new research.

China economic growth seen slowing well into next year, no rate cut seen: poll

(Reuters) - China's economy is likely to grow at its slowest pace in 24 years this year and will cool further in 2015, weighed down by a cooling property sector and factory overcapacity and as top leaders push structural reforms, a Reuters poll showed.

Merkel Hints That Euro-Area Nations May Have Room for Investment

German Chancellor Angela Merkel hinted she is ready to make a grand bargain with France and Italy by allowing them some leeway in meeting deficit-reduction targets in exchange for measures to make their economies more competitive.

APEC finance chiefs meet as global worries persist

The global economic recovery is beset by "downside risks", China's vice-premier told Asia-Pacific finance ministers Wednesday, a day after growth in the world's second-largest economy hit a five-year low.

South Africa economic growth forecast slashed

South Africa has downgraded its economic growth, but the country's new finance minister pledged to keep a tight rein on government spending.

Sales of U.S. Existing Homes Rise to One-Year High

Sales of previously owned homes climbed in September to the highest level in a year, pointing to growing confidence in the U.S. economy as employment firms.

Bank of England payment system crashes leaving homebuyers in limbo

The Bank of England apologised last night after a crucial payments system collapsed, forcing Mark Carney to launch an urgent investigation following the delay of hundreds of thousands of payments, including for homebuyers waiting for money to be transferred to pay for their new homes.

Japan ruling coalition ally seeks fresh stimulus to deal with weak yen

(Reuters) - The junior partner in Japanese Prime Minister Shinzo Abe's coalition government on Monday called for steps to stimulate an economy hit by April's sales tax rise and to soften the pain of rising costs caused by a weak yen.

Euro zone not heading for recession, says EU's Barroso

LONDON (Reuters) - The euro zone is not heading for another recession, the outgoing president of the European Commission Jose Manuel Barroso said on Sunday.

Bank of England chief economist ‘gloomier’ about UK prospects

The chances of an early rise in UK interest rates have fallen, says the Bank of England’s chief economist, Andrew Haldane, who admits he is “gloomier” about the prospects for the economy than he was a few months ago.

This is not another financial crisis

But now it's time to take a deep breath and relax. (And not look at your 401(k) balance.) We've been through this before. It's not the end of the world.

Inflation Approaches a 5-Year Low in China

BEIJING — Consumer inflation in China slowed more than expected in September, nearly to a five-year low, government data showed on Wednesday, pointing to broad weakness in the economy.

Three Fed banks pushed again for discount rate hike: minutes

(Reuters) - Three regional Federal Reserve banks in September pressed again for an increase in the Fed's emergency lending rate ahead of last month's Fed policy meeting, according to minutes released on Tuesday.

Richest 1% of people own nearly half of global wealth, says report

The richest 1% of the world’s population are getting wealthier, owning more than 48% of global wealth, according to a report published on Tuesday which warned growing inequality could be a trigger for recession.

Europe needs structural reform to boost growth: Australia's Hockey

(Reuters) - Europe needs to undertake structural reforms to boost growth and should not rely on further monetary easing by the European Central Bank, Australian treasurer Joe Hockey said on Monday.

China offers hint of growth prospects, Germany expects more bad news

(Reuters) - China's economy, the second largest in the world, gets a spot check this week with a barrage of data due that should indicate how successful Beijing has been in supporting growth.

Fed should reconsider 'considerable time' vow on rates: Fisher

(Reuters) - The Federal Reserve should rethink its forward guidance, potentially ditching its promise to keep interest rates near zero for a "considerable time" after it ends its bond-buying stimulus, a top Federal Reserve official said on Friday "I feel it is time to reconsider 'considerable time,'" Dallas Fed President Richard Fisher told reporters after a speech here.

France's credit outlook cut to negative by S&P

Credit rating agency Standard and Poor's has cut France's credit outlook to 'negative', due to concerns about the country's struggling economic recovery.

Draghi Policies Blunted in Berlin as German Protests Grow

Mario Draghi’s policy tools are being blunted in Berlin. The European Central Bank president has stopped short of large-scale sovereign-bond purchases as efforts to mollify Germany’s political elite do little to silence criticism of his ever-more expansionary measures.

Fed's Kocherlakota: 'inappropriate' to raise rates in 2015

(Reuters) - The Federal Reserve should keep interest rates near zero through at least the end of next year, a top U.S. central banker said on Tuesday, saying that inflation is simply too low to justify tighter monetary policy.

Booming UK housing market may need interest rate rises, IMF warns

The Bank of England will need to consider raising interest rates to rein in Britain’s housing market if controls designed to curb risky lending prove insufficient to see off the threat to financial stability, the International Monetary Fund (IMF) has said.

Greek budget promises higher growth, tax cuts

(Reuters) - Greece's government unveiled its 2015 budget on Monday, promising a second year of growth and tax breaks aimed at easing austerity imposed after the country sank into its deepest post-war economic crisis.

U.S. Economy, Stocks Can’t Escape the World’s Pain

The bulls have perpetrated a fantasy over the last few months. It went something like this: You can safely ignore the market declines on foreign bourses and the slowdown of economies in Asia, Europe and the emerging world because the American economy and U.S. stocks were an island of their own.

EMERGING MARKETS-Latam currencies sink on U.S. data; Brazil election eyed

SAO PAULO, Oct 3 (Reuters) - Latin American currencies weakened on Friday after strong U.S. jobs data was seen as increasing the likelihood of higher interest rates in the world's largest economy, while Brazil markets fluttered in the last trading session before Oct. 5 elections.

Euro zone business growth in September weakest this year: PMI

Oct 3 (Reuters) - Euro zone business grew at the slowest rate this year in September, reflecting falling demand in the region where new orders were the weakest in almost a year, surveys showed on Friday.

ECB to start asset buying programme

The European Central Bank has kept its benchmark interest rate at 0.05% and given details of its asset purchase programme announced last month.

Shadow banking system a growing risk to financial stability – IMF

Growth in the world’s $70tn (£43tn) shadow banking system is a risk to financial stability and monitoring of the sector is inadequate, the International Monetary Fund has warned.

UK economy bigger and growing faster than thought, says ONS

Britain’s economy was bigger and grew faster than previously thought over the second quarter, according to official figures that measure GDP in a new way.

Canada, EU formally conclude free trade pact

Ottawa – Canadian and European leaders on Friday formally concluded a free trade agreement that is widely seen as a template for a larger pact between the EU and the United States.

While ECB struggles, Fed sees recovery

(Reuters) - On one side of the Atlantic they're trying to refill the punchbowl. On the other they're getting ready to take it away.

Draghi May Discover Weaker Euro Doesn’t Buy Enough Recovery

Mario Draghi may find a falling currency can’t buy much of an economic recovery. The euro has dropped toward a two-year low against the dollar since the European Central Bank president boosted stimulus earlier this month.

Ukraine doing all not to repay $3 billion bond - Russia finance minister

(Reuters) - Ukraine is doing everything it can to either declare its $3 billion bailout bond held by Moscow invalid or to not repay its debts, Russian Finance Minister Anton Siluanov told Reuters on Thursday.

Car manufacturing hits reverse gear

UK car manufacturing went into reverse in August as factories closed for the summer holidays. A total of 71,065 cars rolled off production lines last month, 22% less than the 91,282 cars built in August 2013, according to the Society of Motor Manufacturers and Traders (SMMT).

Japan PMI shows manufacturing picked up in third-quarter, more data needed for tax hike decision

(Reuters) - Japan's manufacturing activity picked up in the third quarter, a survey showed, but economists say they need more information on wages and consumer spending to determine whether the government should raise the sales tax again next year.

Valls says France would never ask Germany to solve its problems

(Reuters) - French Prime Minister Manuel Valls sought to reassure Berlin on Tuesday that his country was making progress on economic reforms and would not ask Germany to solve its problems.

U.S. economy may need to exceed full employment for inflation to rise: Fed's Dudley

(Reuters) - The Federal Reserve may briefly allow the U.S. unemployment rate to fall below what is considered sustainable in the long run in order for inflation to rise to the central bank's target, New York Federal Reserve bank president William Dudley said on Monday.

