Quick Overview

• Fitch cut its credit rating for Spain from AAA to AA+
  

• U.S. personal incomes rose 0.4% in April.
  
• U.S. Consumer spending was unchanged in April, weaker than expected.
  
• The Chicago Purchasing Managers' index fell from 63.8 to 59.7 in May
  
• The University of Michigan's index of consumer confidence rose from 72.2 to 73.6 in May
  

• Japan's unemployment rate rose from 5.0% to 5.1% in April.
  
• YoY Japan’s consumer prices fell 1.2% in April
  
• YoY Japan’s household spending fell 0.7% in April.
  

• (Bloomberg) -- The global refined sugar market will stay in deficit this year, with import demand exceeding available exports by 1 million metric tons, even as raw-sugar production expands, said Kingsman SA.
  
• The global sugar market may have a surplus of 2.5 million tons in the year beginning Oct. 1, compared with a deficit of 8.5 million tons this year, the International Sugar Organization said May 14. Excess supply in 2010-2011 may be 6 million tons, Sucres et Denrees SA said April 30.

• Silver prices are likely to hit $20 a troy ounce this year supported by “double-digit” growth in industrial consumption and strong investment demand, according to GFMS.
  

• YoY U.S. Truck tonnage rose 7.5% in April -- the fifth straight year-to-year increase and the largest gain in more than five years, American Trucking Associations said Friday.

Spain is trapped in a 'perverse spiral' as wage cuts deepen the crisis This can end only in two ways. Either Germany tolerates massive monetary reflation by the ECB or Spain will be forced out of EMU, setting off a catastrophic chain-reaction through north Europe's banking system.

Updates Resume May 30

EU Crafts $928 Billion Show of Force to Halt Crisis
(Bloomberg) -- European finance ministers put together an unprecedented loan package that may be worth 720 billion euros ($928 billion) for debt-swamped governments in a bid to restore faith in the euro and prevent Greece’s fiscal woes from unleashing a global crisis.

EU Finance Ministers Race to Ready Euro Fund Before Asia Opens

Jolted into action by last week’s slide in the currency to the lowest in 14 months and soaring bond yields in Portugal and Spain, leaders of the 16 euro nations agreed to the financial backstop at a May 7 summit. They assigned finance chiefs to get it ready before Asian markets open later today European time.

“We will defend the euro, whatever it takes,”

Quick Overview

• (Reuters) - U.S. nonfarm payrolls grew at the fastest pace in four years in April as private sector employers ramped up hiring, raising the strong possibility that the labor market recovery may be picking up steam.
  

• UK general elections fail to produce a clear mandate
  

• Spain’s economy crept out of recession in the first quarter of 2010 after nearly two years of decline, according to a preliminary estimate by the Bank of Spain GDP rose 0.1% in Q1.
  

• China faces first drop in wheat harvest since 2003. Frost and drought have taken their toll on the world's top wheat producer, Rabobank says in a report noting better prospects for corn
  
  
  

ECB paralysis rattles markets as debt costs hit new highs
"Governor Trichet came very close to saying that the current mess is not the ECB's problem," said Lars Rasmussen from Danske Banke.
.."It is no coincidence that the Greek crisis really took off when the ECB announced the end of its emergency liquidity measures in early December. Failure to tackle the crisis early and decisively has brought to the fore the risk of a sovereign default and the risk that one or more countries will leave the euro area. This is a lesson markets will not forget," he said.

Quick Overview

• Greek lawmakers approved the government's 30 billion euro ($40 billion) austerity bill in a vote in parliament.
  

• US equity prices whipsawed (BID from $30 to $100,000, ACN from $40 to $0) in value before closing sharply lower during a wild day on Wall Street that prompted leading stock exchanges to cancel some trades amid fears of trader errors and computer malfunctions.
  

• (Reuters) - Nasdaq Operations said it will cancel all trades executed between 2:40 p.m. to 3 p.m. showing a rise or fall of more than 60 percent from the last trade in that security at 2:40 p.m or immediately prior.
  

• U.S. non-farm productivity rose at an annual rate of 3.6% in Q1 and up 6.3% YoY
  

• July lumber ended down its $10 daily limit at $285.50, hurt by today's commodities sell off.
  

