Market Rumours

2010/04/15 19:50DJ Obama: US In Strong Position With Strong Growth Rates
SYDNEY -President Barack Obama said that the U.S. economy has rebounded more strongly than anyone expected and is in a strong position. 'Given the history of financial crises we have actually managed this and rebounded much more quickly than anybody anticipated,' he said in an interview broadcast Thursday on Australian Broadcasting Corp. television. 'We're in a strong position with strong growth rates to move in a positive direction,' Obama said. But he also said that the U.S. still had long-term problems that needed to be dealt with.

2010/04/15 17:12*DJ China Sets 50% Minimum Downpayment For 2nd-Home Purchases - Xinhua; China Regulator Warns About Risks At Some Foreign Banks In China
BEIJING -China's banking regulator on Thursday warned about risks at some foreign banks operating in China, urging them to improve corporate governance.Some foreign banks are facing liquidity, credit and operational risks, the China Banking Regulatory Commission said in a statement, citing its chairman, Liu Mingkang. It didn't name any of the banks.Liu also warned about the 'serious' challenges posed by risks spreading across borders, while the foundation of the world's economic recovery isn't yet firm enough.

2010/04/15 17:05=DJ Forex Focus: Election Polls Leaving Sterling Vulnerable
LONDON -Sterling is still waiting for reassurance that the Conservatives are going to win the May 6 election in the U.K.If this doesn't come soon, a combination of widening yield differentials and increased investor concern about sovereign debt will make the currency even more vulnerable to a nasty fall against the dollar.Since the general election was called just over a week ago, the pound has essentially levitated, with investors showing support on the assumption that the Conservatives will pull ahead in the polls and dispel any fears of a hung parliament.See the pound's performance against the dollar:http://www.dowjoneswebservices.com/chart/view/3827However, there has been little sign of this happening just yet. Opinion polls continue to bounce around, giving Conservative leader David Cameron and his band of hopeful cohorts a lead of between six and eight points--enough to establish a majority in the House of Commons but not necessarily enough to ensure a strong enough administration to push through what could prove unpopular measures to reduce the country's budget deficit.In the meantime, the whole issue of national deficits is hardly going away.Hopes that last weekend's Greek bailout from the European Union and the International Monetary Fund would relax investor fears and reduce the cost of short-term Greek funding have proved to be illusory.On the contrary, chances remain high that Greece could still default on its debt payments, especially if the cost of longer-term funding remains too high for the country to start reducing its deficit significantly.Thus, sovereign debt is likely to remain right at the top of financial markets' concerns, putting the U.K. debt reduction plans, or lack of them, under even greater scrutiny than before.For the pound, there has been some good news. This week brought news of a sharp decline in the country's trade gap.But, this was driven largely by the recent weakness in the pound making U.K. goods more competitive abroad and the domestic economy remains weak.In fact, other figures, such as the latest housing price figures, show that the property market is cooling off again. Also, consumer confidence appears to have dived because of uncertainty over the election.This suggestion that the U.K. recovery is proving even weaker than anticipated contrasts with data from the U.S. in recent weeks, which are showing more signs of improvement.The U.S. Federal Reserve is also seen edging closer towards some form of policy tightening--a move that will only increase the yield differential between the U.S. and the U.K. and make the pound appear even less attractive to investors in the future.So unless polls start showing that the Conservatives are convincing the electorate that they have what it takes to lead the country, sterling could find itself on an even more slippery slope than it might have been before.Early Thursday, the pound showed its sensitivity to the latest opinion polls by posting gains after a new poll showed that the Conservatives were leading Labour by 12 points in crucial marginal constituencies.This comes ahead of a televised debate between the leaders of all three parties tonight. This is the first time such a debate has been held in the U.K.'s political history and could prove decisive in the election.The pound has risen to $1.5520 from $1.5469 late Wednesday in New York, according to EBS.Elsewhere, general market sentiment was lifted by a combination of strong retail sales in the U.S., strong first-quarter growth in China and continued dovish comments by Fed Chairman Ben Bernanke suggesting that the Fed isn't about to strat tightening policy yet.The dollar is up at Y93.28 from Y93.18, while the euro has slipped to $1.3647 from $1.3657 but risen to Y127.34 from Y127.28.Bloomberg TNI FRX POV Reuters USD/DJ Thomson P/1066 or P/1074

2010/04/15 16:55DJ Volcanic Ash Halts All Heathrow Flights From 1100 GMT-Operator
LONDON (AFP)--All flights in and out of London's Heathrow Airport and the other airports in the capital will be suspended from 1100 GMT Thursday due to volcanic ash from Iceland, officials said.

