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Ft.com
US manufacturers may struggle to maintain earnings momentum in the current quarter as orders for industrial goods show increasing signs of slowing down. Industrial companies’ results for the first quarter have for the most part been robust so far this earnings season, with Boeing, Caterpillar and 3M all raising their outlooks for the full year and companies such as General Electric, Honeywelland DuPont comfortably beating analysts’ expectations. http://www.ft.com/intl/cms/s/0/4005e916-909c-11e1-9e2e-00144feab49a.html#axzz1tUmicTdF

The price of soyabeans is heading towards the record high set during the 2007-08 food crisis, which is set to reignite fears of runaway global food inflation. The surge in prices is because of falling global production levels following dry weather in Latin America and increased China imports.Soya’s wide range of use as feed for cows, sheep, pigs and poultry – and as a source for oil used in foodstuffs such as biscuits and cakes – means its high price could trigger food inflation fears. http://www.ft.com/intl/cms/s/0/c5160166-91f2-11e1-867e-00144feab49a.html#axzz1tUmicTdF

The aftermath of Spain’s property boom is providing a reminder that German banks have not been far away from some of the frothiest lending of banking’s bubble years. At the start of the financial crisis the turning tide in the US subprime housing market revealed bets by a host of German banks, which had invested billions in supposedly safe structured debt securities. Two years on German banks such as Commerzbank and Hypo Real Estate were some of those most exposed to Greece’s fiscal crisis through holdings of Athens’s sovereign debt. http://www.ft.com/intl/cms/s/0/5b9e76e8-8f89-11e1-9ab1-00144feab49a.html#axzz1tUmicTdF

Spain’s government and its banks are discussing a new scheme to segregate problematic property loans into one or more asset management companies to relieve the burden on struggling lenders, according to officials and bankers.  The “bad bank” scheme is the latest attempt by the centre-right government of Mariano Rajoy, prime minister, to avoid an international rescue programme of the sort required by Greece, Ireland and Portugal. Mr Rajoy’s Popular party government has deepened fiscal austerity, reformed Spain’s labour market and ordered banks to set aside an extra €54bn of bad loan provisions and capital buffers this year. http://www.ft.com/intl/cms/s/0/7906c8ec-921e-11e1-867e-00144feab49a.html#axzz1tUmicTdF

The head of Greece’s biggest bank has made a spirited appeal for fresh equity from private shareholders as the most stressed nation of the eurozone prepares for a potentially disruptive general electionnext weekend and the imposition of tough new capital requirements by regulators. On a roadshow in London last week, Apostolos Tamvakakis, chief executive of National Bank of Greece, launched a last-ditch attempt to fend off a wipeout of private shareholder control, widely considered inevitable across the banking system as lenders struggle to absorb losses on their government bond holdings and other bad debts. http://www.ft.com/intl/cms/s/0/4ede1c48-9096-11e1-8adc-00144feab49a.html#axzz1tUmicTdF

The Czech prime minister unveiled pro-growth measures over the weekend after surviving a coalition crisis brought on by its fiscal conservatism. The move was seen as a sign of the growing pressure across Europe for governments to concentrate on growth instead of continuing to cut spending. The conservative government of premier Petr Necas won a vote of confidence in parliament on Friday, made necessary after the smallest party in the ruling coalition collapsed in part over the government’s determination to increases taxes and cut spending to keep the deficit below 3 per cent of gross domestic product next year. http://www.ft.com/intl/cms/s/0/0cdcf334-9210-11e1-abdf-00144feab49a.html#axzz1tUmicTdF

Wsj.com
Asian stock markets were higher Monday as investors cheered a set of robust U.S. earnings, while Australian resources plays gained on recent strength in commodity prices. Regional investors were able to carry forward the positive momentum from Wall Street in the previous week, as U.S. stocks rose for a fourth straight session on Friday, boosted by solid results from the consumer-discretionary sector. Australia’s S&P/ASX 200 gained 0.6%, South Korea’s Kospi Composite added 0.4% and New Zealand’s NZX-50 rose 0.7%. Dow Jones Industrial Average futures were up six points in screen trade. http://online.wsj.com/article/SB10001424052702303916904577374772115326482.html?mod=WSJ_hp_LEFTWhatsNewsCollection

