Obama Says Economy Hitting `Headwinds' From Europe

http://www.bloomberg.com/news/2010-06-29/obama-meets-with-bernanke-says-economy-is-hitting-headwinds-from-europe.html

U.S. Stocks Plunge; S&P 500 Tumbles to Eight-Month Low

http://www.bloomberg.com/news/2010-06-29/stock-index-futures-decline-on-concern-china-s-economic-growth-set-to-cool.html

“China set the tone in the morning and then it accelerated, with investors probably exiting the market ahead of the U.S. unemployment data on Friday,” said Peter Jankovskis, who helps manage about $2.2 billion as co-chief investment officer at Oakbrook Investments in Lisle, Illinois. “The market volatility is growing, which reflects the overhang from the situation in Europe and the slowdown in China.”

Fiscal contraction can cause double-dip recession: PM

http://www.business-standard.com/india/news/fiscal-contraction-can-cause-double-dip-recession-pm/399644/

In his intervention, the Prime Minister said members of the group should refrain from simultaneously withdrawing the economic stimulus despite concerns over the high debt levels in some countries, particularly in the Euro zone.

“Concerns about debt sustainability normally suggest a need for fiscal correction. But circumstances are not normal. The recovery is still fragile and private demand in industrialised countries is likely to remain weak,” he said, while pointing out that unemployment remained high despite a rebound in output.

G20 countries to tame debt at their own pace

http://www.reuters.com/article/idUSTRE65L3O720100626?feedType=RSS&feedName=topNews&rpc=6

Nuclear proliferation in South Asia - The power of nightmares

http://www.economist.com/node/16426072?story_id=16426072&source=hptextfeature

China’s proposed sale of nuclear reactors to Pakistan will intensify nuclear rivalry with India. But the damage will go far wider

By any measure, Pakistan is a shocker. Its proliferation record would make the serial nuclear mischief-makers of North Korea blush. If the Chinese reactor deal goes ahead, the damage will be huge: beyond just stoking the already alarming nuclear rivalry between Pakistan and India.

Dollar and yen firm as safety rules, yuan eyed

http://www.reuters.com/article/idUSTRE6533CI20100623

(Reuters) - The dollar and the yen gained ground on Wednesday while the euro and high-yielders were on the defensive as a recent risk rally appeared to have run its course and the euphoria from China's new yuan policy waned.

Central Banks Show Euro Losing Appeal as Loonie Gains (Update2)

http://www.businessweek.com/news/2010-06-22/central-banks-show-euro-losing-appeal-as-loonie-gains-update2-.html

By Oliver Biggadike
June 22 (Bloomberg) -- The Australian and Canadian dollars are becoming reserve currencies for central bankers seeking alternatives to deteriorating government credit quality in Europe, the U.S. and Japan.

Ex-Citigroup Trader Hall Raises $1 Billion for Commodities Fund

http://www.bloomberg.com/news/2010-06-21/citigroup-s-ex-trader-andrew-hall-raises-1-billion-for-commodities-fund.html

Stocks, Commodities Climb as China Ends Yuan Dollar Peg

http://www.bloomberg.com/news/2010-06-21/stocks-commodities-surge-after-china-signals-end-to-peg-dollar-weakens.html

Forex: AUD/JPY extending gains, reaches a fresh 5-week high

http://community.nasdaq.com/news/2010-06/forex-audjpy-extending-gains-reaches-a-fresh-5week-high.aspx?storyid=25744

China's Hu Buys Time at G-20 With Yuan Announcement

http://www.bloomberg.com/news/2010-06-21/stocks-commodities-surge-after-china-signals-end-to-peg-dollar-weakens.html

Korean Won Rises to 1-Month High After China Signals Yuan Rise

http://www.businessweek.com/news/2010-06-21/korean-won-rises-to-1-month-high-after-china-signals-yuan-rise.html

Yuan Strengthens Most Since 2005 After China Signals End to Peg

http://www.businessweek.com/news/2010-06-21/yuan-strengthens-most-since-2005-after-china-signals-end-to-peg.html

Wishful Thinking - Part 2

http://www.roubini.com/globalmacro-monitor/259076/wishful_thinking_-_part_1

http://www.roubini.com/euro-monitor/259090/wishful_thinking_-_part_2

Financial Crisis Has 'Only Entered Act II:' Soros

http://www.cnbc.com/id/37611313/

“We have just entered Act Two of the drama… when the financial markets started losing confidence in the credibility of sovereign debt,” he said.

Perils of Derivatives

Soros launched a thorough attack on derivatives and synthetic securities, questioning their overall usefulness.

In April, he wrote that the instruments had been used to “create imaginary value out of thin air.” He discouraged the securitization of loans .“Securitization separates interest of securers from interest of principals,” and particuarly credit default swaps , he said .

