Just hours after across-the-board spending cuts officially took effect, President Barack Obama pressed Congress on Saturday to work with him on a compromise to halt a fiscal crisis he said was starting to "inflict pain" on communities across the United States.
Asian shares edged down on Friday, with manufacturing data from China that broadly met expectations helping to somewhat taper sentiment burdened by worries over the economic fallout from Italy's political confusion and likely US spending cuts.
President Barack Obama on Tuesday urged Congress to pass a small package of spending cuts and tax reforms to delay larger, automatic cuts from going into effect and damaging the economy on March 1.
Congressional Republicans, frustrated by the failure of earlier efforts to get President Barack Obama to agree to spending cuts, suddenly find themselves in a fight to keep their grip on the one tool they thought would give them better leverage: Their threat to block an increase in the government's ability to borrow money in December.
Oil eased to USD 111 a barrel on Monday as some investors booked profits after last week's gains, although optimism that the world's biggest economies are on a steady recovery path limited the decline.
Brent crude futures held above USD 111 per barrel on Monday, supported by signs that the world's biggest economies are on a steady recovery path, but inventory data showing weak fuel demand in the United States curbed gains.
Some were hoping for a "grand bargain." Others were willing to settle for a "mini bargain." Instead Congress seems now to be working on a "micro deal."
Despite the intense political fighting over just the "fiscal cliff," Warren Buffett is optimistic the nation's overall debt problem will eventually be fixed.
Gold firmed for a fifth straight day on Friday, ahead of talks to prevent the United States from plunging off a "fiscal cliff" of tax increases and spending cuts, with the metal on track for its biggest weekly gain in a month.
President Barack Obama may return to Washington from his Hawaiian holiday as early as Wednesday evening to address the unfinished "fiscal cliff" negotiations with Congress, an administration official said on Tuesday.
Gold fell more than half a percent on Friday and moved towards its weakest level in four months as the euro slipped against the dollar and talks to avoid a fiscal crisis in the United States seemed to stall again, turning away investors.
The measures likely to be adopted to reduce US budget deficit may not be enough to address the deep-seated problems of American public finances.
Republicans in the US Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.
The "fiscal cliff" could trigger a recession and push the unemployment rate above 10 percent, ratings agency Fitch said on Monday.
The government could announce spending cuts for the 2013 fiscal year on Saturday, although the size of the cuts was not immediately clear, two government sources said.
Asian shares and the euro gained modestly on Monday, relieved by The Greek parliament's passage of austerity measures which put the country a step closer to securing a much-needed bailout fund and avoiding a messy default.
Greek lawmakers will vote this weekend on a controversial austerity bill that Athens needs to avoid a messy default but which is fuelling a domestic political and social crisis that has brought thousands of Greeks out on the streets in protest.
If doubts about US government credit quality and the country's long-term growth horizon have seen its 10-year borrowing costs fall by a third, it's a wonder anyone pays heed to ideas of "unsustainable" sovereign debts.
The House of Representatives on Tuesday defeated a bill to raise the US debt limit in a vote staged by Republicans to strengthen their push for deep spending cuts in negotiations with the White House.
The world is gearing up to deal with the US budget, which comes just before the Indian Budget, and President Barack Obama has a tough task at hand. In his balancing act, which is tougher than Indian finance minister Pranab Mukherjee's job.
US House of Representatives Majority Leader Eric Cantor said on Sunday his fellow Republicans would not vote to increase the US debt limit unless it was coupled with spending cuts and reforms.
US President Barack Obama is willing to make difficult choices on spending cuts when he unveils his budget next month, a senior aide said on Sunday.