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Europe Payrolls Shrink by Record 1.22 Million Jobs (Update1)

By Simone Meier

June 15 (Bloomberg) — Europe’s economy lost a record 1.22 million jobs in the first quarter as companies cut spending to survive the worst global economic slump in more than six decades.

Employment payrolls in the 16-member euro region fell 0.8 percent from the fourth quarter, when they declined 0.4 percent, the European Union statistics office in Luxembourg said today. The first-quarter drop was the biggest decline since the data series started in 1995. From a year earlier, payrolls contracted 1.2 percent, the first annual decline on record.

[ . . . ]

The worldwide financial crisis, which started with the collapse of the U.S. property market in 2007, has triggered more than $1.46 trillion of writedowns and credit losses at banks and other financial institutions, according to data compiled by Bloomberg, and sent the global economy into its first recession since World War II.

The statistics office estimates that the total number of people employed in the euro area was 146.2 million in the first quarter. Total employment in the 27-nation EU was 223.8 million.

[from the same article – ]

Paris-based Air France-KLM will reduce its workforce by about 3,000 positions this year following 2,000 job cuts in fiscal 2009, Chief Executive Officer Pierre-Henri Gourgeon said on May 19. Airline losses worldwide may total $9 billion this year, nearly double a previous forecast, the industry’s main trade group said last week.

the ECB forecasts that the euro-area economy will shrink around 4.6 percent this year and about 0.3 percent in 2010.

Hanover, Germany-based Continental said on June 5 that it may cut as much as 9.6 percent of the 27,000 jobs at its German auto-component operations by the end of next year. “We have to do something because our customers are ordering less,” spokeswoman Dagmar Weiner said.

“Companies will continue to cut jobs well into 2010, pushing up unemployment across the region,” said Stefan Bielmeier, an economist at Deutsche Bank AG in Frankfurt. “While the economy may start to stabilize, the worst is still ahead in terms of the labor market.”

To contact the reporter on this story: Simone Meier in Frankfurt at smeier@bloomberg.net
Last Updated: June 15, 2009 06:06 EDT




Comments from the annual Paris Air Show pointed to an increasingly difficult environment for commercial aircraft manufacturers, with airlines looking at two straight years of losses. Despite a contested election in Iran, profit-taking and positive US dollar statements from Japan and Russia sent commodity-based stocks lower this morning, as oil prices sank to $71 per barrel.

10-year government bond yields pulled back from their recent highs and declined to 3.75% from 3.80%.

Key talks scheduled this week include Fed Governor Duke today on responses to the financial crisis; Fed Governor Warsh on economic policy Tuesday, Bernanke at the financial literacy summit on Wednesday, and Treasury Secretary Geithner Thursday on financial regulation.

Dollar prices, however, got some boost following positive comments from Russia’s finance minister and commodity-based stocks and oil prices declined.

At the weekend meeting of G8 finance ministers in Italy, Russian finance minister Alexei Kudrin remarked that dollar’s status as the world’s main reserve currency was likely to continue in the near term. The G8 finance ministers signaled that the worst of the financial crisis is over, raising the need for talks on central banks’ upcoming exit strategies. However, they stopped short of painting a rosy picture, saying, “…the situation remains uncertain and significant risks remain to economic and financial stability”. According to US Treasury Secretary Geithner, however, “I don’t think we’re at the place yet where we can say we have a recovery in place”.

Asian stocks declined Monday as cautious investors evaluated whether the three-moth old rally is due for a pause amid conflicting sings of an economic recovery. European stocks were also down following the losses in Asia.


By: Avishek Mishra
June 15, 2009



GENEVA, June 15 (Reuters) – French President Nicolas Sarkozy called on Monday for a reform of international regulation to strengthen the role of labour and environmental standards at the expense of bodies such as the World Trade Organisation (WTO).
Sarkozy told a global jobs summit at the International Labour Organisation (ILO) in Geneva the world could no longer be governed by the laws of supply and demand.
The G20 group of rich and emerging countries has asked the ILO to help map ways out of the economic crisis by encouraging stable employment. The United Nations agency groups governments, employers and workers to promote good working conditions.
Denouncing the growing commercialisation of all areas of human activity, Sarkozy said in his speech that France was fighting to treat health, labour, environment and trade equally.
“It will put the same energy into fighting the temptations of protectionism as defending the idea that the WTO cannot be the only one to decide everything and that each specialised institution must play its part in defining international standards and their implementation,” he said.

