_Economy and Finance

ECONOMY |APRIL 28, 2011, 4:57 P.M. ET U.S. Economic Growth Slows By CONOR DOUGHERTY Economic growth stumbled in the first quarter, but most economists see it as a passing phase caused by a combination of bad weather and surging prices.

10 places where housing is soaring France Annual increase: 9.5% Paris has long been known for stylish people, delicious cuisine and universal health care. And let's not forget some of the priciest real estate in the world.

10 places where housing is soaring China Annual increase: 15.3% (based on Beijing and Shanghai prices) Need somewhere to store your wealth and maybe even make a healthy profit? Millions of Chinese have been buying up homes with the same enthusiasm once common among U.S. home buyers. With few investment options for many middle class Chinese, residential properties have become a great option to store wealth. Even while the global financial crisis in 2008 gripped many nations, China's housing market was virtually unaffected.

ASIA NEWS|APRIL 27, 2011 Asia's Growth Seen Imperiled by Prices By ALEX FRANGOS HONG KONG—Unchecked increases in oil and food prices could shave growth across Asia over the next two years, according to a report by the Asian Development Bank, imperiling economic gains among the poor in the globe's fastest expanding region.

Related News: Economy · Real Estate · U.S. Home Prices in 20 U.S. Cities Drop Most in More Than Year on Foreclosures By Alex Kowalski and Shobhana Chandra - Apr 27, 2011 5:11 AM GMT+0900 Residential real-estate prices dropped in the 12 months to February by the most in more than a year, putting the market on the verge of eclipsing the nadir reached during the U.S. recession.

CHINA NEWS|APRIL 26, 2011, 1:08 P.M. ET China Seeks Bigger Role in Australia Economy By DINNY MCMAHON BEIJING—China aspires to play a greater role in Australia's economy, one of the country's top leaders said Tuesday, signaling Beijing's aspirations for its companies to make inroads beyond simply extracting resources.

Home prices in 'double dip' By Les Christie, staff writerApril 26, 2011: 12:08 PM ET NEW YORK (CNNMoney) -- Home prices in February sank 3.3% to just above the post-crisis lows reached in April 2009. It was the seventh straight month of declines.

The Warren Buffett-hedge fund bet tightens April 26, 2011 5:00 am Berkshire Hathaway's chairman won the 2010 race for investment returns, but Protégé Partners retains the long-term lead. By Carol Loomis, senior editor-at-large FORTUNE -- We're three years into Warren Buffett's 10-year bet with the hedge fund community, and the race has narrowed. For the second year in a row, Buffett's horse in the contest -- an S&P 500 index fund -- did better than the average return booked by five funds of hedge funds picked by Protégé Partners LLC, a New York money-management firm.

Related News: Italy · U.S. Biggest Banks Beating Estimates Can’t Hide 13% Drop in Revenue By Dawn Kopecki - Apr 26, 2011 9:01 AM GMT+0900 The biggest percentage drop in quarterly revenue in three years, driven by lower lending and reduced fees, is damping investor appetite for shares of the six largest U.S. banks.

A fragile global recovery? By Kristina Cooke NEW YORK | Sun Apr 24, 2011 5:16pm EDT (Reuters) - Data on how the U.S. and British economies fared in the first three months of the year due next week will likely highlight the tenuous nature of the recovery from recession in developed countries.

U.S. Consumer Defaults Fall In March. Existing Home Sales Rise (00:18:36 min) The Standard & Poor's/Experian consumer default composite index fell to 2.43% in March from 2.54% in February. All the major sectors, such as bank cards, auto loans, and first and second mortgages, reported declines. As for U.S. housing, sales of existing homes increased 3.7% in March following a significant decline of 8.9% February. In this podcast, Standard & Poor's Senior Director Erkan Erturk discusses the significance of these statistics and how they could affect the structured finance and housing sectors. Listen

Europe at the precipice Posted by Colin Barr April 22, 2011 4:33 am Here's an unhappy early Easter thought: The financial crisis is about to be reborn in Europe. Is the euro a basket case? Bondholders are bracing as Greece, Portugal and Ireland come to grips with huge debts and sinking economic prospects. Rumors have a Greek restructuring happening as soon as this weekend, though analysts at Goldman Sachs say next year is more likely.

Related News: Economy · U.S. · Municipal Bonds Economic Outlook Brightens on Leading Indicators, Confidence By Alex Kowalski and Timothy R. Homan - Apr 22, 2011 5:36 AM GMT+0900 The index of U.S. leading indicators increased for a ninth month in March and Americans’ confidence rose for a fourth week, signaling the expansion may withstand higher fuel costs.

