central bank that hint at a review of its quantitative easing policy. dollar marked a month and a half high against the yen at one stage. now the euro is currently between 118.33 to 37. the yen weakened against the euro as participants speculated that the european central bank may raise its interest rates at its april meeting to curb inflation. >>> now here's a look at the latest long-term interest rates. this is the yield on the benchmark 10-year japanese government bond. and in other asian markets, we're seeing hong kong and mainland chinese markets higher. shanghai's key index for major blue chips now up over 0.75%. >>> the earthquake has created an urgent demand for portable light. more than 17 million homes and businesses in the tokyo area are facing rolling blackouts. and many survivors in the disaster zones are without any electricity at all. in response, makers of flashlights and other emergency items are cranking up their assembly lines. >> reporter: flashlights. an essential item that's hard to come by. this factory in miya prefecture central

hello and a warm welcome to business see the cost of borrowing is going up and russia's central bankhas increased its key interest rate by twenty five basis points to eight point two five percent is the second hide this year after the bank increase the refinance rate by the same amount two months ago to discuss the rate hike and its effect on inflation on the ruble i'm joined by steve you're from the t.v. cafe so i was under thank you so much for being with us so is the second hike what is behind this move and what is the bank worried about well of course inflation and . central bank explicitly stated today in the statement that they are concerned about very slow inflection particularly credit growth and they are talking about savings rate going down so they worry so this is the primary task apparently for the economics ministry and the finance ministry to curb inflation maintain it in the in the framework that you know putting on to say that some of our present well yes and the government is also committed to push prices low with the control of petrol prices there is inflation right

and the european central bank has increased its key benchmark rate for the first time in almost three years could this be the first of the series find out it's not business with us in the round twenty minutes time. just after five pm here in moscow and in london this is not see now a finnish priest is charged with inciting a racial hatred after speaking out against russia's number one terrorist a lot of on his internet mouthpiece all of this during an interview to us here. the pastor also claims that he's been receiving constant death threats from the leader of the chechen militants however finland insists that the priest is the real criminal and saudis are reports. postell you holler is being prosecuted for inciting really just hatred and for publicly criticizing what the finnish authorities describe as a legally oh praising organization that is the caucus center of russian called a caucus a center of those of all the years and i don't know what the organization is all about this is a media outlet an internet website which made itself a name by being a mouthpiece for terrorist to cal

thanks man i love and welcome to business see the cost of borrowing is going up the russian central bank has increased its key interest rate by twenty five basis points to eight point two five cents is the second high this year after the bank increased the refinance rate by the same amount two months ago and some of the fuel from b.c. capital outlines the reasons for them. well the central bank is obviously concerned about inflation and particularly they mentioned in the statement that they are concerned about one trade for every seven patients in the central bank. nor does that mentions that they see a decrease in the savings rate this means that people are going queue to banks they are boring they are going to spend more and this will drive inflation higher so the central bank is trying to prevent this by rising rates be making deposits more attractive so me and savings more attractive for a. signal to the markets now europe is trading flat on the royal day london markets are closed for the wedding national holiday other markets are weighed by totes alan died like the dax is trading im

most central banks around the world aimed to set inflation above zero, usually at about 2%. i turn to the committee passed economic outlook. as indicated in today's policy statement, the economic recovery is proceeding at a moderate pace. household spending and investment in equipment and software continued to expand, supporting the recovery, but not residential investment, still weak, and the housing sector is depressed. in the labor market, overall conditions continue to improve gradually. for example, the unemployment rate will move down further and payroll employment increased in march. new claims for unemployment insurance to indicators of hiring plans are also consistent with continued improvement. looking ahead, committee participants expect a moderate recovery to continue through 2011 with some acceleration of growth projected for 2012 and 2013. specifically, as the table shows, participants' projections for output growth have a central tennessee of 3.1% to 3.3% for this year, -- have a central tendency of 3.1% to 2.3% for this year. these projections are a little be