• Brazil's estimates the upcoming coffee crop at 47 million bags
  

• Citrus Processors Report said there were 126.96 million gallons of frozen concentrated orange juice in inventory on April 24th
  

• Services in the U.K. fell from 56.5 to 55.3 in April
  

• Australia's retail sales rose 0.3% in March.
  

• International Cotton Advisory Committee said global cotton production in the coming season will leap 13% in reaction to surging prices.

Quick Overview

• The Institute of Supply Management's index of services stayed at 55.4 in April
  

• US mortgage applications rose 13% last week as buyers rushed to secure federal tax credits.
  

• EU retail unchanged in March and up 0.3% YoY.
  

• EU manufacturing and services increased from 55.9 to 57.3 in April
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 2.8 million barrels last week to 360.6 million barrels
  Supplies of gasoline rose 1.2 million barrels
  Supplies of heating oil were unchanged.
  Refinery use rose from 89.0% to 89.6%.
  Gasoline demand rose 3.5% YoY
  Distillate demand rose 5.1% YoY
  

• (Bloomberg) Some analysts interviewed expect a shortage of corn and cotton to occur sometime this year in China.
  

Euro plunges as Club Med debt fears spread Stephen Jen from BlueGold Capital, said the Greek rescue "kicks the can down the road" for three or six months but will not prevent a default in Greece and "probably Portugal". "Greece's bonds are 'Zombie Bonds' and can only be artificially and temporarily propped up," he said. Italy and Spain are safe only if they "use their time well".

Quick Overview

• U.S. factory orders rose 1.3% in March
  

• U.S. pending home sales rose 5.3% in March and up 21.1% YoY
  

• Manufacturing in China fell from 57.0 to 55.4 in April
  

• Australia increased its interest rate from 4.25% to 4.50%

Quick Overview

• The EU and IMF finally put together a Greek bailout of 110 billion Euros.
  

• Manufacturing for the Euro area rose from 56.6 to 57.6 in April
  

• Manufacturing in Australia rose from 50.5 to 59.8 in April
  

• U.S. personal incomes rose 0.3% in March
  

• U.S. consumer spending rose 0.6%.
  

• U.S. manufacturing (ISM) rose from 59.6 to 60.4
  

• U.S. construction spending rose 0.2% MoM, but fell 12.3% YoY
  

• China will raise reserve requirement 0.50% to 17%.
  

• Australian mining shares fell after the government slapped a 40% tax on profits.
  

Buffett Says Derivatives Law May Spare Berkshire on Collateral
“If for any reason the Treasury should go back and, in a more sweeping declaration, decide all past contracts be collateralized we would comply, naturally,” Buffett said. “And it will be no problem.”

(Warren, max leverage of about 16 to 1 at the CME would be just about right for you as well. Why don’t you lead by example?)

Quick Overview

• U.S. GDP rose 0.8% in Q1 and up 2.5% YoY

• The University of Michigan's index of consumer sentiment rose from 69.5 to 72.2
  

• The Chicago Purchasing Managers Index rose from 58.8 to 63.8 in April,
  

• YoY Japan's consumer prices fell 1.1% in March
  

• Japans unemployment rate rose from 4.9% to 5.0%
  

• Spain's unemployment rate rose from 18.8% to 20.1%
  

• Canada’s GDP rose 0.3% MoM and 1.8% YoY.
  

• Danish shipping giant A.P.Møller-Maersk is ready to launch an offensive and invest in new acquisitions if suitable objects emerge in the wake of the financial crisis. According to the group's chairman of the board Michael Pram Rasmussen, Maersk has the financial strength to make acquisitions.
  

• U.S. ethanol refiners are using more corn to make Ethanol. Production was 32% higher YoY.
  

• Gold rose to a new high for the year amid concerns over euro zone debt problems.

Quick Overview

• DJ Louisiana Parish Pres: Spill To Hit Pass-a-Loutre Nature Reserve Late Thu
  

• U.S. jobless claims fell 11,000 last week to 448,000.
  
  

• Brazil's Ag Ministry, predicted that sugar production will be up 17% in 2010-2011
  

• Germany's unemployment rate improved from 8.0% to 7.8% in April.

• Japan's coastguard seeks to arrest environmental activist Paul Watson for disrupting whale hunts, reports say.

