Economy, Global Economy | featured news

Britain will have to keep cutting public spending to reduce the budget deficit, Prime Minister David Cameron said on Sunday, underlining the government's tough task of pulling the country out of recession while winning back waning public support.

President Barack Obama's lackluster performance in the first U.S. election debate provoked uneasiness in European capitals on Thursday, where hopes are mostly, if unofficially, pinned on his securing a second term.

The question is whether that’s 10 years from now, or 10 years from 2008, which means we have six more years until the world economy truly recovers from the 2008 housing and derivatives bubble that first exploded in the Manhattan offices of Bear Stearns and Lehman Brothers. That’s the view of International Monetary Fund chief economist Oliver Blanchard.

Iranian authorities used aggressive measures Wednesday in an attempt to halt the nosedive of the country's currency, making arrests, vowing to stamp out sidewalk money changers and warning merchants against fueling the mounting public anger over the economy.

The euro zone's economic woes accelerated last month and China's slowdown looked likely to extend to a seventh quarter, surveys on Wednesday showed, while the United States proved the bright spot with better-than-expected news on services and jobs.

A gauge of manufacturing activity in China rose slightly in September but remained in contractionary territory for the 11th consecutive month, indicating that the world's second-largest economy is still slowing.

Euro zone economic sentiment defied expectations of stabilization and again fell sharply in September, underlining the economic gloom brought on by the sovereign debt crisis as the euro zone sinks into a recession.

Stocks are opening lower on Wall Street after some gloomy economic data from Europe. Just after the opening bell, the Dow Jones industrial average is down 53 points at 13,526. The Standard & Poor's 500 index is down seven at 1,453, and the Nasdaq composite index is off 28 at 3,152.

China's economy hasn't shown any signs of rebounding in the third quarter, and domestic investment is unlikely to expand dramatically in the short term, a central bank adviser said.

FedEx Corp. says the global economy is stalling, and it's going to get worse next year. A decline in global trade is shrinking earnings at the world's second-largest package delivery company. On Tuesday, FedEx said a continued slowdown in the developed world combined with high fuel prices will keep trade volumes at low levels.