A look at economic developments around the globe

AP News
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Posted: Oct 26, 2010 2:59 PM
A look at economic developments around the globe

A look at economic developments and activity in major stock markets around the world Tuesday:

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LONDON _ Britain's economy grew 0.8 percent in the third quarter, twice as fast as economists had expected and perhaps calming fears of a double-dip recession.

The growth followed a rate of 1.2 percent _ a nine-year high _ in the second quarter, when restocking of inventories and construction surged. The combined expansion was the strongest back-to-back performance by the British economy in a decade, the Office for National Statistics said.

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BERLIN _ A leading survey showed German consumer confidence is steady, with an improvement in views about the economic outlook offset by a drop in personal income expectations.

Shares dropped in Europe, however. Germany's DAX index closed down 0.4 percent, France's CAC-40 was 0.5 percent lower and in Britain, the FTSE 100 index fell 0.8 percent.

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TOKYO _ Japan's Cabinet approved an extra budget to help finance $63 billion of stimulus spending aimed at spurring the country's lackluster economy as it battles deflation and a strong yen.

Shares mostly fell in Asia. The Nikkei 225 stock average closed down 0.3 percent, Australia's S&P/ASX 200 shed 0.5 percent, Hong Kong's Hang Seng index slipped 0.1 percent and the Shanghai Composite Index fell 0.3 percent. South Korea's Kospi added 0.2 percent.

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DUBLIN _ Ireland's government said it must slash euro15 billion ($20.8 billion) from its annual budgets in a four-year plan designed to bring Europe's highest deficit back within EU limits.

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BRUSSELS _ ArcelorMittal, the world's biggest steel maker, posted Tuesday a 48 percent jump in third-quarter net profit, but said higher raw material prices and muted demand dampened its expectations for the rest of the year.

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CANBERRA, Australia _ Key lawmakers signaled they might scuttle the Singapore Exchange's $8.3 billion cash and shares takeover offer for the operator of the Australian bourse.

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PARIS _ French garbage collectors waded through mounds of reeking trash as they headed back to work and some oil workers deserted their picket lines in signs of fading momentum in the battle against raising the retirement age.

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ATHENS, Greece _ Greece's central bank governor says the government must not relent in its planned deficit-cutting efforts but warns against further tax increases, which would deepen the recession.

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