China bought nearly one million tons of U.S. cotton over the past seven months, keeping prices of the fiber afloat on the global market, and analysts say the buying spree isn’t over.  The purchases, totaling more than a quarter of estimated U.S. production for 2011-12, halted March 31, and traders thought cotton prices on global markets would start to slide. But China still needs millions of tons of cotton to feed its mills, which produce 40% of the world’s cotton goods, analysts said. And with global prices cheaper than domestic, Chinese mills will be agitating for more imports, analysts said.http://online.wsj.com/article/SB10001424052702303990604577370442448361770.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Japan’s prime minister takes to the White House Monday a pledge to expand Tokyo’s role in regional security, a significant shift for a country whose pacifist constitution has limited its military activities outside its borders for more than 60 years. Prime Minister Yoshihiko Noda’s message will be welcome news for his host, President Barack Obama, who is seeking to rebalance the U.S. defense posture toward Asia. The American leader faces the challenge of countering China’s rising military power and taming North Korea’s nuclear ambitions even as the Pentagon’s budget shrinks amid pressure for fiscal austerity. U.S. officials are counting on http://online.wsj.com/article/SB10001424052702304868004577373484257366256.html?mod=WSJ_hp_LEFTTopStories

Foreign companies are learning that they can no longer count on China for earnings growth. As companies report first-quarter results, big-equipment makers like Caterpillar Inc. and ABB Ltd. see slowing demand, while consumer-focused Apple Inc. and Starbucks Corp. surge ahead. The mixed signals could be an early sign of big change in Chinese economic growth that emphasizes consumer spending, economists say. If sustained, the trend could lead to stable growth in the years ahead, though not at the double-digit pace that the country has averaged for the past 30 years.http://online.wsj.com/article/SB10001424052702303990604577369602048249184.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Marketwatch.com
Australia’s January-March consumer prices came in well below expectations Tuesday, paving the way for an interest-rate cut in May and sending the Australian dollar sharply lower. The consumer price index rose just 0.1% in the first quarter, barely higher than a flat reading in the October-December quarter, the Australian Bureau of Statistics said. The result  missed a 0.6% increase tipped in the median expectation of economists surveyed by Dow Jones Newsiwres.  The trimmed mean CPI — a favorite metric of Australia’s central bank, meant to smooth out volatility — reached 0.3%.  Compared to the year-earlier quarter, headline CPI came in at 1.6%, easing from the fourth quarter’s 3.1%. The Australian central bank has a medium-term annual inflation target range of 2% to 3%.http://www.marketwatch.com/story/australia-cpi-data-set-stage-for-rate-cut-2012-04-23

Latest German and European data show that, in a difficult global environment, Britain’s trade with its largest customers in continental Europe is performing surprisingly well. Last year, the U.K. remained the main trading partner (merchandise imports plus exports) of the 17 member countries of Economic and Monetary Union (EMU), well ahead of the U.S. and China. In trade with Europe’s largest economy, Germany, the British are the third biggest partner — again, followed by China and the U.S., but behind France and the Netherlands. Not a bad score for a country often held up as a financial services champion but which is frequently written off as an industrial no-hoper. http://www.marketwatch.com/story/uk-shows-single-currency-isnt-vital-to-trade-2012-04-30

European Union officials are preparing a so-called “Marshall Plan for Europe,” aimed at resurrecting growth in countries hard-hit by austerity measures, such as Spain, El Pais said in its Sunday online edition, citing European officials with knowledge of the plan. The plan will be presented at the next summit, after the French elections, the newspaper said. It embraces the ideas of French presidential candidate Francis Hollande to employ the underused European Investment Bank as leverage to make investments, create jobs and grow. The plan is reportedly worth 200 billion euros ($265 billion). http://www.marketwatch.com/story/eu-readying-marshall-plan-for-europe-report-2012-04-29

Reuters.com
The United States faces a tense week in China as high-level talks on trade and global hot spots like Iran and North Korea open in the shadow of a blind Chinese activist’s bold escape from house arrest to seek U.S. protection in Beijing. The trip to Beijing would have been challenging for Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner even without a human rights dispute over Chen Guangcheng, who a U.S.-based group says is hiding in the U.S. Embassy in Beijing. The May 3-4 Strategic & Economic Dialogue is the last of such annual consultations before political seasons heat up in the United States and China, giving leaders in both countries less flexibility over contentious economic and security issues. http://www.reuters.com/article/2012/04/30/us-china-usa-diplomacy-idUSBRE83S01V20120430

