Daily CFO News Recap - Mar. 7th, 2011

WSJ: Consumers Ratchet Up Borrowing

"Consumers added to their non-mortgage debts for the fourth straight month in January, suggesting that the U.S. economy owes its recent acceleration in part to renewed borrowing.

Consumer credit, which excludes real estate loans such as home mortgages, grew at a 2.5% annual pace to $2.4 trillion, the Federal Reserve said Monday. A nearly 7% increase in non-revolving credit—including loans for autos, boats and education—drove the gains, while credit-card debt fell to a new six-year low as consumers continued to pay down debt or default on loans."

Reuters: NYMEX-Crude climbs above $105 on Libya, Mideast woes

"U.S. crude oil futures ended nearly 1 percent higher to hit their highest levels
since September 2008 as raging violence in Libya spawned further worries about
supply disruptions.

Fears persisted that similar uprisings could hit other oil producers in the Middle
East and North Africa, further raising geopolitical risks."

CNBC: Higher Oil Drives ECB and Fed Even Further Apart

"Last week saw the world's two most powerful central bankers diverge on the issue of inflation and policies needed to contain it.

Federal Reserve Chairman Ben Bernanke, who went in front of US lawmakers for his semi-annual grilling on the economy, said he saw only a temporary and relatively "modest increase in US consumer price inflation," while being more worried about unemployment.

On the other side of the Atlantic, European Central Bank President Jean-Claude Trichet gave the euro a big boost when he indicated his "strong vigilance" could mean euro zone rates will raise next month.