UK's opposition Labor to tell voters ahead of election: Trust us on economy

(Reuters) - Britain's opposition Labor party will try to convince voters it can be trusted with the economy by promising on Monday it would cut ministerial salaries and curb public spending if it wins a national election next year.

German industry lobby cuts growth forecast on crises

(Reuters) - Germany's main industry lobby has cut its 2014 growth forecasts for Europe's largest economy, saying the crises in Ukraine, Iraq and the Middle East were creating uncertainty for companies, a newspaper reported on Saturday.

U.S. Treasury's Lew calls for euro zone, Japan to do more on growth

(Reuters) - U.S. Treasury Secretary Jack Lew on Friday called on the euro zone and Japan to do more to spur growth as the global economy continues to disappoint, highlighting what is sure to be a bone of contention as Group of 20 ministers gather in Australia.

India calls for G20 swap lines to mitigate U.S. stimulus withdrawal

(Reuters) - India urged the Group of 20 nations on Thursday to consider creating currency swap lines to mitigate the impact on emerging economies of the expected withdrawal of the U.S. Federal Reserve's vast monetary stimulus.

US consumer prices fall in August

US consumer prices fell in August for the first time since April 2013, Labor Department figures show. The Consumer Price Index declined 0.2% last month, following an increase of 0.1% in July.

Cameron Says Scots Independence Dream Risks Painful Split

Prime Minister David Cameron made a final plea to Scotland’s voters, urging them to step back from an illusory “dream” of risk-free independence and avoid the irreversible breakup that would come with a “yes” vote.

Weeping wallets: Economic recovery has skipped most income groups

Upper-income folks have experienced rich economic recovery, while low- and mid-income families continue to lag, and consumer confidence is weak, according to recent reports that highlight a post-recession widening gap in the way differently situated households have fared.

No significant risk of deflation spiral in euro zone: ECB's Weidmann

(Reuters) - The European Central Bank sees no significant risks of a deflation spiral in the euro zone, the bank's Governing Council member Jens Weidmann said on Saturday, adding the bloc's growth would stay subdued into the next year.

EU imposes further Russia sanctions

Some of Russia's best-known companies, including arms-maker Kalashnikov and energy firms Rosneft and Gazprom, have been targeted in the latest round of EU sanctions over the Ukraine crisis.

Indonesia Holds Interest Rate to Curb Current-Account Gap

Indonesia’s central bank held its benchmark interest rate for a 10th straight meeting to help narrow a current-account deficit, even as economic growth and inflation slow.

Carney: massive shortfall in currency reserves for independent Scotland

Mark Carney was dragged further into the debate about the currency implications for an independent Scotland on Wednesday, telling MPs that in the event of a yes vote Scotland would need to amass billions of pounds of currency in reserves if it uses sterling without a formal agreement with Westminster.

UN makes call for new approach to sovereign debt crises

The United Nations has called for a new legal system to help countries resolve unsustainable debts. The immediate spur for the call was the difficulty faced by Argentina.

U.S. job openings hold near 13-year high in July

(Reuters) - U.S. job openings held near a 13-year high in July while hiring picked up, according to a report from the U.S. Department of Labor.

Big business will force change in garment trade, vows Wall St boss

Big business and financial investors, not consumers, will force better conditions in the world's textile factories, according to the head of an investment firm aiming to pump $500m (£306m) into creating a more ethical garment industry.

ECB's Visco says must be ready to do more for price stability: paper

(Reuters) - The European Central Bank should be ready to take further measures to guarantee monetary stability if needed, Ignazio Visco, the governor of the Bank of Italy and a member of the ECB Governing Council said in a newspaper interview on Sunday.

Economic recovery, aging society and expanded coverage will boost health care inflation

WASHINGTON - The nation's respite from troublesome health care inflation is ending, the government said Wednesday in a report that renews a crucial budget challenge for lawmakers, taxpayers, businesses and patients.

Draghi Sees Almost $1 Trillion Stimulus as QE Fight Waits

Mario Draghi signaled at least 700 billion euros ($906 billion) of fresh aid for his moribund economy and left a fight with Germany over sovereign-bond purchases for another day.

CBI predicts UK growth will slow in second half of 2014

The CBI business lobby group has said it expects UK economic growth to slow in the second half of this year as the impact of improved business and consumer confidence starts to ease.

Fed's Fisher says gradual rate rises won't 'brake' U.S. economy

(Reuters) - The U.S. economy is 'in a pretty good place,' Dallas Federal Reserve Bank President Richard Fisher said on Wednesday, adding that he believes it will soon be ready for gradual interest rate increases but stopping short of saying when.

Spanish manufacturing grows for ninth straight month in August: PMI

(Reuters) - Spain's manufacturing sector expanded for the ninth straight month in August as new orders flooded in and firms took on more staff as the economy recovers, a survey showed on Monday.

UK manufacturing growth ebbs, denting hopes for balanced recovery

LONDON (Reuters) - Britain's manufacturing revival slowed sharply last month as the Ukraine crisis crimped demand from abroad, further denting hopes for a more balanced economic recovery.

Seeing Just One Way for Greece to Go: Up

ATHENS — The first time Gikas Hardouvelis left his job as a bank economist to try his hand at Greek politics, in 2000, the country was preparing to join the euro currency union, looking forward to a period of prosperity and optimism.

Germany's Merkel says wants debt redemption at federal level

(Reuters) - German Chancellor Angela Merkel said on Friday that she was in favor of debt redemption at a federal level after the state of Saxony managed to pay back some of its debts.

US economic growth revised upwards

The US economy grew at an annual rate of 4.2% in the second quarter of the year, according to revised figures from the US Department of Commerce.

George Osborne will miss UK export target, BCC warns

George Osborne will miss his target of doubling UK exports to £1tn by 2020 because the government has failed to take the radical action needed, a leading business lobby group has said.

Russia approves $6.6bn for sanctions-hit state banks

Moscow (AFP) - The Russian government has approved injecting 239 billion rubles ($6.6 billion, 5 billion euros) into two of the country's largest, state-controlled banks that have been hit with Western sanctions.

French borrowing costs fall to record low despite crisis

Paris (AFP) - Borrowing costs for France fell to a record low level early on Monday despite the resignation of the government, which plunged the country into a political crisis on top of depressed economic activity.

Olive oil prices set to rise sharply after Andalusia drought

Hold the bruschetta: olive oil prices are expected to rise sharply after a prolonged drought in the world's biggest producing region in southern Spain, at the same time as a blight has hit the crop in Puglia, Italy's main olive-growing area.

Canada’s Dollar Approaches Four-Month Low as Inflation Slows

The Canadian dollar traded at an almost four-month low after a government report showed the inflation rate slowed for the first time in five months in July.

Spain to wait for stress tests before more Bankia stake sales

(Reuters) - Spain will hold off on selling more of its controlling stake in lender Bankia until the results of Europe-wide bank stress tests in October, Economy Minister Luis de Guindos said in an interview published on Sunday.

Fed in 'real debate' on rate hike in early to mid-2015: Lockhart

(Reuters) - The U.S. Federal Reserve is focused on an initial interest rate hike between the first quarter and the middle of next year, with possible changes in its main policy statement as soon as next month, Atlanta Fed President Dennis Lockhart said on Saturday.

Eurozone Recovery Fragile as Russian Sanctions Hurt Trade

The eurozone's fragile economic recovery took another blow as private business growth slowed more than expected in August on worse than expected data from Germany and France.

China, Japan August factory surveys signal economic softness

(Reuters) - China's manufacturing activity hit a three-month low in August, raising the case for fresh policy steps to keep growth on track, while a Reuters poll showed Japan's economic recovery is likely to be modest despite a small acceleration in the factory sector.

Government posts surprise deficit in July after borrowing £239m

The chancellor, George Osborne, faces a battle to hit this year's borrowing target after the government posted a surprise deficit in the public finances in July.

Fed debates merits of earlier rate hike given U.S. jobs gains

(Reuters) - The U.S. Federal Reserve hinted on Wednesday that a surprisingly strong jobs market recovery could lead it to raise interest rates earlier than it had been anticipating.

