- FT.com – Australia GDP rises 0.4% in first quarter
“Australia has defied international trends to record a 0.4 per cent rise in gross domestic product for the first quarter compared to the same period last year, with economic growth salvaged by strong exports, robust retail sales and the government’s fiscal stimulus measures.”
- FT.com – Labour in chaos as ministers jump ship
This reminds me a lot of the scandals surrounding the Helmut Kohl government after it had been in power for 14 years. Eventually, a new government is necessary. Labour have had control for 12 years now. Isn’t this the expected outcome?
- Mysterious Actions in the Bond Market – Chris Martenson
Here’s a quote you can take to the bank: “Stocks are for show and bonds are for dough. This bears watching.” You have to wonder why central banks are buying up treasurys here.
- For White Customers, Prices Get Fishy – Real Time Economics
Basically, in America, white people pay more.
- Dr Not-so-Doom: Did I say ‘Zimbabwe’? – Gwen Robinson, FT Alphaville
It seems Faber was completely full of it when he was talking Zimbabwe last week. Gwen Robinson has the goods from his latest monthly missive and it sounds a lot more sensible.
- Chinese Company Said to Be Buyer of Hummer – NYTimes
“General Motors has reached a preliminary agreement for the sale of its Hummer brand of large sport utility vehicles and pickup trucks to a machinery company in western China with ambitions to become a carmaker, a person with knowledge of the Chinese government approval process said Tuesday.”
- For Sale In … Warsaw – NYTimes
Are you willing to pay nearly $1 million for a 2 bedroom on street level in a building that dates from 1906 in Warsaw? I didn’t think so. But, that’s what one is for sale for. More evidence that prices in the CEE are out of control.
- Germany’s Merkel Calls for Central-Bank Sensibility – Real Time Economics
“German Chancellor Angela Merkel delivered a rare rebuke of recent central-bank policy Tuesday, saying monetary policy makers’ measures to stem the current financial crisis could lay the groundwork for the next one.”
- Help: Why Are SUVs More Profitable? – The Baseline Scenario
This is a good post not just for James Kwak’s analysis but also for the comments that follow. Take a look.
- Julian Robertson: depression and explosive inflation possible – Rolfe Winkler
add Julian Robertson to the list of Inflationistas
- Eurozone unemployment hits 10-year high – Guardian
“Unemployment in the eurozone rose to nearly 10% of the workforce last month as businesses continued to shed staff in the face of the worst global downturn since the second world war.”
- Wages decline for 11th straight month | The Japan Times Online
Wages are the most important link in the chain to recovery. And its not looking good for Japan. “Wages fell for the 11th month in a row in April, extending their longest losing streak in five years and indicating households will pare spending further in the coming months.”
- Record jump for housing construction – Telegraph
“Data showed residential construction almost stopped declining in May and business expectations in the sector were the highest since August 2007. Housing activity on the well-respected construction Purchasing Managers’ Index (PMI) jumped by a record 14.8 points to 48.5 in May, from 33.7 in April. “
- Pound Rises to Seven-Month High on Evidence of Housing Recovery
Bloomberg says: “The British currency advanced to $1.6560 by 5:47 p.m. in London, after reaching $1.6577 earlier, the highest level since Oct. 30, from $1.6443 yesterday.” But, the Euro, Swiss Franc, Australian Dollar and Canadian Dollar all are rising against the USD. This is a case of USD weakness more than Sterling strength.
- B of A, JPMorgan, others raise $19 billion
“Bank of America Corp, JPMorgan Chase & Co and several other banks said they have raised more than $19 billion as lenders scramble to extricate themselves from Washington’s grip.”
- FT.com – Zapatero plan trims Spanish unemployment
“Spain’s registered unemployment fell in May for the first time in 14 months, as an €8bn job creation plan introduced by the government to soften the effects of the economic crisis took effect, labour ministry figures showed on Tuesday.”
- FT.com – BBVA offers staff five years’ leave
“BBVA, Spain’s second-biggest bank, has posed that question to staff as part of its latest cost-cutting drive. It is hoping at least some of its 29,954 Spanish employees agree not to come to work for up to five years – in exchange for nearly a third of their usual salary and a guaranteed job when they return.”
- Switzerland goes into recession
“Switzerland has entered recession after official figures showed that the country’s economy shrank by 0.8% in the first three months of 2009.”
- Global house prices drop further
“House prices around the world dropped further in the first quarter of 2009 as the global recession worsened, with Latvia seeing the largest falls.”