2010/04/15 16:44DJ China Yuan Flat But Dollar-Yuan Forwards Drop After Strong Data
SHANGHAI -China's yuan was flat against the U.S. dollar Thursday, after the central bank barely changed the central parity rate, but stronger-than-expected economic growth data heightened appreciation expectations for the Chinese currency and prompted dollar-yuan non-deliverable forwards to drop offshore.Analysts said, however, Beijing may not make a significant change to the yuan in the short term due to government caution over the outlook for exports.On the over-the-counter market, the dollar was at CNY6.8258 at 0730 GMT, almost unchanged from CNY6.8257 late Wednesday. It traded between CNY6.8254 and CNY6.8259.Offshore, dollar-yuan nondeliverable forwards were at 6.6130/6.6230, down from 6.6208/6.6238 late Wednesday.The People's Bank of China set the dollar-yuan central parity rate at 6.8260, compared with 6.8261 in the previous session.China's economy grew 11.9% in the first quarter, the government said Thursday, indicating a continued strong recovery and prompting economists to urge further tightening measures."Of course yuan appreciation pressure rises with stronger economic data, but that's partly offset by a trend that China has been increasing imports and making its economy more balanced," said a Shanghai-based trader at a European bank.China ran a trade deficit of $7.24 billion last month, its first monthly trade deficit in six years. Ministry of Commerce spokesman Yao Jian said Thursday the country's trade surplus will likely shrink by another $100 billion this year, with monthly trade deficits likely for the rest of the first half of 2010.In 2009, China's trade surplus narrowed by nearly $100 billion as its once-robust exports suffered a major slowdown amid the global recession.However, dealers outside of mainland China said political pressures and the possibility of price bubbles forming in property and other assets may prompt China to allow the yuan to rise against the dollar. The currency has been held roughly fixed against the dollar since July 2008."Regarding the currency policy, we believe that the delay of the U.S. Treasury FX report had removed one key political risk and has opened a short window for a move in the yuan...before political pressures heat up again ahead of the U.S. mid-term elections," JPMorgan said in a research note. U.S. mid-term elections will be held in November."We continue to expect the dollar/yuan to resume gradual appreciation in April or in May," said the investment bank, adding the pair will likely reach 6.5 by the end of 2010.Earlier this month, the U.S. Treasury decided to delay a semi-annual report to Congress on the currency policies of major trading partners. There was speculation the report would brand China a currency manipulator.-


2010/04/15 16:06DJ ECB's Smaghi: Vague Statements On Greece Not Sufficient
DJ ECB's Smaghi: Vague Statements On Greece Not SufficientBERLIN -European officials underestimated the need for concrete action to help Greece, and their "vague statements" that the country would solve its own problems weren't helpful, European Central Bank board member Lorenzo Bini Smaghi said Thursday."Vague statements that some event, such as a default, will not occur, are not sufficient to calm the markets," Bini Smaghi said in Kyoto, Japan, according to a prepared speech posted to the ECB's Web site. "Concrete actions are needed. This was not fully understood over the last few months."


