The Institute of International Finance warned that the European Central Bank’s plan to buy sovereign bonds may result in a “cliff effect” if a country fails to meet conditions tied to the purchases. Termination of bond purchases could lead to an “abrupt” market correction, the IIF’s market monitoring group said in a statement Sunday. Some countries may also be put off from seeking aid because of the requirements, said the Washington-based IIF, which represents more than 450 financial companies.

Companies linked to French billionaire Bernard Arnault’s LVMH Moet Hennessy Louis Vuitton have amassed 4 billion euros ($5.2 billion) in assets in Belgium, where he recently applied for citizenship. Belgian central bank records show that 12 companies and a private foundation, all connected to LVMH and based in Brussels, have more than tripled their assets since 2008. Olivier Labesse, an LVMH spokesman, said the companies are investment vehicles for LVMH, which has annual revenue of $26 billion.

WASHINGTON (AFP) ― The United States said Friday it would extend exemptions for European Union nations and Japan from tough sanctions that recently took effect against any nation that buys Tehran’s oil.Under a law meant to pressure the clerical regime over its contested nuclear program, the United States bars banks from nations that buy Iran’s key money-maker from doing business in the world’s largest economy.Secretary of State Hillary Clinton announced she was extending for another 180 days exe

Large anti-austerity protests in Spain and big demonstration in PortugalMADRID (AP) ― Tens of thousands of people from all over Spain rallied in the capital Saturday against punishing austerity measures enacted by the government, which is trying to save the country from financial collapse.Large anti-austerity protests also took place in neighboring Portugal. Demonstrators in Lisbon threw tomatoes and fireworks at the Portuguese headquarters of the International Monetary Fund. Two protesters were

NICOSIA, Cyprus (AP) — Greece may be given more time to meet its bailout commitments if the country‘s recession turns out worse than expected, but no more money will be provided by its euro partners, Dutch finance minister Jan Kees de Jager said Friday.Arriving for the start of two days of discussions between Europe’s finance ministers in the Cypriot capital, De Jager said Greece does not have much flexibility as it tries to get more time to achieve its budget cuts and reform measures required b

LONDON (AFP) ― British arms manufacturer BAE Systems and European planemaker EADS revealed Wednesday they are in merger talks to create a global aerospace and defense leader that would better rival U.S. giant Boeing.“BAE Systems plc and EADS confirm that they are in discussions regarding a possible combination of their businesses,” the companies said in a joint statement that confirmed feverish market speculation.The talks envisaged BAE Systems owning 40 percent of the enlarged group, with EADS

Japan’s machinery orders rose more than forecast in July even as weakness in exports and waning subsidies for auto purchases threaten to stifle economic growth. Orders climbed 4.6 percent from the previous month, after gaining 5.6 percent in June, the Cabinet Office said Wednesday in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 2 percent increase. Large orders can cause volatile results. Wednesday’s reading and a pick-up in manufacturers’ confidence signal som

NEW YORK (AP) ― The U.S. government’s debt rating could be heading for the “fiscal cliff” along with the federal budget.Moody’s Investors Service on Tuesday said it would likely cut its “Aaa” rating on U.S. government debt, probably by one notch, if budget negotiations fail.If Congress and the White House don’t reach a budget deal, about $1.2 trillion in spending cuts and tax increases will automatically kick in starting Jan. 2, a scenario that’s been dubbed the “fiscal cliff,” because it is lik

TIANJIN (AFP) -- Chinese Premier Wen Jiabao hinted Tuesday at new stimulus measures to boost flagging growth, while vigorously defending his decade in charge of the world’s second-largest economy as Beijing approaches a sensitive leadership transition.China's economy "was showing signs of stabilizing" and would likely meet the 7.5 percent expansion the government set for the year, Wen said in a speech to the World Economic Forum in the eastern city of Tianjin."We are fully confident that we have