The latest in Euro Zone

Analysis: Economy to show stamina as global growth slows

2011-12-22T21:30:06Z

WASHINGTON (Reuters) - The economy is gaining momentum and should push through next year with only a few bruises despite an almost certain European recession and slower global growth.

A firming in the anemic labor market should put the economy in reasonable shape to withstand headwinds from overseas, although the recovery will likely slow at the start of the year after a ...

Surprise 0.6% growth in third quarter

2011-12-22T11:30:32Z

Britain's economy showed unexpectedly strong growth of 0.6 percent in the third quarter, official data revealed on Thursday, but the country still faces possible recession in the new year.

The Office for National Statistics (ONS) revised higher its estimate for gross domestic product (GDP) growth between July and Se...

Analysis: For euro zone, a year of deleveraging dangerously

2011-12-22T07:30:14Z

LONDON (Reuters) - With governments laboring under too much debt and banks hobbled by too little capital, 2012 is shaping up as another year of hard slog for Europe's economy that could yet test the single currency to destruction.

The Netherlands on Thursday became the ...

German economic data bring sparkle to eurozone gloom

2011-12-20T09:30:34Z

Two leading sentiment indicators in Germany surprised on the bright side here on Tuesday, bringing a rare touch of Christmas sparkle to the pall of gloom hanging over the eurozone.

The Ifo economic institute said it was bringing "good tidings" with the announcement that its closely watched business sentiment index defied analysts' expectations for the second month in a row and rose to 10...

Italian budget in home stretch, unions on warpath

2011-12-18T15:00:05Z

ROME (Reuters) - Italy's austerity budget, vital to get Rome's accounts in order and help save the euro from collapse, enters its final stretch this week, with unions still mounting roadblocks to its path.

The 33 billion euro ($43 billion) package of cost cuts and new taxes was pass...

Trade finance drying up amid financial crisis

2011-12-17T16:30:09Z

Trade finance is drying up amid the financial crisis, threatening jobs and economic growth, trade sources warned Saturday.

Banks like Credit Agricole and BNP Paribas -- two of the 25 financial institutions most active in such financing -- have recently reduced their trade financing business, said a trade source on the sidelines of...

ECB chief says euro zone on right track

2011-12-15T09:00:07Z

BERLIN/BRUSSELS (Reuters) - Europe's top central banker said on Thursday that euro zone governments are on the right track to restore market confidence but reminded the...

German manufacturing shrinks for 3rd month in December: PMI

2011-12-15T03:00:06Z

BERLIN (Reuters) - German manufacturing contracted for a third straight month in December and looked unlikely to provide a lift to Europe's largest economy soon as new orders continued to dry up, a survey showed on Thursday.

The purchasing managers' index (PMI) for the sec...

German manufacturing shrinks for 3rd month in December - PMI

2011-12-15T02:00:10Z

The purchasing managers' index (PMI) for the sec...

Analysis: Growth to bear brunt of euro crisis cure

2011-12-13T10:30:33Z

LONDON (Reuters) - Europe's economic prospects next year are so bleak that 2011, for all the euro's agonies, has every chance of being remembered fondly.

In forging a fiscal compact that aims to put the single currency on a firmer long-term footing, euro zone leaders have s...

Europe must do more to end crisis: Canada c. bank

2011-12-12T20:30:34Z

The head of Canada's central bank on Monday welcomed European efforts last week to address a deepening debt crisis but warned of much pain ahead for the eurozone and said EU nations must do more.

European Union leaders from 26 of the 27 member states at a two-day Brussels

U.S. firms build cash buffer to European crisis in Q3

2011-12-08T10:30:13Z

WASHINGTON (Reuters) - U.S. companies sat on their largest pile of cash on record during the third quarter, providing a substantial buffer against any blow that might come from Europe's debt crisis, data from the Federal Reserve showed on Thursday.

Non...

China expected to grow 8.9% in 2012: report

2011-12-08T04:30:30Z

China will further relax credit restrictions next year as the world's second largest economy slows and exports decline due to woes in Europe and the United States, according to a state-run think tank.

Gross domestic product is expected to expand 8.9 percent next year, according to forecasts by the Reuters) - France and Germany want a new EU framework to speed up progress towards a common corporate tax base and a financial transaction tax as well as convergence of financial regulation and labor market policies, ...

