Frontrunning: May 31

Tyler Durden's picture
  • Emerging states working on IMF candidate: South Africa (Reuters)
  • Berlin Considers a Shift on Greek Debt (WSJ)
  • Housing Sales in China Seen To Fall Over 10% (Shanghai Daily)
  • Greece may run out of funds within weeks (Independent)
  • Lagarde, on Visit to Brazil, Vows Speedy IMF Reforms (WSJ)
  • BlackRock’s Fink Says Europe Problems Go ‘Way Beyond’ Greece (Bloomberg)
  • Libya's Goldman Dalliance Ends in Losses, Acrimony (WSJ), or how Goldman lost 98% of Libya laundered money, offered Libya the chance to become one of its biggest shareholders
  • Australia Fund Says No to Euro-Zone Rescue Bonds (WSJ)
  • Saudi-Iran Feud Draws Sectarian Line Across Mideast Oilfields (Bloomberg)
  • Case Shiller Index Is Expected to Show a New Low in Prices (NYT)
  • Gold crash: What could trigger the inevitable (Reuters)
  • Cyber Combat: Act of War (WSJ)
  • A $45m typo: Goldman Sachs gets burned by, er, Goldman Sachs  (Economist)
  • New rice crisis cannot be ruled out (AP)
  • The carbon tax, the mining tax, they'll kill mining right? (Peter Martin)

European Economic Highlights:

  • France Consumer Spending (April) -1.6% m/m 1.2% y/y Lower than expected Consensus -0.3% m/m 3.7% y/y Previous -1.1% m/m 1.6% y/y (Revised from -0.7% m/m 2.6% y/y)
  • France Producer Prices (April) 0.8% m/m 6.4% y/y as expectedConsensus 0.8% m/m 6.4% y/y Previous 0.9% m/m 6.6% y/y
  • German Retail Sales 0.6% m/m 3.6% y/y Lower m/m, higher y/y than expected Consensus 1.8% m/m 1.5% y/y Previous -2.7% m/m -3.6% y/y (Revised from -2.1% m/m -3.5% y/y)
  • German Unemployment Rate 7.0% as expected Consensus 7.0%, Previous 7.1%
  • Norway Retail Sales 0.0% m/m 11.4% y/y Lower m/m, higher y/y than expected Consensus 0.7% m/m 3.4% y/y Previous -0.6% m/m -5.4% y/y
  • Switzerland GDP 0.3% q/q 2.4% y/y Lower than expected Consensus 0.7% q/q 3.0% y/y. Previous 0.8% m/m 3.1% y/y (Revised from 0.9% m/m)

Global highlights courtesy of Egan-Jones:

  • Economy gains, yet housing spirals downward
  • China hikes electricity rates to counter shortages
  • Brent above $115 on unrest in Yemen, weak dollar
  • Arab oil faces higher 'break-even' price
  • Japan auto production drops 60.1 percent in April
  • German jobless rate falls to 7 percent
  • Japan jobless rate rises, factory output anemic
  • ECB official: New Greek aid under study
  • Russia lifts deposit interest rate unexpectedly
  • Poland economy grows 4.4 percent in first quarter
  • Greek bailout review due in next two days
  • Oil rises to near $102 on weaker US dollar
  • Eurozone inflation eases to 2.7 percent
  • Home Prices in U.S. Probably Kept Falling as Housing Absent From Recovery
  • Greek Aid Package to Be Decided by June
  • Indian GDP Growth Slows to 7.8%
  • South Korea’s Slower Output Growth Bolsters Case for Keeping Rates on Hold
  • ECB’s Draghi Says Inflation Risks Are Rising, Policy Remains Accommodative
  • Rising Rents Risk Higher U.S. Inflation as Fed’s Rate Restraint Questioned
  • No Love Lost for U.S. Debt as Bond Dealers Share Fewer Treasuries With Fed
  • U.K. Mortgages Should Be Capped to Cure ‘Addiction to Property Inflation’
  • Russia’s Central Bank Signals Interest-Rate Pause After Surprise Increase
  • Thailand May Raise Interest Rate Fourth Time This Year Ahead of Election

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Catullus's picture

First sentence said it all:

"Before you sell that last piece of jewelry, keep in mind that the gold price will not go up indefinitely. There are number of reasons why it might crash."

Confused to the nth degree. Wait before you sell, realize that what you're holding onto might crash in price.  So hold on to it.


eddiebe's picture

Don't bother reading the Reuters story 'Gold crash'. ( Yawn)

??'s picture

Rosenberg on Bloomberg just now and spoke of Canadian economy - does not see a bubble in Canadian housing and views Canuck household debt as an issue only if debt service costs are hit with higher interest rates e.g. +300 bp - comparison to US circa 2006 does not hold due to tighter credit requirements.  If there is a bubble he said Vancouver would be the only candidate with the rest of the country in solid shape. His view is that there is a supply issue as in no excess supply and in fact shortages in some markets buoyed by a  robust immigration effect.

(Given Rosies' track record probably a good time to dump your Canuck real estate)

Jim in MN's picture

Germany bans nuclear power....might be worth a look

It is a humbling U-turn for Merkel, who at the end of 2010 decided to extend the lifetime of the reactors by an average of 12 years, which would have kept them open until the mid-2030s.

That decision was unpopular even before the earthquake and tsunami in March that severely damaged the Fukushima facility, sparking mass anti-nuclear protests in Germany.

Merkel's zig-zagging on what has been a highly emotive issue in the country since the 1970s cost her in recent state elections as the anti-nuclear Greens gained ground.

Nuclear opponents slammed the deal Monday and said they would stage fresh demonstrations next month calling for a faster phase-out.

Meanwhile industrial giant Daimler warned the shutdown would undermine the competitiveness of Europe's top economy.

malek's picture

yeah, the "ban" goes into effect in 2022... yawn

Jim in MN's picture

Two more from Japan:  Fukushima costs may hit quarter trillion dollars, and guidelines issued for 'rumor-induced' damage compensation (hello bloggers?)