EU sees steady, modest growth in eurozone

BRUSSELS (AFP) ― The European Commission tweaked its 2014 and 2015 economic forecasts Monday but left intact the overall outlook for gradual recovery from a record recession.The Commission stressed again the need for all member states to stick to the reforms and measures agreed to tackle the global slump and ensuing debt crisis, saying this was vital for continued growth.The 18-nation eurozone economy will grow by 1.2 percent this year, as previously estimated, it said, while cutting its 2015 fo

May 6, 2014

Income gap widening: OECD

PARIS (AFP) ― People with the highest incomes in advanced countries have grown disproportionately richer despite the recent financial crisis and should pay their fair share of the tax burden, the OECD said on Wednesday.The lowest wage earners have scarcely progressed and some may even have fallen behind in real terms in the last 30 years, the Organization for Economic Cooperation and Development said.The gap will widen without policy action on the way tax systems work, it said, probing facts, tr

May 1, 2014

Facebook moves to regain users’ trust

SAN FRANCISCO (AFP) ― Facebook moved Wednesday to bolster the trust of its more than one billion users by providing new controls on how much information is shared on the world’s leading social network.In a major shift away from the notion long preached by Facebook cofounder and chief Mark Zuckerberg of having a single known identity online, people will be able to use applications anonymously at Facebook.The social network also provided a streamlined way for people to control which data applicati

May 1, 2014

‘U.S. lost $11.2b on GM bailout’

NEW YORK (AP) ― A new report says taxpayers lost $11.2 billion on the government’s bailout of General Motors.The estimate comes from a quarterly report Wednesday to Congress by a government watchdog that oversees the bailout, and is up from a previous estimate of $10.5 billion.The Detroit automaker needed the $49.5 billion bailout to survive its bankruptcy restructuring in 2009. The company went public again in November 2010, and the government sold its last shares of GM in December. The report

May 1, 2014

IMF approves $17 billion loan for Ukraine

WASHINGTON (AP) ― The International Monetary Fund board on Wednesday approved a two-year, $17 billion loan package for cash-strapped Ukraine as it seeks to regain stability following Russia’s annexation of Crimea.The IMF assistance pledged in March was hinged on economic reforms in Ukraine, including raising taxes, freezing the minimum wage and raising energy prices ― all steps that could hit households hard and strain the interim government’s tenuous hold on power.“Urgent actions were necessary

May 1, 2014

China manufacturing up in April

BEIJING (AFP) ― China’s manufacturing activity improved in April, the government said Thursday, showing increased strength for a second straight month as the country’s broader economy slows. The official purchasing managers index was 50.4 in April, the National Bureau of Statistics said in a statement, up from 50.3 in March. The index tracks manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy. A reading above 50 indicates grow

May 1, 2014

Fed keeps policy on course

WASHINGTON (AFP) ― The U.S. economy nearly froze in the glacial first quarter but emerging signs of vigor kept the Federal Reserve on its stimulus taper track Wednesday.The Fed shrugged off the shockingly weak 0.1 percent annual growth rate of the past quarter reported earlier in the day by the Commerce Department.The Federal Open Market Committee, led by Fed Chair Janet Yellen, concluded after a two-day meeting that the economy remains in fairly good shape, able to handle the ongoing cutback in

May 1, 2014

48-hour tube strike forces Londoners overground

LONDON (AFP) ― Millions of Londoners were forced to walk, cycle or take packed buses to work on Tuesday as a 48-hour strike by Tube workers caused disruption across the capital.Services were operating on nine of the 11 Underground lines but at a much reduced frequency, causing queues outside stations and overcrowded trains at rush hour.More than 50 of the estimated 270 Tube stations were closed altogether, according to Transport for London, which runs public transport in the capital.An extra 266

April 30, 2014

GE offers $17 billion for Alstom

General Electric Co. made a 12.4 billion euro ($17 billion) offer for Alstom SA’s energy business to open up official negotiations and circumvent a potential counterbid from Siemens AG. Alstom’s board received a binding offer from Fairfield, Connecticut-based GE and has appointed a committee of independent directors to review the transaction by June 2, the two companies said Wednesday. If the review concludes positively, negotiations will then be on an exclusive basis, it said. Alstom gained as

April 30, 2014

BOJ keeps monetary policy on hold

TOKYO (AP) ― Japan’s central bank kept its ultra-loose monetary policy unchanged in a policy meeting Wednesday, despite data suggesting the economic recovery is weaker than expected. The Bank of Japan is still monitoring the impact of an April 1 tax hike that is expected to sap growth as consumers adjust to higher costs.But pressure for more action is building with signs the recovery is less robust than anticipated ahead of the tax hike.Prime Minister Shinzo Abe’s formula of strong government sp

April 30, 2014

S&P downgrades 15 European banks

Deutsche Bank AG, Germany’s largest lender, was among 15 European banks that had their outlooks cut to negative by Standard & Poor’s on the prospect that governments are less likely to provide aid. The outlooks were lowered from stable “to reflect our view that extraordinary government support is likely to diminish as regulators implement resolution frameworks,” the ratings firm said Tuesday in a statement. Financial overseers have been increasing regulations to limit a repeat of the bailouts th

April 30, 2014

Fischer gains support of Senate panel for Fed vice chairman

Stanley Fischer’s bid to be Federal Reserve vice chairman won support Tuesday from a Senate panel, sending the former Bank of Israel governor’s nomination to the full chamber for confirmation. The Senate Banking Committee approved Fischer in a voice vote. The panel also backed the nominations of Lael Brainard and Jerome Powell as Fed governors. Fischer, 70, would become Chair Janet Yellen’s top lieutenant as she presses on with tapering bond purchases that have expanded the Fed’s balance sheet t

April 30, 2014

France meets Alstom bidders to protect jobs

PARIS (AFP) ― French President Francois Hollande vowed on Monday to safeguard jobs in takeover target Alstom, whose energy business is being eyed by U.S. giant General Electric and rival bidder Siemens.Germany meanwhile sought to boost Siemens’ case, saying a tie-up between the French and German giants offered a “big opportunity” for Europe’s two biggest economies.“The state will inevitably have a say” in the sale, Hollande declared, underscoring that the government placed several orders with Al

April 29, 2014