France vows powerful summit deal

2011-12-07T04:30:42Z

PARIS (Reuters) - The leaders of France and Germany will not leave this week's EU summit until a "powerful" deal is reached to arrest the euro zone debt crisis, ...

Slovenia mayor faces tough coalition talks

2011-12-05T02:30:15Z

LJUBLJANA (Reuters) - Slovenia tasked the mayor of its capital city on Monday with establishing a government to stop the euro zone member's slide back into recession, and he faces potentially weeks of tough coalition talks.

The Europ...

Italy PM meets unions ahead of crisis plan approval

2011-12-04T05:30:08Z

ROME (Reuters) - Prime Minister Mario Monti met unions on Sunday to build support before the cabinet approves a 20-billion-euro package of austerity measures aimed at shoring up Italy's strained finances and stemming a crisis that threatens to overwhelm the LJUBLJANA (Reuters) - Slovenians voted for a new government on Sunday with the centre-right opposition set to return to power on a pledge of painful reforms to halt the European Union member's slide back into recession.

2011-12-02T12:30:34Z

BOSTON (Reuters) - European governments have "a long way to go" in improving their fiscal positions and solving a spreading sovereign debt crisis, said Boston Federal Reserve Bank President Eric Rosengren.

The ...

Factories growing despite global slowdown

2011-12-01T09:00:26Z

WASHINGTON (Reuters) - Factories shrugged off weakness in the global economy during November as manufacturing activity rose to its highest level in five months, giving a fresh sign that the American economy could be accelerating.

Also pointing to stronger growth, U.S. construction spending increased more than expected in October.

"We could see an acceleration in the moment...

ECB's Noyer says must stabilize bonds as Europe in crisis

2011-11-30T02:30:26Z

SINGAPORE (Reuters) - Europe's debt crisis has significantly worsened, threatening global markets, so it is essential to stabilise the region's bond markets, European Central Bank governing council member Christian Noy...

Government slashes economic growth outlook

2011-11-29T18:30:54Z

The government slashed its growth outlook on Tuesday, blaming the impact of the eurozone debt crisis, and unveiled a £30-billion infrastructure scheme to help kickstart the economy.

Finance minister George Osborne, delivering his autumn statement to parliament, insisted however that there would be no let-up in the coalition's plans to axe the deficit and s...

Britain slashes economic growth outlook

2011-11-29T18:30:27Z

The British government slashed its growth outlook on Tuesday, blaming the impact of the eurozone debt crisis, and unveiled a £30-billion infrastructure scheme to help kickstart the economy.

Finance minister George Osborne, delivering his autumn statement to parliament, insisted however that there would be no let-up in the coalition's plans to axe the defic...

UK growth slows to crawl, austerity to persist

2011-11-29T06:30:17Z

LONDON (Reuters) - Britain's coalition government unveiled sharply lower economic growth forecasts on Tuesday and said it would take much longer than hoped to wipe out its deficit, meaning tough austerity measures would extend beyond the next election due in 2015.

Finance Minister BRUSSELS (Reuters) - Worries about the euro zone's debt crisis worsened in November and dragged the European Commission's economic and consumer sentiment index to a two-year low, heightening the risks of a recession in ...

Morgan Stanley further cuts Asian growth forecast

2011-11-28T04:30:45Z

Morgan Stanley further slashed its growth forecasts for Asia next year due to increasing risks from the debt crisis in Europe and weakening domestic demand.

Asia excluding Japan is now expected to grow 6.9 percent instead of its previous estimate of 7.3 percent, the US bank...

Global economic recovery petering out: OECD

2011-11-28T02:30:11Z

PARIS (Reuters) - The global economic recovery is running out of steam, leaving the euro zone stuck in a mild recession and the United States at risk of following suit, the OECD said on Monday, sharply cutting its forecasts.

The threat of even more devastating...

IMF denies in Italy aid talks

2011-11-28T01:00:09Z

ROME (Reuters) - Italy's prime minister faces a testing week as he seeks to shore up the country's strained public finances, with an IMF mission expected in Rome and market pressure building to a point where outside help may be needed to stem a full-scale debt emergency.