2010/04/15 15:27DJ Australian Dollar Up Late, Boosted By China Economic Data
SYDNEY -The Australian dollar traded higher in Asia trade Thursday as robust economic data from China lifted sentiment about Asia once again.Australian bonds pushed lower on both ends of the curve, with the short-end particularly damped by a survey showing growing inflation concerns in the region.A day after a glowing economic report on Singapore fueled gains for several Asian currencies, China fueled a similar move on Thursday. In a wave of mid-day data, Australia's largest trading partner posted an 11.9% increase in its economy for the first quarter, as well as robust data on home prices and industrial production.For the last two sessions, the strong economic reports in the region have been particularly bullish for traders of the Australian dollar, which after drifting around US$0.9000 for much of March, has recently pushed back near its highs from November around US$0.9406.Given the slate of data, Robert Rennie, chief currency strategist at Westpac, said the Australian dollar probably should be even closer to those November highs. But a quick reversal earlier in the week, when the Australian dollar surged higher over the weekend and on Monday only to pare those gains on Tuesday, has traders a little gun-shy.'Asia doesn't want to be caught long and wrong again,' said Rennie. 'This felt like a day we should have been higher but the buyers never showed up. After trying on Monday and getting it wrong, people didn't want to make the same mistake on a Thursday. Maybe Europe comes in and takes us through.'At 0630 GMT, the Australian dollar was quoted at US$0.9343, up from US$0.9314 late Wednesday. Against the Japanese yen, the Australian dollar was at Y87.155, up from Y87.025.Also at play in the markets, reports from the Melbourne Institute and Westpac Banking Corp. showed Australian consumer inflationary expectations rose in April, while unemployment expectations declined.For April, consumer inflationary expectations rose to 4.1% from 3.2% in March. In addition, the proportion of consumers that expect inflation to be within the Reserve Bank of Australia's band of 2% to 3% declined for the second consecutive month, reaching 15.9% in April from 18.6% in March.These growing inflation worries in Australia have shifted focus to local consumer price inflation data due at end of month, with the trade being to short Australian bonds into the data, said Tony Morriss, senior interest rate strategist with ANZ.After already raising rates at five of its last six meetings, traders are particularly selling short-dated bonds on a belief that with rising inflation, the RBA may need to be even more aggressive.'Households are seeing rising home prices and rising stock prices and their net wealth increasing. It's natural to think that,' added Morris.The June three-year spot contract traded down five ticks at 94.55. The 10-year traded 3.5 ticks lower at 94.12. Still, Morriss said support for the three-year looms at 94.50.-

2010/04/15 15:18DJ EU's Rehn: Greece Won't Default On Debts
BRUSSELS -Greece won't default on its debts, European Commissioner for Economic and Monetary Affairs Olli Rehn said Thursday."Default is not an issue. There will be no default," Rehn said during a breakfast discussion in Brussels.Euro-zone finance ministers on Sunday agreed to loan Greece up to EUR30 billion in the first year of any aid program. So far, Greece hasn't asked for financial help.

2010/04/15 15:16DJ Tokyo Shares Rise; Shippers, Steel Shrs Up On China Econ Data -2-
TOKYO -Tokyo stocks rose Thursday as upbeat Chinese economic data helped lift steel, shipping and construction equipment companies, while financials rallied after JPMorgan Chase's robust overnight earnings announcement. 'With worries over the technically overbought nature of the market, external catalysts (such as foreign earnings and economic data) are boosting investor appetite,' said Daiwa Securities market analyst Shinichiro Matsushita. The Nikkei 225 Stock Average rose 68.89 points, or 0.6%, to 11,273.79. The Topix index of all the Tokyo Stock Exchange First Section issues also rose 7.80 points, or 0.8%, to 998.90. On the Osaka Securities Exchange, June Nikkei 225 futures ended up 60 points, or 0.5%, at 11,270. China's gross domestic product rose 11.9% for the three months ended March, lifting hopes for export demand. Shippers were among today's biggest gainers, with Mitsui O.S.K. jumping 5.1% to Y699 and Kawasaki Kisen adding 4.1% to Y384. The Topix marine transport subindex easily led the board, surging 4.1%. Steelmaker shares also benefited from the Chinese data, rising 1.7% as a group. Bellwether Nippon Steel added 1.4% to Y359, while Kobe Steel rose 6.7%. The latter's announcement of its five-to-ten year mid-term business 'vision' was also received bullishly. Nomura Securities analyst Yuji Matsumoto noted that the plan, which includes entry into China's aluminium forging business, could mean strong mid-term growth prospects. Construction equipment maker Komatsu, another firm with heavy exposure to Chinese markets, rose 1.7% to Y1,943. Financials were also strong, with Mitsubishi UFJ Financial Group gaining 1.6% to Y517 and T&D Holdings up 1.8% to Y2,472 on positive general sentiment after JPMorgan's first-quarter net profit rose 55%. On the other hand, Toyota Motor lost 0.8% to Y3,710 after it said it started conducting safety tests on all of its sport-utility vehicles sold worldwide, following the sales suspension of its Lexus GX 460 model amid concerns that the vehicle could roll over at high speeds. 'Investors have almost priced in Toyota's recall problems, but this news hurts their appetite for Toyota shares,' said a Japanese brokerage manager.

