MORNING BRIEFS

*economic turn around all around?

Fed looks to revive real estate by changing TALF terms
Federal Reserve officials hope that altering terms in the Term Asset-Backed Securities Loan Facility will reignite the market of commercial real estate, sources said. TALF offers investors low-cost, three-year loans to invest in securities backed by auto loans, credit card debt and other consumer debt. The Fed is preparing to expand the program to include five-year loans. The Wall Street Journal (01 May.)

Obama adviser: Economy to "level out" in second half
The U.S. economy is expected to "level out in the second half of the year and then begin to recover," said Christina Romer, chairwoman of the White House Council of Economic Advisers. "Whether the recovery begins later this year, as most private forecasters predict, or takes a bit longer is hard to know," she said. Reuters (30 Apr.)

Japan in deflation as consumer prices drop, joblessness surges
Japan's economy slipped into deflation as unemployment reached a four-year high and the consumer-price index fell. The Bank of Japan projected two years of continuing deflation, and economists warned that the trend will accelerate in coming months. Financial Times/Reuters (01 May.)

Manufacturers in China boost production 2 months straight
Raising hopes that the government's stimulus is delivering much-needed results, China's manufacturing sector posted its second consecutive month of expansion, aided by growing domestic spending and easing of the global economy's free fall. "The worst is already behind China," said Sun Mingchun, an economist in Hong Kong at Nomura. "Domestic strength should outweigh the tougher external environment." Bloomberg (01 May.)

U.S. claims for unemployment benefits post surprising drop
Catching analysts off guard, initial jobless claims in the U.S. decreased by 14,000 last week, bringing the total to a seasonally adjusted 631,000, the Labor Department said. Production levels and business inventories have fallen rapidly lately relative to demand, possibly "reducing the need for further cutbacks," said Tony Crescenzi, chief bond analyst at Miller Tabak & Co. Reuters (30 Apr.)

U.S. consumer spending dips after 2 months of increase
U.S. consumers cut back their spending in March, the Commerce Department said, while earnings also fell. Consumers loosened up spending in January, posted slower growth in February and then reversed the trend in March, surprising economists with a 0.2% fall in purchases, as personal incomes fell 0.3% the same month. The Boston Globe/New York Times News Service (01 May.)

Construction, mining declines drag down Canada's economy
Despite a rebound in the automotive sector, Canada's economy continued its decline in February, shrinking 0.1%, Statistics Canada reported. February's contraction brought the total decline since October to 2.4%, the government said. Despite the modest downturn in February, economists expect the first quarter to be one of the worst in Canada's history. The Globe and Mail (Toronto) (30 Apr.)

German joblessness holds at 8.6%, surprising officials
Unemployment in Germany declined slightly in April but not enough to bring the seasonally unadjusted figure to less than March's 8.6%. Experts did not expect the rate to remain flat. Forbes/The Associated Press (30 Apr.)