Quick Overview

• Russia has a window of opportunity in the next few months to secure entry to the World Trade Organization, says official.
  
  
• Total air cargo shipments rose 3.1% in March compared with a year earlier, following a 1.3% year-over-year drop in February, the Air Transport Association reported.

• The USDA said that 79% of the corn, 26% of the soybeans, and 39% of the cotton crops were planted. 59% of the U.S. winter wheat crop was rated good to excellent, down from 63% a week ago.
  
  
• The Florida Citrus Processors said that there were 148.2 million gallons of frozen orange juice concentrate in inventory as of April 30th, down 16% YoY.
  

• Manufacturing in the U.K. was down 1.6% in March, weaker than expected.
  
  
• Sales at U.S. wholesalers grew by 0.2% in March, while inventories increased 0.4 percent, the Commerce Department estimated Monday. Year-over-year Sales were up 7.2 percent, while inventories increased 10.8 percent.
  
  
• Increasingly Embattled, DeLay Scales Back Usual Power Plays ….threatening his career and the GOP majority he helped to build and sustain since coming to the House 20 years ago. Everywhere there are signs of a politician in retreat…as businesses fret that DeLay may be radioactive
  

• Eighty-eight members of Congress call on Bush for answers on secret Iraq plan"Unfortunately, the mainstream media in the United States was too busy with wall-to-wall coverage of a "runaway bride" to cover a bombshell report out of the British newspapers," Conyers writes. "The London Times reports that the British government and the United States government had secretly agreed to attack Iraq in 2002, before authorization was sought for such an attack in Congress, and had discussed creating pretextual justifications for doing so."
  
  
• Amid rising gas prices, makers warm to diesel cars Diesels use 20 percent to 40 percent less fuel than comparable gasoline engines. And diesel fuel coming to market starting this year will have lower sulfur content, reducing emissions dramatically.
  
  
• Chile April Trade Surplus Widens on Demand for Copper
  Chile, the world's largest copper producer, said its trade surplus widened more than analysts expected in April after copper prices surged to 16-year highs.
  
  

US tourism ‘losing billions because of image
The US is losing billions of dollars as international tourists are deterred from visiting the US because of a tarnished image overseas and more bureaucratic visa policies, travel industry leaders have warned.

Only in Argentina ? ? ? ? ? Foreign debt museum opens doors
"I liked best the black hole with everything the debt swallowed -- education, families, jobs," said Fabian Jader, 34, an opening night visitor. "I feel anger and pity for the people, but above all helplessness." ...."People know absolutely nothing about how we accumulated all this debt, they only know about the misery they have seen lately," said museum director Simon Pristupin...

Freedom slips another notch

In case you hadn't noticed, the United States is turning into one of those countries where citizens can't turn around without showing their "papers."...In America, having papers has never been especially important. Until now.

US carmakers extend currency campaign
US carmakers are using growing congressional anger over the weak Chinese renminbi to boost pressure on Japan and South Korea to revalue their currencies as well, a move they hope could ease competitive pressures on the beleaguered US industry.

US defence budget will equal ROW combined "within 12 months
Defence expenditure in the US will equal that of the rest of the world combined within 12 months, making it "increasingly pressing" for European contractors to develop a "closer association" with the US, corporate finance group PricewaterhouseCoopers (PwC) says.
The US defence budget reached US$417.4 billion in 2003 - 46 per cent of the global total.

Quick Overview

• U.S. Nonfarm payroll employment rose a stronger than expected 274,000 in April, and the unemployment rate held at 5.2 percent. Jobs in the previous two months were revised up by a total 93,000. Stock traders seem to interpret much stronger-than-expected Apr. job growth as a sure sign that the Fed will continue raising interest rates.
  
  
• Tokyo's food safety commission said it would recommend the government waive mad cow disease tests for cattle younger than 21 months, a move toward lifting the ban on American beef imports to Japan.
  

• Lobbyist Had Close Contact With Bush Team
  As for the number of Abramoff lobbying team contacts with Bush officials documented in the billing records, Healy said: "We do not know how he defines 'contacts.'"
  

• Study finds decline in global press freedom .. USA is ranked 24th
  
  
• Canada's unemployment rate fell from 6.9% to 6.8% in April, the lowest in over four years.
  
  
• Manufacturing orders in Germany were up 2.2% in March, stronger than expected.
  
  
  
  

Website of the day
Moving through space, an amazing animation.

New Zealand first to levy carbon tax
The tax, planned after New Zealand signed up to the Kyoto protocol, would make polluting energy sources such as coal and oil more expensive than cleaner ones such as hydro, wind and solar..