• The US Coast Guard investigates reports that oil has begun washing ashore on the Gulf Coast
  

EMU domino fears as Spain downgraded, Germany drags feet on rescue Europe risks the biggest coordination failure in modern history,” said David Simmonds, research chief at RBS. The Berlin talks are as vague as ever. “We believe that markets will remain very sceptical.”

Quick Overview

• The Mortgage Bankers Association's index of mortgage applications fell 2.9% last week.
  

• China's Ag Ministry said that snow in northeastern China will delay planting by more than ten days.
  

• The USDA have confirmed a sale of 115,000 MT of old crop US corn to China. US corn into China's ports will be important test with potentially significant implications..how much corn do they intend to purchase, as drought cripples their grain belt and demand rises on a robust economy."
  

• YoY Australia's consumer price index rose 2.9% in Q1
  

• YoY Japan's retail sales rose 4.7% in March

• Republicans blocked progress on financial reform for a third day.
  

• Firms are now able to post physical gold to CME Clearing to cover non-segregated Performance Bond requirements.
  

• Spain became the latest European country to see its credit rating cut.
  

Olive Oil and Snake Oil
In an e-mail to his girlfriend, he called his “Frankenstein” creation “a product of pure intellectual masturbation, the type of thing which you invent telling yourself: ‘Well, what if we created a “thing,” which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?’ ”

Maastricht madhouse fuels EMU-wide contagion from Greece
If so, we will find out soon. Four professors will launch a legal challenge in early May at the Verfassungsgericht (high court). Should they secure an injunction, EMU may fly apart.

Quick Overview

• The S&P/Case-Shiller index of home prices in twenty U.S. cities fell 0.9% MoM, but rose 0.6% YoY
  

• IBM is increasing its dividend payout by 18%
  

• Standard & Poor's downgraded its credit rating on Portugal.

• Greece’s credit rating was cut three steps to junk by Standard and Poor
  

• U,S. consumer confidence irose from 52.3 to 57.9 in April,
  

• The Fed Richmond's regional index of manufacturing increased from +6 to +9 in April
  

• YoY South Korea GDP rose 7.8% in Q1
  

'Serious deficit' could send cocoa to record highs And even growers prepared to invest in plantations, in Ivory Coast or elsewhere, may be tempted to switch to rubber, a crop which can provide year-round income, is less prone to disease and whose price have also soared.

Brain-like computing on an organic molecular layer
The monolayer has intelligence; it can solve many problems on the same grid.

CHINA is expected to become a dominant force in the world animal feed market. Pork consumption has doubled in the past ten years.
Compound feed fed to pigs currently accounts for only about 40 million tonnes, but this could rise to about 180 million tonnes as the feeding of swill is phased out under a "safe meat" policy. Only 40% of all Chinese meat currently complies with this "safe meat" policy, this is expected to reach 80% by 2015.

English will be the official language of the European Union:
Latest news:

The European Commission has just announced an agreement whereby English will be the official language of the European Union rather than German, which was the other possibility.
As part of the negotiations, the British Government conceded that English spelling had some room for improvement and has accepted a 5- year phase-in plan that would become known as 'Euro-English'.

In the first year, 's' will replace the soft 'c'. Sertainly, this will make the sivil servants jump with joy. The hard 'c' will be dropped in favour of 'k'. This should klear up konfusion, and keyboards kan have one less letter. There will be growing publik enthusiasm in the sekond year when the troublesome 'ph' will be replaced with 'f'. Thi s will make words like fotograf 20% shorter.

In the 3rd year, publik akseptanse of the new spelling kan be expekted to reach the stage where more komplikated changes are possible.
Governments will enkourage the removal of double letters which have always ben a deterent to akurate speling.

Also, al wil agre that the horibl mes of the silent 'e' in the languag is disgrasful and it should go away.
By the 4th yer people wil be reseptiv to steps such as
replasing 'th' with 'z' and 'w' with 'v'.

During ze fifz yer, ze unesesary 'o' kan be dropd from vords kontaining 'ou' and after ziz fifz yer, ve vil hav a reil sensibl riten styl.

Zer vil be no mor trubl or difikultis and evrivun vil find it ezi tu understand ech oza. Ze drem of a united urop vil finali kum tru.

Und efter ze fifz yer, ve vil al be speking German like zey vunted in ze forst plas.

If zis mad you smil, pleas pas on to oza pepl.

