Broken News ( Daily Update )

[surf4sports]

Spain Opposition Politician:Indebted Families Need Tax Relief

Thu, Jan 17 2008, 16:31 GMT
http://www.djnewswires.com/eu

Spain Opposition Politician:Indebted Families Need Tax Relief

MADRID -(Dow Jones)- Spain's heavily indebted families need tax cuts in the face of tightening euro-zone financial conditions, Manuel Pizarro, the opposition politician tipped to be finance minister if his Popular Party wins March 9 general elections, said Tuesday.

"I believe it's best if money stays in the taxpayer's pocket...when people have difficulties coping with the Euribor (the rate at which euro-zone euro interbank term deposits are offered by one bank to another) at 4%, we have to help low-income families to pay their mortgages, and not let them lose their homes," Pizarro said.

Pizarro, former head of electricity company Endesa (ELEYY), was meeting the press for the first time since his surprise inclusion in the PP's electoral list earlier this week. PP leader Mariano Rajoy has declined to confirm media reports that Pizarro would become finance minister if his party wins the upcoming elections.

Recent polls show the PP and the ruling Socialist Party in a virtual dead heat.

The PP has made tax cuts one of the cornerstones of its election program, promising to lower the Spanish corporate tax rate, currently one of the highest in the euro zone, and to exempt from income tax people who earn less than EUR16,000 a year.

Pizarro is famous in Spain for his role at Endesa in fending off a hostile takeover bid from Gas Natural SDG SA (GAS.MC), a bid that was widely seen as supported by the current government, which wanted to see the creation of a national energy champion.

Endesa was later taken over by Italian electricity company Enel SpA (EN) and Spanish infrastructure company Acciona SA (ANA.MC).

-By Jonathan House, Dow Jones Newswires; +34-91-3958-121; [email protected]

(END) Dow Jones Newswires

January 17, 2008 11:31 ET (16:31 GMT)


Copyright 2008 Dow Jones & Company, Inc.

 

[surf4sports]

Bush, Bernanke support stimulus

Thu, Jan 17 2008, 15:39 GMT
http://www.afxnews.com

WASHINGTON (AP) - President Bush and Federal Reserve Chairman Ben Bernanke on Thursday embraced calls for an economic stimulus package to avert recession. Bernanke said such a plan should be quickly implemented and temporary so that it won't complicate longer-term fiscal challenges.

The Fed chief, in testimony prepared for the House Budget Committee, did not embrace any specific provisions or a specific plan. Rather, he spoke to the general concept of an economic rescue package. It is likely that any such package would include tax rebates.

"Fiscal action could be helpful in principle" and may provide "broader support for the economy" than the Fed can furnish alone through reductions in interest rates, Bernanke said in prepared testimony to the House Budget Committee. However, "the design and implementation of the fiscal program are critically important," he said.

"The president does believe that over the short term, to deal with the softening of the economy, that some boost is necessary," Bush spokesman Tony Fratto said.

Fratto's comments marked the first White House confirmation that Bush, confronting a deepening economic crises that has shaken much of the nation, supports government intervention. Until now, the White House said the president was just considering some type of short-term boost.

Fratto would not divulge the details or what the stimulus would look like, other than to say all options are being considered.

Bernanke already had indicated earlier that he was open efforts to develop a rescue package, and reinforced that position Thursday.

The fragile state of the economy has gripped Wall Street and Main Street and is a rising concern among voters. The situation has galvanized politicians -- including those vying to be the next president -- and poses the biggest test to Bernanke, who took over the Fed nearly two years ago.

With the economy suffering, one of Bush's first acts after returning to Washington Wednesday evening from the Middle East was to be a conference call Thursday with congressional leaders in both parties to discuss a possible short-term stimulus package.

The White House spoke up after watching a number of indicators of a battered economy. Consumer confidence has plummeted, economic woes have become the top concern of the American public, and the 2008 presidential contenders have scrambled to get in front of the issue.

