Greece’s rescue fund Hellenic Financial Stability Fund (HFSF) intends to divest Hellenic Postbank SA (ATH:TT) and Proton Bank SA by the middle of July, Reuters said, citing an inspection review by the European Union (EU) and the International Monetary Fund (IMF).

The disposal is part of the ongoing restructuring of Greece’s banking sector, which was launched following a severe six-year economic recession in the country. HFSF received an aid package of EUR50bn (USD64.2bn) from the EU and IMF to carry out the process, which includes the recapitalisation of Greece’s four big banks and the gradual closure of others.

According to the review, the Greek authorities are due to work out a strategy by mid-July to privatise HFSF-owned banks and consolidate the banking sector. HFSF is expected to have enough funds to perform stress tests of the sector by the end of this year.

Greece’s top banks National Bank of Greece SA (NYSE:NBG), EFG Eurobank Ergasias SA, Alpha Bank SA and Piraeus Bank SA are seen to complete their recapitalisation by 14 June. HFSF will provide most of the needed EUR27.5bn for the restoration of the lenders’ capital bases.

Slovenia’s government plans to dispose of 15 state-owned companies, including its second largest bank Nova KBM, largest telecommunications group Telekom Slovenia, flag carrier Adria Airways and Ljubljana Airport, as part of its efforts to avoid international bailout, Reuters cited finance minister Uros Cufer as saying.

The programme, which also includes an increase in value added tax (VAT) to 22% from 20% as of 1 July, would allow Slovenia to remain a completely sovereign state, Cufer said.

The government gave no details about the timeframe for the privatisations, or the price it targets for the companies it plans to sell, but said it would not retain blocking interests in them.

The plan is to be sent to the European Commission on Friday, Reuters said. The news agency cited a spokesman for the EU Economic and Monetary Affairs Commissioner Olli Rehn as saying that the EC will look into the plan and give its response on 29 May.

Prime Minister Alenka Bratusek expressed confidence that the proposed package would be sufficient to prevent Slovenia from being bailed out by the European Union (EU) and the International Monetary Fund (IMF).

In recession since 2011, Slovenia was expected by analysts to be most likely to need help from the EU after Cyprus, the BBC said.

US commercial information provider Dun & Bradstreet (NYSE: DNB) said it has published a five-year forecast of the global economy predicting continued but sluggish growth against challenging headwinds, differing from region to region.

D&B said that its Global Economic Outlook to 2017, based on a study and analysis of its proprietary business data and external data sources, provides insights on several contributing factors to real GDP growth for more 132 countries, representing seven major geographic areas.

According to D&B concerns over a double-dip recession in the US are unfounded despite the fiscal policy challenges. The significant improvement in the health of the corporate sector in combination with moderate consumer spending growth are offsetting austerity that will be required at all levels of government.

Growth remains constrained but the recovery continues to gradually gain momentum.

The outlook for European economies remains troubling. The immediate crisis in the Eurozone has subsided, but the underlying challenges in the region remain substantial.

While attention remains focused on fiscal and monetary policy D&B remains concerned about the competitiveness of European economies and the ability of their business sector to offset fiscal restraint. The outlook for the region remains unsettled with substantial downside risk given policy uncertainty.

In 2012, three years into the recovery, D&B downgraded 32 countries in its country risk analysis–the third highest number of downgrades in one calendar year–while only upgrading seven.

Risk ratings for 56 of the 132 countries are worse than in October 2009 when the recovery started, while only 23 are better.

The chief economist of the International Monetary Fund (IMF) has suggested that the UK should consider slowing down its programme of spending cuts and tax rises.

Olivier Blanchard told BBC Radio 4′s Today programme this morning that the March budget would be a good opportunity for Chancellor George Osborne to “take stock and see whether some adjustments should now be made.”

Last year the IMF warned that the UK government should reassess its austerity measures, otherwise known as fiscal consolidation, if the economic situation did not improve by the new year.

Blanchard confirmed this morning that this position has not changed and that things do indeed “look bad” at the beginning of 2013, so there should be a reassessment of the government’s fiscal policy.

Budget time is the right time to make a change, he said, and suggested that “slower fiscal consolidation in some form may well be appropriate.”