Putin factor snuffs out European growth

First Japan, now Europe -- bad news for the world economy is piling up. Eurozone growth evaporated in the second quarter, as Russian meddling in Ukraine helped send the German economy into reverse and France stagnated.

Dudley cites risks in wholesale funding markets, urges changes

(Reuters) - The short-term U.S. wholesale funding market remains vulnerable to runs and other crisis-era risks and must be made more stable, an influential Federal Reserve official said on Wednesday.

Weak China July money data cast doubts on recovery

The amount of money flowing into China's economy slowed to the lowest level in nearly six years in July, adding to fears that a sustained recovery may be at risk in the second half of the year despite government efforts to shore up growth.

Gold-Oil Ratio Rises to Highest Since March on Economy

Gold is trading at the highest price relative to crude oil in more than four months amid global economic concerns.

Full economic recovery 'will not solve youth unemployment'

Centre-left think tank the Institute for Public Policy Research (IPPR) says that a full-blown economic recovery will not resolve the UK's youth unemployment problem.

BOJ warns of sluggish export recovery

TOKYO (Reuters) - Sluggish Asian demand and a shift in Japanese production overseas will continue to weigh on exports, the Bank of Japan said, underscoring its waning conviction that overseas shipments will soon pick up and support a fragile economic recovery.

How sound is Germany's economy? Ask its troubled neighbours

Growth figures for the eurozone are out on Thursday and the signs are not good. Data already released show that industrial output was down in the single currency's "big three" – Germany, France and Italy – during the second quarter as the recovery that began in the middle of 2013 petered out.

Bank of America nears $16 billion record settlement with US regulators

Bank of America is closing in on a deal to pay the biggest US banking settlement in history, in a move that could serve as a riposte to European complaints that American watchdogs are unduly targeting their banks.

BOJ to stick to optimistic economic view, debate weak exports

(Reuters) - The Bank of Japan is set to continue its massive asset purchases and retain its rosy view on the outlook on Friday despite a series of weak data, underscoring its conviction that the world's third biggest economy can withstand the pain from a tax hike without further stimulus.

Average house prices in London jump 19% in a year

Average house prices in London have jumped 19% in a year, with the typical cost of a property in one borough set to pass the £2m mark for the first time within weeks, according to new data.

ECB says Ukraine crisis threatens EU recovery, keeps rates low

(Reuters) - The Ukraine crisis has heightened risks to the euro zone's weak and uneven economic recovery, and a tit-for-tat sanctions war could compound the problem, the European Central Bank said on Thursday as it held borrowing rates at record low levels.

Canada-EU free trade deal may pave way for US agreement

Canada and the European Union have agreed the final text for a free trade agreement that could provide a blueprint for a US-EU trade deal.

Housebuilding boosts UK construction sector in July

UK housebuilding grew at its fastest rate in nearly 11 years in July, a survey suggests.

'If you want a strong pound, it has to be for the right reasons'

The current strong pound is starting to bite into the profits of corporate Britain. Aircraft-engine maker Rolls-Royce, defence group BAE Systems, and contract caterer Compass were among the heavyweights who lined up last week to say that adverse currency movements were wiping millions off their balance sheets.

China Services Index Drops to Six-Month Low on Property

A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market.

U.S. job growth cools, unemployment rate rises

(Reuters) - U.S. job growth slowed a bit in July and the unemployment rate unexpectedly rose, pointing to slack in the labor market that could give the Federal Reserve room to keep interest rates low for a while.

PMI figures show UK manufacturing growth slowing amid fears for exports

Growth in Britain's factories was the slowest in a year in July amid mounting fears that tension between Russia and the west might start to weigh on manufacturing exports.

Spain's economy grows at fastest quarterly rate since 2007

The Spanish economy grew at its fastest pace over the last three months since the end of 2007, according to Spain's statistics office.

Fed seen trimming bond buys, could offer vague rate clues

(Reuters) - The U.S. Federal Reserve on Wednesday looks certain to press forward with its plan to wind down its bond-buying stimulus, and could offer some vague clues on how much nearer it might be to finally raising interest rates.

Bank of England to unveil bonus clawback plan

The Bank of England is expected to unveil on Wednesday a plan which may see rule-breaking bankers return bonuses up to seven years after being awarded them, the BBC understands.

Consumer spending, inventories seen lifting U.S. second-quarter GDP

(Reuters) - U.S. economic growth likely rebounded in the second-quarter from a winter-induced slump at the start of the year and will probably continue to gather momentum through the rest of 2014.

China's bad loan ratio rises, adding to bank sector worries

(Reuters) - Chinese banks' bad loan ratio rose to 1.08 percent at the end of June from 1.04 percent in March, the banking regulator said on Friday, adding to concerns a slow economy and cooling property market could weigh on banks and brew up financial risks.

German consumer morale at highest level in more than 7.5 years

(Reuters) - German consumer morale rose to its highest level in more than 7-1/2 years heading into August as shoppers became more upbeat about their future income prospects than at any point since 1991, a survey showed on Friday.

Eurozone recovery picks up – except for France

The dip in fortunes that has spread across the eurozone since spring was reversed last month after businesses expanded output and order books swelled – with the exception of France, which is nearing its third recession since the banking crash.

George Osborne's deficit reduction plan under pressure as borrowing rises

George Osborne is on course to miss his goal of trimming Britain’s deficit this fiscal year after figures showed public borrowing climbed 7.3pc in the first quarter.

Hungary minister sees forex loans conversion at year end: TV

(Reuters) - Hungary's banks will have to convert foreign currency- denominated loans into forints most probably at the end of the financial year on Dec. 31-Jan. 1, the Hungarian economy minister told private channel HirTV late on Monday.

NABE survey points to rising U.S. wage pressures

(Reuters) - The share of U.S. companies raising wages more than doubled in the three months to July from a year ago, a survey showed on Monday, suggesting a faster pace of wage growth.

Greek banks can handle capital needs in ECB test: rescue fund CEO

(Reuters) - Any capital shortfalls that the European Central Bank finds this fall at Greece's four big banks will be manageable, the head of the country's bank bailout fund told Sunday's Kathimerini newspaper in an interview.

Current accounts are costly and confusing, says competition Watchdog as it launches enquiry into the big banks

Complicated overdraft charges make it almost impossible for bank customers to choose the cheapest or most appropriate account for them.As a result banks may not be bothering to compete with each other, leading to higher overdraft charges for all.

Christine Lagarde warns against stockmarket optimism

IMF head Christine Lagarde has warned that financial markets maybe a little too upbeat given the persistently high levels of unemployment and debt in European economies.

German recovery runs out of steam as sentiment falters

Frankfurt (AFP) - Europe's biggest economy German could already be running out of steam, data showed on Tuesday, and economists say the country's World Cup win is unlikely to provide any fresh momentum.

Bank of England governor warns of a bubble as UK house prices rise 10.5%

Rising house prices and high levels of household debt could tip the UK back into recession if left unchecked, the Bank of England governor has warned.

Fed's Yellen says U.S. recovery incomplete, defends loose policy

WASHINGTON (Reuters) - The U.S. economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future, Federal Reserve Chair Janet Yellen told a Senate committee on Tuesday.

Bank of Scotland PMI report: recovery 'firmly embedded'

The recovery in the Scottish economy has become "firmly embedded", according to Bank of Scotland chief economist Donald MacRae.

Singapore’s GDP Decline Shows Manufacturing Constraint: Economy

Singapore’s economy unexpectedly contracted in the second quarter as higher labor costs and company moves to shift production overseas hurt manufacturing.

Euro zone industry stumbles in May, recovery still frail

BRUSSELS (Reuters) - Euro zone industrial production dropped sharply in May with only the energy sector thriving, another sign that the bloc's economic recovery remains fragile.

Fed closer to tightening policy than many think: Plosser

(Reuters) - A top U.S. central banker said on Friday the Federal Reserve may be "closer than a lot of people think" to raising interest rates given the firmer recent inflation and labor data.

UK house price inflation to outstrip pay rises 'for years to come'

Soaring house prices are likely to outstrip pay rises for at least the next five years ad possibly for decades to come, the government's official forecaster has warned.

