A look at economic developments around the globe

AP News
|
Posted: May 30, 2012 3:55 PM
A look at economic developments around the globe

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

___

BRUSSELS _ The European Union's executive office called on the 17 countries in the eurozone to create a "banking union" that can centrally oversee and _ if needed _ bail out the sector, which has become a weak link in the continent's financial system.

___

MADRID _ Spain's borrowing costs soared to reach their highest level since the country joined the euro, close to levels where other debt-stricken countries such as Greece and Ireland have asked for an international bailout.

___

BRUSSELS _ Economic confidence across Europe fell sharply in May, the European Union's executive branch said Wednesday, in a further sign that the recent escalation in the region's debt crisis is being felt across the continent.

___

LONDON _ Mounting concerns about Spain's worsening economic and financial condition and doubts over Europe's ability to bail out the country dragged stock markets sharply lower.

The FTSE 100 index of leading British shares fell 1.7 percent while Germany's DAX fell 1.8 percent. The CAC-40 in France slid 2.2 percent.

___

TOKYO _ Nikkei 225 index fell 0.3 percent. Hong Kong's Hang Seng tumbled 1.9 percent and South Korea's Kospi was down 0.3 percent.

___

FRANKFURT, Germany _ Credit and money data from the European Central Bank showed that the $1.25 trillion in emergency loans from the ECB to commercial banks is not reaching consumers and businesses in the form of loans.

___

ATHENS, Greece _ A new survey indicates that Greece's radical left Syriza party, which opposes the loan-dependent country's bailout commitments, has regained the lead in opinion polls ahead of crucial national elections on June 17.

___

BEIJING _ China's Cabinet said it has approved plans to promote development of seven emerging industries including clean energy as it tries to restructure the economy and boost growth.

___

BUDAPEST, Hungary _ The European Union's executive arm recommended scrapping a plan to withhold development funds totaling $620 million from Hungary in 2013 because of its large budget deficit.

___