New Indian Prime Minister Narendra Modi's promises to revive the economy face a gathering threat from inflation, which is creeping up again due to oil prices, weak monsoon rains and hoarding, analysts say.

Food inflation, one of the reasons voters resoundingly ejected the previous Congress government in elections in April and May, is gathering pace with troublesome onion prices in the spotlight.

French President Francois Hollande called Tuesday for "flexibilities" in applying EU budget rules, as Italy's prime minister said on the same day that a shake-up was needed in Europe's approach to growth.

"France proposes that budgetary rules be applied in a manner favorable to investment and employment," Hollande wrote in a letter to European Council President Herman Van Rompuy, in extracts published in daily Le Monde.

Participants of the ‘New Levant’ Conference would like to extend their gratitude to Government of Lebanon for hosting an important and highly beneficial meeting in Beirut on seeking ways and means to move to a better integrated New Levant Region. The conference is attended by government officials, private sector representatives, international investors, and bilateral and multilateral institutions.

A better integrated New Levant Region would help create the conditions for increased trade and investment in the Levant and put each country on a higher path of growth, job creation, and prosperity.

Running up new debt would be "the worst possible" thing to do, German Finance Minister Wolfgang Schaeuble said on Tuesday as a debate resurfaces over an easing of EU fiscal rules.

"Running up new debt would be the worst possible mistake we could make," Schaeuble told German public radio InfoRadio in an interview. 

The German Ifo business confidence fell to a six-month low in June, data showed on Tuesday, as companies fret about the impact on their business from the crises in Ukraine and Iraq. 

The Ifo economic institute's closely watched business climate index fell to 109.7 points in June -- its lowest level since December 2013 -- from 110.4 points in May. 

Algerian oil and gas earnings, which account for nearly all of the country's exports, fell by 2.26 percent on year in the first five months of 2014, data showed Monday.

Hydrocarbons exports generated 27.36 billion dollars in January-May, compared with 28 billion dollars for last year, and represented 96.91 percent of total exports, according to the national center for customs statistics.

The price of oil fell Tuesday as fears receded that the insurgency roiling Iraq would affect its oil production and exports.

Islamic militants have been steadily expanding their grip on the country's north, where they control a broad swath of territory. But the bulk of the country's production and export operations are in the south, which have so far been spared in this month's advance by the al-Qaeda inspired group. Iraq's daily oil production hit 3.5 million barrels this year, up from nearly 2.4 million a day in 2009.

China's manufacturing activity expanded in June for the first time this year as the effects of Beijing's mini-stimulus on the world's second-largest economy gradually kick in, HSBC said Monday.

The bank said in a statement that its preliminary purchasing managers index (PMI), which tracks activity in China's factories and workshops, came in at 50.8 this month, the highest since November's identical figure.

Eurozone business activity slipped for the second month running in June, suggesting a modest recovery could be stalling, a closely watched survey showed on Monday.

Markit Economics said its Eurozone Composite Purchasing Managers Index (PMI) for June, a leading indicator of overall economic activity, slipped to 52.8 points from 53.5 in May, coming in at the to the weakest level since December. 

Reforms proposed to lift global growth in line with a target set by the world's biggest economies earlier this year are so far falling short, Australian Treasurer Joe Hockey said Monday.

In February, the G20 economies vowed to boost global growth by more than U.S.$2 trillion over five years, shifting their focus away from austerity as a fragile recovery takes hold.