Yesterday the IMF warned that the global economic recovery was weakening despite government efforts to stimulate growth, the BBC reported. The organisation’s expectations for global economic growth have been lowered and the IMF now believes that the eurozone will remain in recession in 2013.

The IMF also lowered its forecast for UK economic growth in 2013 to 1%, from the 1.1% predicted in October. Next year growth of 1.9% is expected, a downward revision from the earlier prediction of 2.2%.

Ed Balls, shadow chancellor for the opposition Labour Party in the UK, commented that the IMF had “repeatedly warned that a change of course would be needed in Britain if the economy turns out worse than expected” and said that the prime minister and chancellor must heed its advice.

The UK faces years of uncertainty over its place in the European Union, critics claim, after Prime Minister David Cameron promised to hold a referendum on membership of the EU.

In a long-awaited speech today on Europe, Cameron said that he wanted to renegotiate the UK’s relationship with the EU and then ask people to vote on whether they think the country should remain part of the alliance. He also called for a more “flexible, adaptable and open” relationship between all EU members, seeking a more flexible cooperation between the partner nations instead of “compulsion from the centre.”

The prime minister said that a commitment on the renegotiation and referendum would be included in the Conservative Party’s manifesto for the next general election.

Nick Clegg, leader of Cameron’s coalition partners, the Liberal Democrats, spoke out against the plans, saying that the extended period of uncertainty caused by the proposals would hit jobs and economic growth and “was not in the national interest”.

Former Lib Dem leader Charles Kennedy, together with Labour and Liberal Democrat colleagues in the House of Commons, the House of Lords and the European Parliament, wrote a letter to the Guardian, advising against putting in question Britain’s membership of the EU.

A number of business groups took a more positive view of the speech, with the CBI’s director general, John Cridland, claiming that there are benefits to be gained from retaining membership of a reformed EU. He said that the CBI will work closely with government to get the best deal for Britain.

John Longworth of the British Chambers of Commerce (BCC) also said that Cameron is right to renegotiate Britain’s place in Europe, pointing out that the country starts with a strong negotiating position as the UK runs a trade deficit with the EU. However, the BCC director general feels that a shorter timescale for negotiation and referendum would be better, with the aim of securing a cross-party consensus and the outline of a deal during the current parliament.

Support for renegotiation also came from the Institute of Directors, whose director general, Simon Walker, said that the prime minster’s approach is “realistic and pragmatic.”

Addressing the matter of the uncertainty brought about by the plans, Walker said that the issues need to be dealt with and British business is resilient and flexible and can cope with change or uncertainty. “The eurozone crisis is the source of far more uncertainty than a referendum,” he added.

Increased capital market activity drove stronger earnings and increased profitability for major US banks in the third quarter of last year, according to ratings agency Fitch Ratings.

Fitch said that strong debt issuance, tighter fixed income spreads, and an equity market rally fueled a healthy rebound in capital markets revenues from depressed levels in Q3 ’11 and subdued activity in the prior quarter.

Core profitability for the major banks was slightly improved and better than expected during the quarter.

The mortgage refinance boom further contributed to stronger revenues for the quarter. This reflects the effects of theFederal Reserve’s quantitative easing measures, which have brought long-term rates down to very low levels.

Although refinance activity will continue into 2013, Fitch expects that it will level off and thus current levels are not considered sustainable.

The larger US banks began disclosure of expected Basel III Tier I common ratios in Q3. Although this guidance is not finalized, Fitch expects that most rated banks will be in compliance ahead of full implementation.

Stock markets in Asia opened higher this morning following a last minute deal, passed by the US House of Representatives, to halt tax hikes and spending cuts worth about $600bn.

A failure to reach a deal could have pushed the US over the so-called fiscal cliff, as temporary tax cuts implemented by the previous Bush government were set to expire, removing billions of dollars from the economy, and possibly triggering a recession in the world’s largest economy.

Shares in Hong Kong gained 2.9% as markets opened in Asia and South Korea’s Kospi index was up by 1.7%, while shares in Singapore rose by 1.3%. Markets in Japan and mainland China are closed.

Investors reacted positively to news of the US compromise, since many Asian economies are heavily invested in exports to the US.

“With the final hurdle being passed now, we’ve got a minimum deal that avoids any immediate threat of the US falling off the cliff,” Jason Hughes, head of premium client management for IG Markets Singapore, told the BBC.

