France's Christine Lagarde is to become the first female managing director of the IMF, at a time of heightened global financial nerves. In a television interview after her appointment, Ms Lagarde pressed Greece to move quickly to push through unpopular austerity measures that the IMF and EU had said were a prerequisite for further aid. Greece subsequently approved the measures. In my view, this is simply a case of musical chairs. The real issue is not being dealt with - yet, and it will inevitably rise to the fore once again...
German 10-year bonds posted their third weekly gain as investors sought the safest assets on concern the fallout from Europe’s sovereign-debt crisis will derail the region’s recovery.
China surpassed Japan as the world’s second-largest economy last quarter, capping the nation’s three- decade rise from Communist isolation to emerging superpower.
Greece has met the conditions to receive the second tranche of a 110bn euro rescue loan, the European Commission says.
The latest data for U.S. unemployment claims showed new claims rose by 12,000 to a nine-month, seasonally adjusted high of 500,000, renewing concerns over the country’s weak labor market recovery, according to Reuters.
The Policy Exchange think tank says interest rates may soar to 8% within the next two years to combat rampant inflation.
Asian stock prices are lower, with Japan’s Nikkei 225 Stock Average entering a bear market on speculation a U.S. home sales report today will provide more evidence the world’s largest economy is faltering.
The US economy grew 1.6% in the second quarter, revised down from 2.4%, but still better than economists expected. Recent data on the US economy had raised worries that the US was entering a double-dip recession, dragging the rest of the world with it.
As US economic growth is revised downwards, Federal Reserve chairman Ben Bernanke lays out "unconventional" policy options.
Most Asian stocks fell, paring the MSCI Asia Pacific Index’s fourth straight weekly gain, after an increase in U.S. jobless claims damped the outlook for global economic growth.
The Bank of England should consider pumping more money into the economy to secure the recovery, says a monetary policy committee member. External member Adam Posen advocated resuming the policy of quantitative easing (QE), under which the Bank has already pumped £200bn into the economy.
UK industrial production rose in August as the manufacturing sector continued to expand despite the uncertain economic outlook, figures show. Production rose by 0.3% compared with the previous month, and 4.2% compared with a year earlier.
The Japanese cabinet approves a plan to pump more than $60bn (£38bn) into the country's struggling economy.
Growth in the UK economy is slowing, with the service sector particularly affected, two surveys suggest. Growth in the UK economy is slowing, with the service sector particularly affected, two surveys have suggested. A report from the British Chambers of Commerce (BCC) said economic growth in the third quarter was "considerably" slower than the previous quarter.
Bank of England policy maker David Miles said officials must not withdraw stimulus too soon, signaling that they may have to ignore an inflation rate that still exceeds the government’s 3 percent limit.
The number of people unemployed in the UK fell by 20,000 to 2.45 million in the three months to August. This meant the overall UK unemployment rate fell to 7.7% from 7.8% the Office for National Statistics (ONS) said.
The US trade deficit was wider than expected in August following record imports from China, official figures show. The US trade deficit was wider than expected in August, figures have shown, in the wake of record imports from China. US Commerce Department figures showed the gap between imported and exported goods grew by 8.8% to $46.4bn (£29bn).
The UK is facing rising global competition for business investment, and will need to work hard to maintain its position, the CBI warns.
Japan's central bank keeps its interest rates near zero but brings forward its next monthly meeting to follow the US policy meeting. The Bank of Japan's (BoJ) decision, made just weeks after the country unexpectedly cut rates to that level, was widely expected.
Retail sales growth slowed in October from the month before, according to the latest CBI distributive trades survey. The CBI said that although sales rose for the fourth month running, the slower pace reflected a more subdued housing market.
EU leaders agree tough rules for eurozone countries and set up a permanent fund to support the euro, as they aim to avoid another financial crisis. EU officials said the eurozone had almost collapsed earlier this year because it lacked a mechanism to check national budgets.
The rate of growth in UK manufacturing output rose in October for the first time since March, a survey finds. The Chartered Institute of Purchasing and Supply (CIPS) said its Purchasing Managers' Index rose to 54.9 from September's 10-month low of 53.5. With a figure of 50 or above indicating growth, it is a sign of renewed strength in the manufacturing sector.
The Australian and Indian central banks both raise interest rates by a quarter percentage point amid fears of rising inflation. The Central Bank of Australia put up rates from 4.5% to 4.75%, surprising markets with the first rise since May. India's rise, the sixth this year, was less unexpected.
Government spending cuts and the rise in VAT in January will result in more than 1.6 million job losses over the next six years, research suggests.
The Federal Reserve will announce on Wednesday its plans to stimulate the US economy, with quantitative easing likely to be reintroduced. Many analysts expect the Fed to start pumping around $500bn (£310bn) into the economy to boost the fragile recovery.
Job appointments grew at their slowest rate in 10 months in August, raising questions about the strength of the UK job market, a survey suggests. The Recruitment and Employment Confederation (Rec) said both permanent and temporary placements rose at their weakest rate since October 2009.
The global financial system and world economy are set to dominate the agenda at a meeting of the G20 in South Korea. But there are fears the summit in Seoul could descend into a row between the US and China about so-called "currency wars" and trade imbalances. President Barack Obama pleads with G20 leaders to put aside differences and work together for global economic recovery.
China's inflation rate has hit a two-year high, largely due to rises in food prices, despite the government's efforts to dampen price rises. October inflation hit a higher-than-expected 4.4%, up from September's 3.6%, the Bureau of Statistics said.