Fratto said that Bush made the decision that a stimulus is needed while he was away from Washington on a Mideast trip that ended Wednesday.

But Fratto said that while Bush has decided to pursue some sort of boost, he suggested that he has not yet decided what he thinks it should contain. Listening to the congressional leaders' ideas is one step in that process, he said, as is "probably daily conversations" by Bush's economic team with people from the financial sector, business leaders and prominent economists, among others.

Fratto declined to say when the president could announce a package, or whether it would be before or after the State of the Union address later this month.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Thomson Financial News

 

[surf4sports]

AT A GLANCE: Bernanke Backs Temporary Fiscal Stimulus

Thu, Jan 17 2008, 15:41 GMT
http://www.djnewswires.com/eu

AT A GLANCE: Bernanke Backs Temporary Fiscal Stimulus

THE EVENT:

Federal Reserve Chairman Ben Bernanke, testifying before the House Budget Committee on Thursday, endorsed a "quickly" implemented fiscal stimulus package, saying it would complement the Fed's efforts to provide monetary-policy insurance against an economic downturn. Bernanke repeated the pledge he made last week to enact "substantive" rate cuts if needed to counter the threat to the economy posed by fragile financial markets and weakening employment.

WHAT HE SAID:

The Fed is "prepared to act in a decisive and timely manner and, in particular, to counter any adverse dynamics that might threaten economic or financial stability," he said.

Housing, he said, will probably subtract more than one percentage point from gross domestic product growth in the fourth quarter and "may continue to be a drag on growth for a good part of this year as well."

Thursday's remarks included an extensive discussion of fiscal stimulus, a topic Bernanke has avoided publicly until now. "I agree that fiscal action could be helpful in principle, as fiscal and monetary stimulus together may provide broader support for the economy than monetary policy actions alone."

Fiscal stimulus is OK, he said, as long as it is "implemented quickly and structured so that its effects on aggregate spending are felt as much as possible within the next 12 months or so."

MARKET REACTION:

Treasurys gained on the news that Bernanke said greater rate cuts were needed. The 10-year note jumped 9/32 to 104 21/32 to yield 3.68%. The two-year note increased 3/32 to 101 16/32 to yield 2.45%.

The Dow Jones Industrial Average slipped 20 points following reports of Bernanke's comments, but the Nasdaq rose seven points.

The dollar immediately declined against the euro and yen. The euro jumped to an intraday high of $1.4716 and Y157.85 after the release of Bernanke's speech. The dollar also dropped below Y107 after climbing early in the morning near its intraday high.

WHAT THEY SAID:

"The dollar's declining for a lot of different pieces of news," said Stephen Gallagher, chief U.S. economist at Societe Generale in New York. "The market is pricing in more rate cuts from the Fed. We also had very weak housing news this morning. That also weighs on the dollar."

(END) Dow Jones Newswires

January 17, 2008 10:41 ET (15:41 GMT)


Copyright 2008 Dow Jones & Company, Inc.

 

[surf4sports]

THOMSON FINANCIAL NEWS TOP STORIES Macroeconomics 15:30 GMT

Thu, Jan 17 2008, 15:45 GMT
http://www.afxnews.com

2008-01-17 15:24:55

Bush, Bernanke support stimulus

WASHINGTON (AP) - President Bush and Federal Reserve Chairman Ben Bernanke

on Thursday embraced calls for an economic stimulus package to avert recession.

2008-01-17 15:21:16

US January Philadelphia Fed manufacturing index falls to -20.9 vs -1.3 expected

WASHINGTON (Thomson Financial) - The Philadelphia Federal Reserve Bank's

regional manufacturing index plunged sharply more than expected to -20.9 in

January from a revised -1.6 in December.

