Business news for Sun, 23 Dec 2007 & with words economic+economy. 3 news.

CHINA should take measures to cool economic growth and cut energy consumption, an official with the National Development and Reform Commission said. "Current economic growth, 11.5 percent or above 11 percent, is too fast and at too high a cost," Han Yongwen, the planning agency's secretary general, said at a conference in Beijing on Saturday. The world's fourth largest economy grew by more than 11 percent through the first three quarters of 2007, Bloomberg News said. Chinese government is trying to cool growth in the world's fastest-growing major economy without triggering a sudden slowdown that may cost jobs and leave factories idle. Japanese companies including Toyota Motor Corp urged China in September to slow the pace of its expansion on concern overheating in Japan's biggest trading partner may cause economic turmoil. "The central bank should use interest rate policies more boldly to damp investment expansion and asset price increases," Lin Yifu, head of

EUROPEAN stocks retreated last week on concern losses from the United States subprime-lending market are spreading through the region's broader economy. Vinci SA, the world's biggest builder, Ericsson AB and Anglo American Plc led declines of companies most affected by changes in the pace of economic growth. UBS AG, Europe's largest bank, and Barclays Plc fell after Goldman, Sachs & Co cut its recommendation on European banks. "We're maybe at the tip of the iceberg," said Franck Hennin, who helps oversee US$7.3 billion at Richelieu Finance in Paris. "The contagion from the US that we anticipated is becoming a reality. Many expected a year-end rally. Now the market is back-tracking." The Dow Jones Stoxx 600 Index fell 0.8 percent last week, led by construction and materials firms. The measure is heading for a 0.2 percent drop this year, weighed down by banks and financial-services companies on credit-markets losses, Bloomberg News reported. Goldman Sachs

UNITED States stocks rose for the third time in four weeks, led by energy companies, as higher consumer spending and the Federal Reserve's efforts to give cash to banks spurred speculation the economy will keep expanding. Exxon Mobil Corp and Hess Corp led energy companies to the biggest gain in the Standard & Poor's 500 Index after oil prices climbed for a second week. Earnings reports from Oracle Corp and Research In Motion Ltd drove technology stocks to the second-steepest advance among 10 industries. "You can just feel the tide turning here," said Jim Paulsen, who helps oversee about US$200 billion as chief investment strategist at Wells Capital Management in Minneapolis. "Economic data keeps coming in better than expected and I think it's part of the recovery story." The S&P 500 added 16.51, or 1.1 percent to 1,484.46 last week, bringing its year-to-date advance to 4.7 percent. The Dow Jones Industrial Average rose 0.8 percent to 13,450.65. The Nasdaq