The European Union statistics office reported European consumer prices fell by the most in at least 13 years in July after energy costs declined and unemployment rose to the highest in a decade.
U.K. consumer confidence held at the highest level since April 2008 as evidence mounted that Britain is emerging from recession.
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US second quarter GDP down 1%
The U.S Commerce Department reported Friday that the economy contracted by 1%, much smaller pace in the second quarter of the year, suggesting that the trough of the recession has been reached.
The rate of contraction for the first quarter was revised down to a 6.4% drop compared with the prior estimate of a 5.5% decline, this is the first time since the Great Depression that the economy contracted for four consecutive quarters.
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The rate of contraction for the first quarter was revised down to a 6.4% drop compared with the prior estimate of a 5.5% decline, this is the first time since the Great Depression that the economy contracted for four consecutive quarters.
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News Today - July 31
*US Stocks surged Thursday, hitting their highest levels in nearly 9 months, as investors eyed the latest batch of better-than-expected profits and forecasts and a report that suggested the labor market is starting to stabilize.
* Japan’s unemployment rate rose to a six-year high in June and consumer prices fell at a record pace, adding to evidence the domestic economy is struggling to recover even as exports start to improve. Japan Consumer Prices Fell Record 1.7% in June, Stoking Deflation Concern
* The budget deficits of the U.S. and U.K. will be the largest this year of the world’s top 20 advanced and emerging economies and clear plans to cut spending are needed to ease investor concerns, an International Monetary Fund staff report said.
* President Barack Obama said on Thursday that despite signs of a US economic recovery, figures will likely show gross domestic product contracting in the 2nd quarter.
* Japan's second largest bank Mizuho posts an unexpected group loss of $47 million, with its results dragged down by valuation losses on stock-holdings and credit and equity derivatives
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* Japan’s unemployment rate rose to a six-year high in June and consumer prices fell at a record pace, adding to evidence the domestic economy is struggling to recover even as exports start to improve. Japan Consumer Prices Fell Record 1.7% in June, Stoking Deflation Concern
* The budget deficits of the U.S. and U.K. will be the largest this year of the world’s top 20 advanced and emerging economies and clear plans to cut spending are needed to ease investor concerns, an International Monetary Fund staff report said.
* President Barack Obama said on Thursday that despite signs of a US economic recovery, figures will likely show gross domestic product contracting in the 2nd quarter.
* Japan's second largest bank Mizuho posts an unexpected group loss of $47 million, with its results dragged down by valuation losses on stock-holdings and credit and equity derivatives
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News Today - July 30
* It is good news that financial markets are doing better but 2009 will still be a bad year for the world economy, International Monetary Fund Managing Director Dominique Strauss-Kahn said on Wednesday.
* President Barack Obama defended the steps taken by his administration to pull the nation out of the economic crisis, saying the U.S. “may be seeing the beginning of the end of the recession.”
* Shares in Honda Motor and Nissan Motor soared 8 percent after the automakers surprised markets by eking out small profits last quarter, helped by cost cuts.
*The massive sell-off in Chinese stocks, sparked by concerns over banks capping their lending targets and pricey valuations, had a ripple
effect on Indian equities, among other Asian markets on Wednesday. Though Indian indices managed to erase a portion of the day’s losses, stocks still ended lower, as fears about the health of global equities remain in the near term.
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News Today - July 29
* A gauge of U.S. house prices posted its first monthly gain in three years, providing some solace to consumers shaken by rising joblessness.
* Shares in China State Construction Engineering Corp, whose $7.3 billion initial public offering last week was the world's largest in a year, jumped beyond analysts' expectations in their market debut, boding well for upcoming IPOs but stirring concern about asset price bubbles.
* Treasury Secretary Timothy Geithner says the biggest achievement of two days of talks with his Chinese counterparts is a 'framework for cooperation' to map out economic relations over the years ahead.
* Japan’s retail sales fell for a 10th month in June, extending the longest losing streak since 2003 as job losses and wage cuts forced households to trim spending.
* New Zealand business confidence rose to a 10-month high in July as companies became less pessimistic about profits and the ease of getting credit.
* India's Software industry body Nasscom, in its revised exports growth estimates to be announced in Chennai on Wednesday, is likely to scale down exports growth target to single digits for 2009-10, said people familiar with the development. This is the third such revision by Nasscom in the past 12 months.
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* Shares in China State Construction Engineering Corp, whose $7.3 billion initial public offering last week was the world's largest in a year, jumped beyond analysts' expectations in their market debut, boding well for upcoming IPOs but stirring concern about asset price bubbles.
* Treasury Secretary Timothy Geithner says the biggest achievement of two days of talks with his Chinese counterparts is a 'framework for cooperation' to map out economic relations over the years ahead.