Quick Overview

• Boosted by a soon-to-expire tax break, low mortgage rates and favorable weather, sales of U.S. new homes surged 27% in March and up 23.8% YoY
  

• Customs authorities said China's exports rose 24.3% in March to US$112.1 billion from the same month a year earlier, while imports soared 66% YoY $119.3 billion. Foreign trade rose 44.1% to $617.85 billion.
  

• The U.S. Commerce Department said that durable goods orders fell 1.3% in March. Excluding transportation, orders rose 2.8%

• U.K. GDP rose 0.2% in Q1 and fell 0 .3% YoY
  

• Canada’s consumer price index rose 1.4%
  Canada’s retail sales rose 0 .5% in February
  

• EU industrial new orders rose 1.1% in February and 12.7% YoY
  

• The USDA said that, as of March 31st, there were 510.5 million pounds of frozen pork in storage, down 14% YoY
  

• The USDA said that 2.21 billion pounds of beef were produced in March, up 3% YoY
  

• The USDA said pork production totaled 2.04 billion pounds, up 4% YoY
  
  
  
  

Fitch warns of debt 'shock' for Japan
The Fitch Report comes two days after the IMF warned that the global banking crisis has mutated into a sovereign debt crisis that risks setting off a second phase of economic turmoil.

Quick Overview

• U.S. jobless claims fell 24,000 last week to 456,000,
  

• U.S. Producer price index rose 0.7% MoM and up 6.0% YoY
  

• U.S. Existing home sales rose 6.8%.
  

• Canada’s leading indicators rose 1.0% in March
  

• Manufacturing and services in the Euro area rose from 55.9 to 57.3
  

• YoY U.K. Retail sales rose 2.2% in March.
  

• The International Grains Council (IGC) sees wheat carryout at the end of 2010/11 at a nine year high of 199 MMT. The increase, despite lower production and higher usage, is due to the 30 MMT increase in opening stocks left over from bumper production in 2008/09.
  Corn ending stocks on the other hand are seen falling from 148 MMt to 140 MMT at the end of 2010/11.

• China's copper imports rose by 53% in March

• Greek debt fears continue to shake world markets

Quick Overview

• The U.S. Mortgage Bankers Association's index of mortgage applications increased 13.6% last week.
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 1.9 million barrels last week to 355.9 million barrels.
  Supplies of gasoline rose 3.6 million barrels
  Supplies of heating oil rose 600,000 barrels.
  Refinery use increased from 85.6% to 85.9% of capacity
  Gasoline demand rose 2.7%
  Distillate demand fell 0.1%

Solar Superstorm
Scientists are finally beginning to properly understand a historic solar storm in 1859. One day, the storm, which was the most potent disruption of Earth's ionosphere in recorded history could happen again

An Eruption of Reality
But beyond a certain level, connectivity becomes a hazard. The longer and more complex the lines of communication and the more dependent we become on production and business elsewhere, the greater the potential for disruption. This is one of the lessons of the banking crisis. Impoverished mortagage defaulters in the United States - the butterfly’s wing over the Atlantic - almost broke the global economy. If the Eyjafjallajoekull volcano - by no means a monster - keeps retching it could, in these fragile times, produce the same effect.

We have several such vulnerabilities. The most catastrophic would be an unexpected coronal mass ejection - a solar storm - which causes a surge of direct current down our electricity grids, taking out the transformers. It could happen in seconds; the damage and collapse would take years to reverse, if we ever recovered. We would soon become aware of our dependence on electricity: an asset which, like oxygen, we notice only when it fails.

Quick Overview

• U.K. Consumer price index rose 3.4%
  

• India raised its interest rate from 5.00% to 5.25%.
  

• Goldman Sachs said that it earned $3.46 billion in Q1, up $1.8 billion YoY
  

• India stopped exporting cotton to protect domestic supplies.
  
  

Germany warns of 'Lehman' crisis if Greece defaults
An administrator of China's foreign exchange fund SAFE – the world's top investor – was quoted by Asia's newswire IGM-FX warning that Greece may set off a chain reaction in the eurozone, and that some states with big debts may default.

Quick Overview

• CitiBank reports its strongest results in three years as Q1 profit surges to $4.43 billion, or 15c a share.
  

