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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

US budget deficit decreases; ECB rate cut likely

Yesterday…
The IMF warned of the Asian bubble, saying too much FDI was leading to explosive credit growth and property prices, and it was to get even worse if Japan’s monetary policy was to have the intended effect on the Japanese economy (hold your horses, Christine). read FT

Deutsche Bank is issuing €2.8bn of new stock to improve its capital base. According to WSJ, Deutsche Bank has one of the lowest capital ratios among European banks. read WSJ

This morning…
The Dutch Queen Beatrix abdicated, to be replaced by her son Willem-Alexander. She will be demoted to Princess Beatrix. read BBC

The US Treasury is expecting the first lowering of the budget deficit since 2007 between April and June 2013, when it is looking to repay $35bn, against the February estimate of shouldering another $103bn in debt. The deficit cut is due to tax increases, spending cuts and tax revenues recoveries. read FT

There was a whole flood of data out of Europe this morning: both Eurozone and German inflation came in at 1.2%, lower than expected, making a rate cut by the ECB on Thursday more likely. German unemployment added to its rise in March, but the adjusted rate is still only marginally above the two-decade low of 6.8%. Eurozone unemployment climbed to 12.1%. No surprise there, when has it not been rising… read Alphaville

Spain reported GDP growth for the first quarter – keyword ‘growth’ – at -0.5%, leading the Bank of Spain to lower it 2013 growth expectations from -0.5% to -1.3%. read CNBC

So long.

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China curbs growth targets in light of social issues

There won’t be an update tomorrow, Wednesday March 6th.

News from China, where outgoing Prime Minister Wen Jiabao presented the country’s economic targets for 2013, including an unchanged GDP target of 7.5%, a lowered inflation target of 3.5% (down from 4%) and a budget deficit of RMB1.2tn, or 2% of GDPDefense spending will be boosted by 10.7%, a smaller increase than in any year since 1990. But the departing Premier also said that China’s growth model was unsustainable and on top of that paired with a whole array of social issues, like the income gap, increasing pollution and a real estate bubbleread article

Also in China, the SEC has been allowed to subpoena Deloitte’s China unit over accounting fraud at Chinese companies operating in the US. After initial co-operation between the American and Chinese securities regulators failed, this is a big step in terms of cross-border fraud investigations. read article

In other regulatory news, an undisclosed group of banks in the City of London have received a hat tip from law firm Shearman & Sterling that it was possible to fight the EU’s banker bonus cap [proposal] in courtread article 

Until then, enter George Osborne.

Otherwise, Apple’s stock fell to a new 52-week low yesterday, dragging the company’s market cap down below $400bn for the first time in over a year. 

So long.

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This Kodak moment is so over

Short recap from yesterday: the Greek government found just about a square millimeter of common ground (in terms of spending cuts), causing temporary annoyance relief, took that party to Brussels, where everybody sceptically shook their heads and sent them back to Athens to cut the budget some more. No-one is having a good time. read article

Meanwhile, protected by their AAA-rating and superior aesthetics, Denmark is sinking deeper and deeper into a 2007-esque financial crisis. A much cited reason is that Denmark didn’t really recover from the burst of the real estate bubble in 2007. Between 2007 and 2013, house prices will have fallen by 25%. At the same time,unemployment is rising – rising from 3.2% (2008 number) that is. read article

Kodak, which filed for bankruptcy protection in January, announced it will stop manufacturing digital cameras. Go and buy one before they are a collector’s item. read article

Steve Jobs’ FBI files were released yesterday under the freedom of information act and can be found here. They feature his LSD-use and comments on his personality traits.

Also, this is why you shouldn’t be thinking about your hourly wage if you want to be happy and enjoy anything in life. (I know I don’t, but that’s just damage control.)

Bloomberg BusinessWeek illustrates the fight between Keynsians and freshwater-Chicago-school economists:view chart

Have a good weekend!

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