Quick Overview

• December copper climbed .0195 to another new contract high of $1.4475, boosted by strong world (especially Asian) demand. The key to renewed interest is LME inventories at 36-year lows tallying just 36,150 tons, down 40% from this year's peak. The release of unexpectedly strong Chinese May industrial production data Wednesday at 16.6% provided the initial boost. analysts said. "China's economy is growing faster for longer. It's soaking up copper concentrate, primary material and scrap," said Angus MacMillan, metals analyst at Bache Financial .
  
  

• The U.S. current account deficit increased to a record high $195.1 billion in the first quarter of 2005
  
  
  

• Analytical firm Informa Economics pegged 2005 soybean planted
  acreage at 72.91 million acres, down one million from the U.S. Department of Agriculture's March Prospective Plantings report, according to trade sources. Also the eastern half of the Midwest is expecting dry weather to continue through the weekend and perhaps longer.
  
  
  

• Earnings of companies in the Standard & Poor's 500
  stock index that have issued first-quarter reports are running 14.3% higher than year-earlier results, according to Thomson First Call.
  
  
  

• The University of Michigan's index of consumer confidence increased from 86.9 to 94.8, stronger than expected.
  

• The USDA said that there were 10.769 million head of cattle on feed as of June 1st, up 1.2% from a year ago and slightly less than expected. May placements were down 6.2% and marketing’s were down 1.4% from a year ago.
  
  

• Canada's wholesale sales were C$39.4 billion in April, up .9% on the month and up 5.2% from a year ago.
  
  
  
  

Do you believe President Bush misled the nation in order to go to war with Iraq?
With 17,300 votes in, 94% say yes.

Democrats Urge Inquiry on Bush, Iraq
Conyers and a half-dozen other members of Congress were stopped at the White House gate later Thursday when they hand-delivered petitions signed by 560,000 Americans who want Bush to provide a detailed response to the Downing Street memo

Quick Overview

• Housing starts rose 0.2% in May, the Commerce Department reported Thursday, to the fastest overall annual pace in three months.
  
  

• The number of U.S. workers filing for initial unemployment benefits gained 1,000 to 333,000 for the week ended June 11, the Labor Department reported Thursday.
  
  

• London inventories of copper continue to contract, falling by 1,000 tons today to 38,300 tons
  

• The Philadelphia Federal Reserve's index of regional activity dropped from +7.3 to -2.2 in May, weaker than expected.
  

• Machinery orders in Japan were down 1% in April.
  

• The U.S. Department of Energy said that supplies of underground natural gas were up 73 billion cubic feet at 1.963 trillion cubic feet. Supplies are now up 12% from a year ago.
  
  
  

• EU's top trade official says European companies must respond swiftly to China's emerging industrial power.

• Retail sales in the U.K. were up 0.1% in May and up 1.3% from a year ago.

Quick Overview

• Falling energy prices pushed U.S. consumer prices lower in May for the first time since July of last year, the Labor Department reported Wednesday. The Consumer Price Index decreased 0.1 percent in May, The May level of 194.4 (1982-84=100) was 2.8 percent higher than in May 2004.
  
  

• The government upgraded its assessment of Japan's economy in a monthly report on Wednesday for the first time in nearly a year, citing improvements in personal consumption and jobs.
  
  

• OPEC ministers Wednesday agreed to boost crude oil output levels by 500,000 barrels a day to 28 million, Bloomberg reported.
  
  

• May US Industrial Production at U.S. factories, mines and utilities rose 0.4% in May, the Federal Reserve said Wednesday
  
  

• Business inventories rose 0.3% in April, and business sales rose 1.2% the Commerce Department said Wednesday.
  
  

• The Green Coffee Association said that U.S. coffee stocks were up 83,722 bags in May to 5.87 million bags.
  
  

• The U.S. DoE said that crude oil supplies were down 1.8 million barrels last week to 329.0 million barrels. Unleaded gasoline supplies were down 900,000 barrels and heating oil supplies were up 1.4 million barrels.
  
  

• An index of manufacturing activity in New York increased from -11.1 to +11.7 in June, stronger than expected.
  

• Australia's rainfall in the first four months of 2005 was the second lowest total since records began in 1910.
  