2010/04/15 14:28=DJ WORLD FOREX: Dollar, Euro Tick Up Vs Yen On Higher Asia Stocks -3-
TOKYO -The dollar and euro ticked up against the yen in Asia Thursday as higher regional stocks encouraged non-Japanese hedge funds to buy the two currencies against the safe-haven yen, while Japanese importers also picked up the dollar and euro on a regular settlement day.The dollar's near-term direction depends on whether forthcoming U.S. data and speeches from Federal Reserve Bank members may signal that the U.S. economy remains on a recovery path, which could add to expectations for an earlier-than-expected rate hike, dealers said.During Asian trading Thursday, buying by non-Japanese hedge funds and Japanese importers pushed the dollar to a high of Y93.53, compared with Y93.18 overnight in New York. The euro, meanwhile, rose to a high of Y127.66 from Y127.28.Firm Asian share markets boosted demand for those currencies versus the safe-haven yen. The Nikkei 225 Stock Average index was up 0.5%, while share markets in Australia, Hong Kong and Taiwan were also up.Still, additional gains in the two currencies were limited due to Japanese exporters' substantial sell-orders, said Minoru Shioiri, chief manager of foreign exchange trading at Mitsubishi UFJ Securities. They placed dollar-selling orders around Y93.70, while their euro-selling orders were placed at around Y127.70, he added. As of 0450 GMT, the dollar stood at Y93.36 and the euro at Y127.30.Elsewhere, the release of Chinese data had a negligible impact on the currency markets. The country's gross domestic product grew 11.9% in the first quarter from the same period last year, compared with the median 11.5% forecast of 13 economists surveyed by Dow Jones Newswires. The country's consumer price index rose 2.4% on-year in March, compared with the median forecast for a 2.6% increase.'The results were in line with general expectations and the CPI wasn't strong enough to add to speculation that this may persuade China to let the yuan appreciate,' said Yuzo Sakai, a manager at Tokyo Forex & Ueda Harlow.Investors are now focused on U.S. industrial output and weekly jobless claims, both due later in the day, to gauge the development of the world's biggest economy. Better-than-expected numbers may lift the dollar to Y93.80, dealers said.March U.S. industrial production may gain 0.8%, after a 0.1% rise in February, according to economists polled by Dow Jones Newswires. Jobless claims are likely to have increased by 445,000, after a 460,000 rise the week before.Other key events include speeches by Atlanta Fed President Lockhart in Pensacola, Florida on the economic outlook. Meanwhile, Richmond Fed President Lacker will speak in Charlotte, North Carolina and St. Louis Fed President Bullard will speak in New York.As of 0450 GMT, the euro stood at $1.3636, compared with $1.3657 in New York.

