UNITED KINGDOM

Expectations for defaults and losses in residential mortgage-backed securities continue to rise sharply in the United States, while tailing off in Britain, even as its economy has been slower to recover, a survey found.

Investors have not yet given up on the 11-month-old world markets recovery and there is little evidence so far this year of a retreat to safe-haven bunkers in the face of mini-shocks from Greek debts, China's monetary tightening and U.S. regulatory threats.

Asian shares leapt to a three-week high on Wednesday, powered by financial and resource shares after investors bought commodities on a weaker dollar, while Hong Kong shares shrugged off China's latest move to temper robust lending.

Belgian train drivers went on strike on Tuesday, a day after a rail crash that killed 18 people, increasing disruption to local and international services.

The release of the RBA board minutes saw a fairly muted reaction initially on the AUD/USD as it drifted around the 0.8890 level before popping through the 89 cents in Asian afternoon trade.

U.S. stocks posted their biggest daily percentage gain in three months on Tuesday after strong revenue from drugmaker Merck and regional manufacturing data instilled confidence in the economic outlook.

World leaders want banks and financial firms to pay up for government interventions -- past and future -- to stabilize the international financial system. While details are sketchy, some form of bank balance sheet tax appears to be gaining ground.

Barclays Plc beat forecasts with a near doubling of profits in 2009 to 11.6 billion pounds ($18.2 billion), cheering investors with an improved balance sheet and boosting shares across the sector.

U.S. stocks jumped on Tuesday as commodity-related shares rose with a slump in the dollar and the latest batch of corporate earnings improved the profit outlook.

Stocks gained on Tuesday as corporate earnings and a solid jump in manufacturing data fueled investors' optimism on their return from a 3-day holiday.

Capital One Financial Corp's U.S. credit-card defaults rose in January, in a sign that consumers continue to remain under stress, it said in a regulatory filing.

Wall Street was set for a higher open on Tuesday as corporate earnings and a solid jump in manufacturing data fueled investors' optimism on their return from a 3-day holiday.

Tata Motors, India's largest vehicles maker, is keen to sell a stake in its financing arm, a senior official said on Tuesday.

Stock index futures rose on Tuesday as corporate earnings fueled investors' optimism on their return from a 3-day holiday.

European shares gained on Tuesday after UK bank Barclays beat profit forecasts, and the euro rose against the dollar as European finance ministers put more pressure on Greece to resolve its fiscal problems.

Iraq is the country most at risk from terrorist attacks for the second straight year, according to a ranking by global analysts Maplecroft, while Thailand has joined the nine countries most in danger for the first time.

Sterling edged higher against a broadly weaker dollar on Tuesday, tracking a relief rally in euro/dollar as investors trimmed short positions in the single European currency.

The use of full-body scanners at British airports may breach human rights laws, the country's equality commission said on Tuesday, potentially undermining the latest weapon against terrorism.

In what was a very lacklustre Asian session yesterday the Aussie dollar traded sideways between 0.8860 and 0.8880 for the majority of the day as local investors searched for inspiration.

Two commuter trains crashed head-on near Brussels during the Monday morning rush hour killing 18 people.

Britain's Royal Bank of Scotland is in talks with a potential buyer for its Colombian operations, as it pushes ahead with plans to refocus on core businesses.