“Credit default swaps are particularly dangerous,” Soros said. “CDS ought to be available only to the extent that the buyers have legitimate insurable interest.”

Strong Euro Helped Hide Financial Crisis, Says EU Chief

http://www.cnbc.com/id/37680041

Spacecraft returns to Earth

http://www.smh.com.au/technology/sci-tech/spacecraft-returns-to-earth-20100614-y8o7.html

After a seven-year odyssey in space, the unmanned Japanese spacecraft Hayabusa, or Falcon, burnt up in the atmosphere, making it the first probe to land on an asteroid and return to Earth.

Iran Raises Police Presence to Deter Street Protests on Vote Anniversary

http://preview.bloomberg.com/news/2010-06-12/iran-raises-police-presence-to-deter-street-protests-on-vote-anniversary.html

David Cameron invites a 'double-dip recession' if he insists on Greek medicine for Britain's deficit

http://www.telegraph.co.uk/finance/economics/7811591/David-Cameron-invites-a-double-dip-recession-if-he-insists-on-Greek-medicine-for-Britains-deficit.html

The diagnosis above suggests that the two countries are plagued with different diseases. There is zero chance that the UK will default on its debt. So each country needs a different treatment. The UK is demonstrably not Greece.

Sakakibara says euro headed for parity with dollar

http://search.japantimes.co.jp/cgi-bin/nb20100609n4.html

The euro may lose 20 percent or more against the dollar and fall below ¥100 as concern over Europe's debt crisis mounts, according to Eisuke Sakakibara, the former Finance Ministry official known as "Mr. Yen."

Double dip fear hits euro

http://www.belfasttelegraph.co.uk/business/business-news/double-dip-fear-hits-euro-14833482.html

The country's state secretary sought to play down comments likening Hungary to Greece but added that emergency cabinet meetings had taken place over the weekend and yesterday.

Phil McHugh, senior executive dealer at foreign exchange firm Currencies Direct, said there was little hope of a euro rebound.

"Within a very short space of time, the euro has swung from stable to questionable and talk of a euro collapse with countries leaving the single currency is no longer taboo."

French PM: ECB wants euro to fall to parity with dollar

http://www.huliq.com/9990/93920/french-pm-says-ecb-wants-euro-fall-parity-dollar

French Prime Minister Fillon told news reporters today that he can only see good things for the immediate future if the euro would fall further against the dollar and reach a 1:1 parity with the greenback. In the past one month the exchange rate of Euro vs Dollar was falling steadily now below 1.20 dollars for one euro.

G20: The Time For Stimulus Is Over, Long Live Fiscal Austerity

http://www.businessinsider.com/g20-fiscal-austerity-2010-6

Euro Decline Toward Dollar Parity May Save Monetary Union, Roubini Says

http://preview.bloomberg.com/news/2010-06-05/euro-decline-toward-dollar-parity-may-save-monetary-union-roubini-says.html

Germany and Russia agree on Iran sanctions

http://www.thelocal.de/national/20100605-27667.html

Germany and Russia will work together towards imposing sanctions on Iran if it continues to refuse to stop its nuclear development programme, said Chancellor Angela Merkel after talks with Russian President Dmitri Medvedev.

Burma's Military Budget to Increase Significantly

http://www.irrawaddy.org/article.php?art_id=18627

Analysts believe that many of Burma's future military purchases may come from North Korea.

According to a report by UN experts obtained by The Associated Press last month, North Korea is exporting nuclear and ballistic missile technology and using multiple intermediaries, shell companies and overseas criminal networks to circumvent UN sanctions.

Report says Burma is taking steps toward nuclear weapons program

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/03/AR2010060304859.html

Yen Falls as Hatoyama Resignation Damps Currency Refuge Appeal

http://www.businessweek.com/news/2010-06-01/yen-falls-as-hatoyama-resignation-damps-currency-refuge-appeal.html

Lebanese Army Fired on Israeli Warplanes Over South of Country

http://www.businessweek.com/news/2010-06-02/lebanese-army-fired-on-israeli-warplanes-over-south-of-country.html

Gaza Situation ‘Unsustainable,’ Clinton Says as Ship Approaches

http://www.businessweek.com/news/2010-06-01/gaza-situation-unsustainable-clinton-says-as-ship-approaches.html

ECB Warns Write-Downs Could Reach $239 Billion

http://online.wsj.com/article/SB10001424052748703406604575278620471963334.html

In the latest indication that European banks are in ill health, the European Central Bank warned late Monday that euro-zone banks face €195 billion ($239.26 billion) in write-downs this year and the next due to an economic outlook that remained "clouded by uncertainty."