Hedge funds get Greenspan warning on leverage
"To them, it may all seem OK until someone gets into a car crash," Bianco said, adding that Greenspan's comments in his prepared text closely mirrored what he said less than two months before LTCM collapsed.

85.5 Trillion

Tax Receipts Exceed Treasury Predictions The Treasury Department this week reported there would be a $54 billion swing from projected deficit to surplus in the April-to-June quarter, after an unanticipated gush of tax payments poured into the Treasury before the April 15 deadline.

Truths collide The uncensored Pentagon report at least allows the international public to know that there were no less than 15,527 attacks on the occupation forces from July 2004 to March 2005. In Baghdad alone, from November to March 12, there were 2,404 attacks.

Quick Overview

• Nonfarm business productivity grew at a seasonally adjusted annual rate of 2.6% from January through March, the Labor Department said Thursday. That was up from a 2.1% rate in the preceding three months. The growth of unit labor costs accelerated, climbing to a 2.2% rate that was the largest in six months. In the year through March, those costs were up 2.5% - the highest rate in nearly four years.
  
  
• Standard & Poor's Ratings Services cut its corporate credit ratings to junk status for both General Motors Corp. and Ford Motor Co., a decision that will increase borrowing costs and limit fund-raising options for the nation's two biggest automakers.
  
  
• Chile's economy expanded 5.0 percent in March, the slowest growth since February 2004.

• International trade through the Los Angeles region will grow by more than 14% this year to a record $302.1 billion, according to an economic study released Wednesday, the Associated Press reported.
  

• The U.S. Department of Energy said that underground natural gas supplies were up 39 billion cubic feet last week to 1.455 trillion cubic feet. Supplies are now up 20% from a year ago.
  
  
• Compared to one year ago, U.S. 2004-2005 exports for: Corn went from -7% to -6%. Soybeans went from +17% to +18%. Wheat remained at -10%.Cotton remained at -9%.
  

• USDA Secretary said that he wants to see a national animal identification system in place by 2009. The system would track the origin of all cattle, hogs, and chickens in the U.S.
  

• USDA Secretary also announced new rules allowing greater logging and mining in undeveloped areas of the national forest.
  

• An index of U.K. services fell from 57.0 to 56.5 in April, as expected.
  

• The number of Americans filing new claims for unemployment rose a larger-than-expected 11,000 last week.
  
  
• Finance Minister Sadakazu Tanigaki said on Thursday that deflation continues to plague Japan despite a recovering economy and the government must not relent in its seven-year battle to eradicate it.
  
  
• YoY Brazils April Green Coffee Exports were up 10 percent at 1.71 M Bags.
  

• The DC-96 computer, developed by Orion Multisystems, offers a peak
  computing power of 230 gigaflops and 192 gigabytes of memory for $100,000....

• The tanker market is likely to be the first shipping sector to suffer an oversupply of tonnage, leading to earnings declines for the next three years, Citigroup Smith Barney tanker analyst John Kartsonas has warned.
  
  
  
  
  
  

Is Russia in for an Enron-Style Price Shock?

UES -- which seems to work pretty well as things stand -- is to be broken up into (deep breath here) six national generation companies; 14 territorial generation companies; a state-owned hydro company; a National Grid Company; and local distribution companies. And then the interface between the generation companies and the Grid Company is to be managed by a "transmission system operator," perhaps also an "independent system operator" and a regulator to keep an eye on both.

Quick Overview

• The U.S. DoE said that last weeks crude oil supplies were up 2.6 million barrels to 327.0 million barrels. Unleaded gasoline supplies were up 2.2 million barrels and heating oil supplies were unchanged.

• The Strategic Petroleum Reserve is at 691.2 million barrels, nine million barrels short of the White House's 700 million goal.
  

• The ISM's index of U.S. service sector activity dropped from 63.1 to 61.7 in April - still a sign of growth.
  

• Transport costs between Richards Bay, which has the world's largest coal export terminal, and Rotterdam dropped 7.2 percent last week to $18.62 (R114) a ton.

• The Treasury, faced with large budget deficits, said in a surprise move on Wednesday it is considering regular sales of 30-year bonds, which were suspended in 2001. A decision is expected on August 3rd.
  In Vietnam, the coffee crop is said to be too dry.

• In Brazil, wet weather has delayed the coffee harvest, but it is expected to begin soon.
  

• Billionaire Kirk Kerkorian is offering to more than double his General Motors stake to 8.8 percent in a move that raised investor confidence
  

• The European Central Bank kept its interest rate unchanged at 2.0%, as expected. The rate has not moved for almost two years.
  

