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Wednesday: Need to Know

Wednesday, 26 Jan 2011 | 3:37 AM ET

As the Congress Center fills up, everyone is asking about President Barack Obama's State of the Union address.

Davos skyline at night
Davos skyline at night

Obama proposed a five-year freeze on non-discretionary spending, called for closing tax loopholes and stressed a need to push for trade deals.

Economist Nouriel Roubini, known for his bearish views, said it would take more than a spending freezeto make a dent in a budget deficit in excess of $1 trillion.

While the prospects of US economic growth were debated, many were taking note of the contraction in UK fourth-quarter GDP. There was a double whammy, when Bank of England Governor Mervyn King said that inflation would rise between four and five percent over the next few months.