• Industrial production in China increased 16.6% in May from a year ago to a new record high
  

• The unemployment rate in the U.K. remained at 4.7% in the three months from February to April.
  
  
  

Volcker: U.S. Economic Crisis Imminent Volcker sees as a hopelessly unsustainable relationship with the rest of the world.

Richard Russell (Dow Theory Letters)
notes a new Merrill Lynch study reporting that “With $30.8 trillion at their command, the "really rich" control one quarter of the world's financial wealth. This translates into the following -- the super-rich, who comprise 0.13 percent of the world's population, own 25 percent of the world's wealth”

Quick Overview

• May retail sales fell 0.5% from the previous month, the first drop since August, the Commerce Department reported Tuesday.
  
  

• The Labor Department said Tuesday its producer price index for May fell 0.6%, the biggest monthly drop in two years, while prices excluding food and energy rose 0.1%.
  
  

• Rail freight volumes have been decelerating in the second quarter with a modestly slowing economy, however rail pricing has continued to grow.
  

• Consumer prices in the U.K. were up 1.9% in May from a year ago, more than expected and the highest in seven years.
  

• The International Coffee Organization estimates the 2005-2006 world coffee production at 106 million (60-kg) bags. They estimate 2004-2005 world consumption at 114 million bags.
  
  

• The average retail price of diesel fuel rose 4.2 cents to $2.276 a gallon, the Department of Energy reported Monday

No IMF gold sales - G8 Finance Ministers
In their proposal for cancelling the debt obligations of 18 impecunious nations to the World Bank, G8 finance ministers agreed over the weekend to exclude gold sales by the IMF.

Lack of good projects puts mining boom at riskDiscoveries are becoming harder and harder to find," said Greg Wilkins, chief executive of Barrick Gold....."The scarcity of good exploration projects is going to become a serious issue three to five years from now," said Donald Lindsay, chief executive of top zinc miner Teck Cominco Ltd.

The Downing Street Memos and the Revenge of the Bloggers..
Conyers promised to deliver it to Bush once it reached 250,000 signatures. By Friday morning it already had more than 500,000 with as many as 1m expected to have been obtained when he delivers it to the White House on Thursday.

Quick Overview

• Barclays Global Investors announced last week it will file an application with the SEC to launch the first silver exchange-traded fund.
  
  

• Annual volume of cargo passing through China's ports every year is expected to rise by more than 50 percent in the next five years.

• Investors pushed Brazilian stocks down again Monday over concerns about a bribes-for-votes political scandal, adding to losses that sent the country's benchmark index plunging last week.
  

• China will not bow to international pressure to reform its tightly controlled currency regime any time soon and will base its policy on primarily on domestic considerations, Chinese officials and business leaders said on Monday.
  

• The USDA found another possible case of mad cow disease in the U.S.
  

• There is concern that Asian soy rust may have been spread north with Tropical Storm Arlene.
  

• The European Union struck a deal with China that limits China's exports of ten product categories through 2008. The deal may have relieved some of the concerns about an escalating trade war with China
  

• Fortis, predicted that global cocoa stocks will fall 18,000 tons in the 2005-2006 crop year.
  

• G-8 members agreed to write off $40 billion of debt owed by 18 African countries.
  
  

• Japan's economy grew slightly less than initially estimated in the first three months of 2005, and concern grew that the relatively brisk pace may not be sustained in the coming quarters.
  
  

• Ocean-freight rates fall as global demand slows for some commodities
  Surging demand and a shortage of ships pushed freight rates to record highs in December. But since then, the Baltic Dry Index,..., has fallen by more than half,....

• Collapse in ocean freight rates ..as mineral demand in China remained unexpectedly muted. The Baltic Index fell to its lowest level since July 2004...
  But a more accurate representation could be that shipments are being deferred to obtain cheaper freight rates in a falling market.

'Downing Street memo' coverage adds to intrigue
Last week, a group known as Democrats.com offered $1,000 to anyone who can get Bush to answer "yes or no" to this question: Did he or his administration "fix the intelligence" about Iraq's weapons of mass destruction and alleged ties to terrorism?

