Global economy week ahead: Eyes thanks

And without a legislative solution to the federal deficit and ever-rising federal debt problem, the U.S. runs the risk of another credit rating downgrade, with the added costs and uncertainty that could also weigh on economic growth prospects for years to come, Carson said in a note.

Europe's troubles

Leaders of the 27-member European Union will hold a two-day meeting in Brussels this week to try to thrash out a long-term budget of their own. Tempers can be expected to fray.

Of greater immediate importance, however, will be talks on Tuesday among euro zone finance ministers to try to agree with the International Monetary Fund on a stop-gap financing programme for Greece.

Athens is drowning in debt and needs a new write-off, the IMF and virtually all private economists say. But that is politically taboo before German elections next September. Hence the need to keep drip-feeding aid to Athens - something the Fund is reluctant to do on the basis of debt sustainability projections it considers unrealistic.

The European Central Bank has reduced the risk of a disorderly break-up of the euro by promising in principle to buy the bonds of big indebted countries such as Spain and Italy.

But the wrangling over Greece is a constant reminder of the single currency's shaky foundations, and that weighs heavily on Europe's economy.

The financial stability that has been created by the measures that the ECB has taken over the summer

... contd.