Why Italian Banks Face A Tricky Recovery (00:15:32 min) Italy's banks are slowly digging out of one of the deepest recessions in the past half century, as the country's GDP declined a cumulative 6% in 2008-2009. But banks are climbing over difficult and new terrain, such as persistently slow domestic economic growth, much higher prices for wholesale funding due to sovereign credit worries in the eurozone, and tougher capital rules in the run-up to Basel III. In this podcast, Standard & Poor's credit analyst Renato Panichi provides an in-depth look at the situation and what could lie ahead. Listen

ASIA BUSINESS|APRIL 20, 2011, 6:43 A.M. ET Asia Central Banks Intervene As Currencies Climb By MARTIN VAUGHAN Agence France-Presse /Getty Images SINGAPORE—Central banks in South Korea, Thailand and Malaysia intervened Wednesday to slow a surge in their currencies in a broad Asian rally that carried the Singapore and Australian dollars to fresh highs against the U.S. currency.

ASIA NEWS|APRIL 20, 2011, 8:44 A.M. ET China Plans Tax Cut for Low Earners By AARON BACK A Beijing worker washes a window BEIJING—China plans to cut taxes on low-income earners and raise them somewhat for the rich under new legislation expected to pass shortly, one effort to address a widening income gap thought to threaten the country's social stability.

Gold breaks $1,500 as investors seek security By Jan Harvey LONDON | Wed Apr 20, 2011 4:12pm EDT (Reuters) - Gold rose above $1,500 an ounce on Wednesday for the first time ever as the dollar wilted, oil rose, worries over the U.S. economic outlook boosted demand for the metal as a haven and rising inflation lifted Asian demand.

Related News: Law · Finance · Insurance · Real Estate · U.S. · Funds · Politics · Municipal Bonds Banks Await Foreclosure Deal’s Financial Terms as States Split By David McLaughlin - Apr 21, 2011 3:33 AM GMT+0900 Attorneys general negotiating the settlement of a nationwide foreclosure investigation have yet to approach banks with a proposed dollar amount that would fund principal reductions for borrowers, a state official said.

Related News: Canada · Commodities · Middle East · Australia · New Zealand Gold Rises Above $1,500 to Record on Weaker Dollar, Inflation By Pham-Duy Nguyen - Apr 21, 2011 3:53 AM GMT+0900 Gold futures rose to a record for the ninth time this month as a weakening dollar boosted investment demand for the precious metal as an alternative asset. Silver topped $45 an ounce for the first time since 1980.

'Uneven' housing recovery continues By Annalyn Censky, staff reporter April 20, 2011: 12:12 PM ET NEW YORK (CNNMoney) -- Sales of existing homes increased in March, "continuing an uneven recovery" in real estate, an industry group said Wednesday.

Related News: Economy · Real Estate · U.S. · Municipal Bonds Housing Starts in U.S. Increased to 549,000 in March, Exceeding Forecasts By Bob Willis - Apr 20, 2011 5:07 AM GMT+0900 A gain in March housing starts failed to make up for ground lost the prior month, as U.S. home builders continue to struggle almost two years into the economic recovery.

Spring Housing Guide 2011 Mortgage denied: Sometimes, for no good reason By Les Christie, staff writer April 19, 2011: 2:46 PM ET NEW YORK (CNNMoney) -- Getting a mortgage just keeps getting tougher, and many homebuyers are getting rejected for loans they could easily afford.

Related News: U.S. · Bonds · Currencies · Funds · Economy Standard & Poor’s Puts ‘Negative’ Outlook on U.S. AAA By Rebecca Christie and Shannon D. Harrington - Apr 19, 2011 3:30 AM GMT+0900 Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt.

Related News: U.S. · Asia Oil Falls From 30-Month High on IMF Forecast; U.S. Stocks Drop By Margot Habiby and Nikolaj Gammeltoft - Apr 12, 2011 5:08 AM GMT+0900 Oil fell from a 30-month high after the International Monetary Fund cut its growth forecasts for the U.S. and Japan, dragging down shares of energy producers and the Standard & Poor’s 500 Index. The difference between yields on Treasury 10-year notes and inflation-protected securities widened to the most in three years.

ECONOMY |APRIL 11, 2011 Economists See Growth Accelerating Later in Year By PHIL IZZO The U.S. economic recovery is expected to gain momentum over the rest of the year, despite a sharp pullback in growth during the just-finished first quarter, according to economists surveyed by The Wall Street Journal.

Related News: Asia · Commodities · Currencies · China · Funds · Economy · Retail China Inflation Is `Somewhat Out of Control’ on Weak Currency, Soros Says By John Detrixhe - Apr 11, 2011 1:02 PM GMT+0900 China’s decision to keep its currency weak has caused the government to lose control of inflation and risks fuelling wage-price gains, billionaire investor George Soros said.