Poll: Bush Job Approval Dips to New Low
Bush's approval mark is 43 percent,
while Congress checks in at 31 percent..
Only about one-third of adults, 35 percent, said they thought the country was headed in the right direction..

2,200 Journalists Await Jackson Verdict Reporters from every continent but Antarctica are covering a story that has attracted perhaps the largest-ever media contingent (media?)

Quick Overview

• The U.S. trade deficit rose to $57 billion in April, the Commerce Department reported Friday
  
  

• Prices of imported goods fell 1.3% in May, the first drop this year, the Labor Department reported Friday
  
  

• The USDA's U.S. ending stocks estimate for:
  Corn remained at 2.540 billion bushels.
  Soybeans were reduced from 290 to 255 million bushels.
  Cotton was reduced from 6.30 to 6.20 million bales.
  Wheat was reduced from 678 to 619 million bushels.
  Sugar remained at 759,000 tons.
  
  

• The USDA's world ending stocks estimate for:
  Corn was reduced from 122 to 121 million tons.
  Soybeans were estimated at 52 million tons, up from 47 million tons in 2004-2005.
  Cotton was reduced from 45 to 44 million bales.
  Wheat was reduced from 147 to 144 million tons.
  
  

• The USDA estimates the 2004-2005 Florida orange crop at 151 million boxes with a juice yield of 1.60 gallons per box at 42.0 degrees Brix.
  

• The USDA estimates that 2005-2006 world ending coffee stocks will drop 6.3 million bags to 14.9 million bags, the lowest in over two decades.
  

• Canada's unemployment rate was unchanged in May at 6.8% with a net gain of 35,000 jobs.

• The Conference Board said that the index of leading indicators for Japan was down 0.3% in April to 98.5.
  
  

Website of the Day

DEEP THROAT MEETS TODAY'S PRESS

Quick Overview

• The number of U.S. workers filing for initial unemployment benefits fell 21,000 to 330,000 for the week ended June 4, the Labor Department reported Thursday.
  
  

• The amount of new debt taken on by Americans rose 10% in the first quarter, to $24.8 trillion, the Federal Reserve said Thursday. It was the fastest growth since the second quarter of 2003. Federal government debt rose 13.8%, its fastest quarterly pace in two years. U.S. mortgage debt rose 10.5% in the first quarter and business debt rose 7.5%, the Fed said.
  
  

• The first tropical storm
  of the 2005 hurricane season formed in the northwest Caribbean, moving closer toward Cuba and on a track to hit the U.S. Gulf Coast, the Associated Press reported Thursday.
  
  

• Stock index futures and the Dollar rallied midday as traders decided Greenspan offered no major changes in monetary policy during his congressional testimony.
  
  

• The U.S. Department of Energy said that natural gas supplies were up 112 billion cubic feet to 1.890 trillion cubic feet. Supplies are now up 14% from a year ago.
  
  

• The latest USDA Drought Monitor shows abnormally dry conditions stretching from Michigan to Louisiana.
  

• An index of consumer confidence in Japan increased from 47.4 to 48.3 in May, still a sign of pessimism.

• Australia's unemployment rate remained at 5.1% in May, the lowest in 28 years.

Longevity crisis? Kill Grandma A welfare state designed in the era of bacon, eggs and Lucky Strikes cannot expect to survive in an age of "active seniors" who wash down their Viagra with soy milk and think a six-pack is something you get at the gym.

Quick Overview

• The U.S. Commerce Department said that wholesale sales increased 1.5% in April, the biggest jump in over a year. Meanwhile, inventories increased 0.8%. The inventory-to-sales ratio fell to 1.18 from 1.19. The record low was 1.14 in April
  
  

• The U.S. Department of Energy said that crude oil supplies were down 3.0 million barrels to 330.8 million barrels. Unleaded supplies were down 100,000 barrels and heating oil supplies were unchanged.
  
  

• There is some concern about the spread of Asian citrus canker in Florida.

• Engine and heavy-equipment maker Caterpillar Inc. said Wednesday it would split its stock 2-for-1 and boost its quarterly dividend by 9 cents, following record sales last year.
  

