“Global air freight volumes are falling at some of the fastest rates since the end of the great recession in a warning sign that recessionary forces are building in the world economy.
“Freight indicators are available with a much shorter lag than most macroeconomic statistics, which makes them a good barometer of the economy’s health.
“Freight volumes are now declining at major airports around the world in a signal the global manufacturing and distribution system is under growing stress…”
Not high on my list of personal concerns but it’s a juicy leader:
“As lawmakers trade fire over contempt votes and impeachment, there’s been no progress toward reaching a budget agreement or extending the federal government’s ability to borrow before September, when the money runs out. That’s raising the ugly prospect of more than $100 billion in mandatory cuts as well as an unprecedented default on US debt — a situation that could trigger a worldwide economic catastrophe.”
“Donald Trump does not understand the implications of his dangerous game of brinkmanship and the precarious state of the US economy. Let me explain.
“On the back of a strong employment report in April, with non-farm jobs rising by 263,000 and unemployment rate falling to 3.6%, and stronger-than-expected first-quarter GDP growth advance report at 3.2%, he somehow believes that the economy is so strong that it would withstand the fallout from a trade war.
“But he is wrong.”
“The United States and China appeared at a deadlock over trade negotiations on Sunday… Beijing remained defiant…
““At no time will China forfeit the country’s respect, and no one should expect China to swallow bitter fruit that harms its core interests,” the People’s Daily, a newspaper controlled by the Chinese ruling Communist Party, said in a commentary on Monday.”
“Vehicles sales in China, the world’s largest auto market, fell 14.6% in April from the same month a year earlier, marking the 10th consecutive month of decline…
“That followed declines of 5.2 percent in March and 14 percent in February, as well as the first annual contraction last year since the 1990s against a backdrop of slowing economic growth and crippling trade war with the United States.”
“South Korea’s exports could extend losses for the six month in a row as outbound shipments in the first 10 days of May falling 6.4 percent on year as escalated trade tensions between the United States and China sour global commerce.
“According to the data from the Korea Customs Service on Monday, the country’s exports totaled $13 billion won in the first 10 days in April, down 6.4 percent from the previous year.”
“Japan’s coincident indicator index declined in March and the government cut its assessment of the economy, a sign it may already be in recession as the U.S.-China trade war and weak external demand hurt activity.
“Worries about the economy have grown as Japan’s exports and factory output were hit by China’s economic slowdown and the escalating U.S.-China trade friction, which had disrupted global supply chains.”
“Sydney houses are hitting the market at the slowest pace since 2004 and Melbourne is also seeing a dramatic slide in sellers, adding to concerns that Australia’s housing slump will sap economic growth and force the central bank to cut interest rates.
“New advertisements for Sydney homes dropped 21.5 per cent in the three months to April from a year earlier…”
“Brazil’s government will announce a new freeze on federal spendings later this month, special secretary to the Economy Ministry Waldery Rodrigues said on Thursday, blaming weak growth for stoking a budget deficit and hurting revenues…
“Brazil’s economy has performed far worse this year than policymakers and most economists had expected…”
“Amid a swirling economic crisis and protests over budget cuts for research in Argentina, one scientist has found a novel way to fundraise: winning money on a television game show.
“Marina Simian, a biologist for Argentina’s National Scientific and Technical Research Council, went on the local version of the TV program “Who Wants to be a Millionaire,” saying she needed the money to support her cancer research.”
“Three Venezuelan opposition members of parliament have taken shelter in foreign embassies after losing their congressional immunity.
“They are among 10 lawmakers stripped of immunity after the Supreme Court said they should be investigated for conspiracy, rebellion and treason. The opposition led by Juan Guaidó tried to spark a military rebellion against President Nicolás Maduro last week.”
“Cuba has announced it is rationing staple foods and hygiene products due to shortages which it partly blames on the tightening of a trade embargo imposed by the United States.
“Faced with a grave economic crisis, the Cuban government says it will control and ration the sales of chicken, eggs, rice, beans, soap and other essential items.”
“UK business output growth declined for the first time in 2019 last month as the boost from Brexit stockpiling faded, according to the latest business trends survey from international accountancy firm BDO.
“Following a dramatic fall in March of 3.69 points, BDO’s business optimism index fell further in April by 0.26 points to 95.74 – close to negative territory, which is marked by a score of below 95.”
“A significant threat to both Spain’s and Italy’s economic prospects is the fragmentation of the political system. Spain’s ruling coalition is likely to remain weak as party interests will continue to come before national priorities.
“The separatist agenda of the Catalans will not go away. Educational reform will drag on as it does in other Mediterranean countries whose politicians are locked on short-term political objectives.”
“Italy’s economy is sick and the governing coalition can’t agree on the cure — among themselves or with Brussels… Italy has to refinance its skyrocketing public debt by €84.5 billion this year, and international investors are shying away.”
“Greece faces sanctions from eurozone creditors for moving to reduce the country’s primary surplus and breaching debt obligations as the beleaguered government of Alexis Tsipras moves to shore up public support ahead of key elections.
“Mr Tsipras, 44, is keen to boost his waning popularity and last week unveiled tax breaks and handouts for millions of Greeks who have had their pensions and incomes slashed by as much as 40 per cent since the financial crisis.”
“Turkey election authorities annulling the Istanbul municipal vote, after an opposition candidate was elected as mayor, has increased the risk of political instability while the Turkish Lira gave way against the Euro.
“The country’s Supreme Electoral Board announced that the election would be re-run on June 23, state media reported.”
“Pakistan and the International Monetary Fund reached an agreement on a loan of about $6 billion designed to help the South Asian nation avert an economic crisis.
“The lender’s executive board will meet to approve the agreement for the 39-month loan, “subject to the timely implementation of prior actions and confirmation of international partners’ financial commitments…”
!IMF’s mission chief Ernesto Ramirez Rigo said in a statement.”
“A spectre is haunting the world. No, not communism, as Marx claimed.
“The spectre is debt.
“The creditor class has nothing to lose but its Kapital, and the bourgeoisie nothing to lose except the value of all it owns. Think Weimar Germany, Mugabe’s Zimbabwe, Maduro’s Venezuela.”
Read the previous ‘Economy’ thread here and visit my Patreon page here.