2010/04/15 12:01=DJ MONEY TALKS:Bond Buyers Beware:US Not Isolated From Foreign Boom
NEW YORK -Since last March, stock market investors have been locked in a high-stakes economic debate with their counterparts in the Treasury markets. The latest signals from outside the U.S. suggest that equities investors' glass-half-full view will prevail. When it does, we could see the focus quickly shift to Federal Reserve rate hikes, which means sharply higher Treasury yields and significant pain for bond investors. The debate pits the recovery narrative--highlighted by the Dow Jones Industrial Average piercing 11000 this week--against the 'low for long' story--a slow recovery, with rates remaining low for a long time. 'We have a dumbbell effect,' says Max Wolff, a consultant and economics lecturer at the New School in New York. At one end, Wolff says, are conservative investors such as pension funds and households, who have been blindsided by a brutal recession. Encouraged by the Fed's repeated statements about keeping rates near zero for 'an extended period'--an outlook confirmed by Fed Chairman Ben Bernanke's cautious comments on the economy Wednesday--they keep their savings in conservative bond funds that plough them into Treasurys. At the other end are hedge funds and other trend-setting risk-takers who have been piling into stocks. They see earnings reports such as the latest from Intel Corp. (INTC) and JPMorgan Chase & Co. (JPM) reflecting a robust recovery for corporate America. What the bears fail to see is that the recovery, and the rate hikes it portends, is being cooked overseas. Just look at the past 24 hours' news flow: --Singapore reported a startling 32.1% annualized increase in first-quarter gross domestic product, prompting its monetary authority to put the Singapore dollar--its main policy lever--on a 'gradual appreciation' path. --Brazil's February retail sales surged 12.3% on the year, fueling speculation that the central bank will hike rates by 0.75 percentage point at its end of April meeting. --South Korea's February unemployment plummeted to 3.8% from 4.4% in January, and Moody's Investors Service upgraded the country's debt rating to A1. The won rallied sharply against the dollar. --China, the common denominator for many of these growth stories, this week will announce an 11.9% on-year expansion in first-quarter GDP, Reuters reported. These trends matter more than ever to U.S. stocks. Bank of America Merrill Lynch equity strategist David Bianco calculates that the proportion of S&P 500 companies' profits derived from overseas operations has gone from 20% in the 1990s to 40% now. Yet official breakdowns show that the broader American economy is still greatly driven by domestic demand. That's what matters to the small investor who's wary of buying stocks and the small-business owner who's reluctant to hire. (The National Federation of Independent Businesses, a key small-business lobby group, said this week its optimism index remains close to levels seen at the height of the recession). The gulf between these two scenarios must eventually narrow. When it does, it's likely to come from positive fallout from the rest of the world in the U.S. rather than from American gloom infecting everyone else. Large U.S. companies that have benefited from overseas sales and a generous corporate bond market are now sufficiently cashed up to boost domestic investment and hiring. Meanwhile, with mortgages holding steady despite the Fed's end of March departure from that market, banks will feel more confident about turning their large cash reserves into credit. This could quite rapidly close the 'slack' in the economy, putting hitherto nonexistent inflation risks onto people's radar screens. The Fed will want to preempt that, which could mean that rate hikes, when they come, will be more aggressive than many expect. Treasurys investors should tread carefully: The dumbbell-shaped investor spread could quickly evolve into something closer to a sledgehammer.

2010/04/15 08:36DJ ECB Wellink: History Shows Greek Bailout Likely To Be Repaid-Report
FRANKFURT -Funds pledged in a possible bailout of fiscally struggling Greece will be repaid as the International Monetary Fund's track record shows, European Central Bank Governing Council member Nout Wellink told German business daily Boersen Zeitung for its Thursday edition.Wellink, who represents the Dutch Central Bank at the ECB, aimed to address public concerns that the Mediterranean country could get transfers from other euro-zone member states.'First of all, it's hard for people at home to imagine paying for a country where people go home at 4 pm and retire at 63,' Wellink is quoted as saying. 'We are trying to convey that there won't be any transfers, rather the money will be repaid.'He pointed to the IMF's successful record and its standards, which the European Union/IMF plan uses as a blueprint for possible aid to Greece. Web site: www.boersen-zeitung.de

2010/04/15 08:31DJ Swiss Government Wants CHF40 Mln Costs From UBS In US Tax Case
ZURICH (AFP)--The Swiss government said Wednesday it planned to ask Swiss banking giant UBS AG (UBS) to pay for some 40 million francs in costs incurred by the state over a tax evasion case with the U.S. The government said in a document published online that it 'decided on April 14 2010, to submit to parliament a federal draft bill that ascribes the fees incurred on the accord of August 19 2009 to UBS.' In a state-brokered settlement last August, UBS warded off a bruising U.S. government lawsuit by agreeing to hand over secret details on about 4,450 clients who are U.S. taxpayers. The Swiss government's assistance in processing these details as well as the legal fees incurred are estimated to reach some CHF40 million. In February, the government had said it would bill UBS for only CHF1 million in costs, as it wasn't possible to pass on the remainder of the costs to the bank under current rules. Even a voluntary payment from UBS may not be accepted, it had said. 'The reason for this is that it must be avoided under all circumstances to give the impression that the decisions of the state administrative assistance authority responsible weren't made entirely independently,' the government had said then.

