Ukraine, warning it is “on the brink of disaster”, has put its military on high alert and appealed for international help to avoid what it fears is a possible wider invasion by Russia.

Bankia, the fourth largest bank in Spain, could get less than the €19 billion in aid it has asked for, two sources said, prolonging uncertainty surrounding a rescue that has added to fears that Spain itself would need a bailout.

Asian stock markets fell sharply today amid fresh anxiety over Europe’s debt problems and a potential default by Greece which would wreak havoc on the global economy.

THE United States pressed Europe’s strongest economies yesterday to give “unequivocal” financial support to weaker euro zone states to overcome a debt crisis that threatens the world economy.

The yen fell from historic highs today after the Group of Seven major industrialised nations promised coordinated intervention in currency markets to support Japan's recovery from a catastrophic earthquake and tsunami.

Japan’s central bank is continuing to pour cash into the banking system to calm jittery money markets as the yen shot to a record high.

A high-level meeting of the world's major economies is moving closer to an agreement on policies to reduce currency tensions that threaten the global recovery, a US official said today.

THE ECB’s decision not to increase the availability of debt to boost growthin the eurozone has resulted in the euromaking strong gains in recent days.

A crisis in Europe over budget belt-tightening has upended global markets and seized the attention of financial leaders meeting in the Canadian Arctic.

Finance ministers from the Group of Seven rich countries warned the global recovery remained “fragile” and tried to talk up the US dollar amid fears it could fall further and disrupt the global economy.

Investors sent Washington a message this week: They won’t commit to stocks until the government commits to a plan.

THE euro is overvalued against the dollar, Nobel Prize laureate Robert Mundell said in a newspaper interview.

The world’s seven largest economic powers today urged Russia to accept an immediate cease-fire with Georgia.

Banks are still struggling to secure cash after last summer’s credit crunch despite a drop-off in the rate at which they lend to each other, an industry body revealed today.

WORLD stocks coasted along near record highs yesterday while investors’ search for yield kept emerging market and corporate bonds closer to government debt.

Finance ministers and central bankers from the Group of Seven industrialised economies gathered today to take stock of global economic health amid worries that a US slowdown may stifle global growth.

A solution to the crippling debt burden of poor countries has eluded finance ministers and central bankers from around the world, but there are expectations an agreement could be reached later this year.

The US trade deficit, swollen by surging imports of oil and textiles, soared to an all-time high of more than $61bn (€47.4bn) in February.

Finance ministers and central bank governors from the Group of Seven industrial countries called today for more flexibility in international exchange rates and warned that excess volatility would hamper global growth.

Declaring that high oil prices are a threat to the global economy, the world’s industrialized countries urged producers to provide price relief by boosting supplies.

WORLD finance chiefs meeting in Washington this week will express satisfaction with a rebounding global economy, but also highlight risks from surging oil prices, turmoil in Iraq and other factors.

The US dollar hit an 11-year low against the pound today as dealers fretted over the direction of monetary policy in the world’s biggest economy.

FINANCE chiefs from the world’s leading industrialised nations have agreed that a global recovery is gaining steam and papered over tensions on currency exchange rates by warning markets “excess volatility” should not to be tolerated.

THE dollar had its biggest annual decline versus the euro on low US interest rates relative to Europe, and on signs officials on either side of the Atlantic aren’t concerned about the decline in the US currency.

THE dollar fell past $1.26 against the euro for the first time, heading for its biggest annual drop on low US interest rates relative to Europe.

HIGHER interest rates and a continuing depreciation of the dollar in 2004 are being anticipated on the back of economic recovery, but this could force a cut in ECB rates.

HIGH-YIELDING emerging market currencies enjoyed a startling return to form in September and analysts say the outlook for the final quarter also looks positive, though not without risk.

THE European Central Bank is set to disappoint markets by refusing to cut interest rates due to the expected quick end to the war on Iraq.

The European Union today issued a stern warning to a gathering of top financial officials, saying uncertainty over war in Iraq has damaged the world economy.

The seven wealthiest countries along with Russia faced contentious problems as they opened their annual summit in Genoa today.