* Japan’s retail sales fell for a 10th month in June, extending the longest losing streak since 2003 as job losses and wage cuts forced households to trim spending.
* New Zealand business confidence rose to a 10-month high in July as companies became less pessimistic about profits and the ease of getting credit.
* India's Software industry body Nasscom, in its revised exports growth estimates to be announced in Chennai on Wednesday, is likely to scale down exports growth target to single digits for 2009-10, said people familiar with the development. This is the third such revision by Nasscom in the past 12 months.
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News Today - July 28
The Obama administration welcomes Chinese officials to Washington for two days of intensive and wide-ranging talks, saying the White House wants to foster cooperation on economic and diplomatic issues.
New-Home Sales in U.S. Climbed 11% Last Month, Biggest Gain in Eight Years Purchases of new homes in the U.S. climbed 11 percent in June, the biggest gain in eight years, underscoring evidence that the deepest housing slump since the Great Depression is starting to stabilize.
India Central Bank May Signal End to Sharpest Round of Interest-Rate Cuts India’s central bank may signal that its sharpest round of interest-rate cuts has come to an end by keeping borrowing costs unchanged at a meeting today.
South Korean Manufacturers' Confidence Rises to 14-Month High on Exports South Korean manufacturers’ confidence rose to the highest in 14 months after the economy grew at the fastest pace in almost six years last quarter.
King May Increase Rates Sooner Than Bernanke as U.K. Inflation Leads G-7 Bank of England Governor Mervyn King may beat Ben S. Bernanke to the emergency exit.
Geithner Assures a `Concerned' China the U.S. Will Shrink Record Deficit Treasury Secretary Timothy Geithner pledged to rein in the U.S. deficit as China underscored concern about preserving the value of its $801.5 billion of Treasury holdings.
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News Today - July 27
* Tokyo's benchmark index Nikkei reclaims psychologically key 10,000 level, with Japan brokerages higher on a report tipping strong earnings.
* South Korea's key consumer sentiment index hit its highest in nearly seven years, central bank data showed on Monday, raising further questions about how long the government's accommodative policy would be maintained.
* For the first time since the Great Depression, the US economy will have contracted for four consecutive quarters, economists said in advance of the government's first estimate for second-quarter gross domestic product.
* The US jobless rate is likely to stay high even once the nation exits recession some time in the next few months, Federal Reserve Chairman Ben Bernanke said on Sunday.
* Japan’s corporate service prices fell at a record pace in June as companies reduced spending, adding to evidence deflation may again be taking hold in the world’s second-largest economy.
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* South Korea's key consumer sentiment index hit its highest in nearly seven years, central bank data showed on Monday, raising further questions about how long the government's accommodative policy would be maintained.
* For the first time since the Great Depression, the US economy will have contracted for four consecutive quarters, economists said in advance of the government's first estimate for second-quarter gross domestic product.
* The US jobless rate is likely to stay high even once the nation exits recession some time in the next few months, Federal Reserve Chairman Ben Bernanke said on Sunday.
* Japan’s corporate service prices fell at a record pace in June as companies reduced spending, adding to evidence deflation may again be taking hold in the world’s second-largest economy.
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News Today - July 24
*U.S. stocks surged on Thursday, driving the Dow industrials above the key 9,000 mark for the first time since January, as corporate profits and rebounding home sales spurred economic optimism.
* The US VIX(volatility Index) is back under 30, suggesting that investors are confident, but it remains above 20, a sign that investors are not overly exuberant.
* South Korea's economy grew at the fastest pace in more than five years during the second quarter of this year, rising a seasonally adjusted 2.3% from the prior period, the Bank of Korea reported Friday.
* The Bank of Canada declared Canada's recession to be virtually over on Thursday and raced ahead of a cautious central banker pack with a mostly upbeat view on the world economy. The worst-case scenario of global financial disaster has been "taken off the table", Governor Mark Carney said after the central bank released a surprisingly rosy quarterly outlook.
* Microsoft reports fiscal fourth-quarter results that fall short of expectations and reflect a sharp slowdown in software sales, as demand for new PC waned in the ongoing recession.
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* The US VIX(volatility Index) is back under 30, suggesting that investors are confident, but it remains above 20, a sign that investors are not overly exuberant.
* South Korea's economy grew at the fastest pace in more than five years during the second quarter of this year, rising a seasonally adjusted 2.3% from the prior period, the Bank of Korea reported Friday.
* The Bank of Canada declared Canada's recession to be virtually over on Thursday and raced ahead of a cautious central banker pack with a mostly upbeat view on the world economy. The worst-case scenario of global financial disaster has been "taken off the table", Governor Mark Carney said after the central bank released a surprisingly rosy quarterly outlook.