the cost of borrowing is going up in russia the central bank has increased its key interest rate by twenty five basis points to eight point two five percent it's the second hike this year after the bank increased the refinance rate by the same amount two months ago i think somebody. outlines the reasons for the move. well the central bank is obviously concerned about inflation and particularly they mentioned in the statement that they're concerned about one trade privately which the central bank. note is that mentions that they see a decrease in savings rate this means that people are going to bang for their boring they are going to spend more and this will drive inflation high and so the central bank is trying to prevent this by raising rates the making deposits more attractive so being in savings more attractive for people. so you have the markets now the dow and. positive of the dow is up almost half a percent that's driven by caterpillar shares that leading the way up more than two and a half percent better than expected results in europe a very quiet day as london was closed for the r

alone a very welcome to business star see the cost of borrowing is going up in russia the central bank has increased its key interest rate by twenty five basis points to eight point two five percent is the second hike this year after the banking increase to refinance rate by the same amount two months ago alexandra if you're from e.c.b. capital outlines the reasons for the move. well the central bank is obviously concerned about inflation and particularly they mentioned in the statement that they are concerned about one trade progress of inflation the central bank. note is that it mentions that they see a decrease in savings rate this means that people are going to bang for their boring they're going to spend more and this will drive inflation high and so the central bank is trying to prevent this by raising rates the making deposits more attractive so median savings more attractive for. russian markets and the do we. know with overall weekly that lines amounting to one point two percent in the r.t.s. two point nine percent of my sex that's despite high oil prices across now russia's l

the world's central bank the most powerful financial institution in the world no one's heard of. deputy chief economist again and i've been saying that we need to see more rationing going on. and so there is again all these. general ideas that is time and the whole premise is there right now they're trying to build consensus to push forward the. feeling that we're in a recovery. and so the political will. almost faded in terms of fanciness agenda one thing to keep in mind in two thousand spent. in rector general the i am not an external sun crisis is an opportunity and in the coming economic. what we truly need is a global central bank and what currency how likely is that andrew though at how likely do you think it is that somebody that mean these are certainly arguably big ideas there i guess they're not so much out of the box ideas you mentioned that at this discussion has been taking place for decades but we're going to see quite a few challenges to getting some of these things and commented in the coming months . in the coming year producing package i think it will be incred

it's the according to the head of me right now and the head of the european central bank the g. twenty is essentially the center of global economic governance and you have several of these institutions who are represented at this so-called bretton woods two conference including again for international settlements which is basically a central bank the world's central banks the most powerful financial institution in the world that almost no one's very. there deputy chief economist speaking at this conference saying that we need to we don't sovereignty get more global operation going on. and so there's again all of these and it's their general idea that is time in the whole premise is that right now they're trying to build the consensus to push forward these things because there's this feeling that we're in a recovery and so however and so the political will has almost faded in terms of advancing this agenda one important thing to keep in mind in two thousand and ten the director general of the i.m.f. dominic strong stance said big crisis is an opportunity and in the coming crises

of india which normally the central banks hold dollars as a reserve currency and issued their own currencies against their dollar old it's a central bank of india just as an example this hoarded two hundred metric tons of bull i mean a bigger part of worth of dollars to a replace it with but when you can be a better example here in the united states university of texas has one of the largest economic adama it's in the in the world and they moved the they now own a billion dollars worth of gold with these thought blotted out and albertsons never used to think about touching something like we'll now even what's more important the university has decided not to leave its gold in the institutions in the positive or in the commodity exchange but to actually take physical to libya and this is a trend that is going on around who are around the country counterparty risk government risk or has people concerned around the world so it seems like it's in slow motion if you but if you fast for a couple of years a dollar will be very very different so that's part of the players what do you think