China’s commodities futures tumbled today with cotton, sugar and rubber falling by the daily limits on speculation China may take additional measures to curb inflation by lifting interest rates again and selling from reserves. Copper, zinc and soybeans also slid.
Japanese stocks fell, led by exporters on the outlook for slower global growth, and as banks declined on concern they will not be exempt from stricter capitalization rules as speculated earlier this week.
India’s industrial production growth unexpectedly slowed to a 16-month low in September, signaling consumer demand is waning after Asia’s fastest round of monetary policy tightening this year. Stocks and bond yields fell.
The pace of economic recovery has slowed in Europe's major economies, according to official estimates. Germany, Europe's largest economy, has seen a sharp slowdown in the third quarter, with growth of 0.7% compared with the record expansion of 2.3% it reported in the previous three months. In France, GDP grew by 0.4% between July and September, compared with growth of 0.7% in the previous quarter. The 16 eurozone members grew 0.4% on average, down from 1% growth before.
The Irish Republic is in preliminary talks with eurozone officials for financial support. It is now no longer a matter of whether but when the Irish government formally approaches the European Financial Stability Fund (EFSF) for a bailout. The provisional estimate for EFSF loans is believed to lie between 60bn and 80bn euros ($82-110bn; £51-68bn).
Japanese stocks rose as the nation’s economy grew faster than expected in the third quarter, boosted by domestic demand, and the yen weakened.
The governor of the Irish Central Bank says he expects the Irish Republic to accept a "very substantial loan" as part of an EU-backed bail-out.
The Republic of Ireland and the EU have agreed a financial rescue package, Irish Prime Minister Brian Cowen confirms. Mr Cowen said the amount and terms would be negotiated in the coming days with the EU and the IMF.
Lisbon says it will not require an EU-led financial rescue package, despite growing speculation that it will need assistance. Prime Minister Jose Socrates made the comments, saying that what the country needed instead was confidence in its economy.
British factories saw the pace of growth surge to a 16-year high in November. Rising demand abroad and at home drove production to climb at the fastest pace since May and led to the first increase in backlogs of work for five months, the Markit/CIPS purchasing managers' index (PMI) reported.
Hopes that Britain's manufacturers can help fuel the economic recovery have been buoyed after growth at UK factories hit a seven-month high in October, double the forecast rate of expansion.
Economic activity in the eurozone has picked up but the recovery is likely to be muted, an OECD report says. Countries using the euro must consolidate public finances even though this is likely to dampen economic growth in the near term, the OECD said.
The UK Consumer Prices Index (CPI) annual inflation rate rose to 3.3% in November, up from 3.2% in October, official figures show. It followed record price rises for the October to November period in food, clothing and furniture, the Office for National Statistics (ONS) said. CPI inflation remains well above the government target of 2%.
The European Parliament has approved a revised EU budget for 2011 which includes a 2.9% increase in spending. The total budget is set at 126.5bn euros (£107bn). A compromise was hammered out after the member states' governments rejected a demand from MEPs for a 6% increase. MEPs also wanted a bigger say in the EU's multi-year budget for 2014-2020.
EU leaders agree to set up a permanent mechanism to bail out any member state whose debt problems threaten the 16-nation eurozone. The eurozone stability mechanism will require a change to the EU's Lisbon Treaty - but the wording has now been agreed, diplomats say.
Argentina will likely receive the International Monetary Fund's final recommendations on the design of a new national consumer price index next April. An IMF technical mission that visited Buenos Aires from Dec. 8 through Thursday met with representatives of the national statistics agency, Indec, private sector users of official data, and academic experts, the multilateral organization said in a press release Thursday.
U.K. consumer confidence fell to a 20-month low in November as the looming government budget squeeze dented Britons’ outlook for 2011, Nationwide Building Society said.
In news that will worry the Bank of England and the Treasury as they try to secure a still-fragile economic recovery and limit fears of inflation, British households say that they expect their living standards to fall sharply – and inflation to jump in the next few months.
The continuing financial problems in the eurozone pose a threat to UK banks, the Bank of England warns. The Bank further said "overheating" in emerging markets, such as China and India, could eventually hit UK lenders.
The amount of new public sector borrowing hit a fresh record high in November, according to the Office for National Statistics (ONS). Net borrowing totalled £23.3bn last month, up from £17.4bn a year ago, and more than analysts had expected.
Japan keeps its key interest rate at between zero and 0.1% as policymakers try to bolster the country's fragile economic recovery. Japan has been suffering from a strong yen, weak exports and almost two years of falling prices.
British factories will keep powering away in 2011 even as Government spending cuts take their toll, according to the sector's biggest trade body. Manufacturing will grow more modestly than last year but will still outpace the wider economy at a 3.5pc annual rate, EEF, the manufacturers' organisation, predicts.
The MPC is divided between camps in favour of loosening monetary policy, tightening it or keeping the base rate at 0.5%
The Bank of England should "hold its nerve" and avoid pressure to raise interest rates, an influential economics forecaster says. The Ernst & Young ITEM Club says any increase in the bank base rate from the current historic low of 0.5% could endanger the economic recovery.
Small firms have seen a production boost as domestic demand for UK-made goods increases, a report suggests.
Standard & Poor's warns that it could downgrade US government debt due to concerns about its growing deficit, hitting markets around the world.