Headlines:

• Fed considering holding regular press briefings to increase disclosure on emergency lending programs • Bernanke says signs visible that the “sharp decline” in the economy is slowing; dollar to “remain dominant currency in the foreseeable future”

• Summers says rising unemployment to persist for the next several months and it is the responsibility of the government to maintain stability and order in the financial markets • UBS says it expects a Q1 loss of almost 2bn Swiss francs on previously disclosed risk position; plans to shed 8700 jobs by 2010 • Chancellor Darling expected to announce a state guarantee scheme to underpin vital supply-chain insurance • RICS reports that the percentage of surveyors reporting falling house prices down to 73% in March compared to 78.1% in February • The Westpac Bank-Melbourne Institute leading index of economic activity in Australia sank to -5.1% in February, the weakest reading since September 1982 • China's GDP growth slipped to a record low in Q1, local daily reports

EUROPE

UBS said it expects a Q1 loss of almost 2bn swiss francs due primarily to previously disclosed risk positions and plans to reduce about 8700 jobs to an overall staffing level of 67,500 in 2010.

A state guarantee scheme to underpin vital supply chain insurance is set to be announced by Chancellor Darling in next week's Budget. The scheme will form the centerpiece of initiatives to help small businesses cope with the recession.

http://www.ft.com/cms/s/0/7af8fae0-292f-11de-bc5e-00144feabdc0.html

The monthly findings from the Royal Institute of Chartered Surveyors showed that the number of property sales per surveying agency stopped falling in March, with the average in three months to March standing at 9.7 compared with 9.6 in the three months to February. The proportion of surveyors reporting falling house prices was 73% compared to 78.1% in February.

http://www.ft.com/cms/s/0/b23ac720-294a-11de-bc5e-00144feabdc0.html

The price of some payment protection insurance policies has jumped 170% in the last 12 months, the Times reported. The Post Office has written to thousands of PPI customers warning them that it plans to cut the maximum payment in the case of redundancy and double the cost of some premiums.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6094626.ece

Several of the world's largest PE firms, including Terra Firma, Permira, Candover, Cognetas and KKR, wrote down the value of their European funds by 40-70% at the end of December according to year-end figures from investors in these funds.

http://www.ft.com/cms/s/0/37952c56-2920-11de-bc5e-00144feabdc0.html

International banks will have to hold more assets in their subsidiaries if they want to avoid a re-run of the chaos caused by the collapse of Lehman, according to PwC, administrators for the bank's European operations.

http://www.ft.com/cms/s/0/78980ea6-291d-11de-bc5e-00144feabdc0.html

German Chancellor Angela Merkel has summoned business leaders, economists and trade unionists to Berlin next week for talks on the severity of the downturn hitting Europe's largest economy. Officials said the discussions would inform Berlin's official 2009 growth estimate.

http://www.ft.com/cms/s/0/ac42e67e-2907-11de-bc5e-00144feabdc0.html

US

Officials at the Fed have discussed holding regular press briefings to help improve public understanding of unusual actions by the Fed in times of crisis.

Bernanke said there are signs that the “sharp decline” in the US economy is slowing, indicating a potential “first step” towards a recovery. He added that the dollar “remains the dominant currency in terms of reserve holdings and international transactions” and will remain so for the “foreseeable future”.

Lawrence Summers, director of the National Economic Council, said rising unemployment could persist for the next several months and possibly longer. He said the primary responsibility of the government was to maintain a sense of stability and order in the financial markets.

Fed's Rosengren said it is a difficult time to create a new systemic regulator but it was up to the Congress to decide on how systemic risks are to be monitored. He added that the Fed would have to work very closely with any such agency if created.

US car part suppliers are set to ask for more government aid, including incentives to encourage fresh private equity investment in the sector. Suppliers also want access to the TALF programme and similar loans provided by the Small Business Administration.

http://www.ft.com/cms/s/0/c674a154-291b-11de-bc5e-00144feabdc0.html

Intel said Q1 profit dropped 55% because of slowing demand and forecast sales will not recover in the current period. Net income fell to $647mn from $1.44bn last year.

Yahoo is preparing to lay off several hundred workers in the first round of cuts since Carol Bartz became CEO in January, Reuters reported.

JAPAN

Credit Suisse hired Takeshi Hasebe from Merrill Lynch to head equity capital markets in Japan as it aims to win more underwriting deals amid signs that the local stock market may be recovering.

AUSTRALIA & NEWZEALAND

The annualized growth rate of the Westpac Bank-Melbourne Institute leading index of economic activity in Australia sank to -5.1% in February, from an already dire -4.8% in January. This is the weakest reading since September 1982 when the economy was in deep recession.

ASIA

China's GDP growth slipped to a record low in Q1, but the qoq increase might point to a recovery, a local newspaper reported. The article forecast growth to be greater than 6% but less than the 6.8% seen in Q4 08.

The Industrial Bank of Korea, South Korea's biggest lender to small businesses hired Barclays, Merrill, Citigroup and Morgan Stanley to help it sell benchmark five-year fixed rate notes in dollars. A benchmark issue is typically of at least $500mn.

Bahrain will add to efforts by the Arab Gulf states to create an active bond market in the region by raising more than $1bn in a debt sale in local currency and USD, the central bank revealed.

http://www.ft.com/cms/s/0/ae40a3ac-291c-11de-bc5e-00144feabdc0.html

China drew $21.8bn in FDI in Q1, 20.6% less than in the same period in 2008, the Commerce Ministry said.

South Korea's economy still faces a mix of positive and negative factors, the finance minister said. He said the country would continue to record a considerable trade surplus in April and later months but that domestic unemployment would remain a problem.

TPG, the buyout firm founded by David Bonderman, allowed investors in its $4.2bn Asia fund to reduce commitments by as much as 10% as they seek to preserve cash amid a rout in financial markets. The move may result in a $420mn reduction in overall commitments to the fund.

Events (London Time):

ESP  08:00  HICP (Mar)

DNK  08:30  Wholesale Prices (Mar) 

GBR  09:30  DCLG House prices (Feb)   

USA  12:00  MBA Mortgage applications   

USA  13:30  CPI (Mar)                             0.0%

USA  13:30  Core CPI (Mar)                        0.1%   

USA  13:30  Empire Manufacturing Index (Apr)      -35   

CAN  13:30  New Motor Vehicle Sales (Feb)        -2.0%   

USA  14:00  TICS data (Feb)   

USA  14:15  Capacity Utilisation (Mar)            70.5%   

USA  14:15  Industrial Production (Mar)           -1.0%   

USA  18:00  NAHB Housing Market Index (Apr)        10   

NZL  23:30  Business NZ PMI (Mar)   

GBR  00:01  BRC Retail Sales Monitor (Mar)

AUS  Tbc    NAB Business Confidence (Q1)