Europe, Global Economy | featured news

German, US and UK yields fell to all-time lows after Spanish Economy Minister Luis de Guindos said the future of the euro is at stake, driving demand for the safest government securities.

Concerns over a slowdown in the world's biggest economies hit world markets on Friday, with weak indicators out of China and Europe's financial turmoil unsettling investors ahead of a crucial U.S. jobs report.

Spanish 10-year borrowing costs neared the 7 percent danger level and Bankia shares hit record lows on Monday after the government, struggling to sort out its finances, proposed putting sovereign debt into the struggling lender.

As the prospect of Greece leaving the euro becomes more real by the day, economists are trying to figure out what would happen next, to the economy and to the markets.

President Obama and leaders of the world’s other leading economies Saturday embraced a policy of growth over austerity in Europe as they met on the cloistered grounds of Camp David to talk about fending off a spread of the Eurozone crisis.

The crushing defeat follows elections that rejected austerity policies in Greece, France and Italy, severely weakening Chancellor Merkel's hand at her first talks with FranCois Hollande, the new French President, in Berlin tomorrow (TUES).

The anti-austerity backlash - as seen at the polls in France and Greece - is already shaping a new debate in Europe... Europe's leaders will address a conundrum that divides economists: can you have austerity and growth at the same time?

Germany and the European Commission on Tuesday called on EU nations to stick to their promised budget cuts despite mounting voter discontent, but promised some new efforts to boost growth to alleviate economic hardship.

Centre-left and protest parties score well in Italy's local elections amid widespread discontent with the government's austerity drive.

Investors nervous about the changing political winds in Europe initially drove down the euro and sent stock markets falling across the region Monday morning, though markets were bouncing back later in the day following renewed signs of strength in the German economy.