Daily Archives: July 12, 2010 @ 9:28 am (Monday)

UK Economy Grew Unrevised 0.3% in First Quarter

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Still looks to me like the UK budget deficit has been more than sufficient to support at least modest GDP growth.

UK Headlines:

U.K. Economy Grew Unrevised 0.3% in First Quarter

U.K. Consumers Predict Economy Will Worsen, GfK Survey Shows

U.K. Mortgage Approvals Rose 2% in May From April, CML Says

U.K. Profit Warnings to Climb as Deficit Cuts Kick In, E&Y Says

Osborne Says U.K. Budget Cuts Needed to Avoid ‘Downward Spiral’

U.K.’s Budd to Propose More Independent OBR, Telegraph Says

Blanchflower Says Economy May See Long Decade of Slow Growth

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DPJ Suffers Crushing Defeat; LDP Wins Most Seats

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The loss seems to have been over the proposed sales tax increase, which would have been a strong negative for GDP, so this result is equity friendly:

“Public support for the DPJ rebounded when Kan took, but tumbled quickly after he floated a rise in the sales tax from 5 percent to help rein in debt.”

“Critics blame Kan’s eagerness to hike the rate for causing the DPJ’s major defeat in Sunday’s Upper House election.”

Japan Headlines:

DPJ Suffers Crushing Defeat; LDP Wins Most Seats

Corp Goods Prices Up 0.5% On Year In June

Japan’s used vehicle sales in Jan.-June fall to 2nd-lowest level

IMF Shinohara: Japan Must Be Cautious Discussing Taxes; No Sharp Yuan Rise

Edano: Won’t Rigidly Stick To Drafting Sales Tax Hike This Fiscal Year

LEAD: Tokyo stocks edge lower as post-election uncertainty weighs+

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ECB buys Irish Bonds

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This latest announcement of the purchase of Irish bonds shows the ECB is continuing its policy of buying national govt bonds to facilitate solvency:

EU Headlines:
Europe’s bankers in talks over bail-out fund

Support for European spending cuts strong

European Bank’s Economist Is Optimistic on Sovereign Debt, but Critics Are Wary

EU Ministers Pressured to Give More Stress Test Data

ECB’s Bini Smaghi Favors Lower Deficit Limit for Stability Pact

ECB Buys 8 Billion Euros of Irish Bonds, Sunday Tribune Says

ECB Buys 8 Billion Euros of Irish Bonds, Sunday Tribune Says

July 11 (Bloomberg) — The European Central Bank bought about 8 billion euros ($10.1 billion) of Irish government bonds in the last seven weeks, the Sunday Tribune said, without saying where it got the information. The purchases account for as much as 10 percent of outstanding Irish bonds, the Dublin-based newspaper said.

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