Gold held near a 2-week high on Monday on prospects of more safe haven buying, with the dollar under pressure from weaker-than-expected U.S. economic data and speculation the Federal Reserve could ease policy further to boost growth. Gold added $1.12 to $1,663.44 an ounce by 0301 GMT, but the metal was heading for its third monthly decline. Bullion had risen to $1,667.11 on Friday, its strongest since April 13, on disappointing U.S. growth and European debt jitters. http://www.reuters.com/article/2012/04/30/us-markets-precious-idUSBRE8390RW20120430

Bloomberg.com
Teti Umarih is doing brisk business selling Ikea products in Indonesia via Facebook Inc. (FB)’s social networking website. Before long, the Jakarta entrepreneur will get a new competitor with the furniture chain planning its own debut in the Southeast Asian nation. A rising middle class that is earning more and has access to credit at cheaper rates is aiding Umarih and global retailers in Indonesia, where spending accounts for 60 percent of gross domestic product. That’s a reversal from 15 years ago, when the Asian financial crisis dented economic growth.http://www.bloomberg.com/news/2012-04-29/ikea-joins-indonesia-rush-to-tap-demand-amid-6-5-growth-retail.html

Singapore’s unemployment rate unexpectedly increased last quarter as manufacturers cut jobs after demand for the island’s goods faltered. The seasonally adjusted jobless rate rose to 2.1 percent in the three months through March from 2 percent in the previous quarter, the Ministry of Manpower said in a statement today. The median estimate of eight economists surveyed by Bloomberg News was for a rate of 2 percent. The economy added 27,400 jobs last quarter, compared with 37,600 in the previous period. Singapore’s industrial production shrank in the first quarter, and exports unexpectedly dropped last month as shipments of electronics eased and petrochemical sales fell amid a decline in demand from China. The government has also moved to tighten foreign-worker inflows after a voter backlash against an influx of immigrants in recent years, and Prime Minister Lee Hsien Loong has said such limits will mean forgoing business opportunities and accepting slower growth. http://www.bloomberg.com/news/2012-04-30/singapore-s-jobless-rate-unexpectedly-rose-last-quarter-to-2-1-.html

Cnbc.com
Fiscal austerity and tough labor reforms have failed to create jobs, leading to an “alarming” situation in the global employment market that shows no sign of recovering, the International Labour Organization said on Sunday. In advanced countries, especially in Europe, employment is not expected to return to pre-crisis levels of 2008 until the end of 2016 — two years later than it previously predicted — in line with a slowdown in production. An estimated 196 million people were unemployed worldwide at the end of last year, forecast to rise to 202 million in 2012 for a rate of 6.1 percent, according to the United Nations agency’s annual flagship report, “World of Work Report 2012″. http://www.cnbc.com/id/47226507

BBC.co.uk
Telegraph.co.uk
Spain’s woes to deepen as it double-dips into recession. Spain is set to officially confirm that it fell back into recession in the first quarter of the year, marking the beginning of what is expected to be another rocky week for the ailing eurozone economy. Spain’s statistics office is expected to say tomorrow that the economy shrank by 0.4pc between January and March, plunging it into a technical recession after gross domestic product fell 0.3pc in the fourth quarter of 2011. The eurozone’s woes pose a continued threat to the global economic recovery, and David Cameron said today the region was “nowhere near halfway through” the debt crisis. http://www.telegraph.co.uk/finance/economics/9235091/Spains-woes-to-deepen-as-it-double-dips-into-recession.html

Goldman’s Jim O’Neill in Bank governor race. Jim O’Neill, a senior executive at Goldman Sachs, has emerged as a surprise contender to become the next governor of the Bank of England. It is understood Mr O’Neill, chairman of Goldman Sachs Asset Management, and formerly its chief economist, has been approached by Treasury officials and remains a potential candidate to take over the job when Sir Mervyn King steps down in June next year. The appointment will ultimately be made by the Chancellor, who has stated that the formal recruitment process will not begin until the autumn of this year. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9235038/Goldmans-Jim-ONeill-in-Bank-governor-race.html

Hollande’s ‘Growth Bloc’ spells end of German hegemony in Europé. For two years Germany has had its way in Europe, treating historic nations much as Bismarck treated Bavaria – sovereign only in name. The French-led counter-attack and rumblings of revolt through every branch of the EU institutions last week have brought this aberrant phase of the eurozone crisis to an abrupt end. “It’s not for Germany to decide for the rest of Europe,” said François Hollande, soon to be French leader, unless he trips horribly next week. Strong words even for the hustings.http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9234926/Hollandes-Growth-Bloc-spells-end-of-German-hegemony-in-Europe.html