• Canada's housing starts were at an annual rate of 218,800 units in May, down 5.0 %
  

• The Netherlands central bank cut its 2005 growth forecast from 1.7% to 0.4%.
  

• Average retail diesel prices are expected to remain above regular gasoline prices through 2006, the Department of Energy said in its monthly Short-Term Energy Outlook released Tuesday
  

• Peru's government on Wednesday lauded two new oil discoveries, saying the finds should boost optimism about finding more hydrocarbons to replace the Andean nation's dwindling oil supplies. Petro-Tech, the Peruvian unit of Houston-based Petro-Tech International, said its new well is producing 1,200 barrels of oil a day and its potential reserves could vary between 10 million and 50 million barrels of oil.
  
  
  

John Conyers, Jr. -- Letter to Pres Bush Concerning the "Downing Street Minutes"
The peace and welfare of this and coming generations of Americans will be secure only as we cling to the watchword of true patriotism: "Our country -- when right to be kept right; when wrong to be put right."
Carl Schurz

Quick Overview

• Germany's industrial production was up 1.1% in April.
  
  

• Household spending in Japan was down 3% in April from a year ago.
  

• Crop outlook sours Australia is the world's second-largest exporter of wheat, but it has already been suggested that the country might have to import wheat from its international competitors to meet demand this year.
  

• Total air cargo shipments rose 0.3% in April compared with a year earlier, following a 3.1% year-over-year drop in March, the Air Transport Association reported.

• GM announced today that it's cutting 25,000 US jobs, 17% of the work force, and closing an unspecified number of plants over the next 3 1/2 years.

Quick Overview

• U.S. Corn and soybeans are entering a critical part of the growing season, when the crops must become established. Most of Illinois received less than 40% of normal precipitation during the March-to-May period, causing moisture supplies to slowly vanish
  

• Factory orders in Germany were down 2.9% in April, weaker than expected.
  

• Year over Year Capital spending in Japan increased an impressive 7.4% in the first quarter.
  

• A Holstein cow in northern Japan has been confirmed as Japan's 20th case of mad cow disease.

• The Senate Energy and Natural Resources Committee approved its portion of energy legislation that would increase the use of biofuels such as biodiesel and ethanol.

• Australia, the world's second-biggest wheat exporter, cut its production forecast for the grain by 29 percent because of a drought in the country's southeast.

• Thailand’s economy shrank for the first time in four years in the first quarter of this year, as a drought parched crops and tourists stayed away after the Boxing Day tsunami.

Australian farmers battle drought, no end in sight
Eastern Australia is into the third month of the worst drought farmers can remember -- more severe than the 2002 drought which the weather bureau classes the worst in a century.

Investor confidence shattered as China stock market goes from bad to worse
"The market has been falling for years and investors are numb," said Zhang Qi, analyst from Haitong Securities.

Quick Overview

• Hiring in the United States slowed in May to the weakest in nearly two years, the Labor Department reported Friday. Nonfarm payrolls increased by 78,000 and the unemployment rate declined to 5.1% from 5.2%.
  

• The ISM's index of U.S. services fell from 61.7 to 58.5 in May, lower than expected, but still a sign of growth.

• An index of service activity in the U.K. dropped from 56.5 to 55.1 in May, still a sign of growth.
  

• Retail sales in the Euro zone were down 1.2% in April and down 0.9 YoY.
  

• ED&F Man expects the 2004-2005 world cocoa crop to fall short of consumption by 175,000 tons. The International Cocoa Organization recently estimated a 44,000 ton production deficit.

Forecast of deficient Indian monsoon? Lower Soybean, Sugar and Cotton Ccrops? In June, rainfall is likely to be 11 per cent below normal in north India, 22 per cent below normal in west India, 6 per cent below normal in south India, 60 per cent below normal in central India and 40 per cent below normal in south-central India.

History Matters Butler Shaffer on the decline of centralized power structures and the French and Dutch "NO" votes.

Quick Overview

• Orders placed with factories rose 0.9% in April, the Commerce Department reported Thursday.
  

• U.S. jobless claims were up 25,000 last week to 350,000.
  

• The Department of Labor said that U.S. productivity increased at an annual rate of 2.9% in the first quarter of 2005. Labor costs increased at an annual rate of 3.3%.
  

