Spain borrowing costs fall after Moody's raises outlook

The Spanish Treasury sold 3.524 billion euros ($4.8 billion) in bonds of three and five years, with demand outstripping demand by a ratio of 2.7 to one, the central bank said.

Euro zone likely to backstop banks with promises rather than cash

BRUSSELS (Reuters) - Euro zone governments have set aside almost no money to make good on their promise to recapitalise ailing banks after a health check next year.

House building drives surge in UK construction activity

Britain's construction sector has enjoyed its strongest pick-up in business since before the financial crisis plunged the industry deep into recession, according to the latest in a string of upbeat economic reports.

Ukraine looks to China for money as debt crunch looms

(Reuters) - Ukrainian President Viktor Yanukovich will head to China on Tuesday looking for loans and investment, despite the massive protests unleashed by his decision not to sign a trade pact with the European Union.

Euro still at risk without closer union - Italy central bank head

MILAN (Reuters) - The European single currency will remain at risk if Europe is not able press ahead with closer political and economic union, the governor of the Bank of Italy said in an interview published on Sunday.