At the same time, the IMF, World Bank and development banks should take social and environmental factors into account in their lending, and refrain from imposing adjustment plans with disastrous social and human consequences, he said.
The idea would be for specialised international institutions to intervene in disputes, especially concerning trade, when their areas of expertise are affected.
He said trade law and commercial arbitrators would no longer have the final say, but the ILO would be brought into international disputes when labour standards were affected, or the IMF would be consulted if there was a question of “monetary dumping” — a reference to manipulated currencies.
“Let us build together this new global governance so that the ILO can have its say at the WTO, the IMF and the World Bank as soon as the basic standards it is charged with seeing respected are at issue,” he said.




US economic indicators

First regional PMIs (June): still showing contraction in the manufacturing sector

Mon, Jun 15 2009, 09:43 GMT
by BHF-Bank Economics Department

[includes charts and downloadable pdf of leading economic indicators]


Current DateTime: 09:15:22 15 Jun 2009

This Week:

MONDAY: Obama meets in Washington with G8 head on global economic regulations; Obama speaks on health-care reform; airline-safety summit; NAHB housing index
TUESDAY: Housing starts; PPI; industrial production; Obama hosts South Korean leader to discuss North; Madoff sentencing; Earnings from Best Buy, Smithfield Foods, Adobe

Bernanke speaks; weekly mortgage applications; CPI; crude inventories; Obama to outline plans for financial reform; Earnings from FedEx
THURSDAY: Weekly jobless claims; leading indicators; Philly Fed index; Earnings from Research In Motion
FRIDAY: Quadruple witching

Send comments to cindy.perman@nbcuni.com.
© 2009 CNBC.com


Still to come: The National Association of Home Builders issues its monthly reading of builder sentiment at 1 pm.


NY Fed’s June Manufacturing Index -9.41 Vs -4.55 In May

Mon, Jun 15 2009, 12:30 GMT

NY Fed’s June Manufacturing Index -9.41 Vs -4.55 In May

By Deborah Lynn Blumberg

NEW YORK (Dow Jones)–Conditions for New York manufacturers continued to deteriorate in June, and at a modestly faster pace than in May, according to the Federal Reserve Bank of New York’s Empire Manufacturing Survey released Monday.

The Empire State’s business conditions index fell five points to -9.41 from -4.55 in May and the record low of -38.23 in March.

The index for new orders remained negative and near last month’s level, at -8.15 from last month’s -9.01. The index for shipments fell by roughly six points to -4.84 from 1.29 in May.



[ from – ]


June 15, 2009 08:30 ET (12:30 GMT)


Stocks Slide Over 2% Amid Factory Weakness
Topics:Timothy Geithner | Politics & Government | Banking | Economy (U.S.) | Economy (Global) | Investment Strategy | Stock Market
By: CNBC.com | 15 Jun 2009 | 10:55 AM ET

The New York Empire Manufacturing Index slumped 9.41 points in May, indicating difficult times in the sector and presenting a headwind for economic growth.

Commodity and heavy industrial stocks led the decline, with Alcoa [AA 11.18 -0.81 (-6.76%) ], Caterpillar [CAT 35.97 -1.76 (-4.66%) ] and Boeing [BA 49.52 -1.92 (-3.73%) ] the three biggest decliners on the Dow.

And Wal-Mart [WMT 48.40 -1.44 (-2.89%) ] took a hit after Goldman Sachs cut its rating on the stock to “neutral” from “buy,” saying it doesn’t see a lot of positive catalysts to drive shares higher in the near term amid cost pressures and tough comparisons.

Meanwhile, Goldman added Wal-Mart rival Target [TGT 39.87 -0.51 (-1.26%) ] to its “conviction buy” list, saying it expects significant earnings momentum for the retailer in the fourth quarter.

