Greek politics, Spain banks test eurozone survival
Chaos in Greek politics and Spanish banking combined this week to underscore just how fragile Europe's economy remains after an eviscerating austerity regime that has spawned unemployment, desperation and misery. And there is no respite in sight, as Germany's finance minister predicted Friday that the crisis could last up to another two years.
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Eurozone crisis drives stocks lower despite Facebook frenzy
World stock markets fell again in nervous trade on Friday and the euro hit a new four-month low against the dollar as ratings agencies further downgraded Greek and Spanish banks.
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Repsol: Exploratory oil well off Cuba comes up dry
An exploratory oil well off the northern coast of Cuba has proved a failure and will be capped and abandoned, Spanish company Repsol said Friday, a disappointment for a cash-strapped nation hoping for an economic lifeline.
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State unemployment rates in April, at a glance
The unemployment rate fell in two-thirds of U.S. states last month, evidence that modest economic growth is boosting hiring in most areas of the country.more
Oil slips and posts third weekly loss
NEW YORK (Reuters) - Oil prices fell on Friday in tug-of-war trading, posting a 2012 low and a third straight weekly loss as debt problems in Greece and Spain kept concerns about the euro zone economy in focus. Crude futures felt pressure from news that European officials were working on contingency plans in case Greece exits the euro zone and from a ratings downgrade of 16 Spanish banks by Moody's Investors Service. Helping push oil lower early was data showing Chinese home prices in April fell for a second month in a row from year-ago levels. ...
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Romney warns economy is on ''path of California''
WASHINGTON (Reuters) - Republican presidential candidate Mitt Romney warned on Friday that the U.S. economy faced a huge fiscal hole and high taxes like the state of California if he did not win November's election against President Barack Obama. Seeking to keep his focus on economic issues, the comments were a departure for Romney, who usually holds up Europe's economic troubles, not California's, as an example of what could happen to the American economy. "There are only two ways to go: Like America in the past," Romney said. ...
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Unemployment rate falls in two-thirds of US states
The unemployment rate fell in two-thirds of U.S. states last month, evidence that modest economic growth is boosting hiring in most areas of the country.more
Obama presses Europe for shift to growth focus
WASHINGTON (Reuters) - U.S. President Barack Obama pressed Europe on Friday to shift toward a more pro-growth policy and away from austerity to tackle a crisis that threatens to push Greece out of the euro zone and send economic shockwaves worldwide. Setting the tone for a weekend G8 summit, Obama made clear he was aligning himself with the new French president's drive for more economic stimulus in the recession-plagued euro zone instead of emphasizing belt-tightening programs spearheaded by Germany. ...
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Obama presses Europe for shift to growth focus
WASHINGTON (Reuters) - U.S. President Barack Obama pressed Europe on Friday to shift toward a more pro-growth policy and away from austerity to tackle a crisis that threatens to push Greece out of the euro zone and send economic shockwaves worldwide. Setting the tone for a weekend G8 summit, Obama made clear he was aligning himself with the new French president's drive for more economic stimulus in the recession-plagued euro zone instead of emphasizing belt-tightening programs spearheaded by Germany. ...more
A look at economic developments around the globe
A look at economic developments and activity in major stock markets around the world Friday:more
Bankers survey shows rural economies remain strong
The economy remains strong in rural areas of 10 Midwest and Western states because of the health of agricultural businesses there, according to a new survey of banks serving rural areas.more
Chinese entities world's biggest economic spies-Pentagon
WASHINGTON (Reuters) - The Pentagon said on Friday it believes China spent up to $180 billion on its military buildup last year, a far higher figure than acknowledged by Beijing, and it accused "Chinese actors" of being the world's biggest perpetrators of economic espionage. The Pentagon, in its annual report to Congress on China's military, flagged sustained investment last year in advanced missile technologies and cyber warfare capabilities and warned that Chinese spying threatened America's economic security. ...
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Putin seeking control in Russian cabinet selection
MOSCOW (Reuters) - President Vladimir Putin will likely name allies to key economic posts when he unveils his new cabinet on Monday, asserting control over the government in a move that could hamstring reforms backed by his more liberal premier. At stake is the future of Russia's privatization program and the drive to diversify a $1.7 trillion Russian economy still heavily dependent on oil and gas exports, which yield half of all state revenues. "It will be Putin's cabinet," said Lilia Shevtsova, a senior associate at the Carnegie Moscow Center think-tank who is an author and expert on Putin. ...
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News Summary: Taiwan's Ma set for 2nd term
TENSIONS EASED: Taiwan President Ma Ying-jeou has leveraged growing economic ties with China to reduce tensions to their lowest level since the two sides split in 1949.
