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NEWS - Obama projects $1.75 trln deficit this year, $1.17 trln in 2010, warns tough choices needed to get finances back in order - GM <GM.N> posts loss of nearly $31 bln for 2008, says its auditors likely to cast doubt on its viability - Number of U.S. workers drawing jobless aid jumped to record high in mid-Feb, recession undercut demand for manufactured goods - Royal Bank of Scotland <RBS.L> reports biggest loss in British history, says Britain stake could rise as high as 95 pct - Troubled UBS <UBS.N> <UBSN.VX> names Oswald Gruebel, who masterminded a turnaround at Credit Suisse <CSGN.VX> , as CEO MARKETS - U.S. stocks fall on worry over impact of Obama budget proposal. Dow <.DJI> closes down 88.81 points, or 1.22 pct - Europe shares close higher, ending 4-day losing streak, RBS leads a resurgent banking sector. Nikkei ends flat on weak yen - Oil up more than 6 pct to above $45 a barrel on expectations OPEC to cut output again, signs of rebound in US gasoline demand - Dollar declines against euro, with investors willing to take on more risk, though poor U.S. data helped limit losses - U.S. govt debt prices fall as prospect of a record $1.75 trillion budget deficit highlights need to ramp up bond issuance QUOTES "I don't think that we can continue on our current course. I work for the American people, and I'm determined to bring the change that the people voted for last November." - U.S. President Barack Obama. "The American people know we cannot tax, spend and borrow our way back to a healthy economy." - Mike Pence, a member of the Republican leadership in the U.S. House of Representatives. "There are some good things in this budget but a lot still seems very wasteful. The market is crumbling around us and economies are in the tank." - Dan Cook, senior market analyst with IG Markets in Chicago. "It's not so much the economic numbers affecting the stock market. Now it's any expectation that the banks will survive better than expected and the fact that the administration delivered just what the market wanted, which was government help, but not overt nationalization. That seems to be the magic wand for the stock market at the moment." - Cary Leahey, economist at Decision Economics in New York. "The upward trend in unemployment claims suggests that we haven't seen the worst in the labor market situation yet, probably leading to higher unemployment rates." - Gary Thayer, senior economist at Wachovia Securities in St. Louis, Missouri. DIARY
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