Related News: Finance · Law · Europe · U.K. & Ireland · Bonds U.K.’s ‘Moderate’ Bank Report Calls for More Capital, Sales By Jon Menon and Gavin Finch - Apr 11, 2011 7:55 PM GMT+0900 The Independent Commission on Banking recommended the U.K.’s biggest banks should hold core Tier 1 capital levels of about 10 percent, implement plans for an orderly bankruptcy and ring-fence consumer units in what it termed a “moderate” set of proposals.

As worry list grows, G20 gets wonky By Emily Kaiser WASHINGTON | Sun Apr 10, 2011 4:59pm EDT (Reuters) - While the world watches revolutions in the Arab world and a nuclear crisis in Japan, the Group of 20 is engrossed in an esoteric debate over something called indicative guidelines.

Related News: Economy · U.S. · Bonds · Currencies · Retail Retail Sales in U.S. Probably Rose as Job Gains Overcame Surge in Gasoline By Shobhana Chandra - Apr 11, 2011 12:25 AM GMT+0900 U.S. retail sales probably climbed in March, indicating an improving labor market is helping Americans cope with rising gasoline prices, economists said before a report this week.

CMBS: Risk Retention Guidelines; Rising Mall Vacanies (00:12:44 min) In this Standard & Poor's podcast, Managing Director Ted Burbage, of Investor Relations, and Managing Director Howard Esaki, of Structured Finance Research, discuss “qualified” collateral in risk retention proposals for commercial mortgage-backed securities (CMBS) and new data on mall vacancies. Listen

Related News: Europe · Germany · Finance · U.K. & Ireland · Currencies · Bonds · France · Economy · Italy European Stress Tests to Examine Banks’ Readiness for Basel III By Ben Moshinsky - Apr 8, 2011 8:01 AM GMT+0900 European regulators were criticized by German banks for a plan to incorporate into this year’s stress tests global capital standards that aren’t scheduled to be implemented for eight years.

WORLD NEWS|APRIL 8, 2011 Europe's Rate Rise Signals End of Cheap-Money Era By BRIAN BLACKSTONE and DAVID WESSEL The European Central Bank on Thursday became the first monetary authority in a major developed economy to raise interest rates since the global financial crisis struck—a sign that the long period of extraordinarily easy credit is beginning to come to a close.

ECONOMY |APRIL 7, 2011, 5:15 P.M. ET ECB Raises Interest Rates By BRIAN BLACKSTONE FRANKFURT—The European Central Bank raised interest rates for the first time in nearly three years Thursday, but sought to reassure investors that it won't embark on a rapid-fire series of increases that could disrupt fragile economies in parts of the euro bloc.

Dow Jones, Credit Suisse Unveil HF Index 04-07-2011 | Source: emii.com Dow Jones Indexes and Credit Suisse have rolled out the Dow Jones Credit Suisse Core Hedge Fund Index. The index will use multiple managed account platforms to track the liquid, investable hedge fund universe.

Dutch Banks Continue To Pull Away From The Financial Crisis (00:09:42 min) The Dutch banking system is gradually recovering from the financial crisis, as evidenced by better underlying profitability supported by an improved economic backdrop. Although the outlook for earnings growth remains limited, several large banks are making rapid progress with their restructuring processes. This should support their efforts to repay the government support that several of them received during the downturn. In this CreditMatters TV segment, Associate Director Alexandre Birry provides an overview of the Dutch banking system's recovery, and how it is affecting the market's larger players. Watch | Download

The U.S. Commercial Real Estate Outlook And Its Implications For Banks, Insurers, And REITs (00:07:13 min) The U.S. commercial real estate industry continues to recover from the lashing it took during the recent recession. But as the economy continues to rebound, we expect demand to improve. In this CreditMatters TV segment, Standard & Poor’s Director Matthew Carroll discusses the state of the industry and what lies ahead. Topics include key market drivers and the implications for bank, life insurer, and REIT investment portfolios. Watch | Download

Related News: Europe Goldman Sachs Says Portugal Is Last Euro Nation to Seek Bailout By Simon Kennedy - Apr 7, 2011 3:29 PM GMT+0900 Portugal is likely to be the last euro region country to seek an international bailout after the government yesterday joined Greece and Ireland in seeking aid, Goldman Sachs Group Inc. said.

EUROPE NEWS|APRIL 7, 2011 U.K. Data Stoke Worries on Growth By ALISTAIR MACDONALD LONDON—U.K. manufacturing suffered a sharp slowdown in February after several months as the economy's star performer, stoking doubts about the sector's ability to lead Britain's fragile economy back to health, as it has in Germany.

Gold, silver and oil: The rally is back By Ken Sweet, contributing writerApril 6, 2011: 3:48 PM ET NEW YORK (CNNMoney) -- Oil, gold and silver have been hitting new highs and experts expect the momentum to continue.