* Microsoft reports fiscal fourth-quarter results that fall short of expectations and reflect a sharp slowdown in software sales, as demand for new PC waned in the ongoing recession.
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News Today - July 22
* Interest rates must stay at historically low levels for the economy to get out of the ditch, but it is not too early to discuss how the central bank will act once things get back to normal, Federal Reserve Chairman Ben Bernanke said Tuesday.
* Australian consumer price inflation slowed to it lowest annual pace in a decade last quarter as falls in food and financing costs helped offset increases in health, clothing and rents.
* China State Construction Engineering Corp., which built the Olympic 'Water Cube,' is planning to raise up to $7.3 billion in an upcoming Shanghai initial public offering, the biggest IPO so far for 2009.
* Wipro's net profit rose 12% to Rs 1015.50 crore in the April-June quarter as against Rs 1010 crore in the previous quarter
* Mining giant BHP Billiton reports a 10% fall in iron-ore output for the recent quarter, with the annual figure below expectations.
*Longest Solar Eclipse of the 21st century , In Pictures
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* Australian consumer price inflation slowed to it lowest annual pace in a decade last quarter as falls in food and financing costs helped offset increases in health, clothing and rents.
* China State Construction Engineering Corp., which built the Olympic 'Water Cube,' is planning to raise up to $7.3 billion in an upcoming Shanghai initial public offering, the biggest IPO so far for 2009.
* Wipro's net profit rose 12% to Rs 1015.50 crore in the April-June quarter as against Rs 1010 crore in the previous quarter
* Mining giant BHP Billiton reports a 10% fall in iron-ore output for the recent quarter, with the annual figure below expectations.
*
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News Today - July 21
* The Federal Reserve will need to rein in accommodative measures to prevent inflation as a recovery takes hold, though the pace and timing will depend on the strength of the economy, central bank Chairman Ben Bernanke said in a Wall Street Journal article.
* Nouriel Roubini, the economist whose dire forecasts earned him the nickname "Doctor Doom", told CNBC Monday that the economic recovery is going to be "very ugly."The recovery is going to be subpar," Roubini said. "I see a one percent growth in the economy in the next few years. There will also be 11 percent unemployment next year and the recovery is going to be slow. It's going to feel like a recession even when it ends.
* CIT confirms that a $3 billion emergency credit line has saved it from the brink of bankruptcy, adding that a tender on its debt due next month may involve an 82.5-cents-on-the-dollar haircut for creditors.
* Oil rose a dollar to above $64 a barrel on Monday, reaching its highest level in almost two weeks, as equities firmed and the dollar fell on expectations of a global economic recovery
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* Nouriel Roubini, the economist whose dire forecasts earned him the nickname "Doctor Doom", told CNBC Monday that the economic recovery is going to be "very ugly."The recovery is going to be subpar," Roubini said. "I see a one percent growth in the economy in the next few years. There will also be 11 percent unemployment next year and the recovery is going to be slow. It's going to feel like a recession even when it ends.
* CIT confirms that a $3 billion emergency credit line has saved it from the brink of bankruptcy, adding that a tender on its debt due next month may involve an 82.5-cents-on-the-dollar haircut for creditors.
* Oil rose a dollar to above $64 a barrel on Monday, reaching its highest level in almost two weeks, as equities firmed and the dollar fell on expectations of a global economic recovery
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News Links - July 20
The Financial Crisis Isn't Over: Stephen Roach (cnbc)
Index of leading economic indicators' June rise is third straight (Marketwatch)
12 of the Most Infamous Bankruptcies (Businesspandit)
The Great American Bubble Machine
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Index of leading economic indicators' June rise is third straight (Marketwatch)
12 of the Most Infamous Bankruptcies (Businesspandit)
The Great American Bubble Machine
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News Today - July 17
* Google's revenue in the three months ended June 30 totaled $5.52 billion, compared with $5.37 billion a year earlier. Analysts were looking for $5.49 billion, according to Reuters Estimates.
* IBM reported second-quarter earnings that blew past what analysts were forecasting, and the company's shares rose in late trading.
* US Market rallied late in the day on statement from Dr.Doom Nouriel Roubini that the "worst is behind us in terms of economic and financial conditions, Roubini Statement on the U.S. Economic Outlook
* Ratan Tata will finally hand over the keys of Nano, his dream project to its first owner as Nano hits streets today.
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India's rating unlikely to be downgraded: FinMin
The finance ministry said on Thursday that India's credit-worthiness is unlikely to be downgraded because of the country's high fiscal deficit.
Keep reading.. http://business.rediff.com/report/2009/jul/16/indias-rating-unlikely-to-be-downgraded-finmin.htm
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"I don't expect any downgrade in rating . . . If the demands are not met then there would be problem," a senior finance ministry official told PTI on the sidelines of a CII seminar.
