IMF’s Lagarde warns global economy threatened

PARIS (Reuters) – The head of the International Monetary Fund said the world economy was in danger and urged Europeans to speak with one voice on a debt crisis that has rattled the global financial system. In Nigeria last week, IMF Christine Lagarde said the IMF’s 4 percent growth forecast for the world economy in 2012 could be revised downward, but gave no new figure. “The world economy is in a dangerous situation,” she told France’s Journal du Dimanche in an interview published on Sunday. …

Analysis – As euro steadies, fund managers hedge bearish bets

NEW YORK (Reuters) – The European debt crisis roiled markets all year, producing the most volatile trading since the 2008-2009 meltdown. That is, except in one market — the euro. Fund managers that bet on a volatile, wild year of losses in the euro are paring back positions against the single currency going into 2012 after its surprising resilience to Europe’s sovereign debt crisis damaged their portfolios. Many still expect market turmoil arising from Europe’s debt situation and have kept options strategies that will benefit from volatility. …

French growth revised down in third quarter

The French economy grew less than first thought in the third quarter at a revised 0.3 percent, down from the initial estimate of 0.4 percent, the national statistics institute INSEE said Friday.

ECB’s Stark warns against IMF funds for eurozone

The European Central Bank’s chief economist Juergen Stark, who is stepping down at the end of the year, warned against using the IMF to bail out debt-mired eurozone countries in an interview Friday.

Drop in US jobless claims raises hopes for economy

Fewer Americans turned to the government for unemployment benefits last week than at any time since the 2008 meltdown, raising hope the economy is nearing cruising speed, as well as fears of another false start.

Australia warns of ‘sharp’ Europe downturn

Australia’s central bank on Tuesday said there was a “non-trivial” possibility of a severe contraction in the eurozone economy, leaving the door open for further interest rate cuts in 2012.

Fed to embrace global banking rules: report

The US Federal Reserve is expected to embrace a new global framework that requires giant financial institutions to hold extra capital, The Wall Street Journal reported Monday.

EasyJet CEO says no hit from euro zone crisis – paper

FRANKFURT (Reuters) – Low-cost airline EasyJet has felt no impact on its business from the ongoing debt crisis in the euro zone, its chief executive told a German newspaper. Asked whether the company had felt any fallout, Carolyn McCall told Welt am Sonntag: “So far we haven’t. People don’t seem to let events in Brussels ruin their summer holidays. Of course, that can change any day.” “However, there seems to be a difference between British and German clients. The Brits don’t seem to care at all about what happens in the world (when it comes to travelling). …

Goldman Sachs Chairman Says Euro Will Survive

A leading economist has told Sky News that he thinks the euro will survive – although some countries may have to leave the single currency.

Travel firm Thomas Cook reports £520mn net loss

Holiday firm Thomas Cook went off track and made an annual net loss of £520.7 million ($807 million, 620 million euros) because of unrest in the Arab world and the weak economy, the firm said on Wednesday.