• An index of services in the Euro zone slipped from 53.0 to 52.8 in April and retail sales volume in March was up 1.4% from a year ago.
  

• Australia's Reserve Bank kept its official interest rate unchanged at 5.50%
  
  
  
  
  
  
  

Quick Overview

Layoff announcements by U.S. companies fell to their lowest level since Nov. 2000, outplacement firm Challenger Grey & Christmas said Tuesday.

Orders placed with factories rose 0.1% in March, the Commerce Department reported Tuesday.

The Federal Reserve increased the federal funds rate from 2.75% to 3.00%, as expected.

U.S. durable goods orders were down 2.3% in March, a little better than the 2.8% drop in the advanced report.

Quick Overview

• U.S. construction spending increased by a stronger-than-anticipated 0.5% in March, the Commerce Department said Monday.

• The Institute for Supply Management reported that Factory activity in the United States slowed for the fifth straight month in April, the ISM index fell to 53.3% from 55.2% in March

• Brazils government reported a trade surplus of $3.88 billion in April, up from $1.96 billion in the same month last year. Exports in April reached $9.20 billion while imports totaled $5.33 billion.

• South Korea's trade surplus rose in April compared to the previous month as global demand for locally-made products remained strong despite the won's appreciation against the dollar, the government said Sunday. April's trade surplus came to 1.96 billion US dollars, compared to 1.45 billion dollars in the previous month.
  
  
• OPEC's President said that they have increased production from 27.7 to 29.7 million barrels per day in the last month and a half, the highest daily production in 25 years.

• The USDA said that 52% of the corn crop was planted, up from 30% a week ago, and 8% of the soybeans are planted.

• An index of manufacturing in Australia increased from 52.6 to 52.9 in April, the lowest April reading in three years.
  
  
  
  
  

Quick Overview

• There is fresh speculation that China may use the impending Golden Week holidays in the region to ease the renminbi’s peg against the dollar.
  
  
• The University of Michigan's final consumer sentiment index for April dropped to 87.7, the third straight monthly decline and the lowest level since September 2003

• The National Association of Purchasing Management's index of Chicago business activity dropped from 69.2 to 65.6 in April.

• The Labor Department announced that the employment cost index, moderated in the first quarter to a 0.7% increase, down from a 0.8% gain in the last three months of 2004.

• Consumer prices rose 0.5% in March, the largest increase in 15 years. Excluding volatile food and energy prices, however, the core rate of inflation - measured by the personal consumption expenditure price index - increased 0.3%.

• Personal income rose 0.5% in March, versus the 0.4% economists had predicted. Consumer spending, rose 0.6%, versus 0.5% expected.
  

• Canada's GDP increased 0.3% in February and 3.6% YoY.
  
  
  
  

Quick Overview

• During the first quarter the U.S. economy grew at its slowest pace in two years –renewing fears of stagflation.. The economy expanded at a 3.1 % annual rate as consumers and businesses were pinched by rising energy prices. Economist had expected a growth rate of 3.6%.
  

• The U.S. Census Bureau on Thursday reported U.S. March soybean crush totaled 149.7 million bushels, above the average analyst estimate of 148.7 million bushels.

• U.S. March soy oil stocks totaled 1.790 billion pounds, versus analysts
  estimates of 1.779 billion pounds. Soy meal inventories totaled 251,744 tons versus the average analyst estimate of 316,700 short tons.
  
  
• The number of U.S. workers filing for initial unemployment benefits rose by 21,000 in the week ended April 23, reversing three straight weeks of declines, the Labor Department said Thursday
  

• Industrial production in Japan was down 0.3% in March

• The U.S. Department of Energy said that underground supplies of natural gas were up 73 billion cubic feet last week to 1.416 trillion cubic feet. Supplies are up 24% from a year ago.

• The Reserve Bank of India increased its overnight rate from 5.75% to 6.00%, citing rising inflation.

• The World Trade Organization ruled against European sugar subsidies today, saying that the subsidies violate their trade rules. The decision upheld a 2004 ruling that European sugar exporters are getting more in government handouts than allowed.

• The unemployment rate in Germany dropped from 12.5% to 12.0% in April. The number of unemployed fell from 5.18 to 4.97 million.
  
  
  

Quick Overview

• The Commerce Dept. showed a decline in durable goods orders of 2.8% last month - the biggest one-month drop in 2 1/2 years - following a 0.5% gain a month earlier that has been revised to a -0.2%, Excluding transportation, the decline was a less severe 1.0.

