Italy's five and 10-year bond costs lowest since 2010

MILAN: Italy paid less to borrow over five and 10 years on Wednesday than it had since October 2010 as yield-hungry investors looked past forthcoming elections in the country and its poor economic prospects.

Iceland Wins Major Case Over Failed Bank

BRUSSELS — Iceland won a landmark case at a European court, ending an acrimonious legacy from the collapse of its banking system more than four years ago.

Fed waits for job market to perk up

LONDON (Reuters) - The Federal Reserve's ultra-loose monetary policy is a root cause of the "currency wars" that some see as a looming threat to the world economy, but don't expect the U.S. central bank to signal a shift back to normal any time soon.

Exclusive: ECB rejects Irish bid on promissory note - sources

(Reuters) - The European Central Bank has rejected Ireland's preferred solution to a dispute over the cost of servicing money borrowed to rescue a failed bank, EU sources familiar with the talks said on Saturday.

Japan defends stimulus, yen policy under fire

DAVOS, Switzerland (Reuters) - Japan's economy minister rejected criticism on Saturday that his country's extraordinary fiscal and monetary stimulus program was aimed at weakening the yen and undermined central bank independence.

G-Global: A new forum to replace G-20 and G-8

In our rapidly changing world, old institutions often survive but are regularly supplemented with newer, larger groups that keep pace with progress.

IMF's Olivier Blanchard: Time for UK to consider Plan B

The IMF chief economist has told the BBC that Chancellor George Osborne should consider slowing down austerity measures in his March budget.

E.U. States Get Blessing for Financial Trading Tax

BRUSSELS (Reuters) - Eleven euro zone countries won approval on Tuesday for a tax on financial transactions aimed at shifting more responsibility for the region's crisis onto banks despite fears it could drive business out of Europe.

Number of shoppers falls in December

Britain's battered retail sector saw a fall in the number of shoppers last month despite a last-minute surge in the week before Christmas, figures have revealed.

Analysis: China upturn underscores need to rebalance economy

BEIJING (Reuters) - China's recovery from its longest slowdown in growth since the global financial crisis is being driven by the two forces posing the biggest risks to the economy's increasingly urgent need to rebalance - investment and property.

Home Sales Probably Rose, Avowing Rebound: U.S. Economy Preview

Sales of U.S. homes probably rose in December to the highest level in three years as the industry headed toward a more rooted recovery in 2013, economists said before reports this week.

Pound hits 9-week low vs dollar as UK economy worries grow

LONDON: Sterling fell to an nine-week low against the dollar and held close to a 10-month low versus the euro on Friday after weaker-than-expected retail sales data added to concerns about a struggling British economy.

European leaders headlining annual forum in Davos

GENEVA (AP) — Promoting measures to get the global economy out of its crisis mode will be the focal point of next week's annual gathering of world leaders and power brokers in the Swiss ski resort of Davos, organizers said Wednesday.

Obama digs in heels, refuses to negotiate debt ceiling

WASHINGTON (Reuters) - President Barack Obama on Monday rejected any negotiations with Republicans over raising the U.S. borrowing limit, accusing his opponents of trying to extract a ransom for not ruining the economy in the latest fiscal fight.

Euro zone factory output falls, may have hit bottom

BRUSSELS (Reuters) - Output at euro zone factories fell for the third straight month in November and against expectations of a rise, but Monday's data included some evidence to back hopes that the bloc's recession may now have bottomed.

Berlusconi group leads in key region ahead of Italy vote

ROME (Reuters) - Silvio Berlusconi's center-right coalition is leading in a vital battleground region ahead of next month's Italian election, making it harder for left-wing rivals to form a stable parliamentary majority, according to a poll on Sunday.

German job market not prepared for long downturn: Labour Office

BERLIN: Germany's so far robust labour market is not sufficiently prepared for a deep recession but unemployment should not rise above three million on average this year, Labour Office chief Frank-Juergen Weise was quoted as saying on Saturday.

Ireland urges Britain to be cautious with EU ties

(Reuters) - Ireland, which holds the presidency of the European Union for the next six months, urged Britain not be too adversarial in pushing for change in its relationship with the EU on Tuesday, saying it should remember its close history in Europe.

IMF outlines spending cuts plan for Portugal -daily

LISBON: The IMF has identified 4 billion euros of possible spending cuts in Portugal, focused on large-scale layoffs of public sector workers and reductions in pensions, business daily Jornal de Negocios said on Wednesday.

Egypt steeped in economic woes as IMF talks due

CAIRO: A rising budget deficit, falling foreign exchange reserves and a sliding currency are adding to the woes of Egypt's fragile government even as it battles a raft of political and social problems.

France to Pledge New Investment Financing

French Finance Minister Pierre Moscovici says in an advance copy of a newspaper interview there will be fresh sources of financing behind President Francois Hollande's pledge to craft a new investment strategy to support the French economy.

UK housing market stays afloat, but don't expect miracles

All things considered, house prices proved remarkably resilient during 2012. The Nationwide building society has reported that prices fell by 1% during the year but given that the UK suffered its first double-dip recession since the 1970s, the fall could have been a lot bigger.

Goodbye fiscal cliff, hello debt ceiling: Another deadline with a colorful name threatening US

WASHINGTON: Even as President Barack Obama prepares to sign the hard-won tax deal that Congress passed Tuesday, another manufactured deadline with a colorful name is threatening to hamstring the government and undermine the economy. Goodbye, fiscal cliff. Hello, debt ceiling.

Portuguese Austerity in Doubt as President Moves Against Budget

LISBON—A political rift was opened in Portugal on Wednesday after the country's president sent the 2013 budget to its highest court for review, an unusual move that highlights deepening opposition to a two-year austerity drive.

Asian Markets Rise on Fiscal Deal

HONG KONG — Stock markets in the Asia-Pacific region began the year with gains on Wednesday, as investors took some relief from the last-minute fiscal deal reached in Washington, but wrestled with the lingering uncertainties that surround many other aspects of the U.S. budget.