. >> susie: a former number two at the fed, donald kohn, explains why the central bank's first meeting with the media should concentrate on policy, not politics. you're watching "nightly business report" for tuesday, april 26. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening everyone. all eyes will be on ben bernanke tomorrow. that's when the federal reserve chief will give his first-ever press conference. and tom, this will be the start of regular briefings between bernanke and the media. >> tom: first one, susie, in an unprecedented move, bernanke will talk to reporters shortly after the fed releases its statement on monetary policy. he can expect questions about inflation and when the fed is going to pull the plug on its bond-buying program that has pumped billions of dollars into the economy. >> susie: and as darren gersh reports, bernanke is trying to improve the fed's communi

that they are concerned about one trend progress of the central bank. no it is that mentions that they see a decrease in savings rate this means that people are calling cute banks they are boring they are going to spend more and this will drive inflation high and so the central bank is trying to prevent this by rise in rates be making deposits more attractive so median savings more attractive for. russian markets and the do we have no choice with overall weekly the kleins amounting to one point two percent in the r.t.s. two point nine percent of the my six that's despite high oil prices rosneft russia's largest oil producer lost one and a half percent on friday despite reporting a sixty percent increase in net profit for the first quarter positive financial results also failed to prevent gazprom shares from the climbing or and that was the second banking stocks were also down with b.c.b. shedding almost two percent the russian markets have been vulnerable to profit taking on lower trade levels over the past week you're going to get your models of capita

that they're concerned about one trick drive recently the central bank. note is that mentions that they see a decrease in savings rate this means that people are going to bank they are boring their it going to spend more and this will drive inflation high and so the central bank is trying to prevent this by raising rates be making deposits more attractive so being in savings more attractive for a poor people. going to markets now the dow and nasdaq are still mixed or the dow is up five point four percent caterpillar is leading the way up it's two point seven percent higher or better than expected results. europe is trading flat very much on the royal day we're seeing a full sea close there because of the national holiday due to the way other markets away by turns out and the dax is trading quarter of a percent actually point four percent higher though namely is down almost one percent this out. here in the moscow the week was pretty negative for the final note the obvious down point one percent my six point four percent overall in my six lost almost three

can only be done sort of central banks or central banks so you really can't have that much gold and so you have to go somewhere and people will go to the dollar even though it's a weak currency right u.s. the. leper with the most bankers ok so now in bank of england they came out they kept interest rates unchanged e.c.b. as opposed to come out and raise rates or they did raise rates i believe by quarter this is typically goes against the gold and silver story you know the higher rates but going back to the seventy's of course precious metals rose throughout the entire period of rising rates so it isn't because the inflation genie was out of the bottle so the question is are they raising rates now are they going to catch up or is it going to seventy's and you see this price appreciation against central banks trying to nibble with their little nibbling quarter point raises here and there but i think it'll be neville and i think the e.c.b. sort of had to do something do sort of maintain what credibility they have left they've failed out of ireland bailed out greece now in the process of f

but of course they're behind other central banks. so he's pretty much tried to address head on our questions. in the limited time we have. >> tom: the two cat force of questions concentrate on inflation and energy, and jobs. and you asked a question about long-term unemployment. and how much the federal reserve is worried about it and what can the fed do to tackle long-term unemployment. >> yes. i didn't get to follow up with him. but the reason i asked is because critics say there isn't much that monetary policy can do, especially when people have been unemploy forward a long time. and the fed chairman said something similar to that, we've got almost half the people who are unemployed have been unemployed for a long time. so if there isn't much that monetary policy can do to help them, then the fed will be focusing on other areas and inflation, and it's going to be up to the government or some other policies that will help these people get back to work. >> tom: you mentioned you were not able to ask a follow up with question, few vu