2008-01-17 15:13:25

Austrian central bank head Liebscher says country's inflation rate is 'alarming'

VIENNA Thomson Financial News - The head of the Austrian central bank and

member of the European Central Bank's governing council, Klaus Liebscher, has

said he is very concerned at the recent surge in inflation in the Alpine

republic.

2008-01-17 15:01:14

Bush endorses economic stimulus plan

WASHINGTON (AP) - President Bush has decided that an economic stimulus

package is needed to help the sagging economy, the White House said Thursday.

2008-01-17 15:01:07

Bernanke endorses quick, temporary, targeted fiscal stimulus

WASHINGTON (Thomson Financial) - Federal Reserve Chairman Ben Bernanke told

Congress any fiscal stimulus package should be quick, temporary, targeted at

maximizing immediate spending and not make the long-term federal budget outlook

worse.

2008-01-17 15:00:25

German govt to lower GDP growth forecast for 2008 to 1.7 pct - report

BERLIN (Thomson Financial) - The German Federal Government will lower its

GDP growth forecast for 2008 to 1.7 pct, down from 2.0 pct, Handelsblatt

reported, citing government sources.

2008-01-17 14:52:50

US weekly jobless claims down 21,000; 4 wk moving avg lowest since Oct

WASHINGTON (Thomson Financial) - The number of people filing new claims for

unemployment insurance continued its steady decline in the latest week, though

the number of those continuing to claim unemployment insurance remains at an

over two year high, the Labor Department said today.

2008-01-17 14:48:28

DATAWATCH December housing starts not at low point, moreto come

WASHINGTON (Thomson Financial) - US housing starts and building permits

droppped much further than expected in December, leaving calendar-year 2007

starts and permits at lows not seen since the mid-1990s. But instead of seeing

December as a possible bottom, some say the year-end data could be just one more

step down the road to a more serious housing correction.

2008-01-17 14:48:06

Deutsche Bank's Ackermann sees financial mkt recovery, but not in next few mths

FRANKFURT (Thomson Financial) - Deutsche Bank AG's chief executive Josef

Ackermann said he expects that the financial market will recover from the hit it

took following the sub-prime credit market crisis, though not in coming months.

2008-01-17 14:21:09

Home construction drops 25 percent

WASHINGTON (AP) - The prolonged slump in housing pushed construction of new

homes in 2007 down by the largest amount in 27 years with the expectation that

the downturn has further to go.

2008-01-17 14:09:47

Home construction plunged last year

WASHINGTON (AP) - The prolonged slump in housing pushed construction of new

homes in 2007 down by the largest amount in 27 years with the expectation that

the downturn has further to go.

2008-01-17 13:44:27

India Economic Advisory Council revises 2008-09 growth to 8.9 pct from 9 pct

MUMBAI (Thomson Financial) - India's economic growth estimate in 2007-08 has

been lowered to 8.9 pct, from the 9 pct forecast in July 2007, on slowing

industrial growth, which will offset rising domestic savings and investment, the

Economic Advisory Council to the Prime Minister said in a report on the review

of the Indian economy in 2007-08.

2008-01-17 13:38:17

US December housing starts down 14.2 pct to 1.006 mln unit annual rate

WASHINGTON (Thomson Financial) - Housing starts dropped faster than expected

in December and hit their lowest level in more than 16 years, while 2007

calendar-year declines for housing starts and building permits were the sharpest

seen in more than 25 years, the Commerce Department said today.

2008-01-17 13:31:55

Cleveland Fed's Pianalto concerned about downside risks to economy

WASHINGTON (Thomson Financial) - The US economy has downshifted to a slower

growth rate, according to Cleveland Federal Reserve Bank President Sandra

Pianalto, and she is worried that it might slow down even further.

2008-01-17 13:31:05

US weekly jobless claims down 21,000; 4 wk moving average lowest since October

WASHINGTON (Thomson Financial) - The number of people filing new claims for

unemployment insurance continued its steady decline in the latest week though

the number of those continuing to claim unemployment insurance remains at an

over two year high, the Labor Department said today.