However, an IMF spokespe...

Italy's PM in austerity race, IMF denies in aid talks

2011-11-28T00:30:12Z

However, an IMF spokespe...

Struggling to stay above water

2011-11-27T15:30:28Z

WASHINGTON (Reuters) - The world economy is on a slippery slope. The euro zone appears to have tipped into a mild recession and the rest of the global economy is struggling to hold onto firm ground.

China is slowing, DUBLIN (Reuters) - Standard & Poor's warned on Wednesday that credit ratings in the euro zone could come under renewed pressure if large parts of the currency bloc slip back into recession, as expected, next year.

David Beers, the global head of sove...

EU leaders to brief Obama on debt crisis at summit

2011-11-22T08:00:25Z

BRUSSELS (Reuters) - President Barack Obama will offer what guidance he can on how to resolve the European debt crisis when he meets the EU's top officials at a summit in Washington next week, the U.S. ambassad...

Pressure for fast action after Spain election win

2011-11-21T01:00:06Z

MADRID (Reuters) - Prime Minister elect Mariano Rajoy was under pressure on Monday to give rapid details of his policies to overcome the worst economic crisis for generations, after his center-right party won Spain's biggest election victory i...

Center-right wins Spain election

2011-11-20T13:30:33Z

MADRID (Reuters) - The opposition People's Party (PP) won a crushing victory in Spain's election on Sunday as voters vented their rage on the ruling Socialists for the worst economic crisis in generations.

The Socialists conceded a humiliating defeat as official results showed the PP projected to take an ab...

Spaniards vote to find way out of crisis

2011-11-20T05:00:10Z

MADRID (Reuters) - Spaniards reeling from an economic crisis voted on Sunday in an election expected to throw out the ruling Socialists and bring in a center-right party which promises only harsher austerity measures.

A grim mood dominated as people went to the polls against a background of soaring unemployment, cuts in public spending and a debt c...

Economic crisis takes toll on bankers

2011-11-19T20:30:26Z

The pressure on London bankers to get to grips with the global financial crisis has led to stress, depression and insomnia among City workers, affecting even the most experienced bosses.

The phenomenon was brought to light when the chief executive of Lloyds Banking Group, Antonio Horta-Osario, announced that he was...

Economic crisis takes toll on Britain's bankers

2011-11-19T20:30:12Z

The pressure on London bankers to get to grips with the global financial crisis has led to stress, depression and insomnia among City workers, affecting even the most experienced bosses.

The phenomenon was brought to light when the chief executive of Lloyds Banking Group, Antonio Horta-Osario, announced that he was...

UK businesses see euro crisis as biggest challenge: poll

2011-11-19T16:30:28Z

More than two-thirds of business leaders in Britain believe the eurozone debt crisis will be the biggest challenge facing the country's economy next year, an opinion poll showed Sunday.

Seventy percent of business chiefs believe the euro crisis is "the biggest single factor likely to impact on the UK economy in 2012," showed the poll for the Reuters) - Italian Prime Minister Mario Monti comfortably won a vote of confidence in his new government on Thursday after promising rigor and fairness in painful reforms to dig the country out of a financial crisis that threatens the entire euro zone.

Outli...

Emergency post-election measures won't save Spain

2011-11-17T09:30:45Z

MADRID (Reuters) - Spain's new government may rush through emergency measures immediately after Sunday's parliamentary election, but unless the euro zone finds a durable systemic solution to its debt crisis, Madrid will still be forced to...

Analysis: Emergency post-election measures won't save Spain

2011-11-17T07:30:27Z

France and Germany clash over ECB crisis role

2011-11-17T03:00:24Z

PARIS/ROME (Reuters) - France and Germany, Europe's two central powers, have stepped up their war of words over whether the European Central Bank should intervene more forcefully ...

Spain admits it will miss 2011 economic growth target

2011-11-16T17:30:21Z

Spain's Socialist government admitted for the first time Wednesday it will miss its 2011 economic growth target, just four days before an expected election drubbing.

Spain's sovereign borrowing costs inched up meanwhile, raising the stakes for the next government amid tension on international markets about whether the company could fall victim to the eurozone debt crisis.

...

