Markets are still terrified by the eurozone – and rightly so

The Frankfurt stock exchange on Thursday during which the German benchmark Dax tumbled 2% before recovering. Photograph: Xinhua News Agency/Rex Features

Who do you want to believe, the cautious optimists who think the current rout in financial markets, especially stock markets, is just the sort of “correction” that happens in the middle of any recovery and that the US, at least, is in decent economic shape? Or the doom-merchants who think we face the start of a proper downturn?

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US banks' reporting season: are Wall Street bonuses to fall at last?

JP Morgan Chase & Company headquarters in New York. Photograph: EMMANUEL DUNAND/AFP/Getty Images

Now for some cheery news from the banking sector. Bond traders at JP Morgan and Citigroup look likely to share the fastest-shrinking bonus pools on Wall Street, according to estimates compiled by Bloomberg before the start of the big six US banks’ reporting season this week.

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World stock markets slide as bad news mounts up

US aircraft refuels after airstrikes on Islamic State jihadists in Syria. Tensions in the Middle East have added to market gloom. Photograph: STAFF SGT. CIARA WYMBS/AFP/Getty Images

Global stock markets came under renewed pressure on Friday in a widespread sell-off prompted by fears of a global economic slowdown, tensions in the Middle East and the spread of the Ebola virus.

After another volatile week, the FTSE 100 slumped to its worst level since 9 October last year, falling 91.88 points or 1.4% to 6,339.97. The index fell for the third week in succession for the first time since March.

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The biggest sales job in the US: Obama and Ben Bernanke try to convince America the economy is good

Even as Bernanke works to ensure his legacy is portrayed more positively, there is a feeling that most Americans could not care less. Photograph: STEFAN ZAKLIN/EPA

Ben Bernanke is retired and happy, as the former Federal Reserve Chairman is quick to tell anyone listening. And while he no longer has to worry about the current state of the US economy – that’s Janet Yellen’s job now – he is still giving the 2008 crisis a lot of thought. So much, in fact, that he is writing a book about it: a memoir of sorts to serve as a written record to make sure everyone has the story straight.

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US designed bailout to 'punish' AIG over financial crisis, court hears

Former Treasury secretary Tim Geithner arrives at US court of federal claims to testify at the AIG trial on Tuesday. Photograph: Alex Wong/Getty Images

Timothy Geithner, a key player in the US government’s 2008 bailout of American International Group Inc, is due back in court on Wednesday in a trial of a lawsuit filed by the insurance giant’s former CEO over the handling of the rescue.

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Wall Street records lower profits and jobs numbers in the first half of 2014

While Wall Street remains quite profitable, the industry continues to downsize in New York. Photograph: Richard Drew/AP

The securities industry in New York City tallied $8.7bn in profits during the first half of 2014, which was 13% lower than the same period last year as it continued to deal with the fallout from the 2008 financial crisis, New York’s comptroller reported on Tuesday.

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IMF urges greater infrastructure spending after 30-year decline

Germany has been urged to make greater infrastructure investment. The new Berlin-Brandenburg International Airport, scheduled to be finished in 2011, remains unfinished. Photograph: Michael Urban/AFP/Getty Images

A decline in infrastructure spending over the last 30 years needs to be reversed to boost growth, according to the International Monetary Fund, which meets next week in Washington against a backdrop of slowing global growth.

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