• The U.S. DoE said that the U.S. imported 10.9 million barrels of crude oil last week, the third largest amount ever. Crude oil supplies increased 5.5 million barrels to 324.4 million barrels. Unleaded supplies were down 300,000 barrels and heating oil supplies were up 400,000 barrels.

• The USDA report showed that 30% of the U.S. corn crop has been planted, more than was expected.

• Consumer prices in Australia were up 2.4% in the first quarter from a year ago, less of a gain than was expected .

• Overall trucking freight volumes fell 3.3% on a seasonally adjusted basis to 111.6 in March, according to an American Trucking Associations index released Wednesday.

• Asian soybean rust has been found in Georgia, with a positive identification confirmed Wednesday.
  
  
  

Greenspan and Snow are missing good bets

Since only about a quarter of a point separates the yield on the ten-year Treasury from that of the old 30-year bond (now 26 years), it makes sense for the government to issue longer-maturity bonds in order to lengthen the maturity of its debt, as should be the case when debt is growing faster than the economy.
Right now, the Treasury is like the homeowner who takes out an adjustable rate loan at a time when interest rates are rising. It's saving money now -- but it will pay the piper later.

Quick Overview

April consumer confidence was in line with economists' forecasts of 98.0, falling to a reading of 97.7. This is the third consecutive decline and is raising concerns about a potential economic slowdown.

New home sales for March surged 12.2% to a new record of 1.43 mln (consensus 1.19 mln)... reflect ongoing economic strength.

The U.S. Census Bureau is expected to report on Thursday
the U.S. March soybean crush at 148.7 million bushels. If it
does, that would rank as the second highest crush ever for March.


The Renewable Fuels Association said that the U.S. produced 245,000 barrels of ethanol per day in February, a new record high.

China's Ministry of Agriculture said that China will produce 10.0 million tons of sugar in 2004-2005, down slightly from the previous year and less than Chinas consumption.

Six economic institutes in Germany reduced their estimate of 2005 GDP growth for Germany from 1.5% to 0.7%.

The unemployment rate in Japan improved from 4.7% to 4.5% in March.
Japanese Household spending was down 1.1% for the month, and YoY consumer prices were down 0.2% in March.

French President Chirac asks for measures to control the flood of Chinese textile exports to the EU.

RATES for very large crude carriers have peaked and are unlikely to match the euphoric highs seen last year, says Helmut Sohmen, owner of World-Wide Shipping.

CHINA has announced further container terminal expansion by giving the go-ahead for a 2.5m teu facility at Shenzhen, the world’s fourth largest box port city.


If you’re worried about the recent European Union ban on imports of grain from the US you can now breathe a sigh of relief. Tests of Syngenta animal feed and grains imported into the European Union have shown the products to be free of a genetically modified (GMO) strain of maize blocked by the EU, the company said on Tuesday.
U.S. exporters send 3.5 million tonnes of corn gluten feed to Europe each year, a trade worth some 350 million euros ($449 million).

In a dramatic turn of events, the International Monetary Fund (IMF), has joined debt campaigners across the globe by stating clearly that it is in fact possible to sell its vast undervalued (and idle) gold reserves to finance further debt relief for some of the world's poorest countries.
The viability of this proposal, after years of opposition, has been formally recognised by the staff of the IMF in a new paper. The IMF paper, prepared by the Fund's Department of Finance at the request of the major creditor nations last year, was discussed by the IMF Board on 30 April.

UN Nominee Bolton to Undergo Anger Management Therapy With Jack Nicholson
However, the Committee specified that the nominee must first undergo thirty days of "anger management therapy" to help him deal with his feelings.

Quick Overview

Sales of existing homes and condominiums rose by 1 percent in March to the third-highest sales pace on record while the nationwide median price jumped by the largest amount in more than 14 years, a real estate trade group reported Monday.

The average retail price of regular gasoline fell 4.46 cents between April 8 and Friday to $2.24 a gallon, according to the latest Lundberg Survey of filling stations nationwide.

The USDA said that 68% of the winter wheat crop was rated good to excellent, down 1 point from the previous week.

The USDA said that 30% of the corn crop has been planted.

Brazil said that their upcoming coffee crop will total 32.5 million bags, up slightly from the previous estimate.

An index of business confidence in Germany dropped from 94.0 to 93.3 in April, the lowest reading in over a year.

U.S. Prison Population, World's Highest, Up Again
The United States has incarcerated 726 people per 100,000 of its population, seven to 10 times as many as most other democracies. The rate for England is 142 per 100,000, for France 91 and for Japan 58.

It costs around $22,000 to lock up one person for a year. The United States spends about $57 billion annually on its prison and jail system.