China’s Exports Rise 7.2% as Imports Rebound From May’s Decline

China’s exports trailed estimates in June, suggesting support for growth from global demand will be limited as leaders try to defend their economic-expansion goal of about 7.5 percent this year.

Slow recovery leaves clouds over second quarter profits in Europe

LONDON, July 9 (Reuters) - The earnings outlook for European firms is on the mend, though a spate of profit warnings and some weak economic indicators mean the second-quarter reporting season is unlikely to give investors a decisive steer.

Australia business conditions at five-month high: survey

(Reuters) - A measure of Australian business conditions hit the highest in five months in June as a pick up in sales and profits helped firms stay confident in the wake of an unpopular federal budget.

Eurozone recovery to continue at moderate pace: think-tanks

FRANKFURT: The eurozone's economic recovery is set to continue at a moderate pace in the coming months, driven by domestic demand, three of Europe's leading economic institutes predicted on Friday.

Japan sees Ottawa trade talks as key to final stage by end-year

(Reuters) - Current trade talks in Ottawa between Japan, the United States and 10 other Pacific rim countries are key to advancing the planned Trans-Pacific Partnership (TPP) to its final stage by year-end, Japan's chief negotiator said on Saturday.

US economic recovery better than others in last 5 yrs: Obama

The US economic recovery after the recent global crisis is better than other countries, President Barack Obama said on Thursday with a latest report showing that America has seen the fastest job growth in the first half of the year, since 1999.

ECB's Coeure says only productivity growth will end low rates

(Reuters) - The only way to move from current low interest rates is to reinvigorate productivity in the euro zone, with states continuing reforms and budget consolidation, European Central Bank Executive Board member Benoit Coeure said on Thursday.

Global economy ends first half on a high: PMI

LONDON (Reuters) - The global economy ended the first half on a high as business activity picked up in June, with new orders pouring in at their fastest rate in over three years, a survey showed on Thursday.

London house prices soar 26 percent in a year, fastest pace since 1987

LONDON (Reuters) - London house prices soared 26 percent over the past year in the biggest annual jump since 1987 as the economic recovery and record-low interest rates stoked a boom in one of the world's most expensive property markets.

U.S. factory, auto sales data bolster growth outlook

(Reuters) - U.S. manufacturing activity rose at a steady clip in June and major automakers reported better-than-expected sales, pointing to momentum in the economy after a turbulent start to the year.

UK interest rates 'could return to 5% in long term'

Interest rates could rise to 5% in "the very long term", a senior Bank of England figure has said. Sir Charlie Bean, deputy governor for monetary policy, called it "reasonable" to think rates would return to pre-recession levels in 10 years or more.

ECB's Mersch says sees no acute risk of deflation

BERLIN (Reuters) - The European Central Bank sees no acute risk of deflation, Executive Board Member Yves Mersch said in an interview broadcast on Sunday, but what it does see is a long period of low inflation ahead.

Bank of Thailand Hopeful for Economic Recovery

BANGKOK--Thailand's central bank is hopeful that the country's economy will return to normal in 2015 given the greater clarity in the political situation as a result of the May 22 coup.

Argentina debt repayment must be returned, says US judge

A US judge has ordered that a debt repayment made by Argentina to US bondholders be returned, calling the payment "an explosive action".

Czechs to Keep Currency Cap for Longer on Low Inflation

Czech policy makers kept their koruna ceiling in place for a fifth meeting and said they won’t scrap the limit on the currency’s gains before the second quarter of 2015 due to slower inflation (CZCPYOY) at home and abroad.

Yellen may be poised to rewrite Fed's rule book on wages, inflation

(Reuters) - Federal Reserve Chair Janet Yellen wants to see U.S. wages climb at a much brisker clip to boost consumer spending and help workers recoup ground they lost in the last recession, but she'll have to fend off policymakers who fear that could cause inflation to surge.

Eurozone recovery losing momentum, PMI survey suggests

Economic activity in the eurozone slowed in June to its weakest rate in six months, a survey has suggested.

London is not in a property bubble, says Zoopla boss

London is not in a property “bubble” and ought to be an even more expensive place to live, the boss of the property website group Zoopla has claimed.

Economic recovery slow to ease Nevada child poverty

The number of children living in poverty in Nevada climbed 8.4 percentage points during the economic downturn and remained slightly above the national average in 2012, according to a report released Wednesday.

Risks remain for Irish economic recovery, says IMF

Dublin (AFP) - Ireland faces significant challenges as it begins a tentative economic recovery, the International Monetary Fund said Wednesday in its first review since Dublin exited an international bailout programme in December.

Eurozone recovery not strong enough, says IMF

The recovery in the eurozone is not strong enough, according to the International Monetary Fund (IMF). That's the assessment IMF head Christine Lagarde is delivering to eurozone finance ministers at a meeting in Luxembourg.

Retail sales dip 0.5% in May

UK retail sales fell for the first time since January last month, despite strong sales of replica football shirts ahead of the World Cup, official figures have shown.

Iran economy remains in distress amid sanctions: U.S.'s Lew

(Reuters) - U.S. Treasury Secretary Jack Lew said Iran's economy remained in a state of distress due to sanctions over its nuclear programme and that the United States would not rush into making a bad deal to prevent Iran from obtaining a nuclear weapon.

Optimism about the 2014 economy is fading

When it comes to the U.S. economy, the glass just went from half full to half empty. At the start of the year, economists were optimistic.

New Jersey's economic recovery still wobbly

TRENTON, N.J. (AP) - The New Jersey economy has so far replaced just about 40 percent of the jobs it lost from the recession.

Dubai faces moment of truth over looming property bubble

(Reuters) - "Keep calm. There's no bubble", proclaimed a giant poster on a 40-storey building overlooking a Dubai highway, advertising a property finding portal late last year. That may have been true at the time, but the risks are rising.

OECD sees U.S. growth accelerating through 2015

(Reuters) - The U.S. economic recovery should accelerate in coming months as an energy boom, steadily falling unemployment and a rebound in investment push growth to its fastest pace in a decade, the Organization for Economic Cooperation and Development said on Friday.

Vince Cable: Housing boom 'needs stopping'

Action must be taken to stop the "housing boom" in parts of the UK getting "out of control", according to Business Secretary Vince Cable.

Banks are not getting much use out of U.S. stress tests: survey

(Reuters) - The U.S. Federal Reserve wants banks to get something out of their annual stress tests beyond just ticking the box of regulatory compliance, but few banks actually do, according to a survey to be released later this week.

British wages slowing again as consumers remain under pressure

Britain's "cost of living crisis" will return to the fore today when official data shows real wages falling again.

South Africa platinum strike talks break down again

Talks aimed at ending the long-running strike in South Africa's platinum sector have collapsed, after the government pulled out of its role as mediator.

Bank of England's McCafferty says rate hike decision now more balanced

(Reuters) - The case for the Bank of England to raise interest rates is becoming more balanced, though there is still scope for the economy to grow further before rates go up, BoE policymaker Ian McCafferty said on Monday.

Fed’s Powell: Forward Guidance on Rates Has Bolstered Economic Recovery

The Federal Reserve‘s effort in recent years to provide forward guidance on the likely path of interest rates has helped bolster the U.S. economic recovery, Fed Governor Jerome Powell said Friday.

S&P and ABN Amro suffer Australian legal defeat

Two financial institutions have lost an Australian court appeal against a decision that they "deceived" investors prior to the 2008 financial crisis.

U.S. jobs report seen underscoring economy's resilience

(Reuters) - U.S. employers likely maintained a solid pace of hiring in May, returning employment to its pre-recession level and offering confirmation the economy has snapped back from a winter slump.

Drag in euro zone recovery supports call for ECB action

BRUSSELS (Reuters) - A slowdown in the euro zone's economic recovery in the first quarter was confirmed on Wednesday, likely reinforcing calls for bold action by the European Central Bank this week to fight low inflation and high unemployment.

India services activity grows for first time in nearly a year

(Reuters) - Activity in India's huge services industry expanded for the first time in nearly a year in May, driven by a surge in new business, a survey showed on Wednesday.

