Merkel and Sarkozy rule out talks on eurobonds

German Chancellor Angela Merkel and French President Nicolas Sarkozy will not discuss the controversial question of eurobonds when they meet on Tuesday to discuss the eurozone crisis, spokesmen for both governments said on Monday.

"Eurobonds will play no role in the talks," government spokesman Steffen Seibert said.

Crisis in euro zone could affect finances

GERRY MORIARTY, Northern Editor

NORTHERN IRELAND: THE EURO zone crisis and the financial pressure on the US economy could have an impact on the North’s public finances, Minister for Finance Sammy Wilson has warned.

The DUP minister issued his warning after an emergency meeting with industry, business and trade union representatives at Stormont yesterday to discuss the convulsions in the global economy.

George Osborne to make statement to MPs on economy

Chancellor George Osborne is to make a statement to MPs on Thursday about the economic situation.

Mr Osborne is taking advantage of the rare summer recall of Parliament, to outline the UK's view on the economy and to answer questions from MPs.

There have been heavy falls in stock markets over recent weeks and fears over some euro members' economies.

Yen, Franc Rise as U.S. Downgrade, Euro Crisis Spur Safety Bid

(Bloomberg) -- The Japanese yen and the Swiss franc strengthened as Standard & Poor's downgrade of the U.S., coupled with a deepening euro-region sovereign debt crisis, lifted demand for the safest assets.

The dollar dropped to a record low against the Swiss franc and fell for a second day versus the yen after S&P lowered the U.S. credit rating one level on Aug. 5. The yen gained versus all but one of 16 major peers as Asian shares slid for a fifth day and European equities dropped for a seventh. Gold jumped to an all-time high, rising to more than $1,700 an ounce. The euro advanced after the European Central Bank started buying Italian and Spanish bonds to curb the region's debt crisis.

Bank of Spain urges euro crisis action, warns on debt

(Reuters) - Spain's central bank urged euro zone leaders to act decisively over new crisis-fighting measures, warning that debt market turmoil risked choking off the country's economic recovery, which slowed in the second quarter.

With yields on Spanish 10-year bonds continuing to trade close to euro era highs at well above 6 percent on Friday amid a broad market selloff prompted by global growth fears, the bank said sovereign debt market tensions were the main risk to the country's outlook.