IIF warns of large risks to Greek bailout

WASHINGTON (AFP) ― The powerful international bank lobby IIF warned Tuesday that Greece’s newly revamped bailout program still faces large risks as long as the economy continues to contract sharply.“With real GDP likely to decline another 4-5 percent next year after falling 6 percent this year, and further austerity testing social cohesion, risks to the EU-IMF program will remain substantial,” the Institute of International Finance said.“Doubts about debt sustainability will persist until growth

Dec. 19, 2012

Democrats dismiss Boehner's 'Plan B' in fiscal cliff talks

U.S. House Speaker John Boehner unveiled his "Plan B" on Tuesday as Republican lawmakers wrangled with Democratic President Barack Obama over how to steer the economy past the so-called fiscal cliff.Boehner, whose party holds a majority in the lower house, said he was now prepared to countenance a tax rise for Americans earning more than $1 million per year, a concession but one that falls short of Obama's demands.The president wants to raise taxes on those earning more than $400,000, and Boehne

Dec. 19, 2012

U.S. current account deficit fell in third quarter

The U.S. current account trade deficit narrowed in the July-September quarter to the smallest level since late 2010, but the improvement may not last.The deficit fell to $107.5 billion in the third quarter, down 9 percent from the second quarter imbalance of $118.1 billion, the Commerce Department reported Tuesday. It was the lowest trade gap since the final three months of 2010.The current account is the broadest measure of trade. It tracks the sale of merchandise and services between nations a

Dec. 19, 2012

Japan's November trade deficit widens 37.9% on-year

Japan's trade deficit in November expanded 37.9 percent on-year to $11.3 billion, a record for the month, official data showed Wednesday, in a worrying sign for the world's third-largest economy.The trade shortfall came to 953.4 billion yen, marking the fifth straight month of deficit and a widening from a year-earlier deficit of 691.2 billion yen.Overall, exports fell 4.1 percent while imports edged up 0.8 percent.Shipments to key trader partner China tumbled 14.5 percent, marking another month

Dec. 19, 2012

S&P lifts Greece from selective default rating

Ratings agency Standard and Poor's raised Greece's sovereign debt rating by six notches on Tuesday encouraged by a burst of support for Athens from eurozone partners.The upgrade from selective default to B-/B "reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone," an S&P statement said.The outlook for Greek public debt was stable because of the government's commitment to fiscal and structural a

Dec. 19, 2012

Santander absorbs two Spanish banks

MADRID (AFP) ― Banking giant Santander said on Monday that it will absorb two of its Spanish offshoots, closing 700 branches in the latest stage of Spain’s great banking shake-up.Santander, the biggest bank in the eurozone by market value, said it could save 520 million euros ($680 million) a year by absorbing the offshoots, Banesto and Banif.They will be merged into the Santander brand, which would have 4,000 branches under the same name in Spain.“This transaction is part of the restructuring o

Dec. 18, 2012

Cameron says British exit from European Union is ‘imaginable’

Prime Minister David Cameron said it is ‘imaginable’ for the U.K. to leave the European Union, the first time he has conceded his nation may leave the bloc altogether.“All futures for Britain are imaginable,” Cameron told lawmakers in Parliament in London today, when asked if he foresaw a British withdrawal from the EU. He said a British departure is “Not my preference.”Cameron has said he will set out his plans to renegotiate the U.K.’s membership of the 27-nation bloc next year and that he wil

Dec. 18, 2012

Sources: New Obama offer moves toward Boehner

President Barack Obama has softened his demand for higher taxes at upper income levels and agreed to curtail future inflation adjustments for recipients of Social Security pensions as part of accelerating talks with Republicans to avoid a “fiscal cliff,” people familiar with the talks said Monday. The maneuvering is aimed at reaching an agreement to rein in deficit spending before an automatic year-end hike in taxes for nearly all wage-earners hits, as well as deep spending cuts in defense and i

Dec. 18, 2012

Use Asian growth for social change: ILO

MANILA (AFP) ― Asian countries have a unique opportunity to use their new-found prosperity to make progress on social issues and promote fairness, the head of the International Labor Organization said Sunday.Director general Guy Ryder said Asian nations were turning away from reliance on cheap labor and exports to fuel growth, and had realized the value of higher wages and boosting domestic demand.“It is time for Asia to turn its attention to matching its economic success with social progress. I

Dec. 17, 2012

Monti’s resignation may slow year of euro agreement

Italian Prime Minister Mario Monti’s looming resignation this week may threaten progress in fighting the three-year debt crisis even as European leaders wrap up the year with newly won breathing room.Monti, under pressure from euro-area and business leaders to enter the Italian election campaign, plans to quit once parliament passes his budget this week. Former Prime Minister Silvio Berlusconi withdrew support from Monti’s government of non-politicians Dec. 6. The Italian upper house starts deba

Dec. 17, 2012

China eyes prudent monetary policy

BEIJING (AP) ― China’s new Communist Party leaders promised Sunday to be ready to spend more if needed to shore up a shaky economic recovery and pledged more market-opening reforms.In the first statement of their economic goals, the leadership wrapped up a two-day planning meeting by pledging continuity with earlier party plans aimed at making China’s economy more productive and spreading prosperity to its poor. They gave no indication of plans for major changes.The world’s second-largest econom

Dec. 17, 2012

Gas prices soon to hit low point

Gas prices will soon drop to their lowest level of the year.By Monday, the national average should fall below the $3.28 a gallon that drivers paid on Jan. 1, according to analysts. The drop is a gift for those hitting the road during what is expected to be the busiest Christmas travel season in six years.Still, it’s more like a stocking stuffer. That’s because for the second straight year, Americans will spend a record amount on gasoline. The government estimates that gas averaged $3.63 a gallon

Dec. 16, 2012

EU car sales reach 19-year low

European Union car sales fell to a 19-year low, with French companies PSA Peugeot Citroen and Renault SA and Italian competitor Fiat SpA posting the biggest drops, as a recession in countries using the euro hurt demand.Eleven-month registrations in the 27-nation EU fell 7.6 percent to 11.3 million vehicles, the lowest figure for the period since 1993, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said today in a statement. The decline was propelled by a 10 percent p

Dec. 16, 2012

Buffett considering purchase of Tribune newspaper title

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., told the Allentown Morning Call that the Pennsylvania community is “our kind of place” for investing in a newspaper. Buffett, who has spent more than $340 million on 80 newspapers, was asked by the publication if he would consider purchasing it. The Morning Call is owned by Tribune Co., which may put dailies up for sale as the company emerges from bankruptcy, people familiar with the matter said last week. “We haven’t heard any

Dec. 16, 2012