THE group of G20 nations have failed to agree on a proposal to impose a global tax on banks aimed at making the financial industry shoulder the cost of bailouts, settling instead for a common set of guidelines.

The Taliban is in a much stronger financial shape than al Qaida and relies on a wide range of criminal activities to pay for attacks on US and coalition forces in Afghanistan, a US Treasury chief said.

European Central Bank President Jean-Claude Trichet said yesterday that economic growth in the 12-nation eurozone area was progressing close to its potential but would say nothing about what bank policy-makers will do when they meet this week to discuss interest rates.

The Federal Reserve today raised interest rates for the sixth time since last June as policy-makers continued their efforts to make sure a strengthening US economy does not trigger inflation.