WEEKAHEAD-The view from Reuters Editors in the Americas

MARKETS – Markets are coming to terms with the eventual end
of cheap funding from the central bank, and investors have
clearly heard the plea from Fed officials not to assume the
discount rate hike means a rise in the fed funds rate is near.
The short end of the Treasury market has recovered its poise,
suggesting the move will have little impact on next week’s
record $126 billion sales. Stocks will also focus on a bevy of
retail earnings headlined by Target and Macy’s. And with little
headwind, most agree the dollar will keep charging higher as
the U.S. outlook improves and as Greece damps enthusiasm for
the euro. [email protected]

MR TOYODA IN WASHINGTON – Akio Toyoda, grandson of the
founder of Toyota Motor Co (7203.T: ), has promised to deliver a
“sincere explanation” of the safety problems that led to his
company to recall millions of vehicles when he appears before a
U.S. congressional panel on Wednesday. Analysts and public
relations experts have stressed the need for him to speak
clearly and honestly in his testimony to avoid further staining
the company’s reputation. It’s not clear yet whether he will
testify in English or Japanese. Toyoda is the most senior
Japanese executive to give testimony before the U.S. Congress
since executives from tire maker Bridgestone (5108.T: ) appeared
in 2000 following a series of crashes linked to the handling of
some Ford Motor Co (F.N: ) SUVs. Preview planned for Sunday. See
[IDn:SGE61I01G] and [ID:nTOE61I02C].
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WINDING DOWN EASY MONEY – Federal Reserve Chairman Ben
Bernanke must explain why he decided to spring a surprise on
financial markets by raising the discount rate — and he has to
do it before a less-than-friendly audience. In Congress for his
twice-yearly testimony on the state of the economy on Wednesday
and Thursday, he can expect questions on whether the discount
rate hike was a signal that borrowing costs are about to rise.
Look for Bernanke to talk down those concerns and reiterate
that the Fed plans to keep its benchmark interest rate near
zero for some time. If he doesn’t, look out for a stock market
selloff. Bernanke can also expect some grilling about
regulatory reform and what role the Fed ought to play. His
critics on Capitol Hill will no doubt want to remind him they
think he failed to spot the financial crisis and then gave away
taxpayer money too freely when markets unraveled.
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That’ll be $8 please. Airlines and others in the travel
industry added charges and cut costs creatively as the
recession hit revenue and profits, but the sector has been
buoyed recently by expectations of an economic recovery and
signs that business travel is starting to rebound. CEOs and
other leading executives from some of the world’s leading
airlines, hotel and casino companies will address the big
issues at the Reuters Travel and Leisure Summit in New York
running Monday through Wednesday. Speakers include executives
from InterContinental Hotels (IHG.L: ) and Marriott (MAR.N: ),
casino companies Las Vegas Sands (LVS.N: ) and Harrah’s,and air
carriers including AMR Corp (AMR.N: ), Southwest (LUV.N: ) and UAL
Corp (UAL.N: ). For a preview click [ID:nN18190553].

Investing Analysis

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WEEKAHEAD-The view from Reuters Editors in the Americas