• The Conference Board's index of leading indicators rose 1.4% in March
  

• Construction output in the EU fell 2.9% MoM and 10.2% YoY
  

• July lumber closed up its $10 daily limit for the second day

• The SEC split 3 to 2 along party lines to approve an enforcement action against Goldman Sachs.

• PG announced an increase in the quarterly dividend from $0.44 to $0.4818 per share. P&G has been paying a dividend for 120 consecutive years since its incorporation in 1890.

SEC charges Goldman Sachs with fraud
The Wall Street investment bank, which has consistently denied working against its clients, is accused of creating a complex mortgage investment product which was designed to fail.

How an Icelandic volcano helped spark the French Revolution
Then as now, there were more wide-ranging impacts. In Norway, the Netherlands, the British Isles, France, Germany, Italy, Spain, in North America and even Egypt, the Laki eruption had its consequences, as the haze of dust and sulphur particles thrown up by the volcano was carried over much of the northern hemisphere.

Quick Overview

• U.S. jobless claims rose 24,000 last week to 484,000 -- more than expected.
  

• U.S. industrial production was up 0.1% in March and up 4.0% YoY
  

• The Philadelphia Fed's regional index of manufacturing increased from 18.9 to 20.2 in April.
  

• The New York Fed's regional index of manufacturing increased from 22.86 to 31.86 in March -- better than expected.
  
  
  
  
  
  

Quick Overview

• U.S. Retail sales jumped 1.6% -- the largest increase since November as consumers stepped up purchases of vehicles and wide range of goods. January sales were revised up to a 0.5% rise from 0.3%.
  

• U.S. consumer price index was up 0.1% in March and up 2.3% YoY.
  
• U.S. business sales were up 0.3% in February
  
• U.S. Inventories rose 0 .5%
  

• The Mortgage Bankers Association said that its index of mortgage applications fell 9.6% last week
  

• Industrial production in the EU rose 0.7% MoM and up 3.5% YoY
  

• New Zealand retail sales fell 0.6% in February
  

• Germany's cocoa grind saw its third consecutive year-on-year quarterly gain in the first three months of 2010, increasing by 10.31 percent, the association of German confectionery producers BDSI said on Tuesday.
  

• The U.S. DOE said:
  Supplies of crude oil fell 2.2 million barrels 354.0 million barrels.
  Supplies of gasoline fell 1.1 million barrels
  Supplies of heating oil rose 500,000 barrels.
  Refinery use rose from 84.5% to 85.6% of capacity last week.
  Gasoline demand fell 2.8% YoY
  Distillate demand rose 0.4% YoY.

• U.S. foreclosure filings jumped 7% in Q1 of 2010 from the previous quarter, market researcher RealtyTrac said.

• China’s economic growth accelerated to 11.9 per cent in the first quarter

Quick Overview

• (Dow Jones)--Goldman Sachs Group Inc. (GS) Monday cut its three-month gold forecast by 8% and raised its copper price forecast by 4.6%, citing stronger copper demand across Asia, Europe and the U.S.
  

• U.S. exports rose 0.2% in February while imports rose 1.7% . The result was $39.7 billion of net imports, up from $37.0 billion in January.
  

• Canada’s exports rose 2.8% in February while imports rose 0.9%. The result was net exports of C$1.4 billion, up from $754 million in January.
  

• YoY Japan’s producer prices fell 1.3% in March.

• China announced that it will raise fuel prices by 4 to 4.5% tomorrow.
  
  

The Greek people are being punished for Europe's errors
As I write, it appears that EU experts have agreed on a package of €20bn to €25bn at 350 points above the IMF tariff, or 5pc. This achieves nothing. Such wishful thinking has plagued the Greek/EMU crisis from the start. Simon Johnson, the IMF's former chief economist, said Greece needs €110bn to have any hope of pulling itself out of a tail-spin, given that the twin cures of default and devaluation are blocked. Even that may not work. Greece must squeeze a further 13pc of GDP from the budget to stabilise debt costs by 2012, and do so during a slump when every euro of tightening leads to €1.5 to €2 in lost demand. "The risk is of a viscious downward cycle," Mr Johnson wrote in the Huffington Post.

Greece Wins EU45 Billion Aid Pledge to Blunt Crisis
(Bloomberg) -- European governments offered debt- plagued Greece a rescue package worth as much as 45 billion euros ($61 billion) at below-market interest rates in a bid to stem its fiscal crisis and restore confidence in the euro.