Keep reading.. http://business.rediff.com/report/2009/jul/16/indias-rating-unlikely-to-be-downgraded-finmin.htm
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News Wrap - July 16
The Federal Reserve expects the economy this year will sink at a slower pace than it previously thought, but that unemployment will top 10 percent, according to a forecast contained in the latest Fed minutes
World's largest maker of mobile phones Nokia posts 66% drop in profits , lowers its market-share view as second-quarter profit sinks and margins get pinched
Fed says U.S. economy is still vulnerable to shocks
How China Is Behind Almost Every US Market Positive
World's largest maker of mobile phones Nokia posts 66% drop in profits , lowers its market-share view as second-quarter profit sinks and margins get pinched
Fed says U.S. economy is still vulnerable to shocks
How China Is Behind Almost Every US Market Positive
News Today - July 16
* Asian Regional stock markets put up some strong gains after an earlier Wall Street rally, with Japanese exporters helped by a weaker yen.
* China's gross domestic product expands by 7.9% on year in the second quarter, beating estimates for a 7.7%, thanks to rising domestic consumption and a strong increase in industrial activity. But consumer and wholesale prices drive lower
* China’s foreign exchange reserves balloon at a record pace in the second quarter to top the $2 trillion milestone for the first time, even as the nation’s exports remain under pressure .
* CIT Group, is likely to file for bankruptcy Friday, a source close to the company tells CNBC. The major lender to small-and mid-sized U.S. businesses was taken by surprised at the failure of bailout talks.
* Reliance Big Entertainment has finally sealed the funding for its much-hyped 50:50 joint venture with Steven Spielberg's DreamWorks
* US Industrial production shrank less than forecast and a New York regional factory gauge showed the smallest contraction in more than a year, signaling manufacturing is on the verge of stabilizing. The 0.4 percent decrease in output at factories, mines and utilities in June was the smallest in eight months, Federal Reserve figures showed today in Washington.
* China's gross domestic product expands by 7.9% on year in the second quarter, beating estimates for a 7.7%, thanks to rising domestic consumption and a strong increase in industrial activity. But consumer and wholesale prices drive lower
* China’s foreign exchange reserves balloon at a record pace in the second quarter to top the $2 trillion milestone for the first time, even as the nation’s exports remain under pressure .
* CIT Group, is likely to file for bankruptcy Friday, a source close to the company tells CNBC. The major lender to small-and mid-sized U.S. businesses was taken by surprised at the failure of bailout talks.
* Reliance Big Entertainment has finally sealed the funding for its much-hyped 50:50 joint venture with Steven Spielberg's DreamWorks
* US Industrial production shrank less than forecast and a New York regional factory gauge showed the smallest contraction in more than a year, signaling manufacturing is on the verge of stabilizing. The 0.4 percent decrease in output at factories, mines and utilities in June was the smallest in eight months, Federal Reserve figures showed today in Washington.
Mark Mobius sees New Crisis
(Bloomberg) -- A new financial crisis will develop from the failure to effectively regulate derivatives and the extra global liquidity from stimulus spending, Templeton Asset Management Ltd.’s Mark Mobius.
“Political pressure from investment banks and all the people that make money in derivatives” will prevent adequate regulation, said Mobius, who oversees $25 billion as executive chairman of Templeton in Singapore. “Definitely we’re going to have another crisis coming down,” he said in a phone interview from Istanbul on July 13.
Keep Reading ... http://www.bloomberg.com/apps/news?pid=20601109&sid=ajsCDAWaoANg
News Wrap - July 15
U.S. consumer prices rose at a higher than expected 0.7 percent pace in June, mostly due to soaring gasoline prices and the core measure of inflation remained relatively tame, government data on Wednesday showed.
The British unemployment rate rose to 7.6% in the three months ending in May, rising from 6.7% in the previous three-month period and from 5.2% in the same period last year, the Office for National Statistics reported Wednesday. The total number of unemployed rose 281,000 from the previous three months to 2.38 million, marking the largest quarterly increase in the number of unemployed people since comparable records began in 1971, the ONS said
Crude oil remains in $60 range, Gold reclaims 2 week high tops $930.
The British unemployment rate rose to 7.6% in the three months ending in May, rising from 6.7% in the previous three-month period and from 5.2% in the same period last year, the Office for National Statistics reported Wednesday. The total number of unemployed rose 281,000 from the previous three months to 2.38 million, marking the largest quarterly increase in the number of unemployed people since comparable records began in 1971, the ONS said
Crude oil remains in $60 range, Gold reclaims 2 week high tops $930.
News Today - July 15
* The U.S. recession is almost over but the recovery will be very slow, Thomas Hoenig, president of the Kansas City Federal Reserve Bank said Tuesday, while warning that even in this climate inflation is a long-term threat that should not be ignored.
