A look at economic developments around the globe

AP News
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Posted: May 16, 2011 1:31 PM
A look at economic developments around the globe

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

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BRUSSELS _ European governments wrangled over how best to keep Greece from defaulting on its mountain of debt, with one of them acknowledging for the first time that they had discussed a restructuring _ a risky move to delay or cut debt repayments.

The meeting was meant to focus on getting final approval for a 78 billion euro ($110 billion) bailout for Portugal, but growing concern over Greece _ and the arrest of Dominique Strauss-Kahn, the managing director of the International Monetary Fund _ threatened to overshadow the talks.

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NEW YORK _ A New York City judge says the head of the International Monetary Fund must remain jailed at least until his next court hearing for attempted rape and other charges.

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LONDON _ Worries over the state of the global economic recovery weighed on stock markets but the euro managed to claw back some lost ground despite the weekend arrest of Dominique Strauss-Kahn, the head of the International Monetary Fund.

The FTSE 100 index of leading shares closed down less than 0.1 percent while Germany's DAX fell 0.2 percent. The CAC-40 in France was 0.7 percent lower.

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BEIJING _ Earlier in Asia, Japan's Nikkei 225 index dropped 0.9 percent. South Korea's Kospi lost 0.8 percent, and Hong Kong's Hang Seng shed 1.4 percent.

The benchmark Shanghai Composite Index lost 0.8 percent and the Shenzhen Composite Index of China's smaller, second exchange lost 0.2 percent.

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CAIRO _ Egypt is near to securing a $2.2 billion loan from the World Bank, the finance minister announced, as the country's military rulers said the unrest of the past few months has battered economic growth rates and is costing the nation $40 million per day in lost tourism revenues.

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DUBAI, United Arab Emirates _ Dubai's government unexpectedly intervened Monday to take over Dubai Bank, a cash-strapped lender jointly owned by the Dubai ruler's investment company and the developer of the world's tallest tower.

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LONDON _ The London Stock Exchange says it is committed to completing a merger with the Toronto Stock Exchange, despite the emergence of a rival offer.

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LONDON _ Retailers in central London are celebrating after spending by international visitors for the royal wedding and the Easter vacation gave them their best sales month in two years.

The New West End Company, which represents 600 retailers in the heart of the capital, said that sales increased 7.6 percent compared to a year earlier.

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NEW DELHI _ India's high inflation eased slightly to 8.7 percent in April as food prices increased at a slower rate, the government said.

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