MORNING BRIEFS

*so much for Brazil and China leading the world out of recession...
World Bank: Emerging nations can't fuel world's recovery
Any hopes of emerging economies serving as growth engines to pull the global economy out of its slump were put to rest by a report from the World Bank. Developing countries will expand by only 1.2% this year, a spectacular drop from 5.9% in 2008 and 8.1% in 2007, the bank estimated. The inflow of capital to the countries plummeted 41% in 2008 and is likely to drop by about 50% this year, the bank said. The Wall Street Journal (22 Jun.)

*so who is going to be buying houses exactly?
Jobless recovery lasting into 2010 to create problems for Obama
A growing number of forecasters are expecting unemployment in the U.S. to peak at more than 10% next year and to remain higher than pre-recession levels for several years. A recovery with no new jobs presents a serious stumbling block for President Barack Obama and his Democratic supporters in Congress. Rising unemployment is creating opportunities for Republicans to criticize Obama's programs. The Washington Post (22 Jun.)

Analysis: Obama balances optimism with caution on economy: In his public statements on the economy, U.S. President Barack Obama sometimes talks the economy up and sometimes talks the economy down. His approach acknowledges the fact that restoring confidence is a big part of pulling the nation out of recession. At the same time, there is the danger of losing the public's confidence by sounding too optimistic. Forbes/The Associated Press (21 Jun.)

*a day late and afew trillion dollars short...
Congress to revisit derivatives industry
After deciding nearly a decade ago that the derivatives industry did not need to be regulated, Congress will reconsider rules for the $529 trillion market. Christopher Dodd, chairman of the Senate Banking Committee, plans to hold a hearing today on the derivatives market. Lawmakers will discuss a range of ideas for supervising the market, including moving all trading of derivatives onto monitored exchanges. Bloomberg (6/22)