Reuters Business Summary

World stocks slip again

LONDON (Reuters) - World stocks slipped back towards this week's five-month low on Friday as steadying oil prices failed to erase concerns about slowing economic growth and rising inflation, and as banking stocks came under renewed pressure. The euro failed to benefit much from the European Central Bank's quarter percentage point interest rate rise on Thursday, and the region's government bonds rose after President Jean-Claude Trichet said he had no bias on monetary policy, dousing speculation about aggressive rate increases this year.

European banks need to raise 60-90 billion euros: Goldman

(Reuters) - Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros, or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently. The bearish comment by the Goldman analysts weighed on European stocks, with the benchmark FTSEurofirst 300 index down 0.43 percent at 1,172.99 points by 5:40 a.m. EDT.

Euro zone rate rise signals ECB serious: policymakers

FRANKFURT (Reuters) - The European Central Bank's interest rate rise sends a signal that it is serious about combating inflation, policymakers said as they staged a public relations offensive to justify Thursday's increase. In interviews with media across the euro zone, policymakers denied the rise to a near seven-year high of 4.25 percent would choke economic growth and said soaring inflation was a bigger danger to the 15-nation region.

Economy extends job loss streak

WASHINGTON (Reuters) - U.S. employers cut workers for a sixth straight month in June for the longest such streak since 2002 and the country's vast service sector unexpectedly contracted, underscoring the economy's frailty. The Labor Department said on Thursday that 62,000 nonfarm jobs were shed last month, bringing the number of jobs lost this year to 438,000 as a housing market crash chilled growth.

Weak dollar is global concern: EU's Barroso

BRUSSELS (Reuters) - The dollar's fall is a source of global concern and the European Union wants a better balance between the U.S. unit and other major currencies, European Commission President Jose Manuel Barroso said on Friday. Speaking to a group of journalists before departing for the annual Group of Eight industrial nations' summit in Japan next week, Barroso endorsed the European Central Bank's decision to raise its key interest rate despite warnings from some EU governments, notably France.

Austria court convicts bankers over heavy BAWAG losses

VIENNA (Reuters) - A Vienna court sentenced nine people to prison on Friday for their roles in causing losses at Austrian bank BAWAG P.S.K. of as much as 1.7 billion euros ($2.7 billion) through risky investments. The losses, which surfaced in 2006, were linked to the bankruptcy of U.S. futures trader Refco Inc, a BAWAG affiliate.

Oil falls below $145, awaits Iran response