PORTUGAL

Asian stocks were off to a weak start while the euro remained fragile on Wednesday morning after Moody's slashed Portugal's credit rating to junk status and as investors take a breather after the past week's rally in risky assets.

Portugal's credit-rating outlook depends a great deal on whether euro zone officials will require private sector participation when extending new financing to debt-ridden countries in the region, Moody's said on Tuesday.

Moody's Investors Service on Tuesday cut Portugal's credit rating by four levels to Ba2, two notches into junk territory, saying there is great risk the country will need a second round of official financing before it can return to capital markets.

Moody's Investors Service on Tuesday slashed Portugal's credit rating into junk territory, saying there is great risk the country will need a second round of official financing before it can return to capital markets.

Germany's top court began hearing legal challenges on Tuesday against last year's bailouts of debt-stricken euro zone peers in a move that could affect Berlin's room for maneuver in future rescue packages.

Long-term investors standing aloof from the Greek debt crisis want holders of its government bonds to take a loss big enough to slash the country's debt to sustainable levels before they consider returning.

European services growth slowed in June in the face of sluggish new orders and rising interest rates, giving firms less optimism about the year ahead, business surveys showed on Tuesday.

Bailouts of Europe's debt-stricken countries face a legal challenge on Tuesday as Germany's top court begins hearing a lawsuit against German contributions to the rescues of Greece, Ireland and Portugal.

Italian parliament will vote on budget cuts designed to save more than 40 billion euros.

The International Monetary Fund has named Christine Lagarde its new head and the first woman to lead the organization, according to a statement released from Washington today.

The United States has officially declared its endorsement of France’s finance minister Christine Lagarde to be the next chief of the International Monetary Fund (IMF), virtually guaranteeing she will becomes its boss when its board meets next week.

European Union officials are working on a contingency plan for Greece if its parliament rejects an austerity program and the country cannot receive the next instalment of EU/IMF emergency loans, three euro zone sources said on Monday.

Global interest rates must rise to avoid high inflation becoming entrenched, the Bank for International Settlements said on Sunday.

Europe is more concerned about the fallout on Spain and other large euro zone economies from the Greek financial crisis than on Ireland and Portugal, which are already receiving emergency funding, the Irish finance minister said on Sunday.

European Union leaders are expected to press Greece at a summit on Thursday to adopt deeply unpopular austerity measures, in return for fresh financial support.

Brazilian authorities claim to have pinpointed the location of a community of ancient and uncontacted tribespeople in one of the most remote corners of the world’s largest rainforest.

Good morning, Harry Potter fans. Check here for live blog coverage of J.K. Rowling's Pottermore announcement.

European leaders will try to convince Greeks and financial markets when they meet on Thursday and Friday that they have a workable plan to help Athens avoid a debt default and return to financial stability.

In much the same manner as in 2004, when Jose Mourinho brought in several of his stars from Porto, Chelsea are about to do the same with Andre Villas-Boas at the helm, though he will have to fight Barcelona off David Luiz.

The head of PIMCO, the world's biggest bond fund, predicted that Greece and other European economies would default on their debts to resolve their problems as the euro area deals with its debt crisis.

The risks of the U.S. losing its prized triple-A rating over the medium term have increased as the country faces a political impasse and nears its debt ceiling, Standard and Poor's said on Tuesday.