Top of the campaign agenda is how to counter the cuts from central government with pressure mounting on the council's large reserves.

BBC: Leicestershire election 2013: Parties prepare for battle

By next year even he could be forced to rely upon the central government to guarantee the floundering city's mounting debts.

ECONOMIST: Japan

Investors also expressed concern over rising borrowing costs for Spain and Italy, just as signs are mounting that the effects of the European Central Bank's low-cost loans to banks are wearing off.

WSJ: Stocks' Drop Is 2012 Worst