Worldwide Economy…

Economy

Wealthy to Be Targeted in Robin Hood Budget as Australia Enters Recession Australian Treasurer Wayne Swan will tonight unveil a Robin Hood-style budget, slashing tax breaks and welfare-payments to high-income earners as he tries to contain a record deficit amid the global recession.

Bank of Korea Leaves Interest Rate at 2% Amid Signs Economy Is Improving The Bank of Korea left its benchmark interest rate unchanged for a third month today and said it will keep an “accommodative policy stance for the time being” to support the economy amid signs of improvement.

China’s Fixed-Asset Investment Surges 30.5% on Stimulus as Exports Slump China’s urban fixed-asset investment surged by more than economists expected in response to the government’s 4 trillion yuan ($586 billion) stimulus package, countering a deepening slump in exports.

Trade Deficit in U.S. Probably Increased in March as Oil Prices Rebounded The U.S. trade deficit probably widened in March from a nine-year low as higher oil prices boosted the import tab, economists said before a report today.

Japan’s Recession May Be Abating as Exports Recover, Economic Index Shows Japan’s deepest recession since 1945 may be abating, the nation’s broadest indicator of the outlook for the economy showed.

French, Italian Industrial Output Slumps, Signaling Steeper EU Contraction Industrial production in France and Italy fell more than economists forecast, indicating that the global economic slump may have crimped European growth more than expected in first quarter.

Finns Spurn Pension Cuts as First Pinch of Europe Retirement Crunch Nears Financing national pension funds in the global recession is Europe’s political Pandora’s box. Finland, the continent’s 18th-biggest economy, may be the place where it opens first.

Ozawa’s Fall Leaves Japan’s Opposition Without Main Strategist Before Vote Japanese opposition leader Ichiro Ozawa may have cost his party its first shot at power by waiting two months to resign over a campaign-funding scandal.

Bernanke Encouraged by Stress-Test Results, Bank Plans to Raise Capital Federal Reserve Chairman Ben S. Bernanke said efforts by U.S. banks to raise capital are “encouraging” and called on firms to identify other risks through internal stress tests.

Treasuries Gain Amid Federal Reserve Buyback, Pause in Record Debt Sales Treasuries rose for a second day as the Federal Reserve bought $3.51 billion in bonds, stocks fell and the government began a two-week pause in the record pace of securities forecast to be sold this year.

Fed’s Lacker Says U.S. Should Limit Aid to Financial Companies, Curb Risk Federal Reserve Bank of Richmond President Jeffrey Lacker said the U.S. should “set credible limits” on federal aid to financial firms rather than provide an open-ended safety net that encourages excessive risk taking.