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U.S. consumer spending unexpectedly fell for the first time in seven months in August but inflation showed signs of accelerating, mixed signals that could keep the Federal Reserve cautious about raising interest rates. The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, fell 0.1 percent last month after accounting for inflation. Robust consumer spending partially offset weak business investment and falling business inventories in the second quarter when the economy expanded at a lackluster 1.4 percent annual rate.
By Marc Jones LONDON (Reuters) - An eight percent slump in Deutsche Bank's already battered share price sent Europe into a fresh tailspin on Friday and left world equity markets sliding toward their worst week in three months. Germany's biggest lender, Deutsche, hit by a string of fines for wrongdoing and a sharp fall in its revenues, saw its shares drop below 10 euros for the first time in its history in a brutal European open. It followed reports that a number of hedge funds that clear derivatives trades with Deutsche had withdrawn some of their cash and adjusted positions, a sign that counterparties were becoming wary of doing business with it.