news24may11+V.Milovidov's 'Absurd Finance'
COMMODITIES
Global steel production continued to increase in April, reaching a new daily record high of 4.23mnt up 1.1% MoM and 5.4% YoY (and equivalent to annual output of 1.55bnt, vs. 1.4bnt in 2010) despite a significant decline in Japanese output (-6.3% YoY) in the wake of the March earthquake. This compares with the previous peak of 124.6mnt in May 2010 and the pre-crisis peak of 121mnt in May 2008. Global capacity utilisation of 82.8% was equal with April 2010, both months being the highest since July 2008, which followed the multi-year highs of 87-90% in 1H08. VTBC
Goldman and Morgan Stanley both making pos. calls on commodities; each increased their crude price forecasts by more than 20%. They were also bullish on other commodities. Bloomberg (see FT Alphaville update - “now Goldman says commodities correction is over”)
USA
Banks to meet w/state AGs and federal agencies on Tues; still negotiating a mortgage foreclosure settlement;
big issues remaining include the size of a penalty/fine and what to do w/any money collected (some states and agencies are said to still be pushing for principle reduction). According to the NY Post, government negotiators plan to squeeze big banks for a larger settlement over mortgage-servicing flaws when the two sides meet in Washington today. State attorneys general and federal agencies found an offer of $5 billion from five banks "woefully inadequate," Reuters
EUROPE
Greece - Moody’s says a Greek debt restructuring would affect the ratings of other European sovereigns and would prob. lead to a downgrade of Greek banks; Moody’s added that Portugal and Ireland could be cut to junk if Greece did default - DJ/WSJ/Reuters
Greece - it was Italy and Spain, not Germany, that delivered the sharpest criticism to Greek officials during the “secret” finance ministers meeting earlier this month (Maya 6) in Luxembourg. Spain and Italy are “furious” that Greece isn’t taking more aggressive actions and could reintroduce contagion fears back into the marketplace. NYT
Greek government said it would expand its privatization program amid growing concern about its fiscal state - the government now hopes to raise as much as EU5.5B by the end of F11 (up from an original target of EU2-4B). WSJ
Swiss National Bank Vice Chairman Thomas Jordan said on Monday he is very worried about the rise in the Swiss franc - Reuters
UK banks - neg. update from Moody’s - Lloyds Banking Group Plc (LLOY) and Royal Bank of Scotland Group Plc (RBS) are among 14 U.K. lenders whose debt Moody’s Investors Service is considering downgrading as withdrawal of government support - Bloomberg
IMF - China backs Lagarde for IMF role - the French government said China has lent its backing to naming Lagarde as the head of the IMF - DJ
IMF - sources say there won’t be any decision made at this week’s G8 summit on the succession process at the IMF - DJ
IMF - interview w/acting head Lipsky - he says Greece, Portugal, Ireland, and other troubled countries including Spain and Italy have made structural changes and thus avoided debt restructuring. "What is being portrayed as bad news is, in fact, good news," he said. "With good policies in place, and with the support of the European partners and the fund, the peripheral countries can make improvements" while reducing the risk of contagion. "This is going to take concerted effort by the governments involved." CNBC
ASIA
China inflation could tick up in May b/c of higher pork prices - Each 20 percent increase in the price of pork will likely contribute 0.6 percentage points to the consumer price index - Bloomberg
Chinagrowth forecasts - Goldman and JPMorgan cut its growth forecast for China and predicted inflation would accelerate - DJ
China’s current account surplus narrows - China's first-quarter current account surplus fell 18% to $29.8 billion from a year earlier, the State Administration of Foreign Exchange (SAFE) said in a statement on Tuesday - WSJ
Japan publishes its latest economy monthly report - the government maintained its overall view that the economy remained weak and downgraded its assessment of capital spending - Reuters
MEA
Yemen - violence flares in Yemen after deal collapses to have president Saleh step down. NYT
Libya - NATO warplanes hammered Tripoli on Tuesday with some of their heaviest air strikes yet - Reuters
Libya - Obama has invited the Libyan rebels' National Transitional Council to open an office in Washington D.C., but he stopped short of formal recognition. AP
зачетный пост Владимира Миловидова о русском рынке.