UK average house price hits all-time high, according to Nationwide

House prices in the UK have broken through their previous peak and the average cost of a home is now higher than ever before, according to the latest monthly survey by the country's largest building society.

Czech Manufacturing Expansion Underpins Economic Rebound

Czech manufacturing expanded the most in more than three years in May, signaling economic recovery is gaining strength on the back of orders from at home and abroad.

Spain to launch 6.3bn euro stimulus package

Spain will unveil a new stimulus package worth 6.3bn euros (£5.1bn; $8.6bn) next week, Prime Minister Mariano Rajoy has announced.

U.S. consumer spending dips; inflation creeps up

(Reuters) - U.S. consumer spending fell for the first time in a year in April after two months of solid gains, but the decline is likely temporary given a strengthening jobs market.

Japan consumer spending, factory output skid after sales tax hike

TOKYO (Reuters) - Japan's household spending in April fell at the fastest rate in three years in a sign that consumption could be slow to recover from an increase in the nationwide sales tax, raising questions over the pace of economic recovery.

Frustrated dollar bulls not giving up yet

This year has been trying for dollar bulls betting on stellar greenback gains, but they're not giving up yet.

Salmond: independent Scotland could be £5bn a year better off in 15 years

The Scottish government and the UK Treasury have set out rival visions of the costs and benefits of Scottish independence.

IMF says Spain has 'turned corner'

Madrid (AFP) - The IMF declared Tuesday that Spain's economic recovery is here to stay, hailing a return to growth and job-creation despite the nation's 26-percent unemployment rate.

World Bank: Floods could disrupt Balkans' power supplies for at least six months

SARAJEVO (Reuters) - Devastating floods in the Balkans this month mean economic growth in the region will be lower than forecast this year and power supplies could be disrupted for at least six months, the World Bank said on Monday.

Interest rate hikes would hit British car industry: UK Hyundai CEO

(Reuters) - A series of even small rises in British interest rates would be a big blow to the country's car industry, the CEO of Hyundai UK (005380.KS) told Reuters on Thursday.

Pound Climbs as Retail-Sales Surge Stokes Rate Bets

The pound strengthened for a fourth week against the euro as a jump in U.K. retail sales stoked speculation the Bank of England will hasten its plans to raise interest rates as the economy expands.

Economy, hostility push more Jews to quit France for Israel

PARIS (Reuters) - When Daniel, a Jewish small business-owner, first raised the idea of leaving France eight years ago, parents and friends talked him out of taking the leap.

Swiss bank pleads guilty to US tax evasion, fined $2.6bn

Swiss bank Credit Suisse pleaded guilty Monday to the charge that it facilitated wealthy Americans who sought to commit tax evasion, becoming the first major bank to admit criminal wrongdoing in over 20 years and agreeing to pay $2.6 billion in fines.

Spain With Greece Win Higher Debt Ratings on Growth Outlook

Spain’s credit rank was raised by Standard & Poor’s, while Fitch Ratings increased Greece’s grade, as the economic outlooks improve for countries that were at the heart of Europe’s sovereign debt crisis.

U.S. factory activity expands in May: Markit

The U.S. manufacturing sector expanded at a stronger-than-expected rate in May, while factory output growth hit its fastest pace since February 2011, an industry report showed on Thursday.

Eurozone businesses maintain steady growth

Business activity in the eurozone kept up a steady pace of growth in May, a survey has indicated, despite the pace of expansion slowing slightly.

Germany's Schaeuble congratulates Portugal on bailout exit

(Reuters) - German Finance Minister Wolfgang Schaeuble congratulated Portugal for exiting its bailout program in a letter made available to Reuters on Saturday, acknowledging reforms had not been easy but would eventually pay off.

Chile economy likely grew 2.5 pct in first quarter - cenbanker

RIO DE JANEIRO, May 16 (Reuters) - Chile's economy likely grew by 2.5 percent in the January-to-March period compared with a year earlier, the country's central bank chief said on Friday at a central bankers' seminar in Rio de Janeiro.

U.S. consumer sentiment slips in May, focus on wages

(Reuters) - A monthly gauge of U.S. consumer sentiment fell in May as a gloomy view on income growth clouded an otherwise positive economic outlook, a survey released on Friday showed.

Euro zone first-quarter growth disappoints, puts pressure on ECB to act

(Reuters) - The euro zone economy grew much less than expected at the start of the year and inflation remained locked in the 'danger zone' below 1 percent, increasing pressure on the European Central Bank to ease monetary policy at its next meeting in June.

Economic Recovery In The U.S. And Mexico Can Bolster Wal-Mart's First Quarter Results

Retail giant Wal-Mart struggled through most of fiscal 2014 as U.S. buyersspent cautiously even on their basic needs. As store traffic and consumer spending remained weak throughout the year, the retailer’s U.S. revenue per square feet declined by 0.4%.

Future of historic silver price benchmark in doubt

The future of a 117-year-old global benchmark determining the price of spot silver is in doubt after its administrator said it would cease operations.

Slow recovery holds back TUI Travel as tourists return to Greece

LONDON (Reuters) - TUI Travel, Europe's biggest tour operator by revenues, reported a dip in the number of holidays sold for this summer, as the slow pace of economic recovery in much of the region offset a resurgence in the popularity of travelling to Greece.

Canada sees little employment growth in last year

The Canadian economy shed 29,000 jobs in April while the unemployment rate remained flat at 6.9%, according to Statistics Canada.

Why global recovery could depend on China's taste for luxury

China's looming coronation as the world's largest economy, years ahead of schedule, is probably not particularly surprising in one sleepy corner of Oxfordshire.

Geithner on bailouts, Obama and public anger over bonuses

At the height of the financial crisis, former President Bill Clinton tried to brace then-Treasury Secretary Tim Geithner about the growing populist anger over the government's Wall Street bailouts.

Solis Takes Costa Rica Presidency Vowing Deficit Cuts

Costa Rica President Luis Guillermo Solis, in his first speech to the nation after being sworn in, said the Central American country’s fiscal deficit threatens the economy and should be resolved within two years.

Could take 5-8 years to shrink Fed portfolio: Yellen

(Reuters) - The U.S. Federal Reserve is in no rush to decide the appropriate size of its balance sheet, but if it ultimately shrinks it to a pre-crisis size, the process could take the better part of a decade, Fed Chair Janet Yellen said on Thursday.

Puerto Rico unveils economic recovery plan details

SAN JUAN, Puerto Rico (AP) -- Puerto Rico's government on Tuesday unveiled details of an economic recovery plan to pull the U.S. territory out of a nearly eight-year recession as it fights to trim $73 billion in public debt.

Spain gets jobs boost from recovery, Easter break

(Reuters) - The number of people registered as jobless in Spain fell sharply in April, data showed on Tuesday, as the service sector took on tens of thousands to staff restaurants and hotels over the Easter break.

Markets dip on poor China data

Asian stock markets slid on Monday after a survey showed that Chinese manufacturing shrank in April for the fourth month in a row.

Housing Recovery Leaves Millennials Out in the Cold

The housing market is moving toward a recovery – but it won’t take off for good until young Americans have enough money to buy their first home.

'Mission accomplished' as Portugal passes last bailout review

(Reuters) - Portugal's economy has passed a final review by its EU and IMF lenders, paving the way for a smooth exit from its 78 billion euro bailout program this month, the country's deputy prime minister and creditors said on Friday.

Spain economic recovery 'gathering pace'

MADRID (AP) — Spain's economic recovery will gather pace this year but unemployment is set to remain above 20 percent until 2017, according to government predictions Wednesday.

China's property inflation eases further in April: surveys

(Reuters) - Chinese home prices rose at a slower pace in April, two private surveys showed on Thursday, adding to signs of cooling in the country's property market.

Good news on the economy, but statistics don’t tell the whole story

Tuesday’s first-quarter GDP figures, showing output growth of 0.8pc were a tad disappointing for the City, where something a bit higher had been anticipated.

U.S. consumer confidence near six-year high, home prices rise

(Reuters) - U.S. consumer confidence dipped in April but remained near a six-year high, while home prices rose in February, suggesting the economy continued to regain momentum after a winter lull.

