Stock Values

The Federal Reserve will have to raise its benchmark interest rate to 3 percent by the end of the year to combat inflation, said Stephen Stanley, chief economist at RBS Securities Inc. in New York.

Citigroup Inc. and Marshall & Ilsley Corp. were among the worst performing stocks in the Standard & Poor’s 500 Index this year, dragged down by souring commercial and residential property loans that may extend the declines into 2010.

Japan Airlines Corp., Asia’s biggest carrier by sales, plunged to a record in Tokyo trading after reports the carrier may enter bankruptcy proceedings led investors to sell shares on the year’s last trading day.

GMAC, the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion

Barton Biggs and Marc Faber, who recommended buying stocks in March when investors were dumping them, are again united as they predict gains for U.S. equities and the dollar

Treasuries were little changed after the government sold a record-tying $42 billion of five-year debt, the second of three note sales this week totaling $118 billion.

Sanofi-Aventis SA’s $1.9 billion bid for Chattem was leaked in advance to two French investors who reaped $4.2 million by making illegal insider trades, U.S. regulators claim in a lawsuit

Christian Littlewood, a former banker at Shore Capital Group Plc and Commerzbank AG’s Dresdner Kleinwort, and his wife have been charged with insider trading by the U.K. financial regulator.

Commercial mortgage-backed bond returns are accelerating as the Federal Reserve ends support for the $700 billion market, showing growing confidence that loan defaults won’t derail the economic recovery.

Developing-nation stocks fell, with the benchmark index set for its biggest drop in more than two weeks, on concern China and India will seek to restrict economic growth to curb inflation.

European finance ministers will work on still-secret plans to help Greece overcome its debt crisis today, while counting on the country’s belt-tightening steps to make a bailout unnecessary.

Asian stocks fell for the first time in three days on concern China will boost steps to cool growth as inflation accelerates, threatening a global economic recovery.

Cnooc Ltd., China’s biggest offshore oil explorer, said its proposed acquisition of a 50 percent stake in Argentine producer Bridas Corp. for $3.1 billion will accelerate the company’s overseas expansion.

Money market interest rates at five-month highs show the Federal Reserve is laying the groundwork to siphon a record $1 trillion in excess cash from the banking system and sending a bearish signal on Treasuries.

Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate, risking a further downturn in relations with the U.S. where lawmakers and economists say his stance is hampering a global recovery.

Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate and sought assurances that the U.S. will protect the value of China’s dollar assets.

Blizzards on the East Coast and harsh weather in other parts of the U.S. probably impeded manufacturing and construction in February, representing a temporary setback to the recovery, economists said before reports this week.

Bank of Italy Governor Mario Draghi asked the country’s banks to cut back on dividends and use their earnings to shore up capital.

President Barack Obama’s likely nomination of three Federal Reserve governors will help Chairman Ben S. Bernanke plan an exit from record monetary stimulus and strengthen banking supervision and consumer protection.

Lehman Brothers "reverse-engineered" a key measure of stability, masking the firm's true financial condition, an examiner said in a report