Spain Vows Reforms As Yields Soar (WSJ)
Speaking at a conference, Finance Minister Luis de Guindos defended the need for the €10 billion ($13.11 billion) in cuts his government announced Monday to the country’s health and education systems as Madrid struggles to slash its budget deficit to 5.3% of gross domestic product this year from 8.5% of GDP last year. The latest cutbacks come on the heels of the 2012 state budget presented late last month, which calls for €27 billion in spending cuts and tax increases.
JPMorgan’s Iksil May Spur Regulators to Dissect Trading (Bloomberg)
Market-moving trades by JPMorgan Chase’s chief investment office probably will force regulators to seek more detail on banks’ derivatives positions to help them distinguish risk management from speculation. Bruno Iksil, a London-based trader in the unit, has built derivatives positions linked to corporate credit that are so big he’s moved markets, according to hedge fund managers and dealers. While Joe Evangelisti, a bank spokesman, said yesterday that the trades are part of the firm’s hedging strategy, four market participants said they resemble proprietary bets.
China Swings To Trade Surplus (WSJ)
China posted a surprising trade surplus in March after a hefty deficit in February, but weak imports were a primary factor in the turnaround, raising fresh concern over the outlook for the world’s second-largest economy. State television painted a cautious picture of the trade outlook, quoting Zheng Yuesheng, director of statistics at the General Administration of Customs, as saying that “the current global economic situation is severe,” with exports and imports facing “relatively big” downward risk.
Obama To Push Millionaire Tax (WSJ)
Mr. Obama and congressional Democrats aren’t expected to win next week’s procedural vote, and a spokesman for House Speaker John Boehner alluded to the minimum tax on millionaires as a “gimmick.” But Democrats want to put Senate Republicans on record voting against the tax. A number of recent public polls show support for raising taxes on millionaires running over 60%…Nicknamed the “Buffett Rule” for billionaire investor Warren Buffett, who complained that he paid a lower tax rate than his secretary, the plan would impose a minimum 30% overall federal tax rate on people earning more than $1 million a year.
Student, 13, Drives Bus to Safety When Driver Faints (ABCN)
A middle school student who jumped into the hot seat when his school bus driver passed out on the way to class this morning is being hailed as a “quick thinker” for leading the bus, and 15 other students, to safety. Seventh grader Jeremy Wuitschick is being praised by the local police chief for his actions when the driver of his school bus started gasping for hair and waving his hands frantically in the air, losing control of the bus. Wuitschick hopped out of his seat and grabbed the steering wheel, pulling the bus over to the side of the road before pulling the keys from the ignition, Milton Police Chief Bill Rhodes said today. “I’ll tell you, I’ll give the kid credit for fast thinking. He did the right thing and we’re going to do something for him. The kid definitely deserves credit,” Rhodes said.
Bernanke Calls on Regulators to Curb Shadow Banking Risks (Bloomberg)
Federal Reserve Chairman Ben S. Bernanke called for new steps to curb “shadow banking” operating beyond standard oversight while saying the economy has far to go before fully recovering from the credit crisis. “The heavy human and economic costs of the crisis underscore the importance of taking all necessary steps to avoid a repeat of the events of the past few years,” Bernanke said yesterday in a speech in Stone Mountain, Georgia.
Bank of Japan Keeps Policy Unchanged as Pressure Builds (Bloomberg)
“The BOJ held off on additional easing to show it isn’t willing to be pushed around by politicians,” said Junko Nishioka, a Tokyo-based analyst at RBS Securities Japan Ltd. who has worked for the central bank. “The BOJ will be under pressure to ease policy at its next board meeting because of its close-to-zero percent inflation outlook.”
Criticism Over U.S.’s World Bank Pick Swells (WSJ)
The front-runner to lead the World Bank, which lends tens of billions of dollars a year around the world, once admitted that he “had no idea what a hedge fund was” until three years ago when he became a university head. Jim Yong Kim, the president of Dartmouth College, got a two-day crash course in finance back then, when the physician and anthropologist was grappling with budget troubles stemming from the 2008 financial crisis.
Dennis Gartman: S&P 500 Earnings to Surprise on Upside (CNBC)
“Are we going to see 5-10 percent growth in earnings by almost all of the S&P 500? Probably,” Gartman, the author of The Gartman Letter, said.
Vancouver’s Bagpipe Ban Sparks Outcry (Globe)
…the unusually specific ban, which hit a few bagpiping buskers in Vancouver, has run into opposition from one of the city’s top Scots. That would be Vancouver Mayor Gregor Robertson, who was sworn in for a second term wearing a kilt in reflection of his Scottish heritage. The mayor has been known to play the tuba, but is prepared to go the wall for bagpipers. He’s mindful of noise complaints, but says the ban brought about by the city engineering department will face opposition from city council, dominated by Mr. Robertson’s Vision Vancouver party. The ban is under review. “My first reaction is that a complete ban on bagpipes and percussion instruments across the city is ridiculous and culturally insensitive,” Mr. Robertson said in a statement. “The clans won’t stand for it.”