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Sudan set to devalue pound amid oil crunch: sources
KHARTOUM (Reuters) - Sudan, hit by an economic crisis since losing crucial oil revenues, will effectively devalue the pound by allowing foreign exchange bureaux to trade dollars at a level away from the official rate, a banking source and Sudanese media said on Friday. Sudan's economy has been battered since the country lost three-quarters of its oil production to South Sudan when the latter became independent in July. Even though the pipelines are in Sudan, the two have been unable to agree on how much the South should pay to transport its oil. ...
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Tourism in Myrtle Beach leads economic recovery
A new Coastal Carolina University study has found tourism in the Myrtle Beach area led the recovery from the Great Recession, bouncing back faster than other areas of the economy along the state's Grand Strand.more
Kenya's KenGen eyes $686 mln gas-fired power plant
NAIROBI (Reuters) - Kenyan electricity generating company KenGen plans to raise funds from private investors for a $686 million gas-fired power plant to run on imported liquefied natural gas (LNG), Managing Director Eddy Njoroge said on Friday. KenGen, which relies largely on hydro power, said the plant would help meet growing demand for electricity and help prevent frequent blackouts in east Africa's biggest economy caused by generation shortfalls and an ageing grid. ...
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Unemployment rates fall in two-thirds of US states
Unemployment rates fell in two-thirds of U.S. states last month, evidence that modest economic growth is boosting hiring in most areas of the country.more
Canada April inflation sparks more rate-hike talk
OTTAWA (Reuters) - Inflation in Canada was slightly higher than expected in April, providing the Bank of Canada with more reason, if the European crisis doesn't undermine the economy, to launch the interest-rate hike it has hinted at recently. On an annual basis the overall inflation rate rose to 2.0 percent in April from 1.9 percent in March, Statistics Canada said on Friday. The core rate, which excludes volatile items, climbed to 2.1 percent from 1.9 percent. ...more
Myanmar welcomes easing of US economic sanctions
Officials and businessmen in Myanmar welcomed U.S. plans to ease economic sanctions, saying Friday it will benefit both countries in a market long cut off from most Western investment.more
BoE's Posen to quit to head U.S. think tank
LONDON/WASHINGTON (Reuters) - Bank of England policymaker Adam Posen will not seek a second term at the central bank and instead plans to step down in August to head a leading U.S. economic think tank, the Bank said on Friday. Posen has been the most outwardly dovish member of the Bank's rate-setting Monetary Policy Committee for most of his time at the central bank, and a leading advocate of its programme of quantitative easing asset purchases. ...more
Kenya's 2012 tourism earnings to dip on euro crisis, attacks
NAIROBI (Reuters) - Kenya's white sandy beaches look set to have fewer visitor footprints meandering over them this year. While this may be good news for Europeans seeking escape from economic storms at home, it is bad news for Suresh Sofat's tour firm and other Kenyans hoping to cash in on hard currency earnings - especially after 2011 was year of plenty for them. Sofat, 73, who runs Somak Travel, a 44-year old family business, now sees a difficult time ahead after the euro crisis and deadly attacks blamed on al Qaeda-linked militia have seen travel bookings fall sharply. ...
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Kenya's 2012 tourism earnings to dip on euro crisis, attacks
NAIROBI (Reuters) - Kenya's white sandy beaches look set to have fewer visitor footprints meandering over them this year. While this may be good news for Europeans seeking escape from economic storms at home, it is bad news for Suresh Sofat's tour firm and other Kenyans hoping to cash in on hard currency earnings - especially after 2011 was year of plenty for them. Sofat, 73, who runs Somak Travel, a 44-year old family business, now sees a difficult time ahead after the euro crisis and deadly attacks blamed on al Qaeda-linked militia have seen travel bookings fall sharply. ...more
Analysis: In India, muddled leadership leaves economy adrift
NEW DELHI (Reuters) - "Dear God," wrote economist Rajeev Malik as he called on the Almighty to help India's "rudderless" government in a biting critique that underscored a growing frustration at home and abroad with the stewardship of Asia's third-largest economy. Writing in India's Business Standard newspaper, the well-respected Malik echoed the exasperation of Indian and foreign business groups pressing for the government to swiftly implement major economic reforms and formulate a coherent strategy to deal with its mounting problems. ...
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Oil edges up to near $93 after big 2-week sell-off
Oil prices edged toward $93 a barrel Friday as financial markets stabilized after a sharp two-week sell-off caused by the latest flare-up in Europe's debt crisis and a gloomy economic outlook.more