By Kevin Yao BEIJING (Reuters) - China's plan to spend $6.5 trillion on urbanization to bolster the economy is running into snags, sources close to the government said, as top leaders fear another spending binge could push up local debt levels and inflate a property bubble. Premier Li Keqiang has rejected an urbanization proposal drafted by the National Development and Reform Commission (NDRC), seeking changes to put more emphasis on economic reform, according to the sources, who are familiar with the matter. ...

By Subhadip Sircar MUMBAI (Reuters) - The rupee recovered from a more than 8-1/2 month low hit earlier on Thursday, as exporters took advantage of a spike in the dollar to sell the greenback and on fears the central bank would intervene to stabilise the local currency. The rupee still posted a fifth day of falls to mark its longest losing streak in over three months as worries about a potential pullback in the U.S. monetary stimulus programme and a weak manufacturing survey in China sparked a shift sway from riskier currencies. Any pullback on U.S. ...

By Leigh Thomas and Jason Lange PARIS/WASHINGTON (Reuters) - The European Central Bank is looking into expanding its range of policy tools, while the U.S. central bank is mulling scaling back its support measures, highlighting the contrasting fortunes between the world's two biggest economic blocs. ECB Executive Board member Peter Praet said late on Wednesday that the central bank could try new policies if needed to battle deflation risks, adding that the central bank was also weighing measures to encourage more lending in the euro zone. ...

By John O'Donnell BRUSSELS (Reuters) - Europe's top regulatory official is seeking to force large companies to disclose how much tax they pay in each country where they operate, a measure some politicians say could curb tax avoidance. Michel Barnier, the European commissioner in charge of drafting business regulation, said in a speech in Amsterdam that rules which will force banks to report their profits, taxes and subsidies by country from 2015 should be extended to cover other companies. "We will expand these reporting obligations to large companies and groups," he said on Thursday. ...

By Angel Krasimirov SOFIA (Reuters) - Bulgaria's largest party GERB declined on Thursday to try to form a new government, opening the way for the rival Socialists to put together a technocrat administration and end a political impasse. The center-right GERB won most seats in a May 12 election in the European Union's poorest country but cannot command a majority, as other parties are shunning it after its resignation during protests against low living standards in February. ...

By Arshad Mohammed JERUSALEM (Reuters) - U.S. Secretary of State John Kerry held separate talks with Israeli and Palestinian officials on Thursday and acknowledged there was considerable skepticism that the two sides would resume peace negotiations. There were no signs of any breakthrough as Kerry visited Israel for the fourth time in his four months in office to try to revive a peace process that has been moribund for more than two years. ...

MUMBAI (Reuters) - Reserve Bank of India Governor Duvvuri Subbarao went against the suggestion of a majority of external members of the central bank's monetary policy committee that recommended no change ...

BEIRUT (Reuters) - A Syrian opposition leader urged President Bashar al-Assad on Thursday to hand power to his deputy or his prime minister and then go abroad with 500 members of his entourage, without immunity from prosecution. Assad is likely to reject or ignore the 16-point peace plan proposed by Moaz Alkhatib, who resigned as head of the Western-backed opposition National Coalition in March, particularly given recent military gains by his forces against rebels. ...