‘U.S. deficit cuts will slow growth’

WASHINGTON (AFP) ― U.S. economic growth will slow to 1.4 percent in 2013, partly as a result of austerity measures dividing Washington, according to a study by the Congressional Budget Office released Tuesday.The CBO projected that U.S. gross domestic product will rise 1.4 percent this year, down from its estimate of 1.9 percent in 2012, which itself is slightly lower than the official U.S. growth estimate for last year ― 2.2 percent.The CBO’s prediction for 2013 is significantly less than estim

Feb. 6, 2013

Spain bank cleanup at ‘advanced stage’: IMF

WASHINGTON (AFP) ― The International Monetary Fund said Monday that Spain’s reforms under its financial-sector support program are close to being complete and that the cleanup of its weakest banks is well-advanced.“The program remains on track: the clean-up of undercapitalized banks has reached an advanced stage, and key reforms of Spain’s financial sector framework have been either adopted or designed,” the IMF said.In a monitoring mission report, the IMF said that most of the measures required

Feb. 5, 2013

U.S. set to sue S&P over ratings

WASHINGTON (AP) ― The U.S. government is expected to file civil charges against Standard & Poor’s Ratings Services, alleging that it improperly gave high ratings to mortgage debt that later plunged in value and helped fuel the 2008 financial crisis. The charges would mark the first enforcement action the government has taken against a major rating agency involving the worst financial crisis since the Great Depression. S&P said Monday that the Justice Department had informed the rating agency tha

Feb. 5, 2013

Barclays announces departure of bank staff

LONDON (AFP) ― Barclays on Monday said that its finance director and top legal expert had decided to leave the bank, as the British lender undergoes a shake-up in the wake of the Libor rate-rigging scandal.“Barclays has today announced that the Group Finance Director Chris Lucas, and the Group General Counsel Mark Harding, have decided to retire from the company,” the bank said in a statement.The pair would remain in their roles until the appointment of successors ― a process expected “to take a

Feb. 4, 2013

‘British banks face break-up if fail to ring-fence’

LONDON (AFP) ― Britain’s biggest banks will face being broken up if they fail to ring-fence their retail and investment arms, under draft legislation set to be announced by finance minister George Osborne on Monday.The new law will empower the government and a new banking watchdog to “electrify the ring-fence” if banks refuse to separate high-risk operations from savers’ deposits.Launching the Banking Reform Bill, Chancellor of the Exchequer Osborne was due to say that banks will no longer be ab

Feb. 4, 2013

U.S. needs revenue with spending cuts

President Barack Obama said there is “no doubt” the government needs new revenue from closing tax “loopholes” and limiting deductions, along with enacting spending cuts, to reduce the federal deficit. There’s “no reason why we can’t have really strong growth in 2013,” the president said in an interview with CBS television Sunday before the network’s Super Bowl broadcast. He cited a recovering housing industry, strong manufacturing and rising car sales. “There is no doubt we need additional reven

Feb. 4, 2013

Washington Post eyes HQ sale

WASHINGTON (AFP) ― The Washington Post said Friday it was considering the sale of its headquarters in the city’s downtown district in a move which could provide needed cash for the struggling media firm.Post publisher Katharine Weymouth said in an email to staff which was cited in an article in the daily that “our preliminary analysis suggests that a move will make good operational and economic sense.”She said the newspaper is considering a move to “a more modern, bright, open and efficient buil

Feb. 3, 2013

Starbucks opens first store in Vietnam

HO CHI MINH CITY (AFP) ― Starbucks opened its first store in coffee-loving Vietnam on Friday, seeking to compete with local rivals in a country known for its strong cafe culture.Vietnam ― the world’s second-largest coffee producer ― has dozens of local chains as well as small coffee shops on nearly every street corner, presenting a major challenge for Starbucks to break into the crowded market.Around 100 people queued up in southern Ho Chi Minh City for the opening, but the U.S. giant’s coffee w

Feb. 3, 2013

Banks will repay $4.8b of 3-year loans: ECB

The European Central Bank said banks will repay 3.5 billion euros ($4.8 billion) of its emergency three-year loans next week. A total of 27 financial institutions will use the second opportunity for early repayment of the initial three-year loan, the Frankfurt-based ECB said in a statement Friday. Banks already returned 137.2 billion euros of long-term funds this week. The ECB’s first loan totaled 489 billion euros and banks can make early repayments on a weekly basis. While the ECB doesn’t prov

Feb. 3, 2013

Dow ends over 14,000 for 1st time in 5 years

NEW YORK (AP) ― The Dow closed above 14,000 on Friday for the first time in more than five years.It was just a number on a board, but it was enough to raise the hopes of some investors and cause others concern about an overheated market. And it brought reminders of a different era, back before the financial crisis rocked the world economy.The Dow Jones industrial average, a stock market index that is traditionally considered a benchmark for how the entire market is faring, had been rising fairly

Feb. 3, 2013

U.S. Senate passes debt ceiling bill

WASHINGTON (AP) ― Congress passed must-do legislation Thursday to permit the government to borrow hundreds of billions of dollars more to meet its obligations, averting a first-ever government default that had loomed as early as mid-February. The 64-34 vote in the Democratic-controlled Senate sent the measure to President Barack Obama, who has said he will sign it. The Republican-led House passed the legislation last week. The legislation would temporarily suspend the $16.4 trillion limit on fed

Feb. 1, 2013