* Intel Corp., the world's largest semiconductor company, reported a second-quarter loss on Tuesday, as profit was offset by a major fine imposed by the European Union.
* Standard & Poor's Ratings Services on Tuesday said its rating on Goldman Sachs Group was not affected by the bank's "very strong" second-quarter earnings report. "Although Goldman Sachs may well continue outperforming its close peers, we don't consider its first-half results to be sustainable," S&P said.
* Facebook - 'The Accidental Billionaires'
* Intel Corp., the world's largest semiconductor company, reported a second-quarter loss on Tuesday, as profit was offset by a major fine imposed by the European Union.
* Standard & Poor's Ratings Services on Tuesday said its rating on Goldman Sachs Group was not affected by the bank's "very strong" second-quarter earnings report. "Although Goldman Sachs may well continue outperforming its close peers, we don't consider its first-half results to be sustainable," S&P said.
* Facebook - 'The Accidental Billionaires'
UK Inflation Drops / German Consumer Confidence Dips
A key measure of inflation has fallen below the Bank of England’s target rate of 2% for the first time since 2007. Lower food prices caused the Consumer Prices Index (CPI) to drop to an annual rate of 1.8% in June from 2.2% in May, official statistics showed.
German investor confidence unexpectedly declined to 39.5 in July from 44.8 in June., suggesting the recovery in Europe’s largest economy may take longer to materialize. German government says GDP will plunge 6% this year, most since World War II, even as the economy shows signs of stabilizing
Singapore economy Growing at 20%
Preliminary Government Data shows Singapore economy Grew at 20.4% in April to June Quarter , its fastet pace in almost 6 years. Singapore Government revised its growth forecast for economy to contract by 4-6%, against Earlier projection of a 6- 9 % contraction.
Goldman Sachs posts Smashing Results
Goldman Sachs reported earnings per share of $4.93 or a Second-quarter net income of $3.44 billion, easily beating analysts expectations.Results were boosted by revenues from record high trading and stock Underwriting.
The company reported record revenues across a spectrum of its business interests, Goldman Sachs is the fifth-biggest U.S. bank in terms of assets
US Retail Sales rise
Commerce Department data on Tuesday showed sales at U.S. retailers rose 0.6 percent from a month earlier, ahead of economists’ expectations for a 0.4 percent advance.
Mean While PPI(Producer Price Index) Rose twice as much as expected levels, report from the Labor Department showed producer prices jumped 1.8 percent last month, against forecasts for a 0.9 percent gain.
News Today - July 13
* Goldman Sachs , which only recently paid back its government bailout money, will report blowout profits from trading, the New York Times reports.
* China has for the first time overtaken the United States as the world’s largest auto market with sales of locally-made vehicles surging 17.7% to 6.1 million units in the first six months this year.
* US Treasury Secretary Timothy Geithner said it was too soon to decide whether the US economy would need the help of a second round of government stimulus to recover from recession.
* Singapore’s economy probably expanded for the first time in five quarters as a rebound in manufacturing helped the Southeast Asian nation emerge from its worst recession since independence in 1965. Gross domestic product rose an annualized 13.4 percent last quarter from the previous three months, after shrinking 14.6 percent between January and March, according to the median estimate of 12 economists surveyed by Bloomberg News.
* China has for the first time overtaken the United States as the world’s largest auto market with sales of locally-made vehicles surging 17.7% to 6.1 million units in the first six months this year.
* US Treasury Secretary Timothy Geithner said it was too soon to decide whether the US economy would need the help of a second round of government stimulus to recover from recession.
* Singapore’s economy probably expanded for the first time in five quarters as a rebound in manufacturing helped the Southeast Asian nation emerge from its worst recession since independence in 1965. Gross domestic product rose an annualized 13.4 percent last quarter from the previous three months, after shrinking 14.6 percent between January and March, according to the median estimate of 12 economists surveyed by Bloomberg News.
China’s Exports Slide for Eighth Month
(Bloomberg) -- China’s exports fell for an eighth month as the global recession cut demand, highlighting the economy’s dependence on stimulus spending to revive growth.
Overseas sales slid 21.4 percent in June from a year earlier, the customs bureau said today on its Web site, after a record 26.4 percent drop in May
Imports fell a less-than-estimated 13.2 percent, the smallest decline in eight months, signaling that the worst may almost be over for the nation’s trade. China, the world’s second-biggest exporter, has stalled gains by the yuan against the dollar and increased export-tax rebates as the government’s 4 trillion yuan ($585 billion) stimulus package drives an economic recovery.
News Today - July 10
* China called for reform of the reserve currency system at a meeting of world leaders in one of its most direct attacks on the dollar's global dominance.
* Japan's benchmark measure of wholesale prices falls a record 6.6% on year in June, a larger drop than most had forecast.