France, Germany clash over ECB role to stem crisis

2011-11-16T08:00:34Z

PARIS/ROME (Reuters) - France and Germany, Europe's two central powers, clashed on Wednesday over whether the European Central Bank should intervene more forcefully to halt the

Euro zone looks to Italy, Greece moves to ease crisis

2011-11-15T18:00:09Z

ROME/ATHENS (Reuters) - The euro zone looks for some respite on Wednesday, with Italy due to unveil a technocrat-led cabinet and a new Greek coalition expected to win a confidence vote, as Europe battles to prevent its debt woes from dragging down the world econom...

Germany, France prop up growth as eurozone crisis widens

2011-11-15T17:30:30Z

Berlin and Paris propped up the crippled eurozone with resilient growth figures Tuesday but France was buckling on tense bond markets as Italy and Greece raced to install new governments.<...

Euro zone barely grows in Q3, downturn seen

2011-11-15T04:30:15Z

BERLIN/PARIS (Reuters) - The euro zone economy grew just 0.2 percent in the third quarter as Germany and France posted solid growth but countries at the sharp end of the ...

Germany, France post solid growth, outlook bleaker

2011-11-15T04:30:10Z

BERLIN/PARIS (Reuters) - The euro zone economy grew just 0.2 percent in the third quarter as Germany and France posted solid growth but countries at the sharp end of the debt crisis f...

Euro zone posts growth, but downturn seen likely

2011-11-15T03:00:12Z

BRUSSELS (Reuters) - The 17-nation euro zone economy grew a modest 0.2 percent in the third quarter from the second, the EU said on Tuesday, lifted by France and

New Italian, Greek governments race to limit damage

2011-11-14T04:00:10Z

ROME/ATHENS (Reuters) - Technocrat leaders in Italy and Greece rushed to form governments as they sought to limit the damage from the euro zone debt crisis on Monday, and the euro climbed on relief that a key Italian bond auction drew dec...

IMF chief calls for 'political clarity' in Greece, Italy

2011-11-10T09:30:10Z

The head of the International Monetary Fund called Thursday for greater "political clarity" in Greece and Italy, after talks with Chinese leaders dominated by Europe's worsening debt crisis.

Greece and Italy are grappling with domestic political upheaval brought on by t...

Pace of economic growth seen waning into 2012: Reuters poll

2011-11-09T07:30:32Z

NEW YORK (Reuters) - An acceleration in the pace of U.S. economic growth in the second half of this year is expected to ebb as 2012 gets underway, although the odds of another recession have receded to one-in-four, a Reuters poll showed on Wednesday.

Encouraged by a recent pick-up in economic data, the consensus from more than 60 respondents showed a better view on the final three months of the year and ...

Italian borrowing costs reach breaking point

2011-11-09T05:00:17Z

ROME/LONDON (Reuters) - Italian borrowing costs reached breaking point on Wednesday after Prime Minister Silvio Berlusconi's promise to resign failed to raise optimism about the country's ability to deliver on long-promised economic reforms.

Italian 10-year bond yields shot above the 7 percent level that is widely deemed unsus...

J.C. Flowers holding cash to weather market turmoil: founder

2011-11-09T02:00:08Z

HONG KONG (Reuters) - Private equity firm J.C. Flowers & Co will keep "a lot of cash on hand" to weather global market turmoil and to stay ready for potential buyout opportunities, founder J. Christopher Flowers said on Wednesday.

Determining the outcome of the sovereign debt crisis of Europe's biggest, looks set to come to a standstill later this year as the eurozone debt crisis increasingly takes its toll, industrial output data showed Monday.

Industrial production in September contracted by 2.7 percent compared to the previous month, the economy ministry said in a statement, a much steeper decline than expected.

At the same time, the ministry...

Euro zone's political bumbling risks global gloom

2011-11-07T02:31:05Z

L'ISLE-SUR-LA-SORGUE, France (Reuters) - The euro zone's repeated failure to tackle its debt crisis is catapulting the bloc toward recession, raising the specter of dangerous spillovers to the rest of the world economy.

Whittling down the euro area's mountain of debt was always going to be a long sl...

