Fed seen holding rates steady as it faces fine balancing act

By Howard Schneider WASHINGTON (Reuters) - The U.S. Federal Reserve is expected to hold interest rates steady on Wednesday as it balances continued concerns about the health of the global economy with fresh signs that domestic inflation is starting to rear its head. The central bank, which hiked rates in December for the first time in nearly a decade, sounded a cautious note at its last policy meeting in January, amid a selloff on financial markets, weaker oil prices and falling inflation expectations. The Fed's latest policy statement, due to be released at 2 p.m. EDT (1800 GMT) along with updated economic projections, will show how comfortable policymakers are in proceeding with the gradual rate hike path they embraced late last year.

Global stocks dip, dollar on tenterhooks for Fed; oil bounces

By Wayne Cole SYDNEY (Reuters) - Asian shares were mostly lower on Wednesday while the dollar dithered as markets waited anxiously for the Federal Reserve to provide guidance on the risk of U.S. rate hikes this year. While no move is expected at this meeting it does include updates of Fed members' economic projections and a news conference with Chair Janet Yellen, events that have caused violent market reactions in the past. "There's no question that the FOMC is expected to provide the much-needed clarity global markets need in order to move forward with some sense of conviction," said Stefan Worrall, director of Japan equity sales at Credit Suisse.

China's Premier Li says confident in economy, vows no hard landing

By Jason Subler and Kevin Yao BEIJING (Reuters) - China's Premier Li Keqiang defended the government's economic policies on Wednesday, vowing there would be no mass layoffs and no hard landing for the world's second-largest economy even as the government presses ahead with painful reforms. While conceding that downward pressure is increasing, Li and other top officials at the annual meeting of parliament this month have repeatedly tried to reassure jittery financial markets and China's major trading partners that Beijing is able to manage the slowing economy. "We are confident that as long as we continue to reform and open up, China's economy will not suffer a hard landing," Li said at a news conference at the end of the parliament meeting.

Drugmaker Valeant faces debt default risk; shares plunge 50 percent

The news from the Canadian drugmaker, which also slashed its 2016 sales and earnings outlook, prompted Bill Ackman, whose Pershing Square Capital Management is one of Valeant's largest shareholders, to tell investors that he would take a much more active role there. For years, Valeant was an investor darling, buying up assets and delivering double-digit profit growth. During a more than two-hour conference call on Tuesday, Wall Street analysts pressed Chief Executive Officer Michael Pearson for answers.

China's ZTE said to appeal U.S. export ban after lobby efforts fail

By Steve Stecklow and Joel Schectman LONDON/WASHINGTON (Reuters) - China's ZTE Corp will appeal tough U.S. export restrictions imposed last week, according to a person familiar with the matter, after the telecom equipment maker's costly lobbying effort failed to allay concerns about its business. The U.S. Commerce Department imposed restrictions on U.S. suppliers providing crucial components to ZTE for alleged Iran sanctions violations, a move likely to disrupt its global supply chain. "The U.S. Department of Commerce and ZTE Corp are in ongoing discussions," a senior Commerce Department official told Reuters.

German court says VW customer has no right to return rigged vehicle

BOCHUM, Germany (Reuters) - A German court on Wednesday dismissed a Volkswagen customer's plea to cancel the purchase of his vehicle, which was affected by the carmaker's cheating software. Judge Ingo Streek at the regional court in Bochum said the owner of a Volkswagen (VW) Tiguan sport-utility vehicle has no right to return the car despite defects caused to the model by VW's manipulations. The plaintiff has already said he would appeal the verdict at a higher court. (Reporting by Matthias Inverardi; Writing by Andreas Cremer; Editing by Maria Sheahan)

Fractured electorate hampers efforts to mend 'slow puncture' economy

By Mike Dolan LONDON (Reuters) - The combination of a slow-growth world of shrinking policy options and the splintered political voting patterns it's fostered is stifling the global economy at a critical juncture. Preying on the minds of financial markets for the past year has been a fear that there's no big economic policy bazooka to fire at another cyclical downturn or recession. With major central banks maxed out at near zero interest rates and inflation rates still below target, spikes in investor alarm like the one seen in January are becoming more frequent as evidence of a China-led world slowdown mounts and oil-led deflationary pressures persist.

Chipotle sales worse than expected in Feb, first-quarter loss seen

Chipotle's February sales at restaurants open at least 13 months dropped 26.1 percent in February, more than the 23 percent fall expected by analysts polled by Consensus Metrix. No customers were sickened, but the news fanned concerns about Chipotle nationally. Costs related to its food safety stumbles are hitting virtually every expense line at Chipotle, undercutting its well-known ability to hold down costs while cranking out higher sales.

FCC likely to circulate draft order approving Charter-Time Warner Cable merger: WSJ

(Reuters) - U.S. Federal Communications Commission Chairman Tom Wheeler is likely to circulate a draft order approving Charter Communications Inc's $56 billion deal to buy Time Warner Cable Inc , the Wall Street Journal reported, citing people familiar with the matter. The order, which could be circulated as soon as this week, would levy some conditions on the deal, such as preventing Charter from including clauses in pay-TV contracts that limit a content company's ability to offer its programming online or to new entrants, the WSJ reported on Tuesday. The transaction will also likely include a requirement for Charter to build or upgrade service to more homes, the Journal said.

Caesars could face $5 billion hit from unit's bankruptcy: examiner

By Tracy Rucinski and Tom Hals CHICAGO (Reuters) - Caesars Entertainment Corp and its private equity backers could be on the hook for up to $5.1 billion in potential damages over a series of corporate deals that a court-ordered examiner said Tuesday led to a $18 billion bankruptcy protection filing by the casino company's operating unit. Richard Davis and a team of lawyers have spent a year probing whether Caesars, under the control of Apollo Global Management and TPG Capital [TPG.UL], stripped away prime properties such as the LINQ Hotel & Casino in Las Vegas and left the company unable to pay a mountain of debt. The bankruptcy of Caesars Entertainment Operating Co Inc (CEOC) has pitted some of the biggest names in U.S. finance against each other in a year-long court battle.

Go-playing software beats human champ for 3rd straight time

SEOUL, South Korea (AP) — Google's Go-playing software defeated a human champion for the third straight time Saturday to clinch the best-of-five series and establish its superiority in an ancient Chinese game long thought to be the realm of humans.

PlayStation VR is $399, but here's how much you'll really pay

If you buy a PlayStation VR and plug it into your PlayStation 4, it won't do anything without a PlayStation Eye. And many games also need PlayStation Move controllers. Want it all? Better have another $150 ready.

This action movie was shot almost entirely with a GoPro

"Hardcore Henry," which had its US premier at the South By Southwest festival, is the first point-of-view action feature film. Which is both innovative and nauseating. (Warning: some mild spoilers ahead.)

Samsung wants you to feel, not just see, VR with these headphones

The Entrim 4D, a prototype from the Korean electronic giant's Creative Lab, tries to make virtual reality more immersive by sending an electronic signal to your inner ear.

Here's which state posts the nastiest tweets

Technically Incorrect: An analysis of millions of tweets shows which places emit the nastiest, the most racist, and the most sexist messages on Twitter. You might be surprised.

Apple says Constitution 'forbids' what FBI is asking

In its latest filing in the battle over unlocking an iPhone, Apple says the All Writs Act "cannot be stretched to fit this case."

Anonymous goes negative on Trump... again

The network of hackers renews its efforts to inflict Internet woe on the Republican presidential front-runner.