Financial Crises Update for 02-24-09

 - Markets will react to a major speech by President Barack Obama given to
Congress at 9:00 p.m. EST (0200 GMT Wednesday) The president attempted to
strike a balance between grim warnings of economic distress and
reassuring words that Americans can weather the crisis.

 - Fed Chairman Ben Bernanke warns "severe" U.S. recession
could drag into next year, but suggests big banks would survive
without being nationalized, prompting jump in U.S. stocks

 - Bernanke says regulators readying "stress tests" for the
largest U.S. banks to see if they can lend under unexpected
economic strains

 - U.S. home prices plunge at record pace in December and
consumer confidence hits new low in February.

 - U.S. government to launch bank rescue program Wednesday

 - German business confidence index at lowest since 1990

 - Japan investor sentiment slumps to record low

 - Most Americans support Obama's economic plans -  polls indicate

 - China aims to merge automakers as economy falters

                      MARKETS

 - U.S. stocks .N jump, with S&P 500 .GSPF index up
31.03 points or 4.17 percent to 774.36, after hitting 12-year
lows on Monday. The Dow Jones industrial average .DJI rose
249.22 points or 3.5 percent to 7,364.00 and the Nasdaq
Composite Index .IXIC gained 55.31 points or 3.99 percent to
1,443.03.

 - European shares down 1.5 percent, after Asian declines

 - Japan's Nikkei .N225 down 1.5 percent, China stocks
tumble 4.6 percent .SSEC

 - Oil prices rise 4 percent on Tuesday, tracking Wall
Street bounce, with U.S. crude CLc1 up $1.52 to $39.96 a
barrel and London Brent crude LC0c1 rising $1.51 to $42.50.

                       QUOTES

 "While our economy may be weakened and our confidence
shaken, though we are living through difficult and uncertain
times, tonight I want every American to know this: We will
rebuild, we will recover. And the United States of America will
emerge stronger than before." - President Obama in advance
excerpts of his speech to Congress.

 "If actions taken by the administration, the Congress, and
the Federal Reserve are successful in restoring some measure of
financial stability -- and only if that is the case, in my view
-- there is a reasonable prospect that the current recession
will end in 2009 and that 2010 will be a year of recovery." -
Bernanke tells Senate Banking Committee.

 "If I thought the banks were irrevocably damaged, I would
have a different view, but I do believe our major banks have
significant franchise values. There is no commitment by any
means to never shut down a big bank, absolutely not, but I do
believe that the major banks we have now can be stabilized." -
Bernanke to Senate committee.

 The data "suggests, unfortunately, that we still haven't
found the bottom for the economy." - Zach Pandl, economist at
Nomura Securities International in New York.

 "Bernanke certainly paints a more dire picture than the
market was initially anticipating. He is talking about a
non-recovery in 2010 if markets and banks don't stabilize." -
Kevin Flanagan, fixed-income strategist for Global Wealth
Management Morgan Stanley.

 "If we confront this crisis without also confronting the
deficits that helped cause it, we risk sinking into another
crisis down the road." - Obama at opening of White House summit
on Fiscal Responsibility

                         DIARY

 TUESDAY, Feb. 24

 WASHINGTON - President Obama to address joint session of
Congress on the $787 billion U.S. economic stimulus package

 WASHINGTON - Japanese Prime Minister Aso meets Obama

 ROME - Italian-French Summit. Prime Minister Berlusconi and
President Sarkozy expected to attend

 MADRID/BRUSSELS - Deadline for Spain to reply to European
Commission over plan to aid its auto sector

 WEDNESDAY, Feb. 25

 WASHINGTON - National Association of Realtors issues
Existing Home Sales for January

 WASHINGTON - Labor Department releases monthly report on
mass layoffs

 WASHINGTON - Energy Information Administration issues
weekly petroleum stocks and output data

 THURSDAY, Feb. 26

 WASHINGTON - U.S. President Obama to release first budget
proposal

 WASHINGTON - Senate Finance Committee to hold a hearing on
the nomination of former Dallas Mayor Ron Kirk to be U.S. Trade
Representative
(Compiled by Equities Desk Europe, +44 207 542 5599)