Japan OKs over $224b in fresh stimulus

TOKYO (AP) ― The Japanese Cabinet approved a fresh stimulus spending of more than 20 trillion yen ($224 billion) on Friday, rushing to fulfill campaign pledges to break the world’s third-biggest economy out of its deflationary slump.Prime Minister Shinzo Abe announced the decision at a news conference where he said the new measures were intended to add 2 percent to Japan’s economic growth and contribute 600,000 new jobs.Abe urged the central bank to move more aggressively to encourage lending an

Jan. 11, 2013

Moody's downgrades Cyprus deeper into junk

International credit rating agency Moody's drove Cyprus deeper into junk on Thursday with a three notch downgrade from B3 to Caa3 over concerns that the country may ultimately default on its burgeoning debt level.Moody's says more downgrades are possible for the country that is trying to finalize a bailout with international lenders to rescue its banks, which sustained massive losses on bad Greek debt and loans. The agency said that an anticipated increase in the amount of money that Cypriot ban

Jan. 11, 2013

ECB leaves rates at record low as Europe struggles

The European Central Bank has left its benchmark interest rate unchanged at a record low of 0.75 percent even though the economy in the euro area remains stuck in recession. Markets were waiting to hear ECB head Mario Draghi talk about his outlook for the economy at a news conference later Thursday.The bank held off cutting rates after recent economic survey data supported its position that the economy in the 17 European Union member countries that use the euro will recover gradually this year. 

Jan. 11, 2013

Iran sees oil revenues down 45 percent: report

TEHRAN (AP) ― Iran’s revenues from vital oil and gas exports have dropped by 45 percent because of sanctions over its suspect nuclear program, a senior lawmaker said Monday, a clear admission that sanctions over Iran’s suspect nuclear program are having a severe impact.Iran’s sanctions-driven financial crisis has led to collapse of the currency, proposals for an austerity budget and government demands that local airlines clear their debts pay cash for fuel, or faced grounding ― but its leaders h

Jan. 8, 2013

Japan to buy ESM bonds using foreign reserves to help weaken yen

Japan will buy bonds issued by the European Stability Mechanism to help weaken the yen, Finance Minister Taro Aso said. The bond transactions will be funded by the country’s foreign exchange reserves, Aso told reporters Tuesday in Tokyo. The nation hasn’t decided on the purchase amount, he said. Buying ESM bonds may help Prime Minister Shinzo Abe push down the yen while avoiding criticism of his currency policies from trading partners such as the U.S. and South Korea. “The Europeans would be hap

Jan. 8, 2013

Employers in France say draft labor accord unacceptable

French employers will reject moves to overhaul rigid labor rules unless unions drop demands for heavier welfare charges on short-term job contracts, their leader said on Monday, suggesting talks this week could fail.Socialist President Francois Hollande called on employers and unions to strike a deal by the end of 2012 that would grant companies more flexibility in hiring and firing while giving more job security to workers on short-term contracts.As talks resume this week, Medef chief Laurence

Jan. 8, 2013

Slow start for ‘ultra-HD’ TVs

LAS VEGAS (AP) ― “Ultra-HD” TVs are set to be the talk of International CES, the gadget show kicking off this week in Las Vegas. But the televisions aren’t likely to account for much of the market even four years down the road.That is the conclusion of analysts of the show’s host, a day before TV makers such as Samsung, LG and Sony attempt to wow conference attendees with their latest models.Ultra high-definition TVs, with four times as many pixels as HD TVs, are expected to account for only 1.4

Jan. 7, 2013

Tough year for U.K. needs low rates: Cameron

Prime Minister David Cameron predicted a difficult year for the U.K. economy that will require maintaining the current mix of low interest rates and budget-deficit reduction. “It’s a tough economic environment that we’re in,” Cameron said on BBC Television’s “Andrew Marr Show.” “Right now, Britain needs low interest rates.” Cameron indicated in a Sunday Telegraph interview that he would like to stay in office another seven years, even as an opinion poll suggested his Conservative Party will lose

Jan. 7, 2013

Draghi seeks extended calm in 2013 on fading euro economy

European Central Bank President Mario Draghi will turn his attention to nursing the euro region back to economic health this week as the urgency to deploy crisis measures recedes after three years. Draghi’s Governing Council, which sits for its first session this year on Jan. 10, will seek to extend the calm it’s instilled on markets with last year’s pledge to do anything in its power to end the crisis, economists said. While policy makers will likely keep interest rates unchanged for now, the t

Jan. 7, 2013

China's economic growth to exceed 8 pct in 2013: Chinese daily

China's economic growth will likely exceed 8 percent this year on the back of stimulus measures, recovering slightly from last year's slower growth, a Chinese financial daily said Monday.The Beijing-based Securities Daily, a media outlet designated by China Securities Regulatory Commission, said China's economy will grow 8.2 percent this year, higher than an estimated 7.7 percent growth in 2012. "With the effect of policy measures gradually emerging, the Chinese economy in 2013 is expected to ac

Jan. 7, 2013

Report: Hostess in talks to sell bread brands

NEW YORK (AP) -- The makers of Thomas' English muffins and Tastykake snacks are emerging as two of the bidders for Wonder Bread and other Hostess bread brands as the company tries to sell off its assets under bankruptcy-court oversight, a newspaper reported Saturday.The Wall Street Journal said Hostess Brands Inc. could reveal as early as next week that Flowers Foods Inc. and Grupo Bimbo SAB are in discussions to acquire its bread brands, which also include Nature's Pride. The report said the br

Jan. 6, 2013