* Infosys reported a 17.2 per cent rise in quarterly profit, beating market expectations, as it boosted sales in newer markets.
* The Bank of Korea says the country’s economy will likely shrink by far less than it previously forecast, partly thanks to government stimulus.
* US First-time claims for unemployment benefits fall to the lowest since January, but indicative of how tough the job market is, the number of folks continuing to collect state benefits hits another record high
* Japan's benchmark measure of wholesale prices falls a record 6.6% on year in June, a larger drop than most had forecast.
* Infosys reported a 17.2 per cent rise in quarterly profit, beating market expectations, as it boosted sales in newer markets.
* The Bank of Korea says the country’s economy will likely shrink by far less than it previously forecast, partly thanks to government stimulus.
* US First-time claims for unemployment benefits fall to the lowest since January, but indicative of how tough the job market is, the number of folks continuing to collect state benefits hits another record high
Dollar To remain as Reserve currency
(Bloomberg) -- The U.S. dollar will remain the world’s main reserve currency, White House Press Secretary Robert gibbs said at the G8 Summit today.
“Despite whatever talk you might have heard, I don’t see that there is movement away from the notion of the dollar being that currency,” Gibbs told reporters at a briefing at the start of the second day of the three-day meeting in L’Aquila, Italy.
More at http://www.bloomberg.com/apps/news?pid=20601087&sid=aV.el0K0BlAw
News Today - July 09
* The fragile recovery from the worst global recession since World War Two will slowly pick up pace into next year, the IMF said, but world leaders agreed stimulus spending must remain in place until recovery is secure.
* South Korean central bank keeps its policy rate at the historic low of 2%, as the economy shows improvement, with a hike possible next year
* Chinese banks' new loans made during June shoot dramatically higher from May levels, new government data show.
* A top Democratic lawmaker questions if the Obama economic stimulus plan is working as intended, as more concern surfaces about the effectiveness of the huge recovery package.
* Australia's jobless rate inched up to a seasonally adjusted 5.8% in June from 5.7% in May, as the total number of employed fell 21,400, according to data released Thursday by Australian Bureau of Statistics. The jobless rate is the highest since 2003.
* South Korean central bank keeps its policy rate at the historic low of 2%, as the economy shows improvement, with a hike possible next year
* Chinese banks' new loans made during June shoot dramatically higher from May levels, new government data show.
* A top Democratic lawmaker questions if the Obama economic stimulus plan is working as intended, as more concern surfaces about the effectiveness of the huge recovery package.
* Australia's jobless rate inched up to a seasonally adjusted 5.8% in June from 5.7% in May, as the total number of employed fell 21,400, according to data released Thursday by Australian Bureau of Statistics. The jobless rate is the highest since 2003.
Green shoots or Yellow Weeds ?
The US unemployment report released on Thursday last week has raised doubts on the hopes of a quick economic recovery in the developed world, US Job market continues to be extremely weak with Job losses at over 460,000 in June. The Unemployment rate has hit 9.5%, US government expects it to reach 10% in few months. Although Unemployment is considered to be a lagging Indicator it is hard to see how a recovery even if it comes will be sustainable with reduced consumer spending as unemployment will have a significant effect on consumer confidence & spending. The stress tests conducted earlier to check the health of lending Institutions and Banks had factored in unemployment rate of 10.3% as worst case scenario which now seems surpass able. Mean while the Unemployment rate in Europe zone has hit a 10 year high of 9.5% as well, ECB expects economic recovery only in mid 2010.
Not everyone agree to the “Green shoots” argument in the first place, Billionaire Investor Warren Buffet earlier in an interview said he is yet to see any green shoots and expects economic activity to be weak for some time to come. Noted Economist and Nobel Laureate Paul Krugman says that Obama Administration needs to work on getting the stimulus plan bigger to avoid a repeat of 1930’s type of scenario, He also adds that risk of deflation still looms. US Vice President Joe Biden admitted that they misread the state of the Economy when putting together the stimulus package.
The second half recovery as expected by optimists now seems to be an uncertain thing, some Economists even say a recovery when it comes will be very weak that with high unemployment rate it would still feel like a recession.
In a statement released earlier Indian finance ministry stated that there are signs of turnaround in Indian economy although exports continued to decline, it was also noted that the extent of recovery will depend on the revival of US economy. It is hard to get back to 8-9% growth with a weak export market. The Budget failed to impress the stock markets with indices falling over 5%. The stock markets and commodities were rallying on the hopes of an Economic recovery during the second half of the year, now with uncertainty over the turnaround, and a fundamental lagging behind it is likely that markets will be under pressure till there is a clear picture in the macroeconomic front.