• The DoE said that crude oil supplies were up 1.4 million barrels last week to 333.8 million barrels. Unleaded supplies were up 1.3 million barrels and distillates were up 700,000 barrels. Refinery utilization jumped from 94.6% to 96.2% of capacity last week.
  The DOE also said that natural gas supplies were up 86 billion cubic feet last week to 1.778 trillion cubic feet. Current supplies are up 15% from a year ago.
  
  

• The World Gold Council said that world gold demand totaled 977 tons in the first quarter of 2005, up 26% YoY. YoY, Jewelry demand was up 19%.

• Playmate of the Month,
  Jamie Westenhiser, says she is abandoning a promising career as a model in order to "take up real estate investing." ( bells ringing?)
  

Destroying Companies and Countries

The American public was so whipped up in a frenzy over Enron that it didn’t care whose blood was spilled. Just as someone had to pay for September 11 – even if it is our own troops and tens of thousands of innocent Iraqis who had no more to do with September 11 than the US troops who are losing their lives and limbs – someone had to pay for Enron.

Quick Overview

• The ISM index of U.S. manufacturing activity dropped from 53.3 to 51.4 in May.
  

• U.S. construction spending was at a record high annual rate of $1.07 trillion in April, up 0.5% on the month and up 8.2% YoY.
  

• The purchasing managers index for the eurozone, fell from 49.2 in April to a 22-month low of 48.7 in May. A figure below 50 represents contraction.

• Dallas Federal Reserve Bank President Fisher implied that the fed may be close to the end of raising the federal funds rate. On the news the DowJones Industrial Average jumped 82.39 points, or 0.79%, to 10549.87. it's highest finish in 2 1/2 months. The same news pushed Treasury-bond prices higher and yields lower, leaving the yield of the 10-year Treasury note at 3.894%, its lowest level in14 months.

• Growth in the world’s tanker fleets is outstripping demand, forcing charter rates down to new lows and putting pressure on shipping company share prices – Lloyd's List reports.
  

• Copper inventories fell 900 tons to 44,325 tons.
  
  

• Australia's GDP increased 0.7% in the first quarter of 2005, less than expected.
  
  
  

Quick Overview

• An index of Chicago-area business declined 65.6 to 54.1 in May for a second straight month, the National Association of Purchasing Management-Chicago reported Tuesday.
  

• The Conference Board's index of consumer confidence increased from 97.5 to 102.2 in May.
  

• Germany's unemployment rate dropped from 12% to 11.6% in May.
  

• The International Cocoa Organization said that the net world cocoa crop will total 3.18 million tons in 2004-2005, down from 3.46 million tons in the previous year. Ending stocks are expected to drop from 1.44 to 1.40 million tons.
  
  

• Japan's unemployment rate fell from 4.5% to 4.4% in April, the lowest in over six years. Industrial production in Japan was up 2.2% in April, roughly as expected.
  

• Canada's GDP was up 0.6% in the first quarter of 2005 and up 1.6% from a year ago, slightly less than expected.

Quick Overview

• U.S. personal income was up 0 .7% in April.
  
  

• The University of Michigan's final consumer sentiment index for May fell to 86.9, the fourth straight drop and the lowest level since September 2003, though it rose from a preliminary reading two weeks ago.
  
  

• Personal spending rose for a third consecutive month in April, rising 0.6%, the Commerce Department said Friday.
  

• YoY Hong Kong's GDP increased 6% in the first quarter.
  

• Japan's retail sales were up 3.9% in April.
  
  

LME bets on future in plastics
The London Metal Exchange, a bastion of tradition in the financial world, is breaking from its roots in the base metals industry on Friday by launching two plastics futures contracts, the first non-metallic futures contract launched by the 128-year-old exchange.

The Short View: Has China hit the brakes? But imports are another matter. Morgan Stanley points out that growth has slowed to 13.5 per cent in the first four months of the year, down from 36 per cent in 2004. This slackening of pace may explain the developments in the commodity markets. The Baltic Dry Freight index, a measure of shipping activity, has plunged from a high of 6,208 in December to 3,366.