2008-01-17 13:25:10

BoE's Gieve expects 'sharp rise' in UK inflation in coming months

LONDON (Thomson Financial) - Bank of England (BoE) deputy governor John

Gieve warned of a "sharp rise" in inflation in the UK over the coming months,

complicating the job of rate-setters at a time when the credit crunch has

diminished growth prospects.

2008-01-17 13:03:09

BOE'S GIEVE SAYS POLICY REACTION DEPENDS ON SECOND-ROUND INFLATION EFFECTS

LONDON (Thomson Financial) -

[email protected]

cp

2008-01-17 13:01:03

Latvia's central bank raises interest rate on night deposits

RIGA (Thomson Financial) - The Bank of Latvia council decided to raise rates

on night deposits from 2 pct to 3 pct, the BNS news agency reported citing the

bank.

2008-01-17 11:55:27

Americans pay for housing boom's excess

NEW YORK (AP) - The bill for America's

excessive borrowing during the housing boom has arrived, and more people are

having trouble paying it.

2008-01-17 11:54:22

Gas, food spur inflation jump in 2007

WASHINGTON (AP) - Consumer prices rose in 2007 at the fastest pace in 17

years as motorists paid a lot more for gasoline and grocery shoppers paid higher

food bills. However, falling prices for clothing and new cars offset some of

those gains.

2008-01-17 11:48:46

Weaker UK growth and high inflation suggest tough year ahead - BCC

LONDON (Thomson Financial) - A combination of slowing growth and high

inflation will make 2008 a difficult year for the UK economy, a leading business

lobby said.

2008-01-17 11:48:45

UK interbank borrowing rates continue to ease

LONDON (Thomson Financial) - The cost of borrowing between banks in the UK

continued to moderate today, on views that credit conditions in the financial

sector are slowly improving.

2008-01-17 11:47:12

ECB says wage growth likely to accelerate in 2008

FRANKFURT (Thomson Financial) - The European Central Bank said it expects

euro zone wage growth to accelerate in 2008 after several years of contained

wage pressures.

2008-01-17 11:30:54

UK's Darling may make CGT announcement next week

LONDON (Thomson Financial) - Chancellor of the Exchequer Alistair Darling

could announce final details of his controversial plan to reform capital gains

tax in the coming week, the government said, as anger over the delay grew in the

business community.

2008-01-17 11:15:21

Ahead of the Bell: Housing Starts

WASHINGTON (AP) - A government report on December new-home construction and

building permit applications is forecast to show further declines as builders

retreat from the slumping housing market.

2008-01-17 11:15:20

Ahead of the Bell: Unemployment Benefits

WASHINGTON (AP) - Government data due out Thursday is forecast to show that

initial claims filed for unemployment benefits rose last week after two straight

unexpected drops, the latest sign that a recession may be looming.

2008-01-17 11:13:20

Ahead of the Bellhiladelphia Fed study

WASHINGTON (AP) - The Philadelphia Federal Reserve's January manufacturing

index, due out Thursday, is expected to show declining business activity in the

region for the second straight month.

2008-01-17 11:05:44

Hungary finance ministry sees January deficit at 27.5 bln forint

BUDAPEST (Thomson Financial) - Hungary's budget deficit will come in at 27.5

bln forint, or 0.1 pct of gross domestic product, in January as the country

attempts to reduce its 2008 full year deficit to 4 pct of GDP, finance ministry

officials said in a monthly forecast today.

2008-01-17 10:25:10

Indian growth to moderate in 2008 on tight monetary policy - Moody's Economy.com

MUMBAI (Thomson Financial) - Moody's Economy.com sees India's real GDP

growth moderating to 8 pct in 2008 from an estimated 8.8 pct in 2007 as tighter

monetary conditions dampen demand for credit and consumer spending.

