U.S. Federal Reserve Chairman Ben Bernanke on Monday urged Congress to raise the nation's borrowing limit as Democrats and Republicans battle over the federal budget.

"It's very, very important that Congress take the necessary action to raise the debt ceiling to avoid the situation where the government doesn't pay its bills," Bernanke said at a University of Michigan forum.

Prime Minister David Cameron must not risk jeopardising Britain's EU membership and damaging the weak economy, business chiefs warned ahead of the premier's key Europe speech later this week.

The Conservative premier was due to address the nation's strained relationship with the European Union on Friday, having already stated that he wanted to renegotiate the conditions of its membership with the 27-country bloc.

A visiting minister pledged Britain's full cooperation with the Egyptian authorities on Monday in recovering assets suspected to have been misappropriated by Hosni Mubarak's regime.

But Minister of State at the Home Office Jeremy Browne added that due process needed to be followed in proving that any assets targeted were ill-gotten.

President Barack Obama warned of a new economic crisis Monday and said global stock markets would go "haywire" unless Republicans in Congress agree to raise the U.S. sovereign debt ceiling.

"To even entertain the idea of this happening, of the United States of America not paying its bills, it is irresponsible, it is absurd," Obama said in repeating his demand for a debt limit rise.

Swatch Group, the world's leading watchmaker, said on Monday it would acquire U.S. jeweler and watchmaker Harry Winston for up to $1.0 billion (750 million euros).

The Swiss group, most known for its brightly-colored plastic watches, said it would pay $750 million to acquire the company and thus expand its luxury offerings and take a first step into high-end jewelry.

The UAE and Argentina signed on Monday an agreement to cooperate in the field of peaceful nuclear energy during a visit by President Cristina Kirchner, the state news agency WAM reported.

The memorandum of understanding was signed by Emirati Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan and his Argentine counterpart Hector Timerman, WAM said.

A weekend attack on an Italian diplomat in Libya caused no casualties but dealt a body blow to the government's efforts to woo foreign investors to rebuild the war-ravaged North African country.

The assault on consul Guido De Sanctis, which Rome denounced as a "vile act of terrorism," came four months after militants torched the US mission in Benghazi and killed four Americans, including the ambassador.

Chinese leaders have given final approval for a long-awaited new $11.2 billion international airport in Beijing to ease crushing congestion at the existing facility, state media said on Monday.

The state-run China Daily newspaper reported the decision, made Sunday, citing a spokesman for the country's State Council, or cabinet.

The Bank of Japan and the nation's new government will jointly set a two percent inflation target in a bid to fight deflation, news reports said on Monday.

The two sides are to finalize a joint statement on monetary measures in time for the central bank's upcoming policy meeting scheduled for January 21 and 22, the Asahi Shimbun reported.

The Obama administration on Saturday ruled out calls for minting a $1 trillion platinum coin to avert a crisis over the U.S. debt ceiling amid partisan bickering.

The U.S. Treasury officially killed the idea, leaving Congress with the responsibility to increase the government's borrowing limit.