Prakash , sharemarketidea@yahoo.com
Not everyone agree to the “Green shoots” argument in the first place, Billionaire Investor Warren Buffet earlier in an interview said he is yet to see any green shoots and expects economic activity to be weak for some time to come. Noted Economist and Nobel Laureate Paul Krugman says that Obama Administration needs to work on getting the stimulus plan bigger to avoid a repeat of 1930’s type of scenario, He also adds that risk of deflation still looms. US Vice President Joe Biden admitted that they misread the state of the Economy when putting together the stimulus package.
The second half recovery as expected by optimists now seems to be an uncertain thing, some Economists even say a recovery when it comes will be very weak that with high unemployment rate it would still feel like a recession.
In a statement released earlier Indian finance ministry stated that there are signs of turnaround in Indian economy although exports continued to decline, it was also noted that the extent of recovery will depend on the revival of US economy. It is hard to get back to 8-9% growth with a weak export market. The Budget failed to impress the stock markets with indices falling over 5%. The stock markets and commodities were rallying on the hopes of an Economic recovery during the second half of the year, now with uncertainty over the turnaround, and a fundamental lagging behind it is likely that markets will be under pressure till there is a clear picture in the macroeconomic front.
Prakash , sharemarketidea@yahoo.com
News Today - July 08
* Leaders from the Group of Eight major industrial nations will warn against complacency over economic recovery when they begin an annual summit on Wednesday.The three days of talks will aim to find common ground on a broad range of issues, from tackling global warming to boosting farm aid and from reviving international trade talks to dealing with Iran's nuclear ambitions.
* Contrary to comments made this past weekend by Vice President Joe Biden, President Barack Obama says that the administration did not misread the economic downturn.“We haven't always gotten the numbers right, but I think the general overview is right,” Obama said.
* New data suggests Japanese companies continue to suffer from the recession, making it more likely the Bank of Japan will extend its liquidity-boosting programs.
* Oil remained under 63 dollars a barrel in Asian trade on Wednesday amid rising concerns that a recovery from the worldwide recession was unlikely to happen soon.
* The United States may need a second stimulus package focusing on infrastructure projects to put the world's biggest economy firmly on the path to recovery, Laura Tyson, a member of US President Barack Obama's Economic Advisory Panel said here Tuesday.
* Contrary to comments made this past weekend by Vice President Joe Biden, President Barack Obama says that the administration did not misread the economic downturn.“We haven't always gotten the numbers right, but I think the general overview is right,” Obama said.
* New data suggests Japanese companies continue to suffer from the recession, making it more likely the Bank of Japan will extend its liquidity-boosting programs.
* Oil remained under 63 dollars a barrel in Asian trade on Wednesday amid rising concerns that a recovery from the worldwide recession was unlikely to happen soon.
* The United States may need a second stimulus package focusing on infrastructure projects to put the world's biggest economy firmly on the path to recovery, Laura Tyson, a member of US President Barack Obama's Economic Advisory Panel said here Tuesday.
Link Dumps - 6.7.09
Sensex biggest Budget day fall, down 870pts ( ET )
Highlights of Union Budget 2009-10 ( ET )
Pound drops to one-month low against dollar (FT )
Earnings Dropped Worldwide in Second Quarter as Job Losses Hurt Consumers ( Bloomberg )
Bank of America Topples UBS as World Wealth Manager ( Cnbc )
News Today - July 06
* US Vice President Joe Biden said in a broadcast interview Sunday that administration officials "misread how bad the economy was," when the stimulus package was being put together at the beginning of the year. Unemployment, at 9.5%, is far higher that the 8% top promised at the time the stimulus was passed. But Biden said in an ABC interview it was too early to say whether additional stimulus money was needed, noting that billions of dollars in projects included in the current bill won't come online until September.
* France and Russia urged a debate about the world's reserve currencies, but China said the dollar would keep its pre-eminence for "many years to come."
* After worse-than-expected U.S. non-farm payroll data, Michael Woolfolk, senior currency strategist at Bank of NY Mellon, tells CNBC the U.S. economy is nowhere near recovery.
* Alcoa, the aluminum producer whose results are traditionally viewed as an indicator of the country's economic health, is expected to post a third consecutive quarterly loss this week.
* France and Russia urged a debate about the world's reserve currencies, but China said the dollar would keep its pre-eminence for "many years to come."
* After worse-than-expected U.S. non-farm payroll data, Michael Woolfolk, senior currency strategist at Bank of NY Mellon, tells CNBC the U.S. economy is nowhere near recovery.
* Alcoa, the aluminum producer whose results are traditionally viewed as an indicator of the country's economic health, is expected to post a third consecutive quarterly loss this week.
India raises concern over U.S. Dollar Dominance
(Bloomberg) -- Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.
“The major part of Indian reserves is in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview yesterday in Aix-en-Provence, France, where he was attending an economic conference.
