IMF calls on UK to do more to boost economy
The International Monetary Fund has issued a tough assessment of U.K. economic policy, urging the coalition government and Bank of England to do more to boost demand in the economy.more
OECD sees euro crisis threatening world recovery
PARIS (Reuters) - The United States and Japan are leading a fragile economic recovery among developed countries that could yet be blown off course if the euro zone fails to contain the damage from its problem debtor states, the OECD said on Tuesday. In its twice-yearly economic outlook, the Paris-based Organization for Economic Co-operation and Development forecast that global growth would ease to 3.4 percent this year from 3.6 percent in 2011, before accelerating to 4.2 percent in 2013, in line with its last estimates from late November. ...more
Eurozone warned 'severe recession' looming
The 17-country eurozone risks falling into a "severe recession," the Organization for Economic Cooperation and Development warned on Tuesday, as it called on governments and Europe's central bank to act quickly to keep the slowdown from dragging down the global economy.
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Greece's caretaker gov't meets ahead of EU summit
Greece's caretaker prime minister will convene a meeting of Cabinet members ahead of this week's summit of European Union leaders that's expected to look into spurring economic growth across the continent.more
China targets infrastructure to lift economy, report says
BEIJING/SHANGHAI (Reuters) - China will fast track approvals for infrastructure investment to combat a slowdown in the economy, a state-backed newspaper reported on Tuesday, showing how Premier Wen Jiabao's call for policies to support growth is being put into action. The pace of investment in the likes of roads, bridges and real estate is running at its weakest in nearly a decade, April data showed, suggesting the world's second-biggest economy is heading for a sixth straight quarter of slowing growth. ...
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Marks & Spencer profits plunge 19%, slashes target
British clothing-to-food retailer Marks & Spencer on Tuesday announced a drop in annual profits in a "challenging economic environment," forcing it to slash the group's revenue growth target.
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World stocks rise on Europe, China growth hopes
World stock markets rose Tuesday, perked by hopes that Europe and China will take steps to boost flagging economic growth.more
Youth joblessness 'won't ease until 2016'
Youth joblessness is almost back at its peak following the outbreak of the global economic crisis and is unlikely to ease until at least 2016, the International Labour Organization warned Tuesday.
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OECD says euro crisis main risk to world growth
The intensifying eurozone crisis poses the most serious risk to the muted recovery in the global economy, with the United States and Japan set for modest growth, the OECD said Tuesday.
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UK April inflation hits lowest in more than 2 years
LONDON (Reuters) - Inflation fell to its lowest in more than two years in April, raising the prospect that the Bank of England will be able to inject more stimulus later this year to support the economy. The Office for National Statistics said consumer price inflation eased to 3.0 percent in April from 3.5 percent in March, freeing BoE Governor Mervyn King from the obligation to write an explanatory letter to finance minister George Osborne. ...
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OECD warns risk of 'severe recession' in eurozone
The 17-country eurozone risks falling into a "severe recession," the Organization for Economic Cooperation and Development warned on Tuesday, as it called on governments and Europe's central bank to act quickly to stop the slowdown spilling over into the global economy.
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U.S. Senate approves tougher Iran sanctions
WASHINGTON (Reuters) - The U.S. Senate unanimously approved on Monday a package of new economic sanctions on Iran's oil sector just days ahead of a meeting in Baghdad between major world powers and Tehran. The sanctions add to a raft of punitive measures by the United States and the European Union aimed at shrinking Iran's oil revenues to force it to halt a nuclear program the West suspects is being used to build an atomic bomb. Iran has said its nuclear program is for civilian purposes. ...more
U.S. Senate approves tougher Iran sanctions
WASHINGTON (Reuters) - The U.S. Senate unanimously approved on Monday a package of new economic sanctions on Iran's oil sector just days ahead of a meeting in Baghdad between major world powers and Tehran. The sanctions add to a raft of punitive measures by the United States and the European Union aimed at shrinking Iran's oil revenues to force it to halt a nuclear program the West suspects is being used to build an atomic bomb. Iran has said its nuclear program is for civilian purposes. ...more
Japan tax hikes can't wait; BOJ stimulus still needed: OECD
PARIS (Reuters) - Japan should stick to its plan of raising the consumption tax from 2014 or even earlier to demonstrate budget prudence and avert a run-up in borrowing costs, the OECD said, adding that a credible fiscal consolidation plan must be top priority. The Organisation for Economic Co-operation and Development also urged the central bank to maintain the zero rate policy and quantitative easing mainly via asset purchases until inflation returns and reaches the Bank of Japan's target of 1 percent. ...more
