Hiring Probably Limited by Slowing Growth: U.S. Economy Preview

The pace of hiring in July probably failed to reduce the U.S. jobless rate, which has been stuck above 8 percent for more than three years, economists said before a report this week.

Debt crisis: Germany's Angela Merkel and Italian PM Mario Monti vow to protect euro

German Chancellor Angela Merkel and Italian Prime Minister Mario Monti have agreed to do everything to protect the euro zone and swiftly implement measures agreed by EU leaders in June.

Spanish bail-out 'impossible’, experts warn

A full-blown sovereign bail-out of Spain would be economically and politically impossible and cost up to €650bn (£510bn), an in-depth study has warned.

Britain's economy sinks far deeper into recession than forecast

LONDON: Britain's economy shrank far more than expected in the second quarter, battered by everything from an extra public holiday to government spending cuts and the neighbouring euro zone crisis.

Hungary plays safe, decides against rate cut

BUDAPEST (Reuters) - Hungary's central bank kept interest rates steady for a seventh consecutive month on Tuesday as an escalating euro zone crisis poses risks to confidence in the forint, overruling calls by some rate-setters for looser policy to shore up a weak economy.

Fall in eurozone PMI heralds return to recession

Eurozone services and manufacturing output shrank for a sixth straight month in July, with the downturn becoming entrenched in the core countries of Germany and France.

Spain economy contracted 0.4% q/q in Q2: Central Bank

MADRID: Spain's economy sank deeper into recession in the second quarter, the Bank of Spain said on Monday, as markets spooked by funding problems in the country's regions pushed it ever closer to a full international bailout.

China's tight job market defies economic downturn

BEIJING (Reuters) - Workers living through the slowest run of global economic growth in more than three years are in fear for their jobs everywhere except in the very place investors are most concerned about - China.

Global Economy: Crash or Gradual Slowdown?

The debate over whether the world's economy is facing a dramatic crash has gained traction in recent weeks, as the euro zone debt crisis continued to dominate headlines and worries about other major economies like the U.S. and China grew.

IMF: eurozone in critical danger, ECB should launch QE

The eurozone is in "critical" danger and the European Central Bank should play a bigger role in fighting the debt crisis through more rate cuts, QE and further liquidity provision, the International Monetary Fund has said.

UK inflation slows to two-and-a-half year low

British inflation fell to its lowest in more than two-and-a-half years in June helped by early summer sales of clothes and shoes, easing pressure on cash-strapped households.

S&P down for seventh day in eight

NEW YORK (Reuters) - A surprise decline in June retail sales was the latest worrying sign from the economy, pushing stocks slightly lower on Monday, but Citigroup's earnings limited losses.

Greece works on $14.1 bn in budget cuts promised to EU-IMF creditors

ATHENS: Senior Greek ministry officials were meeting on Friday to detail 11.5 billion euros ($14.1 billion) in budget cuts promised to EU-IMF creditors, a finance ministry source said.

Italy's economy to shrink at least 2.4% this year

ROME: Italy's economy will contract by 2.4 percent or more this year, the head of the employers federation Giorgio Squinzi said on Thursday, doubling the official government forecast of a 1.2 percent shrinkage.

Glimmers of Hope Fail to Lift European Markets

LONDON — European industrial production rebounded unexpectedly in May, according to data released Thursday, and Italy’s short-term borrowing costs dropped, providing glimmers of hope that have been rare lately in the euro zone.

Government must find extra £17bn of cuts, OBR warns

Britain must find an additional £17bn of spending cuts or tax rises to help defuse an impending demographic timebomb, the government's official forecaster has warned.

US hails 'progress' in Pacific trade talks

The United States said "significant progress" was made in talks aimed at creating an ambitious trade agreement with eight other Pacific Rim countries.

Clinton Digs at China From Neighboring Mongolia

ULAN BATOR, Mongolia — _In an unmistakable message to China delivered in a speech from this neighboring country, Secretary of State Hillary Rodham Clinton said Monday that economic success without meaningful political reform was an unsustainable equation that would ultimately lead to instability.

Clinton urges pressure on Russia, China over Syria

(Reuters) - U.S. Secretary of State Hillary Clinton urged world powers on Friday to show Russia and China they would pay a price for impeding progress toward a democratic transition in Syria.

Greece looks to easier rescue terms, eurozone gloom returns

ATHENS: The new Greek government presents on Friday a strategy to salvage its debt rescue programme, win favour with EU-IMF auditors and gain room to renegotiate terms with the EU and IMF.

US designates Afghanistan as major ally: Hillary Clinton

KABUL: The United States has designated Afghanistan a major non-NATO ally, giving the war-torn country special privileges as the US prepares to pull its troops out in 2014, Secretary of State Hillary Clinton said today.

UN Security Council extends South Sudan peacekeepers

UNITED NATIONS (Reuters) - The U.N. Security Council renewed a peacekeeping mission in South Sudan for second year on Thursday as U.N. chief Ban Ki-moon warned the future of the year-old state was tied to developing good relations with former civil war foe Sudan.

West Bank high life masks deepening economic crisis

RAMALLAH, West Bank (Reuters) - Past the Israeli sentry towers blackened by firebombs and the entrance to a refugee camp emblazoned with posters of rifle-clenching militants, downtown Ramallah sparkles.

Spain to unveil new austerity steps soon: Sources

MADRID: Spain's government is putting finishing touches to an up to 30 billion euro ($38 billion) package of spending cuts and tax hikes to help it meet this year's deficit targets, sources with knowledge of the matter said.

Manufacturing shrinks, first time in nearly three years

(Reuters) - Manufacturing shrank in June for the first time in nearly three years as new orders plummeted, according to one measure of the sector that showed the starkest sign yet of the extent of the slowdown in the economy.

Iran vows to confront "malicious" embargo

(Reuters) - Iran pledged to counter the impact of a European Union oil embargo which took full effect on Sunday, saying it had built up $150 billion in foreign reserves to protect itself.

Fed officials eye darker U.S. growth, jobs picture

(Reuters) - Federal Reserve officials on Friday said they were keeping an eye out for any signs that slowing growth is raising deflation risks but differed on how worrisome sluggish job markets are for the modest U.S. economic recovery.

Europe's bold rescue plan still awaiting details

BRUSSELS: Europe's leaders surprised skeptics with a bold plan to pump cash into troubled banks, reduce borrowing costs for Italy and Spain and stop forcing austerity on every government that needs aid.