Comments by policymakers at Cannes G20

2011-11-04T07:30:40Z

CANNES, France (Reuters) - Following are comments on Friday by policymakers attending the Group of 20 Summit in Cannes, France, and other euro zone officials, as

German manufacturing shrinks in Oct for 1st time in 2 years: PMI

2011-11-02T02:30:28Z

BERLIN (Reuters) - Germany's manufacturing sector contracted in October for the first time in more than two years as new orders fell for a fourth month in a row, data showed on Wednesday in the latest sign Europe's bulwa...

Wall Street of worry not as steep to climb

2011-10-31T19:30:29Z

Confidence may not be as dire as the index indicates

In my last column I made the statement that if only we could ignore Europe, global economic fears would not be so ominous since there were indications the U.S. economic slowdown had bottomed and a nascent recovery might be underway.

We’ve now received more evidence of the latter. The most obvious was Thursday’s report that t...

Portugal wants U.S. help in euro crisis: source

2011-10-29T08:00:12Z

ASUNCION (Reuters) - Portugal asked Mexico on Saturday to tell fellow G20 members next week that the United States should offer "financial help" to resolve the euro zone

World awaits Europe's answer to debt crisis

2011-10-25T20:30:13Z

European leaders faced intense pressure on Wednesday to deliver on a promise to resolve the debt crisis at a summit crucial to the world economy as they battled to protect Italy from collapse.

European Union presidents and prime ministers gather for their second summit in three days with markets demanding a watertight deal to defuse fears that the crisis will deteriora...

Fate of Italy clouds Europe make-or-break summit

2011-10-25T19:30:23Z

Europe struggled to finalise a grand deal to end its festering debt crisis Tuesday on the eve of a summit vital to the world economy but clouded by fears of Italy following in the footsteps of bailed-out Greece.

Global markets were lower in cautious trade as investors awaited the summit for a long-awaited game-plan as the

US stocks slide on economic, Europe worries

2011-10-25T18:30:23Z

US stocks sank Tuesday on indications of a still-weak economy and worries that European leaders might not reach a deal on resolving the eurozone debt crisis on the eve of a key summit.

"Yesterday's confidence stemming from economic optimism, hopes of a debt deal coming out of tomorrow?s EU summit, and positive earnings reports out of the Reuters) - The euro zone's private sector tipped further into decline in October, according to business surveys on Monday that showed the bloc's economy is in serious danger of lurching from stagnation into outright recession.

Shrinking order books and plummeting confidence sent euro zone factories into contraction for the third month...

Comments from European Union leaders' summit

2011-10-23T09:00:25Z

BRUSSELS (Reuters) - European Union leaders met on Sunday to try to hammer out a comprehensive plan for tackling the euro zone debt crisis, but a breakthrough is not expected until another summit on Wednesday.

Following are...

Europe Debt Rules

2010-12-03T11:44:45Z

FILE - In this Thursday, March 18, 2010 file photo, a statue which depicts a woman holding up the symbol of the euro is seen at the European Parliament in Brussels. The debt crisis has forced eurozone governments to rewrite some of the currency union's most fundamental rules. But to dig the region out of its current predicament, g...

APTOPIX Belgium Ireland Financial Crisis

2010-11-28T08:01:21Z

Irish Finance Minister Brian Lenihan arrives for a round table of eurozone finance ministers at the EU Council building in Brussels on Sunday, Nov. 28, 2010. Finance ministers from the eurozone and the EU are meet in Brussels Sunday to agree on a financial aid assistance package for ...

Belgium Ireland Financial Crisis

2010-11-28T07:00:34Z

From left, Swedish Finance Minister Anders Borg, British Chancellor of the Exchequer George Osborne, Luxembourg's Finance Minister Jean Claude Juncker, French Finance Minister Christ...

German Europe Finance Crisis

2010-05-21T03:45:19Z

German Chancellor Angela Merkel reacts during the final parliament debate of an euro 750 billion (US $1 trillion) eurozone rescue package in Berlin, Friday, May 21, 2010. (AP Photo/Markus Schreiber)

Copyright 2010 German Chancellor Angela Merkel leaves the parliament during the debate about the 750 billion Euro rescue package in Berlin, Wednesday, May 19, 2010. German parliament Bundestag was meeting to consider the 750 billion euro (US dlrs 1 trillion) rescue package to help