particularly they mentioned in the statement that they are concerned about one trend privately the central bank. note is that mentions that they see a decrease in savings rate this means that people are going through banks they are boring they are going to spend more and this will drive inflation high and so to central bank is trying to prevent this by rise in rates the making deposits more attractive so being in savings more attractive for people. so they're going to be markets now and they are mixed in the united states the dow is up zero point two percent driven by better than expected to happen for the results nasdaq is down to . endure flat trading day pretty much on the royal a day that's why the footsie is close to the other markets driven by shares of time to sal the dax is trading point three percent but died as one of the biggest losers is down around percent. here in moscow fifteen minutes of trade to go the r.t.s. m i six still in the red the second look at some of the main drivers of the movements energy majors which are waiting in the red on lower crude prices rossini after russia

before calling all services after that the government we expect the inflation will go down the central bank will read this one proposal. join me in one hour's time i'll be here with an update on the latest a business news here on our next with headlines to stay with us. wealthy british scientists. sometimes violently. market. find out what's really happening to the global economy for a no holds barred look at the global financial headlines to name two kinds of reports on our. morning news today violence is once again flared up. these are the images cold world has been seeing from the streets of canada. showing up for asians around the day. the super. bowl. cooling you the latest in science and technology from the realm plus. we've got the future of coverage.

is no longer going to be running the global economy anymore it's going to be a central bank somewhere in europe with the i.m.f. and the world bank and a new global reserve bank and people are going to be paying world tax country tax state tax and local tax to pay for this new world bank and it's all coming very very quickly and of course trying to have a huge role in determining the value of these currencies going forward in the new currency grid post bretton woods to post world reality well the i.m.f. gives you some advice on which are the lowest lying lands if you're going to avoid the tsunami irish and german banks and the most debt to roll over this year and in terms of national sovereign debt japan and the u.s. have the most amount. looks like plenty more coming your way on this show going forward as the global economy collapses well stacy ever thanks again for being on the kaiser report thank you max don't go away much more coming your way i'll be talking to christine martin fascinating guy so stay right there. in the. real you the latest in science technology from. the future.

an advisor to the central bank saying that's it within one year a u.k. interest rate might quadruple so if this is something that's going to happen around the world as a result of the rising inflation which you see are affected in commodity prices gold in all silver that's been surging like there's knowledge on or and part of this is the fear of the rising to force. rising potential bankruptcies and also as inflation and if that continues again as inflation rises interest rates would have to rise because one investors demand it and this is something to watch very carefully but as or not you believe the u.s. will go bankrupt or not but watch the rates there were probably tell you earlier so what's going to happen all right jeffrey i'm going to give you the last word we're going to be really having this conversation a year from now. yeah yeah well i mean the fifth we should be afraid that met some private investors or get tired of their current eagerness to hold us bonds and there will be a decline in us bond market an increase in interest rates that is no

the way seems to be going towards the head of the italian central bank.he as seen as a fiscal conservative. he is willing to push countries on reforms. that would make him a good replacement for the german candidate. berlin has not declared whether they would join france and italy in their support of the candidate for the job. >> the u.s. president barack obama is touring disaster zones in the southern united states after the most devastating tornadoes in seven decades. visiting tuscaloosa in alabama, obama survey damage and pledged federal aid to help rebuild. the twisters left at least 310 people dead and flat and entire neighborhoods across seven states. the power was cut to millions. the german foreign minister has hosted an exhibition of works by a chinese dissident. he says is time to show solidarity with the dissident who has not been seen or heard from since his arrest on april 3rd. authorities say he has been detained on suspicion of economic crimes. his disappearance coincided with the opening of an art exhibition in beijing. royal wedding captu

governor and welcome to the business side see the cost of borrowing is going up and russian the central bank has increased its key interest rate by twenty five basis points to eight point two five percent it's the second hike this year after the banking crease the refinance rate by the same amount two months ago alexander if you will from b.c. been capita outlines the reasons for the move. some for bank is obviously concerned about inflation and particularly they mentioned in the statement that they are concerned about one trick driver so we reach the central bank. note is that mentions that they see a decrease in savings rate this means that people are going to thank their boring they are going to spend more and this will drive inflation high and so the central bank is trying to prevent this by rising rates be making deposits more attractive so union savings more attractive for people. singing of the markets now the dow and nasdaq both positive the dow is up half of the same stream by half of the shares they're up two point seven percent on better than expected results. you're pretty flat t

