WORLD CRISIS WEEKLY WRAP-UP!..(May 25 -- May 29, 2009)

WORLD CRISIS WEEKLY WRAP-UP (May 25 – May 29, 2009)

(Update 1 of 3)

INTRODUCTION:

 Markets and many world reknown economists are upbeat. Does the following 7-day events correspond to this perception?

GOOD NEWS:

UNITED STATES:  Consumer confidence experienced the biggest increase since April 2003. From 40.8 to 54.9.-- US existing homes sales + 2.9% April -----Dollar would hold up even after a US credit downgrade!--Recession may end next quarter, some analysts say! ---Did obama succeed in preventing a 2nd great depression? Some in his team think so. ASIA:  Japan, India revival, some output data shows!..Scattered Illusion?

BAD NEWS:

WORLD: L'ONU reporte à fin juin un sommet sur la crise financière.. Gold jumps up to almost $1,000 dólares!---Some experts considered that Financial volatility (VIX) is more likely to reach 40 than to get to 20!...AMERICA: United States: Existing homes sales -3.5% below 2008’s---- Home Prices -19.1% year to 1^ST quarter---- 10-year notes: steepest 2-month loss since 2.----Durable orders near lowest in 13 years; jobless' 17 month----Dollar posts biggest monthly drop this year! -----FED's Chairman Bernanke bid to lift housing is being scuttled by rising rates-----New normal: 2% GDP growth, 8% unemployment rate----- Economy at risk of double-dip recession!------Recovery will be more slowly than expected; Obama’s government officials said!-------Canada's economy to shrink more than forecast; Deficits to expand!...México: ¡Cae 5.6% actividad económica (IGAE)! Mexican peso weakens after unemployment jumps more than expected!-----.EUROPE: Le chômage pourrait toucher 239 millions;  ----- Euro-Zone: l'exclusion de certains membres s'impose!.... Germany: Allemagne; L'inflation est revenue à zero! Business sentiment up from 83.7 to 84.2. GDP -3.8% 1^st quarter on exports, business spending fell though consumption +0.5% from previous quarter. Poland kept rate at 3.75% but reduced cash reserves from banks, from 3.5% to 3%.... Must cut spending as deficit widens "horribly"!... Hungary kept rate at 9.5%, but forint revival may allow cuts later on.------France: le nombre de chômeurs en hausse!----United Kingdom's Prime Minister Brown goes full circle as debt raises ratingdo...ASIA: Japon, les suicides se multiplient à cause de la crise!----Retail sales fall for 8th month on job woes!... India credit rating may come under pressure over budget!------China: Yuan halting gains to aid exports?------ AFRICA: South Africa in recession 1^st since 1992, -6.4% 1^st quarter, annualised. Mining worst since 1960.

GEO-POLITICS, MARKETS AND NATURAL DISASTERS:

La Chine a du mal à contrôller son allié Nord-Corée------North Korea was condemned after conducting a nuclear test, its second since 2006. - Fires 6th missile this week-----Iran: Ahmadinejad campaign site...attacked!---- ----Grippe a: votre attention, s'il vous plaît! UK swine flu toll is really 30,000, says leading scientist----- Visteon, a car-parts supplier, filed for bankruptcy----- British Airways followed Air France-KLM, with a net loss for its fiscal year----- GM finally in Bankruptcy (June). Hearings on Fiat’s stake in Chrysler, to speed exit from bankruptcy---- Tylenol: drugmakers asked to limit doses, toughen ...Lowest Liborhides "exceptionally wide" bank spreads!-----

CONCLUSION:

Pessimistic news continued to overwhelm optimistic ones.----Global Industries (cars, airlines, etc) are in for a tough ride!-----North Korea missiles and nuclear dangerous games as well as the Swine Flu (affecting worldwide tourism and the airlines industry) are not helping world economy either!---- Will this be a short-lived bull market?....What do you think?