Today's Headlines

Bloomberg:

• Ukraine Vows to Stanch Separatism as Militants Spread. Ukraine’s acting president vowed to create a special police force to staunch the spread of separatism in the country’s east, vowing to overcome unrest he says is stoked by Russia and hold an election slated for May 25. Following an expansion of sanctions against people and companies linked to Vladimir Putin’s inner circle this week, the Russian president warned that further economic penalties over the crisis may lead the government to reconsider participation by foreign companies in his country’s energy and other key industries. European officials pressed their criticism of Russia’s commitment to an accord seeking to defuse tensions. As part of a creeping campaign by pro-Russian militants across Ukraine’s east, armed men seized government buildings in the city of Horlivka today, while news service Unian reported a member of the Donetsk electoral commission was kidnapped by “terrorists.”
• Republicans Seek More Sanctions on Russia. President Barack Obama would be authorized to arm pro-Ukrainian forces and sanction Russian banks and oil companies under legislation introduced by the top Republican on the Senate Foreign Relations Committee. The bill by Bob Corker of Tennessee will serve as the minority party’s counterproposal in the Democratic Party-controlled Senate to steps taken by the administration.
• Putin's Threat to Retaliate for Sanctions Carries Risks. President Vladimir Putin’s threats to retaliate for further sanctions on Russia set the stage for escalating economic warfare that may have painful effects for U.S. and European companies. While the Russian leader is casting himself as reluctant to take countermeasures against additional penalties from the U.S. and European Union, he hasn’t ruled out doing so eventually. Such a move could dash billions of dollars in foreign investment in some of the world’s biggest untapped oil reserves.
• Bondholders Urged U.S. to Curb Russia Sanctions, Fitch Says. The U.S. is holding off on sanctions against some Russian companies because it doesn’t want to hurt American holders of their debt, according to Fitch Ratings. “We’ve heard quite a lot of anecdotal evidence that there’s actually a lot of consultation with big investors and bondholders in terms of what sanctions might be imposed by the U.S.,” James Watson, a managing director at Fitch, told reporters today in London. “It seems there has been a significant push back on potentially sanctioning companies that have significant foreign debt.”
• Vale Profit Falls After China Slowdown Weighs on Iron-Ore. Vale SA (VALE), the largest iron-ore producer, posted a steeper decline in first-quarter profit than analysts expected after selling the steel ingredient 25 percent cheaper than a market reference price. Shares slumped. Mounting concern that economic growth is slowing in China, Vale’s biggest buyer, is pushing down iron-ore prices and holding the miner’s shares close to a five-year low.
• Credit Suisse, BNP Paribas at Risk of Criminal Charges Over Taxes, Business With Banned Nations. Credit Suisse Group AG (CSGN) and BNP Paribas SA (BNP) are at risk of being criminally charged by U.S. and state prosecutors, a person familiar with the matter said, signaling that authorities are taking a tougher approach as they seek to resolve probes of major banks.
• European Stocks Little Changed Before Fed Policy Decision. European stocks were little changed from a three-week high, as a report showing U.S. economic growth stalled offset better-than-forecast jobs data, while investors awaited a Federal Reserve decision on monetary policy. Banco Bilbao Vizcaya Argentaria SA slipped 1.1 percent after reporting a drop in first-quarter profit. BNP Paribas SA fell 3.2 percent after saying it may need to pay much more than the $1.1 billion it set aside for alleged U.S. sanctions breaches. Alstom (ALO) SA jumped 9.3 percent as General Electric Co. made a 12.4 billion-euro ($17.2 billion) bid for the French company’s energy business. The Stoxx Europe 600 Index retreated 0.1 percent to 337.89 at the close of trading, paring its monthly advance to 1.1 percent.

Wall Street Journal:

• EU Arms Sales to Russia Should Be Restricted as Part of More Severe Sanctions -UK. Restrictions on arms sales to Russia should be part of any so-called stage three European Union sanctions on Moscow if there is any further Russian incursion into southern and eastern Ukraine, Prime Minister David Cameron said on Wednesday. The comment is likely to be noted in France, which has a 1.4 billion euro ($1.95 billion) order from Russia for two Mistral-class warships. The first Mistral, a high-tech amphibious assault ship capable of deploying helicopters and tanks, is due to arrive in Russia by the end of the year.

CNBC: 

• 'Danger signs are there of a future crisis: Apollo pro. Another credit bubble is being inflated, according to a senior private equity executive.
• Fed tapers another $10 billion. (video)
• Ukraine's east slipping from government's grasp. Pro-Moscow separatists seized government offices in more Ukrainian towns on Wednesday, in a further sign that authorities in Kiev are losing control of the country's eastern industrial heartland bordering Russia. Gunmen who turned up at dawn took control of official buildings in Horlivka, a town of almost 300,000 people, said a Reuters photographer. They refused to be photographed.

ZeroHedge: 

• Putin: 'US Behind Ukraine Crisis From The Beginning...Now Leading It'.
• "People's Republic Of Donetsk" Unveils Independence Referendum Set For May 11th.
• Presenting Russian East Ukraine: These Are The Cities Controlled By "Separatists".
• Deja Vu All Over Again: Fannie, Freddie Would Need Another $190 Billion Bailout When Things Go South.
• Here's A Chart You Won't See On CNBC. (graph)
• Bomb Blast Rocks Train Station Hours After China's "Fists & Daggers... Strike-First" Warning To Terrorists.
• Chicago PMI Jumps To 6-Month High; 5 Sigma Beat. (graph)
• About That CapEx Spending Renaissance... (graph)
• GDP Shocker: US Economic Growth Crashes To Just 0.1% In Q1. (graph)

Business Insider: 

• Your iPhone Gathers A Lot More Of Your Location Data Than You Thought — Here's How To Disable It.

Reuters:

• U.S. government says it lost $11.2 billion on GM(GM) bailout. The U.S. government lost $11.2 billion on its bailout of General Motors Co, more than the $10.3 billion the Treasury Department estimated when it sold its remaining GM shares in December, according to a government report released on Wednesday. The $11.2 billion loss includes a write-off in March of the government's remaining $826 million investment in "old" GM, the quarterly report by a Treasury watchdog said.