Columbia Unveils Absolute Return Funds 04-06-2011 | Source: emii.com Columbia Management has unveiled two open-end absolute return mutual funds. The Columbia Absolute Return Multi-Strategy Fund aims at long-term returns similar to historical returns of investment-grade bonds, but with lower volatility and low correlation to the Barclays Capital U.S. Aggregate Bond Index.

GlobeOp To Unveil Hedge Fund Indices 04-06-2011 | Source: emii.com GlobeOp Financial Services is seeking to roll out two new indexes tracking capital flows hedge funds. The two indices will offer monthly reports based on actual and anticipated capital movement data independently collected from all hedge fund clients for whom GlobeOp provides administration services.

Related News: Europe · Bonds Portugal Seeks EU Bailout, Joining Greece, Ireland By Joao Lima, Jim Silver and Anabela Reis - Apr 7, 2011 5:48 AM GMT+0900 Portugal has asked the European Union for a bailout after a domestic political crisis helped push borrowing costs to record levels, making it the third euro region country to seek a rescue.

BUSINESS |APRIL 6, 2011 German Banks May Add To Capital By LAURA STEVENS, DANA CIMILLUCA and EYK HENNING FRANKFURT—Germany's largest commercial banks—Deutsche Bank AG and Commerzbank AG—are expected to seek shareholder approval to raise billions of euros in capital, in the latest sign that Europe's banks are seeking to shore up their balance sheets in anticipation of a tougher regulatory environment.

Portugal: What Standard & Poor's Downgrade Means For The Country's Banks (00:20:59 min) Since March 28th, 2011, we have downgraded, by several notches, the five Portuguese banks that we rate to 'BBB-'. We have also lowered the short-term ratings to 'A-3'. The outlooks on four of the five banks are negative. One bank still remains on CreditWatch negative. What prompted our rating actions on the banks? In this podcast, Director Elena Iparraguirre explains our rationale, why we feel sovereign risk and banks' ratings are so tighthly correlated, and our main expectations for the Portuguese financial system. Listen

Why Municipal Risk Is Low For Rated U.S. Banks (00:06:06 min) There has been market debate about the outlook for municipal risk and U.S. banks' potential exposure to it, particularly in their loan portfolios and securities holdings. However, Standard & Poor’s believes the banks it rates aren't really facing significant exposure to municipal risk. In this CreditMatters TV segment, Managing Director Rodrigo Quintanilla explains why and discusses our findings. Watch | Download

ECONOMY |APRIL 5, 2011, 5:12 A.M. ET RBI's Gokarn: High Inflation Can't Be New Normal By SOURAV MISHRA, BIJOU GEORGE and SUBHADIP SIRCAR MUMBAI—India cannot risk accepting high inflation as the "new normal," nor can the central bank be a bystander, a deputy governor of the Reserve Bank of India said Tuesday.

EUROPE NEWS|APRIL 5, 2011, 5:21 A.M. ET OECD Frets Over Inflation By GABRIELE PARUSSINI PARIS—Economic growth in the world's richest countries outside disaster-stricken Japan is gaining strength, the Organization for Economic Cooperation and Development said Tuesday in an upbeat interim assessment, but warned that a rise in commodity prices may push up inflation expectations.

Related News: Economy · U.S. · Currencies · Germany Bernanke Says Fed Must Monitor Inflation ‘Extremely Closely’ By Scott Lanman and Steve Matthews - Apr 5, 2011 1:00 PM GMT+0900 Federal Reserve Chairman Ben S. Bernanke said policy makers must watch inflation “extremely closely” for evidence that rising commodity costs are having more than a temporary impact on consumer prices.

BUSINESS |APRIL 4, 2011, 8:46 P.M. ET IMF Chief: 'Black Swans' Still Haunt Global Finance By IAN TALLEY WASHINGTON—The global economic recovery is still fragile, uneven and "beset by great uncertainty," the head of the International Monetary Fund said late Monday.

Related News: Economy Geithner Says U.S. To Reach Debt Limit No Later Than May 16 By Rebecca Christie and Phil Mattingly - Apr 5, 2011 6:34 AM GMT+0900 Treasury Secretary Timothy F. Geithner The U.S. will reach its $14.29 trillion legal debt limit no later than May 16 unless Congress acts before then, Treasury Secretary Timothy F. Geithner said today, and he warned of “severe hardship” for Americans if lawmakers fail to act.

Related News: Economy · U.S. U.S. Service Industries Probably Grew at Close to Fastest Pace Since 2005 By Timothy R. Homan - Apr 3, 2011 1:00 PM GMT+0900 Service industries probably expanded in March at close to the fastest pace since 2005, a sign the U.S. economic expansion is broadening beyond manufacturing, economists said ahead of a report this week.