actually happening before our very eyes i mean you know we saw things i can see you're so ago the central bank of india which normally the central base hold dollars as a reserve currency and issued their own currencies against their dollar holdings the central bank of india just as an example disheartened two hundred metric tons of bull i mean a bigger part of what were the dollars to replace it with gold let me give you a better example here in the united states university of texas has one of the largest academic and dominance in the in the world and they moved they they now own a billion dollars worth of gold with these bought blotting out in garments and never used to think about such in something like gold but even what's more important the university has decided not to leave its gold in the institutions in the positive or even the commodity exchange and to actually take physical to libya and this is a trend that is going on around around the country counterparty risk government risk or has people concerned around the world so it does but since they but if you fast forward a couple of year

the european central bank raised their interest rates for the first time since 2008. the bank said it was necessary because of troisk price staket. after portugal asked for emergency aid to cope with large debts spain said they won't need a similar international bail dellt out. they said their economy was larger and more productive than that of their neighbor. >> portugal, so often sunny, laid back. now it needs to be bailed out. the prime minister here says he didn't want to resort to the begging bowl but that is exactly what happened. the country will have to turn to the e.u. and other institutions for help. many here feel humbled but resigned too. >> i am worried. it had to be like this sooner or later. i was already thinking that it could happen. >> i don't know. tomorrow. now, yesterday. i don't know. >> humiliation? >> yes. yes. >> trying to stave off this day there have been four rounds of cuts and increasingly the people protested. new taxes on pensions, public sector wages were cut and less money for local councils. but the market saw a country with a large d

president as the next head of the european central bank. it is a bit of a surprise announcement. at this time, germany says the decision will not come until soon, but it does not have its own heavyweight candidate, when one person resigned, taking himself out of the race. a good euro watchdog. >> let's take a closer look at the markets. in germany, the blue-chip kodak closed up almost 1%. -- the blue-chip dax closed up almost 1%. the dow jones closed at almt 1% higher, and the euro is going for one $0.46 cents. -- $1.46. an automaker posted a profit in the first quarter. that is up from 20% from one year ago, and it was ford's best first quarter in 13 years. they're benefitg from higher sales in the u.s. and from going green. they have brought out smaller, more fuel efficient models, as higher gas prices triggers demand for less gas intensive cars. one of the biggest losers in the global financial crisis is also back in the black. switzerland's biggest bank, ubs, has announced a profit for the first quarter, slightly higher than forecast. t

that is way too fast and way too much in the eyes of the european central bank.that is why everyone here in the financial markets agrees there will be a hike in the interest rates, the lead interest rates in the ecb next week and probably not the last one this year. that makes the euro more attractive. the up and down stock market brings worries over the crisis in japan and in north africa. >> germany's blue-chip dax finished the day a little over 7031 point. across the atlantic in new york, the dow finished at the top of the hour at 12,00319. -- 12,319. an airline flight attendants struggling to lift his baguette a german airport led to the discovery of a three -- lift his bag at a german airport led to the discovery of a three-year point smuggling operation. prosecutors have arrested six people suspected of spot smuggling the coins scrapped by germany's central bank after they were stuck back together in china. >> when euro coins get too old or damage, they are removed from circulation, broken apart, and sold off as scrap metal, some of them to china. that is w

