EUROPEAN UNION

In country after country in Europe the so-called bitter pill approach has been wholeheartedly embraced as the only solution by both conservative and leftwing governments. Problem is, it's looking more and more likely that they're wrong: as a strategy, austerity has by and large failed.

Russia said global powers must work harder to win concessions from Iran over its nuclear program, warning that Tehran's desire for compromise is decreasing as it moves closer to being able to build atomic weapons.

Cynicism towards Greece abounds across Europe.

Oil prices are up about 0.85 percent in New York trading.

China will continue to invest in euro zone government debt and it remains confident in the euro, the country's central bank governor said on Wednesday, while calling on Europeans to produce more attractive investment products for China.

Iran President President Mahmoud Ahmadinejad has already asserted that Iran will never halt its uranium enrichment program.

Top Greek refiner Hellenic Petroleum said on Wednesday it had not been informed of a cut in Iranian oil exports toGreece but that it was confident of finding alternative sources of fuel if needed.

Gold dropped on Tuesday as the dollar rallied versus the euro onrenewed fears of credit downgrades in major European economies and uncertainty over Greece's bailout.

The 17 member nations of the euro common currency union, dragged down by the flagging economies of Greece, Portugal, Spain and Ireland, saw factory activity decrease more than expected in December, the statistical office of the European Union announced Tuesday.

India's determination to pursue trade with Iran despite Western sanctions could be undermined as wary exporters back away from fresh deals following a bomb attack in New Delhi blamed on Tehran, a trade association chief said on Tuesday.

GDP dropped by 6 percent for 2011 as a whole, the fifth consecutive year of economic decline.

The yen fell on Tuesday as the Bank ofJapan eased monetary policy by expanding its asset-buying scheme, but the impact on the currency may prove short-lived while nagging worries over the euro zone crisis keep it supported as a safe haven.

The euro rose to a session high and shares reversed early losses after key German data bolstered hopes that Europe's largest economy was recovering and a strong Italian bond sale added to signs that financing pressures were being contained.

Stock index futures edged up Tuesday after upbeat data from Germany offset ratings agency Moody's downgrade of six euro zone countries.

The European Union is likely to take action against Spain's newly installed government by May for delaying austerity measures ahead of a regional election next month, sources familiar with the situation told Reuters.

Output at factories in the euro zone tumbled in December, reflecting a sick European economy that probably shrank at the end of 2011 but it is hoped will recover this year.

Futures on major U.S. stock indices pared earlier losses and point to a slightly higher opening Tuesday ahead of of economic data including retail sales.

The summit comes a day right after Moody's downgraded its ratings for Italy, Spain and Portugal, with a negative outlook for France, Britain and Austria.

Moody’s has cut the debt ratings of Italy, Spain and Portugal and put France, UK and Austria on warning, saying they were increasingly vulnerable to the eurozone crisis.

Greek political leaders say the nation must accept yet more punishing austerity or face a social explosion, but after a night of violence and destruction in Athens, some people fear this explosion may already be about to begin.

General Electric Chief Executive Jeffrey Immelt on Monday defended the U.S. Export-Import Bank against charges the export-facilitating lender is corporate welfare and should be shut down.