A1SaudiArabia.com

LONDON – The United States and Britain are more likely than Germany and France to witness an embarrassing downgrade of their top debt rating, agency Moodys Investors Service said Monday.

In a quarterly report assessing the prospects of the triple A-rated countries, including Spain and the “less fiscally challenged” Denmark, Finland, Norway and Sweden, Moodys warned that the economic recovery remained fragile in many advanced economies.

“This exposes governments to substantial execution risk in the implementation of their exit strategies, which could yet make their credit more vulnerable,” says Arnaud Mares, senior vice president in Moodys sovereign risk group and the main author of the report. Governments and central banks are looking at when and how to unwind their massive stimulus measures, which include historically-low interest rates, liquidity provisions, industry incentives and increased spending. Although some experts warn that exiting these policies too early risks creating a new economic downturn, they are also straining government finances.

Read More

FRANKFURT – German Finance Minister Wolfgang Schaeuble Friday voiced support for a proposed European monetary fund (EMF) to help eurozone nations in crisis but stressed such aid must carry a heavy price tag.

“Strict conditions and a prohibitive price tag must be attached so that aid is only drawn in the case of emergencies that present a threat to the financial stability of the whole euro area,” Schaeuble said.

Read More

RIYADH – Ernst & Young recently hosted a seminar on Saudi Arabian corporate income tax law and zakat regulations and its by-laws. The seminar was attended by over 100 finance and tax executives from the Kingdom.

The seminar focused on the update on zakat, corporate income tax regulations as well as clarifications issued by the Department of Zakat and Income Tax (DZIT). Recent appeal decisions, tax treatment of complex tax issues and proposed amendments to Saudi Companies regulations were also presented.

Read More

BERLIN – Officials from nations that have ordered the Airbus A400M military transporter and the manufacturer are holding a new round of talks on funding for the troubled project.

The German Defense Ministry says deputy defense ministers and industry representatives are meeting in Berlin Friday.

The meeting was expected to last several hours.

Read More

PARIS – French unemployment rose sharply in the fourth quarter of 2009 to reach a rate of 9.6 percent, wiping out the countrys gains on the jobless front over the past decade, official figures showed Thursday.

“The unemployment rate has climbed sharply and is now at the level of 1999,” said the INSEE state statistical agency.

Read More

ATHENS – The European Union urged Greece on Monday to announce new austerity measures within days to tackle a debt crisis that has shaken the euro zone and promised to help Athens overcome the problem.

EU Economic and Monetary Affairs Commissioner Olli Rehn made the call after a first round of talks with Greek officials amid growing market expectations of a trade-off between new deficit cutting steps and practical EU support for Greek borrowing.

Read More

NEW YORK – Oil prices slipped below $80 a barrel Thursday as a stronger dollar made crude more expensive for international investors and the market received mixed signals on the strength of the US economy.

By early afternoon in Europe, benchmark crude for April delivery was down 50 cents to $79.50 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.14 to settle at $80 on Wednesday.

Read More

Greece – Police fired tear gas and clashed with demonstrators in Athens after some 50,000 people finished a peaceful march against cutbacks intended to fix the countrys debt crisis.

The violence lasted about 30 minutes, when scores of youths hurled rocks, red paint and plastic bottles near parliament. Police said at least two people were detained, while several storefronts were vandalized.

Windows were smashed at the Finance Ministrys General Accounting Office, which has been accused by the European Union of slipshod statistics-keeping that made the financial crisis worse.

Read More

This one will go down to the wire like one of those agonizing cricket matches that pack it all into the last ball. But you can bet your last NRI buck that when when the Indian budget is unveiled this Friday, every one who has invested in the market will heave a sigh of relief, regardless of whether the result is win, lose or draw.

Its because the market has not followed its usual pre-budget pattern of high expectations this time around. It took a nasty fall, kept losing hope and slipped into a stupor these past four weeks, refusing to react even to strong data confirming the economys impressive recovery from recession.

Read More

BERLIN – German airline Lufthansa asked a labor court to halt a strike by more than 4,000 of its pilots that canceled 800 flights Monday and upended the travel plans of 10,000 passengers worldwide.

Deutsche Lufthansa AG spokeswoman Claudia Lange told The Associated Press Monday that the injunction was filed in Frankfurt.

“This strike is disproportionate,” she said. “We hope for a decision within the next 24 hours.” Lange said the company filed the legal action in a bid to avoid more harm to its passengers, customers and shareholders.

Read More