UNEMPLOYMENT

The economy appears to have slipped into another recession.

A bipartisan bill extending the payroll tax cut two months faces grim prospects in the House of Representatives on Monday, as House Republicans are vocally balking at the legislation, leading House Speaker John Boehner, R-Ohio, to demand further talks.

The Senate-passed bill is a two-month extension of the 2 percent payroll tax holiday, federal support of unemployment benefits and an extension of expiring Medicare provisions.

One day after saying he favored the payroll tax reduction extension agreement approved by the U.S. Senate, House Speaker John Boehner, R-Ohio, said he and his caucus will oppose the tax reduction deal. Boehner said House Republicans now want additional budget reductions to finance the extension agreement.

The fate of an expiring tax break for 160 million American workers was in doubt on Sunday after the top Republican lawmaker declared his opposition to a two-month extension passed overwhelmingly by the Senate.

The U.S. Senate OK'd on Saturday a $1 trillion bill to fund the government and a two-month extension of the payroll-tax cut, capping a contentious political year while preparing the arena for a fresh battle in 2012.

The U.S. Senate has passed a bill that extends the unemployment benefits for two months in 2012 (until the end of the February). This means benefits will continue to be paid, including for those nearing the end of the maximum 99 total weeks.

After Congressional negotiators signed off Thursday night on a $1 trillion omnibus spending bill that would avert a shutdown and fund the federal government through September, lawmakers' focus returned to the ongoing negotiations over the extension of the payroll tax cut.

Baroin told the French parliament that Britain is becoming “marginalized” in Europe.

Japan's Nikkei share average rose modestly on Friday after signs of strength in the U.S. economy but it slipped for the week, as investors continue to worry about the impact of Europe's debt crisis.

The threat of Europe's financial crisis drifting overseas, slowing the U.S. recovery, remains. The Federal Reserve noted this week that Europe's debt crisis remains a threat to the U.S. economy, which it said is expanding moderately. Concerns linger over the health of the European banking sector and possible ratings downgrades in debt-ridden European countries.

World stocks rose on Friday after upbeat U.S. data and corporate results, while concerns over the European banking sector and nervousness about potential ratings downgrades in European sovereign debt underpinned German government bonds.

Hunger and homelessness are on the rise according to a report released on Thursday by the United States Conference of Mayors.

Asian shares rose and the euro edged higher Friday, as signs of strength in the U.S. economy temporarily broke through gloom over the European debt crisis that had driven a selloff in riskier assets over the past three days.

U.S. lawmakers Thursday night reached a tentative deal to fund an array of government agencies through Sept. 30 and avert shutting down many of Washington's operations starting this weekend.

This lack of action by central banks has clearly contributed to the pervasive negative mood felt by most investors.

The number of Americans filing new claims for jobless benefits fell to a 3-1/2-year low last week and factory activity in parts of the Northeast gained speed in December, suggesting a further strengthening of the economic recovery.

U.S. stocks rose on Thursday, as signs of strength in the economy and higher-than-expected profit at FedEx outweighed more warnings about Europe.

After years of economic turmoil, U.S. homebuilders should see modest gains and a stable outlook in 2012, according to a report from Fitch Ratings.

Stocks rose on Thursday as signs of strength in the economy and higher-than-expected profit at FedEx outweighed a stark warning from the IMF about inaction over Europe's debt crisis.

New data from the U.S. Census Bureau found about 146 million Americans are either low-income or living in poverty.