Deflation, emerging market fears set scene for tough EU bank tests

(Reuters) - Fears of euro zone deflation, emerging markets turmoil and a determination not to repeat past mistakes mean European regulators are likely to come up with the toughest set of tests for the region's banks that they have ever faced.

This is a low-pay 'recovery' built on the back of the working poor

The economic headlines have been rosy for the coalition in recent weeks. Expect more of the same on Tuesday, when growth figures are widely expected to show the recovery accelerated during the first three months of this year.

Many low-wage workers not protected by minimum wage

President Obama's push to raise the federal minimum wage to $10.10 an hour, coupled with recent state-level increases, is welcome news for many people getting by on small paychecks. But not every low-wage worker has to be paid the minimum wage.

Portugal's return to bond market fuels recovery hopes

Wednesday morning in Portugal and a corner was turned on the gruelling road to European economic recovery. One of many corners but a corner nonetheless.

UK government hits borrowing target in 2013-14

The UK government borrowed £107.7bn in the financial year to April 2014, lower than the £115.1bn amount it borrowed the previous year.

Japan can withstand tax hike pain: BOJ Deputy Governor Nakaso

(Reuters) - The Japanese economy is resilient enough to absorb the effects of the sales tax hike that kicked in this month, Bank of Japan Deputy Governor Hiroshi Nakaso said on Wednesday.

U.S. business borrowing for equipment rises 3 pct in March: ELFA

Companies signed up for $7 billion in new loans, leases and lines of credit last month, up 3 percent from a year earlier. Their borrowing rose 30 percent from February.

A tough sell: insurance against a China financial crisis

SINGAPORE (Reuters) - Selling insurance against a financial crisis should not be difficult, five years after the last one nearly wrecked the global economy.

The Hows and Why of Economic Optimism

The recovery from the financial crisis is now one of the longest in U.S. history, and economists don’t see it running out of steam anytime soon. But why are they so confident?

Vince Cable to bring in tougher penalties for 'dodgy directors'

Reckless company directors may have to compensate victims of their failed business dealings under new measures being brought forward by Vince Cable, the business secretary.

Japan government cuts economy view after sales tax; no need for fresh stimulus

(Reuters) - Japan's government slightly cut its overall view on the economy, its first downgrade in a year and a half, but officials shrugged off the need for more stimulus to support the economy.

Bank of England unlikely to rush into an early interest rate rise

Employment up by more than 250,000 on the quarter. The unemployment rate below 7% and at its lowest rate in five years. Average earnings are picking up and finally outpacing prices.

Bank of America reports $276m loss after $6bn legal hit

Bank of America has posted a $276m (£165m) loss for January to March.

EU banking union gets final approval from MEPs

MEPs have backed rules for a banking safety net to minimise the risk of further EU taxpayer-funded bailouts.

Britain's economy to enjoy 'decent but unspectacular growth' say forecasters

Britain's economy will enjoy "decent but unspectacular growth" with wages rising in real terms for the first time in six years and low inflation allowing the Bank of England to avoid raising interest rates before next year's general election, according to a group of economic forecasters.

Consumers' view of U.S. job market brightened in March: NY Fed

(Reuters) - U.S. consumers grew more confident in the labor market last month, with younger workers in particular seeing a greater chance of finding work should they lose their current job, a survey from the Federal Reserve Bank of New York said on Monday.

Germany Warns European Markets Not to Celebrate Prematurely

Germany’s top finance officials warned investors against prematurely celebrating an overhaul of Europe’s economies four years after they plunged into crisis.

China auto sales growth slows in March

Shanghai, April 11: Growth in auto sales in China —— the world’s biggest car market —— slowed sharply in March, an industry group said today as the economy weakens.

France, Italy not in same boat by EU budget rules: Eurogroup head

(Reuters) - France and Italy will get different treatment under European Union budget rules, because the situation of their public finances is different, the chairman of euro zone finance ministers, Jeroen Dijsselbloem, said on Friday.

Jobless claims at seven-year low, signal firming economy

WASHINGTON (Reuters) - The number of Americans filing new applications for unemployment benefits tumbled last week to the lowest level in nearly seven years, strengthening views of faster job growth.

Economic recovery 'not yet secure'

London (AFP) - Business lobby group the British Chambers of Commerce (BCC) on Tuesday warned that sustained economic recovery was "not yet secure" due to potential imbalances in the system.

China sees less policy room to fight growth slowdown

(Reuters) - China has less and less room to rely on policy tools to support the economy, the country's top economic planning agency said on Wednesday, as the government tries to arrest a protracted slowdown this year.

Five signs that the global economic recovery may be an illusion

The global economy seemed to be on the mend when the International Monetary Fund met for its spring meeting in Washington 10 years ago.

The Euro Zone Economy Is Feeling Frost In The Spring

Viewed from one perspective, the euro area is a minor miracle. Instead of collapsing in a heap, as seemed possible two years ago, the currency club is not just intact but has a new member, Latvia, which joined in January.

Payrolls in U.S. Rose 192,000 in March, Unemployment 6.7%

Companies powered the U.S. job market past a milestone in March as private employment exceeded the pre-recession peak for the first time, showing the kind of progress Federal Reserve officials look for to maintain their current policy course.

House prices accelerate again says Halifax

House price inflation has increased once again, according to figures from the UK's biggest mortgage lender.

IMF leader calls for bold policies to aid recovery

WASHINGTON (AP) — The head of the International Monetary Fund warned Wednesday that leading nations need to embrace bold policy steps to accelerate a still-modest and fragile global economic recovery.

Cyprus banks seeing signs of stabilisation, says IMF

Cyprus's economy is adjusting following the 2013 recession, which was "not as severe as anticipated", the International Monetary Fund (IMF) has said.

US manufacturing and construction growth quickens

Growth in US manufacturing accelerated in March from the previous month. The Institute for Supply Management's growth index rose to 53.7 from 53.2 in February.

Western banking regulations could be 'mutually destructive' – IMF report

Western governments have put in place banking regulations that could be "mutually destructive" and undermine efforts to prevent bust banks from costing taxpayers billions of pounds, according to a report by the International Monetary Fund.

UK retail sales jump in February, boding well for first-quarter growth

LONDON (Reuters) - British retail sales rose much faster than forecast in February, suggesting that the economy's solid recovery extended into the first quarter of the year, official data showed on Thursday.

Treasuries Post Monthly Loss as Fed Flattens Yield Curve

Treasuries are losing money for the first time since December as investors demand higher yields with the Federal Reserve signaling that a strengthening economy may prompt policy makers to raise rates sooner than forecast.

German Inflation Slows as ECB Prepares for Rate Meeting

German inflation slowed in March, indicating subdued price gains in Europe’s largest economy that could bolster the case for action by the European Central Bank.

IMF agrees bailout for Ukraine

The International Monetary Fund has agreed a $14-18bn bailout for Ukraine, a deal that will unlock further credits to reach a total of $27bn over the next two years.

U.S. services, private sector growth accelerate in March: Markit

(Reuters) - U.S. private sector economic activity growth accelerated in March at a faster clip than in February as the services sector picked up, even as business creation showed warning signs, an industry report showed on Wednesday.

Eurozone recovery 'gathering speed'

LONDON (AP) — Further evidence emerged Monday that the economic recovery across the 18-country eurozone is accelerating and, perhaps more importantly, spreading to the bloc's debt-laden laggards.

French business output grew in March, PMI survey says

France's private sector companies grew at their fastest pace in two and a half years in March, bucking forecasts for a further contraction, a survey says.

Fed guessing game intensifies while West isolates Russia

(Reuters) - The guessing game over U.S. interest rates is likely to intensify this week after new Fed Chair Janet Yellen raised the prospect of a hike early next year, while Russia's annexation of Crimea will keep investors focused on its next move.

Government borrowing edges up in February

A rise in local authority borrowing pushed up the government deficit by £9.3bn last month, but left George Osborne's deficit reduction plan on track, according to official figures.

BoJ will continue its monetary easing program - Kuroda

(Reuters) - Bank of Japan will continue to pursue its massive monetary easing program, with the Japanese economy only halfway to achieving its 2 percent inflation target, the central bank's governor said on Friday.

