IMF 'confident' Lagarde can continue despite investigation

The International Monetary Fund (IMF) has expressed confidence in its leader Christine Lagarde, despite her being investigated for negligence in France.

Eurozone gripped by deflation fears as inflation rate hits five-year low

Fears that the eurozone could tip into outright deflation have been fanned as the inflation rate in the currency bloc hit a new five-year low of 0.3%.

France's jobless total rises sharply in July

The number of people looking for work in France rose 0.8% in July to a new record of 3,424,400. The sharp rise confirms a longer term trend with the number of jobless rising 4.3% over the last year.

GLOBAL MARKETS-Euro, bond yields dip as looser ECB policy eyed

LONDON, Aug 26 (Reuters) - The euro hit its lowest level against the dollar in nearly a year and euro zone government bond yields fell to record lows on Tuesday on expectations the European Central Bank might ease monetary policy as soon as next week.

Germany should drive economic recovery in Europe, IMF chief says

Geneva (AFP) - IMF chief Christine Lagarde wants Germany to play a bigger role in propelling economic recovery in Europe, she hinted in an interview broadcast on Monday, suggesting that German wages should rise.

European Stocks Climb After Draghi Signals More Stimulus

European stocks rose to their highest level this month, following two weekly increases, after European Central Bank President Mario Draghi signaled policy makers are ready to add stimulus.

E.C.B. Chief Seeks Tax Cuts and State Spending

JACKSON HOLE, Wyo. — Mario Draghi, president of the European Central Bank, said Friday that European governments needed to move from a focus on austerity to a “more growth-friendly composition of fiscal policies.”

Serbia Won’t Join EU Sanctions Against Russia, Vucic Says

Serbia won’t join European Union sanctions against Russia even as the Balkan nation sticks to its plan to continue membership talks with the world’s largest trading bloc, Prime Minister Aleksandar Vucic said.

German finmin sees quick economic recovery after weak second quarter: Spiegel

(Reuters) - Germany's finance ministry expects Europe's biggest economy to bounce back after a weak second quarter and thinks growth may even exceed the government's current forecast of 1.8 percent for this year, Der Spiegel magazine reported on Sunday.

Draghi says ECB ready to adjust policy if inflation drops further

(Reuters) - The European Central Bank is prepared to respond with all its "available" tools should inflation in the euro zone drop further, ECB President Mario Draghi said on Friday in remarks that opened the door to possible policy action in September.

UK retail sales growth falls to eight-month low, public finances weak

(Reuters) - British retail sales grew in July at the slowest annual rate since November of last year, while the government failed to make much of an inroad into public borrowing, data showed on Thursday.

French business activity stagnant in August: PMI

(Reuters) - French business activity was stagnant in August, a survey showed on Thursday, as an improvement in the services sector could not fully offset the worst performance in over a year in manufacturing in the euro zone's second-biggest economy.

ECB in policy limbo, boxed in by its own plans

(Reuters) - The European Central Bank is in a policy no man's land, bombarded by news of a stagnating euro zone economy but hesitant to move forward with new stimulus until measures it loaded in June have ignited.

Angela Merkel scolds Italy and France over the faltering eurozone recovery

Angela Merkel has delivered a sharp rebuke to Italy and France for hindering the eurozone's recovery by breaking longstanding fiscal rules.

Euro-Area Pickup Stalls as Big Economies Fail to Grow

The euro area’s recovery unexpectedly stalled in the second quarter as its three biggest economies failed to grow, underlining the vulnerability of the region to weak inflation and the deepening crisis in Ukraine.

German slump, stagnant France paint dismal euro zone picture

(Reuters) - Germany's economy shrank in the second quarter and France again failed to conjure up any growth, snuffing out any signs of a recovery in the euro zone which is now also weighed down by tit-for-tat sanctions with Russia.

French lawmaker says 'unavoidable' to scrap deficit target : Les Echos

(Reuters) - The head of France's ruling Socialist party told Les Echos newspaper on Wednesday that it was "unavoidable" that France would abandon an EU target to cut its public deficit to 3 percent of GDP next year.

Bank of England edges closer to interest rate rise

The Bank of England signalled it is edging closer to a rise in interest rates but admitted it is in the dark about the true state of the British economy.

German Economy Backbone Bending From Lost Russia Sales

MWL Apparate Bau GmbH, based in the eastern German town of Grimma, has relied on strong ties with Russia to bolster business.

Europe's fragile economy put to test as Ukraine, Iraq sour mood

(Reuters) - Investors will gauge the strength of the euro zone's fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally.

Something's got to give in Italy: better it be Draghi with a bag of cheap loans

European Central bank boss Mario Draghi came to London last month to criticise his fellow Italians.

German Bonds in Longest Winning Run Since 2012 on Haven Demand

German 10-year government bonds rose for a fifth week, the longest run since the height of the euro-region’s debt crisis, as geopolitical tensions prompted a surge in demand for the safest fixed-income securities.

UK trade deficit widens in June, but construction recovers

Exports of British goods to countries outside the European Union fell to their lowest level since September 2011, coinciding with the pound hitting a near six-year high against the dollar.

Weak German industry output adds to signs of second-quarter slowdown

(Reuters) - German industrial output rose just 0.3 percent on the month in June, missing a forecast rise of 1.3 percent, as fears over the crisis in Ukraine weighed, adding to signals that Europe's largest economy may have stalled in the second quarter.

Rising tension over Ukraine forces down European markets

Growing fears of a military conflict between Russia and Ukraine sent shares lower on Europe's bourses and pushed the euro to a nine-month low against the dollar.

Scottish independence 'Yes' camp 'deluding itself' on currency union

Scottish independence advocates are “deluding” themselves if they believe that the country would be allowed to remain in a currency union with the UK whilst controlling its own financial affairs, one of Europe’s major banks has said.

Analysis - Will Europe's banking 'big bang' loosen lending?

PARIS (Reuters) - In the biggest advance in European integration since the launch of the euro in 1999, the European Central Bank will take charge of supervising banks from Helsinki to Lisbon in November after subjecting their books to unprecedented scrutiny.

FOREX-Euro slides below $1.34, eyes on Fed and U.S. GDP data

LONDON, July 30 (Reuters) - The euro fell below $1.34 on Wednesday for the first time since last November on concern that German inflation data due at 1200 GMT will add to the case for the European Central Bank to pump more money into a struggling economy.

Portuguese Bonds Drop With Italy’s as Global Turmoil Halts Rally

Portuguese government bonds fell for the first week since July 11 as financial turmoil deepened at Banco Espirito Santo SA and a selloff in stocks damped demand for higher-yielding assets.

Falling prices on radar as euro inflation drops again

(Reuters) - Annual inflation in the euro zone fell in July to its lowest since the height of the financial crisis in 2009, keeping the risk of deflation on policymakers' radar but unlikely to spur the European Central Bank into further policy action.

German Unemployment Drops for First Time in Three Months

German unemployment fell for the first time in three months in a sign that Europe’s largest economy is gathering pace after a second-quarter slowdown.