Singh is preparing to join leaders from the Group of Eight industrialized nations -- the U.S., Japan, Germany, Britain, France, Italy, Canada and Russia -- at a summit in Italy next week which is due to tackle the global economy. China and Brazil will also send representatives to the summit.
Keep reading... http://www.bloomberg.com/apps/news?pid=20601087&sid=aR7yfqUwTb4M
News Today - July 03
* The U.S. economy shed jobs at a faster pace in June than in May, suggesting that the turnaround in the economy may take longer than expected,Unemployment rate hits 9.5%.
*With joblessness rising, President Barack Obama said Thursday he was "deeply concerned" about unemployment and conceded that too many families are worried about "whether they will be next" to suffer economically.
* Japan's newly appointed economy minister says new jobs data show the U.S. has yet to hit bottom and that this is a big concern for Tokyo.
* General Motors could make a swift exit from bankruptcy, potentially as soon as this month, paving the way for an initial public offering of stock sometime next year, according to published reports.
* Reserve Bank of India (RBI) governor D Subbarao has lambasted the weaknesses in the country’s data system that are posing challenges to monetary policy formulation.
*With joblessness rising, President Barack Obama said Thursday he was "deeply concerned" about unemployment and conceded that too many families are worried about "whether they will be next" to suffer economically.
* Japan's newly appointed economy minister says new jobs data show the U.S. has yet to hit bottom and that this is a big concern for Tokyo.
* General Motors could make a swift exit from bankruptcy, potentially as soon as this month, paving the way for an initial public offering of stock sometime next year, according to published reports.
* Reserve Bank of India (RBI) governor D Subbarao has lambasted the weaknesses in the country’s data system that are posing challenges to monetary policy formulation.
May 2009 Euro zone unemployment up to 9.5%
The euro area (EA16) seasonally-adjusted unemployment rate 2 was 9.5% in May 2009, compared with 9.3% in April 3 . It was 7.4% in May 2008. For the euro area this is the highest rate since May 1999.
ECB Expects 2010 Recovery
(Bloomberg) -- European Central Bank President Jean- Claude Trichet said interest rates at current levels are “appropriate” and the euro region’s economy will start to recover in the middle of 2010.
“The current rates are appropriate,” Trichet said at a press conference in Luxembourg after the ECB left its benchmark rate at a record low of 1 percent. “After a phase of stabilization, a phase of recovery is expected around mid- 2010.” Inflation pressures will be “dampened,” he said.
Source : http://www.bloomberg.com/apps/news?pid=20601087&sid=a1tv7T.vrvGo
US Unemployment Rate at 9.5%
Employers cut 467,000 jobs in June, far more than expected, while the unemployment rate rose to 9.5 percent, the government said on Thursday in a report that showed a labor market continuing to struggle with a deep recession.
The June job losses were more than 100,000 greater than the 363,000 consensus of Wall Street economists polled by Reuters and broke a four-month trend of moderation in job losses.
First-time claims for state unemployment benefits declined in the latest week, almost completely reversing the gain from the prior week, the Labor Department reported Thursday. The number of initial claims in the week ending June 27 fell 16,000 to 614,000, quite close to the consensus of Wall Street economists. Claims in the previous week were revised to an increase of 18,000 to 630,000 compared with the initial estimate of a increase of 15,000 to 627,000. This increase had surprised analysts. The four-week average of initial claims fell 2,750 to 615,250
News Today - July 01
* China’s manufacturing expanded for a fourth month as a 4 trillion yuan ($585 billion) stimulus plan and record bank lending revive the world’s third-largest economy.
* The U.S. recession is likely to end later in 2009, ushering in a "frustratingly slow" recovery marked by continued high unemployment, a top Federal Reserve official said on Tuesday.
* Japan's large manufacturers become more optimistic for the first time since December 2006, the Bank of Japan's quarterly tankan survey shows, though the result misses expectations.
* Billionaire investor George Soros Tuesday predicted a "stop-go" economy for the United States, saying fears of inflation will drive up interest rates and choke off growth
* World Bank President Robert Zoellick said on Tuesday that financial markets are showing signs of stabilization, but warned that the Recession was far from over in developing countries.
* The U.S. recession is likely to end later in 2009, ushering in a "frustratingly slow" recovery marked by continued high unemployment, a top Federal Reserve official said on Tuesday.
* Japan's large manufacturers become more optimistic for the first time since December 2006, the Bank of Japan's quarterly tankan survey shows, though the result misses expectations.
* Billionaire investor George Soros Tuesday predicted a "stop-go" economy for the United States, saying fears of inflation will drive up interest rates and choke off growth
* World Bank President Robert Zoellick said on Tuesday that financial markets are showing signs of stabilization, but warned that the Recession was far from over in developing countries.