Yuan hits one-year low against U.S. dollar

China's yuan has tumbled to its lowest level in a year, just days after the country's central bank doubled its trading range against the dollar.

UK budget set to mark election battle lines

London (AFP) - Chancellor of the Exchequer George Osborne will on Wednesday spell out his government's spending plans for the coming year, with another dose of austerity likely to be offset by some tax perks.

Stocks gain after reports on economy, Ukraine

NEW YORK (AP) — The stock market rose Tuesday after some encouraging news on the economy and on hopes that the conflict between Russia and the West wouldn't escalate further after Russia's President Vladimir Putin said that it won't take over other areas of Ukraine.

Incoming BOK Governor Sees Korea Rate Increase Looming: Economy

Incoming Bank of Korea Governor Lee Ju Yeol said South Korean households need to prepare for higher interest rates, bolstering analysts’ forecasts for an increase as inflation picks up.

U.S. Treasury's Lew welcomes Chinese currency move

(Reuters) - The United States welcomed China's recent decision to allow its currency's value to vary more against the U.S. dollar, a Treasury spokesperson said on Sunday.

Hotels a bright spot in economic recovery

The hotel industry has staged an impressive comeback from the depths of the recession, with California poised to see considerably more investment in real estate acquisitions and new development, a panel of experts agreed on Friday.

'Pent-up' housing market demand dying down, Rics says

The "furore" in the UK housing market is dying down because a recent surge in demand is "gradually exhausting itself", according to surveyors.

BOJ Faces Red Light as Yen Exporting Deflation: Chart of the Day

Bank of Japan Governor Haruhiko Kuroda may face resistance from developed-nation peers to expanding record stimulus because the currency impact may undermine global economic growth, according to BNP Paribas SA.

Job Openings in the U.S. Increased in January as Hiring Fell

Job openings in the U.S. increased less than expected in January, a sign labor-market cooling from late 2013 persisted as severe winter weather hammered the eastern and midwestern U.S.

UK manufacturing starts 2014 on good footing, weather hits oil and gas output

LONDON, March 11 (Reuters) - British manufacturers started 2014 on a solid footing in January but bad weather caused the broader measure of growth in industrial output to slow sharply, official data showed on Tuesday.

Australia business conditions suffer setback in February: survey

(Reuters) - A measure of Australian business conditions pulled back sharply in February from the three-year highs touched the previous month, though firms surveyed remained relatively upbeat on the outlook for the economy.

Bank of England reveals concern about strength of sterling

Bank of England concern about the pound's strength has been revealed in comments from one of Threadneedle Street's top officials, who has said a further rise in sterling would damage hopes of an export boost to the economy.

Spain struggles to pull together multibillion euro highway bail-out

(Reuters) - The Spanish government is working against the clock to reach a deal with builders over a multibillion euro bail-out for nine bankrupt motorways which could directly hit the country's deficit.

Gains in U.S. job growth expected, but weather may weigh

(Reuters) - U.S. hiring likely picked up enough in February to keep the Federal Reserve on track in reducing its monetary stimulus.

UK interest rates kept at record low

UK interest rates have been held at 0.5% for another month, the Bank of England has said.

Scottish independence: Adviser Beveridge backs currency union plan

The head of the Scottish government's fiscal advice group has urged SNP ministers to stick with their planned monetary union under independence.

China February export, import growth seen slowing further

(Reuters) - China's export and import growth likely slowed in February, causing its trade surplus to shrink by more than half, a Reuters poll showed, reinforcing views that its economic momentum is weakening as leaders prepare to unveil key targets for 2014.

Manufacturing in U.S. Expands More Than Projected: Economy

Manufacturing expanded at a faster pace than projected in February, showing the U.S. economy is making headway in emerging from the harsh winter weather that has slowed growth in early 2014.

Euro zone lending contraction compounds ECB headache

(Reuters) - Lending to households and firms in the euro zone fell again in January and money supply growth remained subdued, adding to pressure on the European Central Bank to take action next week to support the economy.

Economy just muddling along

The economy merely muddled along at the end of the year, but economists call it "impressive" given the federal spending cuts and the government shutdown in October.

Britain's housing market shows no sign of cooling down, says Nationwide

Britain's buoyant housing market showed no signs of cooling in February with the average price of a home 9.4% higher than a year earlier according to Nationwide.

HK economy forecast to grow up to 4 pct in 2014

HONG KONG (AP) -- Hong Kong's finance chief forecasts that the economy of the Asian financial center could grow up to 4 percent this year after expanding 2.9 percent in 2013.

Italy and France to lag Germany in euro zone recovery

(Reuters) - Germany is set to accelerate away from France and Italy in 2014 as the fragmented euro zone economy gradually recovers from its worst crisis, the European Commission said on Tuesday.

Budget must focus on youth jobless, business chiefs say

Chancellor George Osborne must include measures in the Budget in March to address youth unemployment and training, says the British Chambers of Commerce.

US, IMF 'stand ready' to help Ukraine rebuild ailing economy

Sydney (AFP) - The United States and the International Monetary Fund offered Sunday to assist Ukraine in rebuilding its battered economy following devastating protests that have plunged the country into its worst crisis since independence.

UK's economic recovery fragile, warns Asda boss

LONDON (Reuters) - Britain's economic recovery is fragile, with huge regional variations, the head of Asda supermarkets said on Thursday as the company reported flat sales over the key Christmas quarter.

Emerging markets must do homework, says German minister

FRANKFURT (Reuters) - Emerging markets should get their own houses in order before demanding solidarity from other nations, German Finance Minister Wolfgang Schaeuble said.

World economic recovery struggling to gain traction

(Reuters) - Another month of slower factory activity in China and a sharp decline in a closely-watched gauge of U.S. manufacturing on Thursday added to concern about the state of the global economy.

Gold demand softens by 15% globally as economic recovery heats up

For much of the financial crisis, investors knew there was nothing quite so good as gold. Speculators flocked to buy into the traditional safe-haven investment, and its value in effect tripled between 2007 and 2012.

Retailers urge new business rate system

There should be a new business rate system for shops based on energy use, the retailing body the British Retail Consortium (BRC) has said.

Foreign banks bracing for tough U.S. Fed capital rules

(Reuters) - Overseas banks look set to win only minor concessions when the Federal Reserve signs off on new capital rules next week, as they become increasingly resigned to the fact that the cost of doing business in the United States will go up.

Mark Carney says UK housing market in widespread recovery

Bank of England governor Mark Carney says the UK housing market is generally recovering.

Summers Backs Yellen’s Debut in Fed Chair Role He Wanted

Federal Reserve Chair Janet Yellen is generally taking the right approach in continuing efforts to boost a tepid U.S. economic recovery, former U.S. Treasury Secretary Lawrence Summers said in an interview airing today.

Euro-Area Growth Eases Pressure on Draghi for Stimulus

The euro-area economy expanded more than forecast in the final quarter of 2013, led by Germany and France, easing pressure on the European Central Bank to take action next month to counter low inflation and spur growth.

China Exports Boom Suggests Economic Recovery

Exports and imports in China shot up more than 10% in January compared to the year earlier, calming fears about economic malaise even as it elicited some skepticism about the accuracy of the country’s trade data.

Scottish independence: 'Yes' vote means leaving pound, says Osborne

UK Chancellor George Osborne has said a vote for Scottish independence would mean walking away from the pound.

Yellen: Federal Reserve stimulus cuts to continue

The new chair of the Federal Reserve, Janet Yellen, has said the bank will continue to cut its stimulus measures for the US economy.

Canada Proposes Law to Reduce Consumer Price Gaps With U.S.

Finance Minister Jim Flaherty said his government plans to introduce legislation to try to stop companies from charging higher prices in Canada than they do in the U.S.

Oil hovers near $100 on hopes of US recovery

Oil hovered near $100 a barrel Monday on hopes that the U.S. economic recovery can be sustained despite January's poor payrolls report.