S.Korea economy to pick up but at slower pace: OECD
PARIS (Reuters) - South Korea's economy will gather pace over the coming quarters and the country's central bank will need to raise interest rates to keep inflation within its target, the OECD said in a report on Tuesday. Growth in Asia's fourth-largest economy will slow to 3.3 percent in 2012 from 3.6 percent in 2011, but pick up to 4 percent in 2013, the Organisation for Economic Co-operation and Development (OECD) said in a report. ...more
India's economic growth to quicken in 2013: OECD
PARIS (Reuters) - India's economic growth is likely to rise to more than 7.5 percent in calendar year 2013 but continued government policy uncertainty could erode the country's longer-term growth prospects, the OECD said on Tuesday. A cyclical upturn in investment, stronger external demand and the effects of recent monetary easing will boost growth, the report said, although it warned that high inflation would dampen the investment climate. ...more
"Fiscal cliff" could derail U.S. recovery: OECD
WASHINGTON (Reuters) - A sharp fiscal contraction next year could derail the U.S. economic recovery, the Organization for Economic Cooperation and Development warned on Tuesday as it urged the government to move only gradually to tighten its budget. A wave of U.S. spending cuts and tax hikes - dubbed the "fiscal cliff" - are set to take effect in January unless politicians agree on ways to delay at least some of them. Bush-era tax cuts and jobless benefits for the long-term unemployed are both set to expire. In addition, $1. ...more
China 2012 growth to slow to 8.2 percent, recover in 2013: OECD
PARIS (Reuters)- Chinese growth is likely to slow to 8.2 percent this year, its weakest in more than a decade, before government support helps it rebound to 9.3 percent in 2013, the Organisation for Economic Co-operation and Development (OECD) said on Tuesday. The OECD cut its growth forecast for the world's second-largest economy from 8.5 percent made last November. That is still higher than a government target of 7.5 percent for 2012. ...more
Euro zone risks vicious circle of debt: OECD
PARIS (Reuters) - The OECD called on EU leaders on Tuesday to ease the pace of austerity, saying aggressive budget cuts to curtail the euro zone's debts threaten to suck the currency area into a downward spiral that could spill over into the global economy. German-led fiscal austerity policies have so far dominated the European Union's approach to solving Europe's devastating public debt crisis as leaders try to win back investors' confidence. But efforts to reduce deficits have caused the euro zone's economy to stagnate, making it harder to reach EU-mandated targets. ...more
Oil hangs below $93 as stock rebound buoys crude
Oil prices hung below $93 a barrel Tuesday in Asia, holding gains from the previous day as crude followed global stock markets higher.more
G8 steps up plans to aid Arab Spring economies: US official
WASHINGTON (Reuters) - Industrialized nations have stepped up plans to help countries swept up in the Arab Spring rebuild their economies through more access to international credit markets, investment and trade, a senior State Department official said on Monday. Undersecretary of State Robert Hormats said while headlines from a G8 leaders' summit at the weekend focused on the economic crisis in the euro zone, the meeting also underscored efforts needed to stabilize the transition economies of Egypt, Libya, Jordan, Morocco and Tunisia. ...
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S.Africa rand recovers, euro zone worries a threat
JOHANNESBURG (Reuters) - South Africa's rand was steady against the dollar in early Tuesday trade but remained vulnerable to uncertainty over the economic fate of some euro zone countries, which has tended to dampen risk appetite in recent months. The rand traded at 8.2305 by 0643 GMT, little moved from Monday's closing level of 8.2350. The rand has recovered about 2.6 percent of its value against the greenback since hitting a five-month low of 8.4475 last Friday, and could come under renewed pressure if a long- term solution to liquidity problems in some European countries remains elusive. ...
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N.Zealand frames flat budget, eyeing euro crisis
New Zealand's conservative government has signalled it will deliver an austerity budget on Thursday which assumes the struggling economy will be buffeted by a sharp recession in Europe.
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New Zealand to ban foreign-flagged fishing boats
WELLINGTON (Reuters) - New Zealand is to ban the use of foreign-flagged fishing boats in its waters to improve working conditions for crews and monitoring of catches, the government said on Tuesday. New Zealand has the fifth-largest exclusive economic zone in the world, extending from 12 to 200 nautical miles offshore, and the fishing industry relies heavily on foreign vessels. The zone produced NZ$1.5 billion ($1.1 billion) in exports last year. ...more
Asia stocks up amid hopes China to boost growth
Hopes China will announce new measures to boost economic growth helped push Asian stock markets higher Tuesday.more