CORRECTED: Fed's Yellen-downturn in U.S. economy possible

(Reuters) - "I'd like to highlight three risks to the global economy. the first pertains to the U.S. economy, itself, where there is potential for a downturn that could have major spillover effects around the globe" she said.

The U.S. economy grew at a sluggish 1.3 percent in the first quarter of 2007, the Commerce Department said on Friday. It was the fourth consecutive quarter of sub-par economic expansion in the world's largest economy.


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Dutch court to rule May 3 on ABN LaSalle deal

(Reuters) - A judge of the Dutch Commercial Court said at a hearing on Saturday it will judge next week about Dutch shareholders group VEB's request to hold up ABN's LaSalle deal. VEB says the deal is unlawful and makes it hard for other banks to bid for ABN.

Bank of America agreed to buy LaSalle from ABN this week, in a related deal to Barclays' offer to buy ABN, although other banks can make competing offers for the U.S. business up to May 6.


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Treasuries Decline as Business Spending, Inflation Accelerate, Stocks Rise

(Bloomberg) -- U.S. Treasuries maturing in at least 10 years declined as business spending increased last month and inflation accelerated in the first quarter.

U.S. stocks reaching multiyear highs clouded the outlook for interest-rate cuts by the Federal Reserve this year. Two- year note yields, less sensitive to long-term inflation expectations, were little changed, steepening the yield gap between them and longer-dated maturities. The rate of inflation exceeded the comfort zone of Fed policy makers.


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UPDATE 1-Telecom Italia deal still in the making-banker

(Reuters) - TRIESTE, Italy, April 28 - A deal to buy control of Italy's dominant phone operator Telecom Italia for a slice of control and an indirect stake of some 10 percent in the 40-billion-euro Telecom Italia.


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Dow posts historic week, earnings don't

(Reuters) - A flurry of better-than-expected profits announced in the first-quarter earnings season, highlighted by Microsoft Corp. and Exxon Mobil Corp., drew praise from equity investors this week.

But truth be told, Corporate America got some help from share buybacks, asset sales, cost-cutting and Uncle Sam.


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Europe Bonds Drop as Gains in German Confidence Signal Interest-Rate Rise

(Bloomberg) -- European government bonds dropped in the week separate reports showed business and consumer confidence in Germany advanced, supporting the likelihood of higher interest rates in the euro region.

Benchmark debt slid after the Ifo institute said April 25 its gauge of German business sentiment climbed to the second- highest level on record in April. Two-year bund yields posted their biggest daily gain in two weeks after GfK AG said its confidence index for Germany, Europe's largest economy, rose to 5.5 from 4.4 in April.


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