The U.S. economy will slow next year amid continued trouble in the housing market, likely leading to lower interest rates, a senior International Monetary Fund official said Wednesday.
CNBC Europe's Dan Scott reports from the Frankfurt Motor Show and VW's plans to become the world's biggest carmaker.
European Central Bank President Jean-Claude Trichet said Europe's financial system is sound despite the current market correction, but more needs to be done to improve future financial stability.
The U.S. subprime crisis had little impact on the top line of luxury automaker BMW, the company's CEO said Tuesday, but expectations of stricter emission standards are pushing the company to produce more environmentally-friendly cars.
Euro-zone interest rates have further to rise, European Central Bank Governing Council member Axel Weber said on Friday, although other policymakers stressed no move is imminent given uncertainty over the credit crunch.
The eurozone finance ministers' chairman said on Friday French President Nicolas Sarkozy was neither noble nor correct to claim some of the credit for the European Central Bank's decision to keep interest rates on hold.
EU ministers and national experts are due to approve a genetically modified (GMO) sugar beet variety this month despite a long running dispute over the use of biotechnology.
Luxury automakers BMW, Audi and Mercedes reported healthy sales increases for August on Friday, with demand from Asia and the U.S. driving gains but with mixed results in their home markets.
The European Central Bank kept its key monetary policy rate flat at 4% on Thursday due to persistent turbulence in the financial markets because of fears of a spillover of the U.S. subprime crisis.
Another rise in euro-zone interest rates looked assured last month, but the turmoil in the credit markets has brought pressure on European Central Bank President Jean-Claude Trichet to keep rates at 4%.
The Bank of England broke its silence on Wednesday over the current storm engulfing world financial markets and took steps to bring overnight interest rates down.
Euro zone growth next year could be weakened by the credit crisis triggered by high-risk U.S. mortgage debt, the chairman of euro zone finance ministers, Jean-Claude Juncker, said on Wednesday.
Germany has arrested three men it suspects of belonging to an Islamist terrorist group and planning attacks on Frankfurt international airport and a major U.S. military base, German officials said on Wednesday.
A sharp drop in investment and government spending more than halved quarterly euro zone growth for April to June, but this is unlikely to stop further ECB interest rate rises as analysts expect the economy to pick up.
Germany's Deutsche Bank said in a surprise trading update Tuesday that it has suffered some impact from recent credit market problems, but said it hasn't made unsecured loans to hedge funds and that its margin calls are being met.
German media group Bertelsmann, the purveyor of books, CDs and other entertainment, lost 51 million euros ($69.52 million) in the first half of 2006 after costs related to settling copyright claims that arose from its backing of file-sharing service Napster eroded its overall results, it said Tuesday.
European stocks closed mixed on Monday in thin trading because of a national holiday in the U.S. and on anticipation of a busy week.
Germany's IKB said on Monday it would return to its small-company lending roots, and expects to lose nearly $1 billion this year after its U.S. subprime investments turned sour.
European stocks closed in the green on Friday after the two top U.S. economic policymakers said it was not up to the government to rescue bad investments but acknowledged they would intervene to prevent a spillover of the U.S. credit market crisis into the broader economy.
Euro zone inflation was stable at the European Central Bank's target for the 12th straight month in August but consumer expectations of inflation jumped and economic sentiment weakened more than expected, data showed.