Website of the day: The House that Jack Built


A plane trip to London and Scotland in 2000 by beleaguered House Majority Leader Tom Delay was charged to a credit card issued to a Washington lobbyist who is the subject of a federal probe, the Washington Post reported on Sunday.

Quick Overview

Canada's annual inflation rate in March met market expectations, rising to 2.3 percent from 2.1 percent in February, reinforcing beliefs that the Bank of Canada will raise interest rates in the second half of 2005.

Brazil's coffee crop will total 32.46 million 60-kilogram bags in 2005-06 (July-June), according to the latest estimate released by the National Commodities Supply Corp, on Friday. This compares to 38.7 million bags last year.

The USDA said that there were 10.87 million head of cattle on feed, up 1% from a year ago, but less than expected. March placements were down 2.8% and marketing’s were roughly the same as a year ago.

The USDA said that there were 81.3 million pounds of frozen bellies in storage, up 62% from a year ago.

The USDA said Frozen pork totaled 543.4 million pounds, up 21% from a year ago.

ED&F Man said that they still expect world demand for sugar to exceed production in the upcoming year.

The USDA said that there were 1.58 billion pounds of frozen orange juice concentrate in storage on March 31st, down 12% from a year ago.

An index of services in Japan contracted 1% in February after posting a big 2.4% gain in January.

Prime Minister Junichiro Koizumi apologized to China for Japan's wartime atrocities and expressed an interest in improving ties between the two countries.

GDP in the U.K. was up 0 .6% in the first quarter and up 2.8 YoY.

During week of April 16th Tonnage Volume for US railroads reached 33.3 billion ton-miles, up 4.7 percent from the same week in 2004.


Less than two hours before the close, The Wall Street Journal reported that the U.S. had warned China that North Korea could be preparing a nuclear-weapons test.

Earnings for Suezmax tankers in November reached a record of more than US$150,000 a day as global oil consumption grew faster than ship supply.

Quick Overview

The number of U.S. workers filing for initial unemployment benefits fell 36,000 in the week ended April 16, the third consecutive reported decline, the Labor Department said Thursday

Manufacturing in the Philadelphia area rose to 25.3, a Federal Reserve report said Thursday. Orders and shipments also accelerated.

The Bank of Japan said on Thursday the economies of most of Japan's regions are in a mild recovery trend.

The Conference Board reported Thursday that its Composite Index of Leading Economic Indicators fell 0.4 percent last month to 115.1. The decline was slightly larger than that expected.

Retail sales in the U.K. were down 0.1% in March, weaker than expected.

China's president on Thursday urged Asian and African leaders to pursue free trade agreements and open their markets to each other to overcome economic woes plaguing countries on the two continents.

China imported 2.7 million barrels of oil per day in March, up 23% from a year ago

Federal Reserve Chairman Alan Greenspan warned on Thursday that unless lawmakers come to grips with spiraling U.S. deficits, the economy was at risk of stagnation "or worse."

Retail sales in Canada were up 1.7% in February to C$30.4 billion.

The U.S. Department of Energy said that underground natural gas supplies were up 50 billion cubic feet to 1.343 trillion cubic feet. YoY supplies are up 25%.

Quick Overview

The U.S. Consumer Price Index was up 0.6 percent last month - stronger than expected as the costs of energy clothing and airline fares all rose.

China's economy expanded 9.5 percent, faster than expected, putting fresh pressure on Beijing to rein in growth.

Argentina's economy grew a faster than expected 8.6 percent rate in February.

India's weather office on Wednesday forecast normal monsoon rains this year.

Among leading world economies, the U.S. ranks only 11th in Internet users connecting at high-speed. Compared to South Korea, Japan, even Canada, the U.S. is falling behind.

The Department of Energy said in its weekly petroleum supply report that the U.S. supply of crude oil fell last week by 1.8 million barrels to 318.9 million barrels, or 8 percent above year ago levels. Gasoline inventories declined by 1.5 million barrels to 211.6 million barrels, or 5 percent above year ago levels.
The supply of distillate fuel, which includes diesel, was flat at 104 million barrels, or roughly 1 percent above year ago levels, the agency said. Heating oil supplies were up 1.4 million barrels Gasoline demand has averaged more than 9 million barrels a day over the past four weeks, roughly 1.2 percent above year ago levels.

The Federal Reserve's Beige book said that "all twelve Federal Reserve Districts indicate that business activity continued to expand from late February through early April." The districts of Kansas City and San Francisco reported the most positive growth while "some deterioration" in retail activity was reported in Cleveland's district.