Economy - Thursday

Senate to revive currency bill

Senate Finance Committee head Max Baucus told Market News he's planning a bill similar to legislation last year that would've forced the gov't to identify currencies that are "fundamentally misaligned" with the dollar and propose steps to fix the imbalance. It was aimed mainly at the Chinese yuan, which critics say is undervalued and has led to a flood of inexpensive Chinese imports. The bill could be ready by May 22, when a Chinese delegation visits Washington to discuss economic ties.

The Fed will hold a hearing June 14 to discuss curbing abusive mortgage lending practices. Venezuela may take over banks

President Hugo Chavez accused the banks of gouging customers. "Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me." He also said the gov't could take over Sidor, Venezuela's biggest steel maker, majority owned by Ternium SA.

Europe economy chugging along

Q1 growth in the 13-member euro zone probably fell the middle of an estimated range of 0.4%-0.8% amid low interest rates and a strong world economy, the Bank of Spain said. Growth should be vigorous the rest of the year, though financial market volatility and the U.S. slowdown pose risks. The EU will release GDP figures May 15.

The euro's sharp rise over the past year to record highs vs. the dollar and the yen hasn't hurt exports, the European Commission said. Oil falls as gov't halts purchases

June crude fell 49 cents to $63.19 a barrel after the U.S. gov't said it would halt purchases for the Strategic Petroleum Reserve. Belgian oil workers also tentatively OK'd a new pact, likely averting a strike. June gasoline rallied to rise 1.5 cents to $2.2476 a gallon.

COMING UP FRIDAY

Employment report for April, 8:30 a.m. EDT (forecast: nonfarm payrolls up 100,000; jobless rate at 4.5%; hourly earnings up 0.3%)