20100524 1401 Global Economic News.

More than half of all U.S. states posted lower unemployment rates in April, the government’s job report said. Jobless rates rose in six states in April, and 10 states reported no change. A total of 27 states posted unemployment rates below the national average of 9.9% in April, while 10 states and D.C. reported higher rates. (CNNMoney)

The US Senate on Thursday passed the most sweeping regulatory overhaul of the financial system since the New Deal. The bill, which passed 59-39, imposes more oversight and stronger capital cushions for the largest banks and Wall Street firms, while aiming to stop bailouts, shine a light on complex financial products and strengthen consumer protection. (CNNMoney)

• The legislation would establish a consumer financial protection regulatory agency that could write new rules to protect consumers from unfair or abusive mortgages and credit cards. 
• It would create a council of regulators that would sound an alarm before companies are in position to trigger a financial crisis.
• The bill would also establish new procedures for shutting down giant financial firms that are collapsing.

Federal Reserve Bank of New York President William Dudley said that while the economic recovery is slower than desired he sees the start of substantial growth in employment. “The U.S. economy is recovering and we are now seeing the first signs of significant employment growth, but is still far from where we want to be.” Employers added 290,000 jobs in April, the most in four years, as the unemployment rate rose to 9.9% from 9.7% in March, according to the Labor Department. (Bloomberg)

Oil prices fell around $70 a barrel, as investors remained wary that Europe's debt crisis and growing oil stockpiles will cut demand for fuel. Crude for July delivery, which becomes the active contract Friday, slipped 76 cents, or 1.07%, to settle at $70.04 a barrel? The day before, the June futures contract settled at $68.01 when it expired. (CNNMoney)

European Union finance ministers pledged to stiffen sanctions on high-deficit countries and ruled out setting up a mechanism to manage state defaults, saying no euro country will be allowed to renege on its debts. The ministers vowed to plug holes in the euro region’s system of penalties for countries with runaway deficits. “We will provide new sanctions, more than is now provided,” EU President Herman Van Rompuy said after the four- hour brainstorming session in Brussels on 21 May. (Bloomberg)

Bank Indonesia Acting Governor Darmin Nasution is the “strongest” pick to fill the job permanently, a presidential aide said, an appointment that may bring an end to a one-year impasse over the central bank’s leadership. Nasution was head of the nation’s tax office before becoming senior deputy governor and acting chief last year. An appointment would plug a vital gap in the country’s top economic leadership, after Yudhoyono named Agus Martowardojo as Indonesia’s finance minister last week. (Bloomberg)

Growth in Europe’s services and manufacturing industries slowed more than economists forecast in May, suggesting the euro-region economy may struggle to gather strength as a fiscal crisis hurts confidence. A composite index based on a survey of euroarea purchasing managers in both industries fell to 56.2 in May (57.3 in Apr) in an initial estimate today. Economists forecast a drop to 57.2, the median in a survey showed. (Bloomberg)

The Bank of Japan (BOJ) decided Friday to hold its key interest rate unchanged at 0.1% as widely expected. (Xinhua)

Thai authorities launched a massive clean-up operation in Bangkok's charred commercial district yesterday as the city prepared for the resumption of business after the worst riots in modern history. Financial markets, government offices and schools are scheduled to reopen today. (FinancialDaily)