By Jonathan Cable and Adam RoseLONDON/BEIJING (Reuters) - China's vast factory sector contracted again this month and the expected acceleration in euro zone business activity failed to materialize, highlighting the fragile state of a global economy.
Amid flood of revelations, US weighs ending spying on allied heads of state WASHINGTON (AP) — Faced with a flood of revelations about U.S. spying practices, the White House is considering ending its eavesdropping on friendly foreign leaders, a senior administration official said.
The global economy that was headed for an abyss at the start of 2009 now appears to be in recovery, but remains fragile and scarred by the worst crisis in decades.The year began with major economies on the brink of disaster in what turned into the steepest global slump since the Great Depression, before a modest second-half comeback in most of the world.
Forget all of the talk about the rise of China and the shift of economic power from West to East. The U.S. economy remains the largest and most important in the world, and what happens in America still determines what happens to the global economy. No wonder, then, that investors from Hong Kong to London have become fixated on the looming “fiscal cliff” facing the U.S. government.
Research Recap submits:
Despite the increase in volatility within sovereign debt markets, the global economic recovery remains on track, albeit at an uneven pace across countries and regions, Fitch Ratings says in its quarterly Global Economic Outlook.
State economies have partially recovered from the depths of 2009 and early 2010, but 17 states still project deficits. Moreover, there are no rainy day funds or untapped revenue sources, and some "temporary" tax hikes are set to expire. California is $13 billion in the hole but that is a huge improvement compared to the $40 billion hole previously.
Yahoo!Finance reports State revenue rises, but not enough to offset cuts
By Peter Boone and Simon Johnson
Is the global economic recovery still on track? The mainstream view is: yes, without a doubt. But increasingly, there are increasingly reasons to fear another financial disruption – particularly given the latest developments in Ireland.
Leaders of the world's rich and major developing countries began talks aimed at agreeing a new deal on the global economy at a crisis summit in London on Thursday, hoping to clear up divisions over how far to go with tougher financial regulation.