Black economy clouds Spain's recovery from crisis

Madrid (AFP) - Many of Spain's five million unemployed dream of finding a steady job in the economic recovery vaunted by the government -- but a legion of undeclared workers still scrape by cash-in-hand.

Bank of England keeps interest rates on hold at first post-election meeting

The Bank of England has decided to keep its interest rates on hold this May, keeping them unchanged for the first time since the general election.

Euro zone business output fails to meet forecasts

Private-sector output in the euro zone failed to live up to expectations for November, fueling concerns that the region's economic recovery is faltering.

Rapid UK economic growth slows slightly in third-quarter

(Reuters) - Britain's rapid economic recovery eased in the three months to September, as services output growth slowed and manufacturing expanded at the weakest pace in 18 months, official data showed on Friday.

IMF warns period of ultra-low interest rates poses fresh financial crisis threat

A prolonged period of ultra-low interest rates poses the threat of a fresh financial crisis by encouraging excessive risk taking on global markets, the International Monetary Fund has said.

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.

M&A talk lifts European shares, euro dips to two-week low

LONDON (Reuters) - M&A talk in the pharmaceutical sector lifted European shares on Tuesday, but failed to support the euro, which dipped to a two-week low against the dollar as ECB policymakers renewed efforts to weaken it.

OECD Warns Euro Area of Higher Deflation Risks

BRUSSELS--Deflation risks in the euro area have risen and the European Central Bank should keep its interest rates at near zero over the medium term to tackle them, the Organization for Economic Cooperation and Development said in a report Thursday.

U.K.’s Osborne to Boost Home Building, Extend Help-to-Buy

Chancellor of the Exchequer George Osborne said he will extend the Help-to-Buy program for newly built homes until 2020, and announced plans for a garden city outside London to spur Britain’s housing supply.

Bank of England keeps rates on hold at 0.5%

The Bank of England has kept rates on hold at 0.5 per cent, marking the fifth anniversary of ultra-loose monetary policy.

Draghi Says ECB Ready to Act If Inflation Outlook Deteriorates

European Central Bank President Mario Draghi said policy makers are ready to add to stimulus if the outlook for prices deteriorates, though there are currently no signs of deflation in the euro area.

Spanish and Italian yields head back towards 8-year lows

LONDON, Feb 21 (Reuters) - Spanish and Italian bond yields fell back towards eight-year lows on Friday in a broad based rally in euro zone debt as uncertainty over the bloc's growth outlook bolstered expectations of further ECB policy easing.

UK commercial property market strengthening, says British Land

British Land said the UK commercial property market was strengthening with increased investment spreading from London into regional markets.

Euro-Area Economic Confidence Increases More Than Forecast

Euro-area economic confidence increased more than economists forecast in December, buoying up policy makers as they grapple with the legacy of the currency bloc’s longest recession.

In landmark for EU, Ireland leaves its bailout behind

DUBLIN, Dec 13 (Reuters) - Three years after going cap in hand to international lenders to avert bankruptcy, Ireland has officially ended its bailout in a landmark for the euro zone's efforts to resolve its debt crisis.

Euro zone employment shows no change in third quarter

BRUSSELS (Reuters) - The number of people with jobs in the euro zone was unchanged for the second consecutive quarter in the three months to September, showing the bloc's economic recovery has not yet filtered through to the labour market.

Euro Loses Most Since July 2012 on ECB Rate-Cut Bets

The euro slid the most in more than a year versus the dollar as weaker-than-forecast economic data for the currency region fueled speculation the European Central Bank will cut interest rates as soon as at its meeting next week.

Spain's budget to focus on nascent recovery, reforms

MADRID (Reuters) - Spain will boost economic and job forecasts in the 2014 budget to be presented on Friday, moving away from tough spending cuts and relying instead on lower borrowing costs and momentum from previous reforms to achieve fiscal targets.

Italy says economy shrank 0.3 per cent in second quarter

Italy on Tuesday downgraded its estimate for growth in the second quarter, saying the economy shrank by 0.3 percent in April to June instead of 0.2 percent initially calculated.

ECB 'very cautious' about eurozone recovery

European Central Bank chief Mario Draghi on Thursday sought to temper hopes that the eurozone was about to rebound strongly, insisting that the nascent recovery remains extremely fragile.