“That’s definitely boosted Asian equities markets,” he added.

New York-based insurer American International Group, Inc. (NYSE: AIG) has announced the completion of an offering of approximately 234.2m shares of AIG common stock by the US Department of the Treasury (Treasury).

According to AIG, Treasury received proceeds of approximately USD 7.6bn from the sale. The sale of these shares the last of Treasury’s remaining shares of AIG marks thefull resolution of America’s financial support of AIG.

Since September 2008, America committed a total of USD 182.3bn in connection with stabilizing AIG during the financial crisis.

Since then, through asset sales and other actions by AIG, theFederal Reserve, and Treasury, America recovered its USD 182.3bn plus a combined positive return of USD 22.7bn.

Beginning in May 2011, Treasury successfully sold approximately 1.7bn shares of AIG common stock in six public offerings for total proceeds of approximately USD 51bn, including approximately USD 13bn purchased by AIG.

Treasury continues to hold warrants to purchase approximately 2.7m shares of AIG common stock the sale of which is expected to provide an additional positive return to taxpayers.

According to a report from Canada-based financial services firm Toronto Dominion’s (TSX: TD) (NYSE: TD) US-based TD Bank’s TD Economics affiliate, the main obstacle standing in the path of faster US economic growth is a strong headwind blowing in from fiscal restraint.

The report said that, without fiscal drag, the US economy would be headed for a growth trajectory in the 3-4% range in 2013.

It said that the worst of the consumer deleveraging cycle and its dampening effect on economic growth appear to be over. But just as the private sector is set to provide a welcomed tailwind to the economy, it will be met with worsening cross winds from public sector restraint.

TD Economics forecasts economic growth to average 1.9% in 2013 down from an estimated 2.2% in 2012. However, by the second half of next year, clearer fiscal policy should lead to resurgence in private demand, placing the economy on a stronger footing with 3.0% growth in 2014.

With a few weeks to go before deep spending cuts and tax hikes arrive and hamper economic growth, a deal to avoid them between the White House and Congress has yet to be reached.

TD Economics estimates that if all tax hikes and spending cuts are allowed to take place as scheduled, it would cut 3.0 %age points from real GDP in 2013.

The constraint on growth posed by fiscal policy comes amid signs that housing has entered a self-sustaining recovery. Home prices have risen consistently through 2012 while delinquencies and foreclosures have fallen.

TD said that the rise in home prices has been substantial prices are up 5.0% from year-ago levels and appears sustainable. The fall in construction activity over the last several years has cleared the supply overhang and allowed rising demand to pull up prices.

The housing market has also been the focus of the Federal Reserve, whose latest round of quantitative easing has focused on purchases of mortgage-backed securities.

The North American aviation market was adversely affected by economic recession, periods of declining passenger traffic and high oil prices, which resulted in underperformance during 2008-2010, a new report from New York-based search engine Reportlink.com has revealed.

The market’s performance improved in 2011 due to strengthening economic conditions, a rise in corporate travel budgets and capacity discipline. However, rising fuel prices and intense competition continue to negatively impact revenues.

To protect margins, airlines began focusing on ancillary revenues, aligning capacity to meet demand and improve cost structures. These steps are expected to help airlines maintain their profitability over the forecast period despite economic uncertainty.

Improved financial performance will enable airlines to enhance their brand presence and long-term viability through differentiated and consistent customer service, the report said.

According to the United Nations World Tourism Organization (UNWTO), the North American region accounted for the largest number of inbound tourist arrivals in the Americas in 2011.

The region accounted for a 10.3% share of the world’s international visitor arrivals and a 15.9% share of total inbound tourists to the Americas, yet registered nominal growth during the review period, from 107.8 m arrivals in 2007 to 116.9 m in 2011.

According to the report, the total number of seats sold in the North American aviation market declined at a CAGR of 2.56% during the review period, with full-service airlines being most affected. The number of seats sold for full-service airlines declined at a CAGR of 4.83% during the same period.

The North American aviation market recorded high levels of M&A activity during the review period. The merging of Delta and Northwest Airlines in 2008, United and Continental Airlines in 2010 and Southwest and AirTran in 2011 were some of the key deals announced.