2008-01-17 10:14:50

European govt bonds weighed by recovery in stock market but uncertainty looms

LONDON (Thomson Financial) - European government bonds were softer, weighed

by a recovery in stock markets, although analysts warn that this week's upwards

momentum could resume as uncertainty remains high in financial markets.

2008-01-17 10:11:29

Lithuania Jan CPI seen up 0.8 pct vs Dec

VILNIUS (Thomson Financial) - Consumer prices in Lithuania are forecast to

rise by 0.8 pct in January compared with December, BNS news agency reported,

citing the Statistics Department.

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

 

[surf4sports]

Trichet: Productivity Growth Cyclical, Not Structural

Thu, Jan 17 2008, 15:51 GMT
http://www.djnewswires.com/eu

Trichet: Productivity Growth Cyclical, Not Structural

FRANKFURT -(Dow Jones)- Recent productivity growth in the euro zone is judged by the European Central Bank to be of a cyclical nature, rather than more permanent, President Jean-Claude Trichet said Thursday.

"What we are observing is cyclical and not structural," Trichet said at a presentation on wealth creation.

Structural or trend productivity growth would be of a more permanent or sustained nature, rather than a side effect of the business cycle.

Trichet said labor market flexibility, innovation, as well as service and product market reforms, are needed to improve euro-zone productivity.

"Structural reforms are absolutely of the essence," Trichet added.

During periods of strong economic growth, the reaction is often "to be even more inflexible than in a period of slow motion," Trichet added.

Trichet also noted that public spending, as a percentage of gross domestic product, is still high in Europe compared with the U.S., and impairs economic growth.

Euro-zone countries must make extra efforts to close the productivity gap between the U.S. and the euro zone.

Trichet also said monetary policy can't do this alone. The best contribution it can make to growth is to maintain price stability.

"It is absolutely clear that a solid anchoring of inflation expectations is paving the way for a high level of long-term growth," Trichet said.

-By Monica Houston-Waesch and Nina Koeppen; Dow Jones Newswires; +49 69 29 725 520; [email protected]

(END) Dow Jones Newswires

January 17, 2008 10:51 ET (15:51 GMT)


Copyright 2008 Dow Jones & Company, Inc.

 

[surf4sports]

Federal Reserve's Bernanke sees 'below trend growth' in 2008, 2009

Thu, Jan 17 2008, 15:52 GMT
http://www.afxnews.com

WASHINGTON (Thomson Financial) - Federal Reserve Chairman Ben Bernanke today said the Fed is still not forecasting a recession in the US, and instead sees slower economic growth that will slowly pick up as the financial market turmoil subsides.

Bernanke told the House Budget Committee today that he sees the US economy "growing at a relatively slow pace particularly in the first half of this year."

"As the housing contraction begins to wane, as it should sometime this year, the economy should pick up a bit later in this year," he added. "But we believe we'll see below trend growth certainly in 2008, and probably early in 2009 as well."

Bernanke later reiterated that the Fed is "not forecasting recession, but rather at this point slow growth."

[email protected]

pik/wash/slj

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

White House spokesman says Bush believes 'some boost' to economy is necessary

Thu, Jan 17 2008, 15:55 GMT
http://www.afxnews.com

WASHINGTON (Thomson Financial) - President George Bush has concluded a fiscal stimulus package to boost a slowing US economy is necessary, White House spokesman Tony Fratto said today.

"The president does believe that over the short-term .. some boost is necessary," Fratto told reporters when asked about the president's position on possible legislative measures to strengthen the economy.

Fratto emphasized the the White House continues to see a "mixed" picture of the economy.

Later today, Bush is a holding a conference call with top congressional leaders to discuss proposals circulating on Capitol Hill.

Fratto emphasized that "most economists" are not predicting a recession for the world's largest economy and called it a "slowdown."