Quick Overview

• The U.S. economy grew at an annual rate of 3.5% in the first quarter, faster than a previous 3.1% estimate in late April, the Commerce Department said Thursday. YoY, GDP was up 3.7%.
  
  
  
• U.S. jobless claims were up 1,000 to 323,000 in the week ended May 21, the Labor Department said Thursday
  
  

• The core rate of personal consumption expenditures, was up an annual rate of 2.2% in the first quarter.
  

• The Commerce Department said that early, YoY estimate of corporate profits from current production were up 14% in the first quarter.
  

• London inventories of Copper declined 2,825 tons to 46,400 tons.
  
  

• The U.S. Census Bureau said that 139.4 million bushels of soybeans were crushed in April,
  
  

• The USDA's drought monitor shows an increasing area of unusually dry conditions from Michigan down to Louisiana.
  
  

• The U.S. Department of Energy said that natural gas supplies were at 1.692 trillion cubic feet - up 93 billion cubic feet.
  

• U.S. domestic cotton mill usage declined to an annual rate of 6.17 to 6.14 million bales in April.
  

• The USDA estimates 2005-2006 world sugar production at 146.3 million tons, up from the previous years 142.1 million tons. The 2005-2006 world ending stocks are expected to decrease from 35.8 to 34.2 million tons - or 23% of usage.
  
  

• YoY New York Customs District saw overall air-cargo tonnage increase 1.67 percent in March.
  

Quick Overview

• The U.S. Commerce Department said that durable goods orders rose 1.9% in April, stronger than expected and the first gain in 05. Excluding transportation, orders were down 0.2% on the month.
  

• median sales price of a new home rose 3.8% YoY to $230,800.
  U.S. new home sales were at an annual rate of 1.316 million units in April, up 0.2% from March's pace and a new record high. So far in 2005, new home sales are up 6% from a year ago. The

• The U.S. Department of Energy said that crude supplies were down 1.6 million barrels last week to 332.4 million barrels. Unleaded supplies were up 600,000 barrels and heating oil supplies were up 1.6 million barrels.
  

• China can and should move quickly toward a more flexible currency to help rebalance world trade, Federal Reserve Governor Ben Bernanke said. And a Chinese trade official on Wednesday commented that a move to allow the country's currency to trade more flexibly would eventually involve attaching the yuan to a basket of currencies
  

• Goldman Sachs reiterated buy ratings on Internet heavyweights eBay Inc., Yahoo Inc. and Google Inc. on Wednesday, saying the online industry this year will see a jump in advertising as broadband access continues to spread.
  

• The U.K.'s National Statistics office reduced the estimate of first quarter growth from 0.6% to 0.5%. YoY GDP was up 2.7%.
  

• An index of German business confidence from the Ifo Institute dropped from 93.3 to 92.9 in May, the lowest in two years.
  

• YoY Japan's exports were up 7.8% in April, while imports were up 12.7%.
  

• Malaysia's GDP was up an annual rate of 5.7% in the first quarter, more than expected.
  

• A USDA official estimated Vietnam's 2005-2006 coffee crop at 12.2 million bags, down 1.8 million bags from the previous year.
  
  
  

Quick Overview

• Global investorconfidence slumped for the second month in a row in May to its lowest level since October 1998

• Sales of existing U.S. homes rose 4.5% in April to a record seasonally adjusted annual rate of 7.18 million, the National Association of Realtors said Tuesday.
  

• The USDA's Foreign Agriculture Service released its estimates yesterday of Brazil's coffee crop. They anticipate a harvest of 36.5 million bags of coffee in 2005-2006, down from 42.4 million bags the previous year. The 2005-2006 Arabica crop is estimated at 26.0 million bags, down from 33.4 million bags in 2004-2005. Brazil's ending stocks are expected to fall from 10.44 to 4.81 million bags in 2005-2006.
  

• Canada's composite index of leading indicators was up 0.4% in April at 203.6.
  

• The Organization for Economic Cooperation and Development (OECD) reduced its 2005 growth forecast for the Euro zone from 1.9% to 1.2%.

• The volume of cargo passing through China's ports every year is expected to rise by more than 50 percent in the next five years.
  

• An index of services in Japan was down 1% in March, weaker than expected.