IMF: Pakistan economy improving, reform on track

DUBAI, United Arab Emirates (AP) — The International Monetary Fund said Sunday that Pakistan has met nearly all of its quantitative performance markers, that its economy is showing signs of improvement and that its reform program remains broadly on track.

ECB to gain far-reaching powers as euro zone banks' supervisor

(Reuters) - The European Central Bank will attain significant powers over the euro zone's commercial banks once it becomes their supervisor later this year, including withdrawing bank licences and assessing acquisitions, it said on Friday.

UK economic optimism soars, boosting Cameron's political capital

LONDON (Reuters) - Optimism about Britain's economy has reached its highest level since 1997 thanks to an unexpectedly strong recovery, boosting Prime Minister David Cameron's economic credentials ahead of a 2015 election, a poll showed on Thursday.

German December industrial orders fall but upwards trend intact

(Reuters) - German industrial orders unexpectedly fell in December by 0.5 percent, Economy Ministry data showed on Thursday, but the two-month average was still up 1.1 percent thanks to an upwardly revised surge in November intake.

Help us develop economy, Equatorial Guinea leader asks investors

MALABO (Reuters) - Equatorial Guinea wants international investors and financial institutions to help open up and diversify its energy-dependent economy, its president said on Tuesday, while insisting the nation's oil and gas wealth was a "blessing and not a curse".

Factory, construction spending data hint at slowing economy

(Reuters) - U.S. manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years while construction spending barely rose in December, pointing to some loss of steam in the economy.

Japan stocks plunge off highs

What goes up must come down: Shares in Tokyo fell almost 2% on Monday, continuing to erase last year's runaway gains.

Emerging markets inflow numbers point to exit by bond investors

The release this week of updated capital inflow data by the Institute of International Finance could not have been better timed.

Obama asks CEOs for help hiring long-term jobless

WASHINGTON (AP) — Confronting the persistent joblessness that has marred the economic recovery, President Barack Obama won commitments Friday from more than 300 companies to reach out in their hiring to the nearly 4 million Americans who have been unemployed for half a year or more.

Japan’s Backward Recovery

Japan’s current economic recovery is different from any other period of expansion in recent years.

Emerging markets crisis sees rush for safe havens

Investors sought out the safe havens of German bonds and the Swiss franc on Wednesday after deep splits in Turkey over interest rate increases meant only the briefest of respites from the escalating crisis in emerging markets.

State of the Union: Obama promises action on inequality

US President Barack Obama has promised to bypass a fractured Congress to tackle economic inequality in his annual State of the Union address.

India raises interest rates rise to stem inflation

India's central bank has unexpectedly raised interest rates in an attempt to rein in stubbornly high consumer prices in a crucial election year.

Britain's car industry may inspire more balanced economic recovery

LONDON (Reuters) - A bumper year for Britain's car industry offers some hope the economy will start to grow in a more sustainable way, with a better balance between investment and spending.

Davos 2014: ECB's Draghi sees 'dramatic improvement' in eurozone recovery

The head of the European Central Bank, Mario Draghi, says there has been a "dramatic improvement" in the eurozone recovery over the past two years.

Canada's economic recovery 'relatively strong': PM Harper

TEL AVIV (Reuters) - Canada's economic recovery has been quite strong, and could continue to improve as the global economy advances, Prime Minister Stephen Harper said on Wednesday.

Euro zone debt level drops for first time in six years

(Reuters) - Euro zone government debt fell for the first time in nearly six years in the third quarter of 2013, adding to signs the bloc is emerging from its crisis even if the debt level remains well above the EU's limit.

IMF Raises Global Outlook as Advanced Nations Accelerate

The International Monetary Fund raised its forecast for global growth this year as expansions in the U.S. and U.K. accelerate, and urged advanced economies to maintain monetary accommodation to strengthen the recovery.

Job prospects fall in four parts of the UK, finds TUC

The chances of finding a job in some parts of the UK have fallen despite an overall improvement in employment prospects, according to a report.

S&P Removes Portugal From Creditwatch as Negative Outlook Kept

Portugal’s long-term government bond rating was removed from “creditwatch” by Standard & Poor’s, reducing the risk of a downgrade, as the country sticks to a European Union-led bailout program.

Euro zone trade surplus grows as imports fall in November

(Reuters) - The euro zone trade surplus widened in November because imports fell more sharply than exports, data from the EU's statistics office Eurostat showed on Wednesday, pointing to continued weakness of domestic demand.

High street sales jump 2.6% in unexpected Christmas surge

Shoppers splashed out over Christmas, with official figures showing retail sales rose by 2.6% in December, way ahead of City forecasts of 0.2%.

Brazil Signals Inflation Will Extend World’s Biggest Rate Rise

Brazil’s central bank signaled it will extend the world’s biggest interest rate increase after last year’s surge in consumer prices made slowing inflation a greater concern to policy makers than reviving economic growth.

Retail sales, inventory data suggest strong fourth-quarter growth

(Reuters) - U.S. retail sales edged up in December with a core spending gauge posting a big jump, a sign the economy gathered steam at the end of last year and was poised for stronger growth in 2014.

UK Treasury had no choice but to give Scottish independence debt pledge

In reality, the Treasury had little choice but to take responsibility for the UK's entire debt stock in the event of Scottish independence.

ECB's Mersch says recovery on wobbly legs

(Reuters) - The euro zone economic recovery is still very tentative and fragile and is Europe's number one challenge for 2014, European Central Bank Executive Board member Yves Mersch said on Monday.

US bank results set to reignite controversy over City bonuses

Controversy over City pay is likely to be reignited this week when the major US banks – including JP Morgan and Goldman Sachs – release their results for 2013.

French economy rebounded in late 2013, figures suggest

PARIS, Jan 10 (Reuters) - French GDP is likely to have grown strongly in the final quarter of last year and industrial output surged in November, figures showed on Friday, marking a welcome turnaround for the euro zone's second largest economy.

Trio of weaker data reports takes shine off UK recovery

LONDON (Reuters) - Britain's economic recovery got a "reality check" on Friday when data showed weaker-than-expected manufacturing output, a sharp fall in the construction sector, and a slowdown in retail sales growth.

China inflation hits 7-month low, eases tightening fears

BEIJING: China's annual consumer inflation slowed more sharply than expected to a seven-month low of 2.5 percent in December, easing market fears of monetary policy tightening although the central bank is tapping the brakes on bank liquidity.

Euro zone unemployment holds at record high, retail sales rebound

(Reuters) - Euro zone retail sales leapt in November even though unemployment remained at a record high, hinting at a pick up in consumer demand that would ease deflation worries and relieve pressure on the ECB to loosen policy.

Surprise Canada Trade Gap and Spending Drop Hurt Currency

Canada unexpectedly reported a return to large merchandise trade deficits and a decline in business investment, pushing the dollar to the weakest in three years and suggesting a transition away from consumer spending as the primary economic growth driver is further delayed.

Euro zone economic recovery gathers steam

The euro zone's economic recovery showed signs of gathering pace Monday as services and manufacturing activity in the region expanded in December, according to the latest data from analysis firm Markit.

Gold Rises to Two-Week High on Physical Demand; Platinum Gains

Gold futures rose to a two-week high amid signs of increasing demand for bars and coins. Platinum climbed to the highest since November.

Fed no less committed to stimulus after cut to QE: Bernanke

(Reuters) - The U.S. Federal Reserve is no less committed to highly accommodative policy now that it has trimmed its bond-buying stimulus, Ben Bernanke said on Friday in what could be his last speech as Fed chairman.

UK construction industry posts eighth consecutive month of growth

A range of new commercial building projects helped the construction industry expand again last month and companies are increasingly confident about the year ahead.

At year's end: Economic recovery is taking shape

The question in an economic recovery invariably flips, in time, from when will it finally occur to what will it look like.

Euro zone gets 18th member: Latvia

Starting Wednesday, Latvians began swapping their old currency -- lats -- in exchange for euros, making Latvia the 18th country to join the euro currency union.

China's factory growth slower but resilient at year end

BEIJING: Growth in China's factories slowed slightly in December as export orders and output weakened, official data showed on Wednesday, adding to views that while the world's second-largest economy remains resilient, it lost some steam in late 2013.