Euro Zone Crisis

Italy faces political deadlock after election results

Italy faced political deadlock on Tuesday after a stunning election that saw the anti-establishment Five-Star Movement of comic Beppe Grillo become the strongest party in the country but left no group with a clear majority in parliament. "The winner is: Ingovernability" was the headline in Rome newspaper Il Messaggero, reflecting the stalemate the country would have to confront in the next few weeks as sworn enemies would be forced to...  

Global markets decline on deadlocked Italy election

Asian shares took their lead from overnight plunges in global equities to fall on Tuesday as an apparently inconclusive election outcome in Italy raised fears of a resurgent euro zone debt crisis. Italy's centre-left coalition will win a majority in the lower house of parliament but the upper house will be deadlocked, the Interior Ministry said on Tuesday after almost all votes were counted. No party or coalition won a...  

Dollar gains, shares dip as US election relief fades

London: The dollar rose and world shares turned lower on Wednesday as investors worried about the outlook for the US and euro zone economies after President Barack Obama's re-election. Wall Street share futures, which had pointed to a higher open on relief over the clear election outcome, also reversed course as the fiscal problems of the United States and slowdown in Europe returned to haunt investors. A preservation of the...  

Spain rating slashed 3 notches by Moody's

New York: Rating agency Moody's Investors Service cut its rating on Spanish government debt by three notches on Wednesday to Baa3 from A3, saying the newly approved euro zone plan to help the country's banks will increase the country's debt burden. Moody's, which said it could lower Spain's rating further, also cited the Spanish government's "very limited" access to international debt markets and the weakness of the country's economy. The...  

Indian economy to grow 6.9 pc in 2012-13: WB

New Delhi: The Indian economy will grow by 6.9 per cent in this financial year (2012-13) notwithstanding problems like policy uncertainties, fiscal deficit and inflation, the World Bank projected on Tuesday, while cautioning that developing nations will have to face tougher times. "India will see growth (measured at factor cost) increasing to 6.9, 7.2 and 7.4 per cent in fiscal years 2012-13, 2013-14 and 2014-15, respectively," the World Bank said...  

Indian growth story is intact: Pranab Mukherjee

New Delhi: Finance Minister Pranab Mukherjee on Wednesday assured Parliament that India's growth story remained intact despite Euro zone crisis and Greece turmoil. Pranab attributed the downward trend in the share markets to the global economic crisis. He said that the government is going to take some austerity steps to convey that it is responding to the situation. On retrospective amendments to tax laws, the Finance Minister said Parliament is...  

EU break-up would be catastrophic: Soros

Hyderabad: A collapse of the euro and break-up of the European Union would have catastrophic consequences for the global financial system, billionaire investor George Soros was quoted as saying in Hyderabad on Thursday. "Today, the euro is potentially endangering the political cohesion of the European Union," the Business Line newspaper cited Soros as saying. "If the common currency were to break down, it will lead to the break up of...  

Fitch warns may downgrade 6 euro zone nations

New York: Fitch Ratings on Friday warned it may downgrade Belgium, Italy, and four other euro zone countries in the absence of a "comprehensive solution" to the region's debt crisis. The ratings agency placed the ratings of Belgium, Spain, Slovenia, Italy, Ireland and Cyprus in credit watch negative, which means a downgrade is possible within three months. ...  

IMF Chief warns of another great depression

Speaking at the US State Department Christiane Lagarde speaking on escalating euro zone crisis also called for collective action. ...

Greek parties agree speaker as new PM, barring snags

Athens: Greek Prime Minister George Papandreou said he was stepping down on Wednesday without naming his successor as the nation heads towards an economic precipice, but party sources said political leaders had agreed it would be the speaker of parliament. Parties from left and right settled on veteran socialist Filippos Petsalnikos, barring last-minute snags, the sources said, turning to their own political class after ditching a plan to recruit a...