2010/04/15 08:30*DJ BOJ Shirakawa: Global Econ Has Been Recovering Moderately

2010/04/15 08:15DJ EU Statistician: Goldman Likely Wasn't Only Bank Helping EU Govts
BRUSSELS -Goldman Sachs (GS) probably wasn't the only bank using complex currency transactions to help European Union governments mask their debt levels, the EU's chief statistician said Wednesday. Greece in 2001 conducted a series of currency transactions with Goldman Sachs to hide its debt levels. These transactions came to light as the country plunged into a debt crisis at the beginning of this year. 'It is likely that Goldman Sachs wasn't the only institution,' Eurostat Director General Walter Radermacher told a committee at the European Parliament in Brussels. Other countries, including Germany, Italy, Poland and Belgium, used similar transactions when EU rules still allowed them, Radermacher said. Unlike Greece, these countries have revised past budget data to account for these transactions, he added. 'Greece is the only country that hasn't corrected debt and deficit figures accordingly,' Radermacher said. The chairman of Goldman Sachs Bank USA, E. Gerald Corrigan, is due to speak to the European Parliament's committee later Wednesday.

2010/04/15 07:39DJ UK Consumer Confidence Weakened In March On Econ, Jobs Outlook
LONDON -U.K. consumer confidence weakened significantly in March as people became less optimistic about the outlook for the economy over the next six months, and more pessimistic about the outlook for the jobs market. The headline measure of confidence in a monthly survey released by the Nationwide Building Society Thursday fell sharply, to 72 in March from 81 in February. That will come as a blow to Prime Minister Gordon Brown, who is attempting to win the May 6 general election by convincing voters that his Labour government is best placed to nurture the economic recovery. Most recent data and other surveys have suggested that the economic recovery is picking up. The decline in the headline index wiped out all the gains made in the first two months of the year, and brought the measure back to its level in December 2009. The survey was conducted before the March 24 budget. The decline in the headline index was driven by the sudden reversal of what had been a rising feeling of optimism about the outlook for the economy for the rest of this year. The proportion of those surveyed who said the economy will be in better shape in six months' time fell to 33% from 39% in February, while the proportion of those saying it will be in the same condition as now rose to 48% from 44%. There was also a surge in pessimism about the outlook for the jobs market, with 48% of respondents saying there will be fewer jobs available in six months' time, compared to 43% in February. That's despite official figures that show the unemployment rate has started to fall. If sustained, the decline in confidence could threaten the recovery. But it may simply reflect a pickup in uncertainty ahead of the election, which is expected to be the tightest since 1992. Nationwide said a similar increase in concerns about the economic outlook and the jobs market occurred ahead of the last election in 2005. 'With an election looming, more people will be unsure as to whether they will be better or worse off in the coming months,' said Martin Gahbauer, Nationwide's chief economist. The central issue of the election campaign is which party is best placed to tackle the huge budget deficit, while inflicting the least damage on the U.K.'s growth prospects. The U.K. only emerged from an 18-month recession in the final quarter of last year, three to six months after most of the rest of the Group of 20 industrial and developing nations. Figures on gross domestic product in the first quarter of this year will be released April 23, and may affect how voters think about the economic outlook, either to the benefit or detriment of the government.