Independent.co.uk
House prices were up for the second month in a row in April, according to property website Hometrack. Overall, prices rose 0.1 per cent in the month compared with a more robust 0.2 per cent increase in March. The rise comes despite the end of the stamp-duty holiday and the wet spring weather. Overall, demand among buyers was higher, up 25 per cent over the last three months. But there are signs this is slowing with new buyer registrations up just 2.1 per cent in April as opposed to 4.4 per cent in May. As in recent months, London led the way, with an above-average price rise of 0.3 per cent over April. “The strongest gains were seen in London, with small gains across the regions of Southern England. Elsewhere house prices were either static of falling,” Richard Donnell, director of research at Hometrack, said. http://www.independent.co.uk/news/business/news/property-prices-on-the-climb-for-a-second-month-7689135.html

Guardian.co.uk
Banks and insurers face a rocky 2012 as insolvencies rocket to levels not seen since the 1990s, according to a report by the Ernst & Young Item Club. The economic slowdown will also hamper corporate lending by the banks, the report said, which came after recession became official last week with figures showing the economy contracted 0.2% in the first quarter of the year. Lending to businesses is unlikely to recover to its 2008 peak before 2016, the report predicts. In a separate study, the accountancy firm Deloitte’s consumer tracker found 51% of people were downbeat about their household’s disposable income, up two percentage points from 49% in the previous quarter. http://www.guardian.co.uk/business/2012/apr/30/uk-economy-forecasts-further-downturn

Smh.com.au
Spain’s unemployment rate has risen to 24.4 per cent, the highest in 18 years, as the eurozone’s fourth-largest economy entered its second recession since 2009 amid the deepest austerity efforts in more than three decades. The jobless rate advanced in the first quarter from 22.9 per cent in the previous three months, the National Statistics Institute in Madrid said today. Unemployment was higher than the median estimate of 23.8 per cent forecast in a Bloomberg survey of three analysts. Spain’s inflation rate rose in April to 2 per cent from 1.8 per cent, a separate report showed today.http://www.smh.com.au/business/world-business/one-in-four-spanish-workers-unemployed-20120427-1xq3c.html#ixzz1tUuDAe5Z

Straitstimes.com
Gadget giant Apple is avoiding billions of dollars in taxes by setting up small offices around the world to collect and invest the company’s profits, The New York Times reported on Saturday. The report said an office in Reno, Nevada, where the corporate tax rate is zero, was one of many that the California-based technology giant uses to legally sidestep state income taxes on some of its gains. California’s corporate tax rate is 8.84 per cent. http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_793800.html

Economictimes.com
Prime minister Manmohan Singh is meeting a group of ministers including Finance Minister Pranab Mukherjee, Agriculture Minister Sharad Pawar, Food Minister KV Thomas and Commerce Minister Anand Sharma to arrive at a consensus on trade policies especially in sugar and cotton exports. Recently, Pawar had criticized the export policies of cotton and sugar. The sugar export is a contentious issue as even after having a surplus production and international demand, the export has hit a road block in the absence of a clear policy.http://economictimes.indiatimes.com/news/economy/policy/prime-minister-manmohan-singh-seeks-consensus-on-trade-policy/articleshow/12930379.cms
Yonhapnews.co.kr
South Korea’s industrial output growth dropped sharply in March from the previous month mainly due to weak exports and domestic demand, a government report showed Monday. Production in the mining and manufacturing industries edged up 0.3 percent last month from a year earlier, compared with a 14.3 percent on-year increase in February, according to the report by Statistics Korea The monthly output number represents a 3.1 percent contraction from February. In the manufacturing sector, which makes up the bulk of all the industrial output in the country, output moved up just 0.3 percent from a year earlier but fell 3.4 percent from February, the report said. http://english.yonhapnews.co.kr/business/2012/04/30/52/0502000000AEN20120430000400320F.HTML

Tehrantimes.com
Iran has discovered a new oilfield with considerable reserves in southwestern Khuzestan Province, the National Iranian Oil Company’s Director for Exploration Mahmoud Mohaddes said, the Fars News Agency reported. He denied news published by some media about discovering a large gas field in Khuzestan. Fars News Agency quoted Mohaddes as saying that the field was an oilfield, which holds considerable reserves of crude oil.  Now, exploration wells drilled at one of Iran’s large oil fields in the Khuzestan Province show huge reserves of natural gas there.http://www.tehrantimes.com/economy-and-business/97346-iran-finds-a-new-south-pars-gas-field