[email protected]

cbd/wash/jlc

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

UPDATE: Phila Fed: Jan Factory Growth Contracted Sharply

Thu, Jan 17 2008, 16:00 GMT
http://www.djnewswires.com/eu

UPDATE: Phila Fed: Jan Factory Growth Contracted Sharply

NEW YORK -(Dow Jones)- The manufacturing sector in the Philadelphia region contracted sharply in January to its lowest reading since October 2001, with a steep drop in new orders.

The Federal Reserve Bank of Philadelphia reported Thursday that its general business conditions index, a gauge of the health of the region's manufacturing sector, moved to a -20.9 reading in January versus a revised -1.6 in December.

Negative readings indicate a contraction in activity, while positive ones denote expansion.

Economists surveyed by Dow Jones Newswires had expected the overall index to stand at -1.5 in January.

December figures reflect changes that were a part of the Philadelphia Fed's annual revision of seasonal adjustment factors, which was released Jan. 10.

In the January report, the bank said the new orders index for January plummeted to -15.2 after a revised 12 the prior month. Meanwhile, the employment index for the current month was at -1.5 compared with a revised 3.8 in December.

Inflationary pressures faced by Philadelphia-area factories also intensified, with the prices paid index coming in at 49.8 for January from a revised 36.5 in December and a revised 34.4 in November. The prices received index hit 32.0 in January compared with revised figures of 15.2 in December and 17.2 in November.

"A significant share of firms reported higher prices for inputs and for their own manufactured goods," said Mike Trebing, an economist with the Philadelphia Fed.

The report also showed that the outlook for manufacturing growth over the next six months was less optimistic.

"The region's executives were less optimistic about future activity," Trebing said, "and most future indicators have now fallen considerably over the last three months," indicating that a "slower rate of growth is expected during the first half of 2008."

The future general activity index declined from a revised reading of 11.1 in December to 5.2 in January. The index has declined 34 points over the past three months.

The indexes for future new orders edged down two points in January to 9.5 from 11.6, while the future shipments index increased three points to 13.6 from 10.2. Firms' expectations for future employment, however, were mostly unchanged. The future employment index increased one point, from 17.4 in December to 18.8 in January, with nearly 39% of the firms still expecting to increase employment over the next six months.

It's only for the time being that "on balance more firms were reporting declines this month than increases," Trebing said.

-By Deborah Lynn Blumberg, Dow Jones Newswires, 201-938-2018; [email protected]

(Emily Barrett contributed to this report)

(END) Dow Jones Newswires

January 17, 2008 11:00 ET (16:00 GMT)


Copyright 2008 Dow Jones & Company, Inc.

 

[surf4sports]

ECB's Trichet says anchored inflation expectations pave way for high growth

Thu, Jan 17 2008, 16:00 GMT
http://www.afxnews.com

FRANKFURT (Thomson Financial) - European Central Bank president Jean-Claude Trichet said price-stability and "well-anchored" inflation expectations pave the way for high levels of economic growth in the long term.

Such inflation expectations "ensure that, if and when inflationary shocks do materialize, they are less costly to correct in terms of macroeconomic disruption and do not, therefore, undermine sustainable, long-term growth and job creation," he said during a panel discussion at the European Central Bank.

[email protected]

mas/lam

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

US natural gas in storage fell last week

Thu, Jan 17 2008, 16:07 GMT
http://www.afxnews.com

WASHINGTON (AP) - Natural gas in storage in the U.S. fell last week but remains about 6.7 percent above the five-year average for this time of year, a government report said Thursday.

The Energy Department's Energy Information Administration said in its weekly report that natural gas inventories held in underground storage in the lower 48 states fell by 59 billion cubic feet to 2.69 trillion cubic feet for the week ending Jan. 11.

The inventory level was above the five-year average of about 2.52 trillion cubic feet in underground storage, but below last year's storage level of about 2.95 trillion cubic feet, according to the government data.

In morning trading, natural gas for February delivery fell nearly 17 cents to about $7.97 per 1,000 cubic feet on the New York Mercantile Exchange.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.