2010/04/15 06:50DJ Fed's Bullard: US Recovery Looks 'Pretty Strong' -Fox Business
DOW JONES NEWSWIRESThe head of the Federal Reserve's St. Louis bank, James Bullard, said Wednesday that he's "encouraged" by signs of recovery in the U.S. economy. "I would say that the recovery is pretty strong right now," he told Fox Business Network, citing positive sales and labor data. Bullard said he expects better GDP growth in the second quarter than in the first.As for a possible increase in interest rates, Bullard said the central bank's Federal Open Market Committee should consider the consequences of keeping rates low for too long. "If you keep rates really low for a long time, it does seem like you're fueling speculative excess," he said, "and that's really what's on people's minds in monetary-policy circles, including the FOMC."Bullard said, however, that the Fed wants to foster the economic recovery through its current policy for the time being. He cautioned that the recovery must look sustainable over a longer period, particularly in terms of employment and the financial services sector, before such a decision could be made."If you start to see healthier jobs growth, then you are on safer ground," he said. The U.S. has a labor market that's more "flexible" than those elsewhere, he said, which means "we might be able to get back to normal faster than some of these other countries."The St. Louis Fed president also said there remain "nagging doubts about the financial sector. "There's been a lot of bank failures this year," he said.Bullard expects more small banks to fail this year, as the so-called watch list has grown, but that rate should begin to taper off in 2011, he said, especially as the economy continues to rebound. He said he doesn't expect to see a large bank fail at this point, given the measures adopted by the federal government during the financial crisis.Regarding the U.S. housing market, Bullard said he doesn't expect it to return to bubble-era levels, but he thinks it will stabilize at a low level before resuming slow growth.Web site: www.foxbusiness.com

2010/04/15 05:59DJ Bernanke: Risk Of Double Dip Back Into Recession Less Than A Few Months Ago
WASHINGTON -The risk of the U.S. economy double-dipping back into recession has receded, Federal Reserve Board Chairman Ben Bernanke told lawmakers Wednesday.He said it appeared the U.S. economy is moderately improving and would continue to do so, reducing the risk of the economy falling back into recession.'It looks like we're on a path to moderate recovery,' Bernanke said.The deepest recession the U.S. has endured in more than 70 years ended last year.Bernanke said there are still risks that exist such as fall-out from the economic crisis in Greece or a sudden spike in oil prices.

2010/04/15 03:35*DJ Bullard: US Could See Quicker Job Mkt Rebound Than Other Countries-Fox Business
2010/04/15 03:33*DJ Bullard: Fed Wants To Keep Fostering Recovery -Fox Business
2010/04/15 03:32*DJ Bullard: Keeping Rates Low For Too Long Can Help Fuel Speculation -Fox Business
2010/04/15 03:28*DJ Bullard: Bank Failures Should Taper Off Next Yr -Fox Business
2010/04/15 03:26*DJ Bullard: Recovery Needs To Look Sustainable For Rates To Rise -Fox Business
2010/04/15 03:25*DJ Bullard: 'Encouraged' By Signs Of Recovery -Fox Business
2010/04/15 03:12*DJ World Bank Head: Greek Rescue Plan Doesn't Fix Underlying Issues

2010/04/15 00:38DJ Fed's Dudley: US Recovery Likely To Be `Muted'
NEW YORK -Federal Reserve Bank of New York President William Dudley reiterated Wednesday that the U.S. economic recovery will likely be tepid.In opening comments at a briefing on regional economic activity at the central bank, Dudley said that while there has been some encouraging economic news--such Wednesday's 1.6% increase in March retail sales--'it still seems likely the economic recovery will be more muted.'Dudley didn't comment specifically on the Fed's monetary policy strategy. He noted that the Fed's actions in the last couple of 'truly extraordinary' years appear to have worked to help the weak economy.Dudley said that with households and small and medium-sized banks still under stress, 'the recovery is not likely to be as strong as we would like.'While 'employment has begun to expand' and the unemployment rate appears to have stabilized, it still remains at 9.7%, which Dudley said 'is very unacceptable' to Fed policy makers.At the briefing, New York Fed regional research economists discussed measures of regional economic activity in the Fed district, which ranges from upstate New York to the Virgin Islands and Puerto Rico.

2010/04/15 00:03DJ Fed's Bullard: Fed Emergency Programs Worked Pretty Well
NEW YORK -Federal Reserve Bank of St. Louis President James Bullard said Wednesday the central bank's emergency lending efforts during the financial crisis were effective.Bullard, who was speaking from the audience of an event held by the Levy Economics Institute of Bard College, said the stable of facilities created by the Fed to help bring financial markets back to life fared "pretty well."Bullard made no comments on monetary policy or the economy in his brief comment. Most of the Fed's facilities have wound down as financial market health has improved.