the move makes it a first of the world's top central banks to begin raising rates as the economic recovery gathers pace. the bank says the move is necessary to put the brakes on inflation, but critics say higher interest rates could stop the recovery dead. >> ecb president jean-claude trichet has to try to strike a balance between very diverse countries. germany, for example, is prospering and conceal with a risen intere rates portugal, by contrast, is in crisis and will suffer more of the cost of borrowing rises further. the hike represents a compromise. an increase from the historic low of 1% above a very small one. just a quarter of 1%. but is this the first of a series of rate hikes? >> we did not decide today that it was the first of a series of interest-rate increases, and we will contie to do in the fure what we have donin the past, namely to take the appropriate decisions for price stability. >> the ecb said it needed to raise rates in order to counter inflationary pressure. he barely mentioned the state reeling under a huge debt burden, but more people have mortgages and those cou

ben bernanke said he's trying to make the operations of the central bank more transparent. senior business correspondent anthony mason was there. >> reporter: it was that rare press conference that makes news even before it happens. striding formally into a conference room at the federal reserve, the chairman settled behind a desk to face about 60 reporters, all issued assigned seats. can you talk a little bit about your decision to take this historic step of holding a news conference after a fed meeting? >> it used to be that the mystique of central banking was all about not letting anybody know what you were doing. >> reporter: but bernanke has pushed the federal reserve to be more open. during the financial crisis, he became the first sitting fed chairman to be interviewed for "60 minutes." >> the pace of improvement is still quite slow, and we are digging ourselves out of a very, very deep hole. >> reporter: bernanke said the economy slowed sharply in the first quarter, and the g.d.p., which will be formally announced tomorrow, is likely to come in under 2%. the fed cha

most central banks around the world aimed to set inflation above zero, usually at about 2%. i turn to the committee passed economic outlook. as indicated in today's policy statement, the economic recovery is proceeding at a moderate pace. household spending and investment in equipment and software continued to expand, supporting the recovery, but not residential investment, still weak, and the housing sector is depressed. in the labor market, overall conditions continue to improve gradually. for example, the unemployment rate will move down further and payroll employment increased in march. new claims for unemployment insurance to indicators of hiring plans are also consistent with continued improvement. looking ahead, committee participants expect a moderate recovery to continue through 2011 with some acceleration of growth projected for 2012 and 2013. specifically, as the table shows, participants' projections for output growth have a central tennessee of 3.1% to 3.3% for this year, -- have a central tendency of 3.1% to 2.3% for this year. these projections are a little be

. >> tom: for the first time in almost three years, the european central bank is raising its interest rate. policy makers bumped the benchmark to 1.25%. it had been at a record low 1% since the spring of 2009. the e.c.b. is fighting inflation as several euro nations struggle to get debt under control. while today's rate hike was anticipated, it is still making many u.s. investors uneasy. the federal reserve isn't expected to hike rates anytime soon, but most wall street pros think its just a matter of time. as erika miller reports, now may be the time for bond investors to get ready. >> reporter: on bond trading floors, there's no hint a sea change is coming. but fixed income expert jonathan beinner says the era of big bond returns is over. >> if you think about the period that we've been in over the last couple of decades, bonds have been the place to be. to be able to have those really stellar types of returns is unlikely, and i think investors should be pretty cautious about the risks they are taking in fixed income right now. >> reporter: to beinner and others, today's rate hike b

most central banks around the world aimed to set inflation above zero, usually at about 2%. i turn to the committee passed economic outlook. as indicated in today's policy statement, the economic recovery is proceeding at a moderate pace. household spending and investment in equipment and software continued to expand, supporting the recovery, but not residential investment, still weak, and the housing sector is depressed. in the labor market, overall conditions continue to improve gradually. for example, the unemployment rate will move down further and payroll employment increased in march. new claims for unemployment insurance to indicators of hiring plans are also consistent with continued improvement. looking ahead, committee participants expect a moderate recovery to continue through 2011 with some acceleration of growth projected for 2012 and 2013. specifically, as the table shows, participants' projections for output growth have a central tennessee of 3.1% to 3.3% for this year, -- have a central tendency of 3.1% to 2.3% for this year. these projections are a little be