India's credit standing internationally is now just a notch above junk. Credit rating agency Standard & Poor's (S&P's) on Tuesday lowered the outlook on India's sovereign rating from 'stable' to 'negative', citing a deteriorating fiscal situation and a challenging economic environment, made worse by profligate spending by the government. 

The government on Tuesday announced a Rs 30,000-crore booster shot for the economy by cutting excise duty and service tax by 2% each and extending an earlier 4% reduction in excise beyond March 31, 2009. This is the government's third economic stimulus package in three months.

The tax cut will have no impact on passenger cars and two-wheelers. Only truck makers may cut prices. The real estate sector could benefit, as steel and cement prices are reduced. But several services which currently attract service tax at 12% will pay 10%, reducing your costs by small fleabites.

Washington - President Barack Obama will offer assurances that the United States can recover and emerge stronger from its worst economic crisis in decades, according to released excerpts of his speech to be delivered Tuesday evening to Congress.

"While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: we will rebuild, we will recover, and the United States of America will emerge stronger than before," Obama will say, according to the excerpts released by the White House.

Washington  - If massive government action to revive the US economy is successful the recession affecting the world's largest economy could begin to turn around this year, Federal Reserve Chairman Ben Bernanke said Tuesday.

Testifying before the US Senate Banking Committee, the central bank chairman said the government stimulus is essential to break the cycle of adverse feedback that helps to keep the economy down, even as he warned of ongoing negative pressures.

Washington  - If massive government action to revive the US economy is successful the recession affecting the world's largest economy could begin to turn around this year, Federal Reserve Chairman Ben Bernanke said Tuesday.

Testifying before the US Senate Banking Committee, the central bank chairman said the government stimulus is essential to break the cycle of adverse feedback that helps to keep the economy down.

Brussels  - The European Union should ease its rules to allow new members to swap their national currency for the euro more rapidly, Hungary's prime minister said Tuesday.

"The best protection against foreign-exchange problems is to join the eurozone ... We should see how the steps towards the euro could be made quicker," Ferenc Gyurcsany told journalists in Brussels.

In particular, countries which have met the EU's strict rules on inflation and budget discipline should be allowed to join the single currency without having to spend two years in the preparatory Exchange Rate Mechanism 2 (ERM 2), he said.