[ . . . ]

U.S. Treasury Secretary Timothy Geithner said the financial system was beginning to thaw but that the economic recovery would be slower than usual and that unemployment would likely continue to rise.

“Recovery will be slower than we would normally see,” Geithner said at an economic summit sponsored by Time Warner.”This is still going to be an exceptionally challenging time for business and consumers.”

International Monetary Fund chief Dominique Strauss-Kahn took it a step further, saying the worst may be yet to come for the global economic crisis.



Commodities retreat as Wen questions recovery

By Miles Johnson

Published: June 15 2009 11:37 | Last updated: June 15 2009 14:40

Commodities staged a broad retreat on Monday as a stronger dollar and cautious comments from Chinese premier Wen Jibao over the durability of economic recovery in the world’s third largest economy weighed on investor enthusiasm.

[ . . . ]

Comments from Wen that the drop off in foreign demand for Chinese goods could hamper the country’s economic growth knocked the confidence of investors convinced that a sharp upturn in Chinese demand will reinvigorate the commodities markets.

[ . . . ]



China, Russia steadily deepen cooperation
http://www.chinaview.cn 2009-06-15 10:49:49
by Xinhua writers Hai Yang, Liu Yang

MOSCOW, June 15 (Xinhua) — Chinese President Hu Jintao is scheduled to pay a state visit to Russia on June 16-18.

[ . . . ]

Based on the consensus of a fair international order and the development of global situations, China and Russia hold the same or similar stances on a series of major world issues such as the situations on the Korean Peninsula and in the Middle East and Iran.

[ . . . ]

The economic and trade cooperation between China and Russia has seen rapid growth in recent years. The annual bilateral trade volume has increased from several billion U.S. dollars in the 1990s to about 10 billion dollars at the beginning of the 21st century. It stood at 56.83billion dollars in 2008.

[ . . . ]

Under a loan-for-oil deal signed in February, China would offer Russian firms a long-term loan of 25 billion dollars, while Russia would supply a total of 300 million tons of crude to China from 2011 to 2030.

In addition, negotiations and cooperation on natural gas, nuclear energy and electric power have also been actively underway between the two sides.

Regional economic cooperation between Chinese provinces and Russian regions bears huge potential. Hundreds of cooperation agreements have been signed by local governments of both countries.

Russian President Dmitry Medvedev said in May that Russia should coordinate the development of its Far East region with Chinese efforts to rejuvenate its old northeastern industrial bases.

[ . . . ]

Medvedev, who at the time was first deputy prime minister in charge of the “Year of China,” once told Xinhua that the two countries can deepen their mutual understanding and enjoy closer friendship through such events.

To further consolidate their cooperation, the two countries decided to hold the “Year of Russian Language” in China in 2009 and the “Year of Chinese Language” in Russia in 2010.

[ . . . ]

After the devastating earthquake that claimed tens of thousands of lives in China’s southwest Sichuan Province in May 2008, Russia immediately offered China aid, rescue workers and medical teams. A total of 1,571 Chinese children from the quake-hit regions were invited to Russian resorts for rehabilitation.

Liu Jianchao, spokesman for China’s Foreign Ministry, said Russia’s move embodied the profound friendship of its people toward the Chinese people, and demonstrated a special Sino-Russian partnership of cooperation.

Sergei Razov, the Russian ambassador to China, said recently that the friendly cooperation between China and Russia has brought concrete benefits to the two peoples.

He said the bilateral ties have huge potential and he believed that Hu’s upcoming visit to Russia will inject new energy into the development of Sino-Russian relations.

Special reports: President Hu attends SCO, BRIC meetings, visits 3 nations




SCO leaders kick off summit in Yekaterinburg
Leaders of the Shanghai Cooperation Organization (SCO) on Monday held a Smaller Meeting in the Russian city of Yekaterinburg.
China ready to enhance cooperative ties with Uzbekistan: president
President Hu Jintao on Monday expressed China’s readiness to work with Uzbekistan to push forward their relations of friendship, cooperation and partnership.
Chinese president meets Pakistani leader on bilateral ties
Chinese, Uzbekistani presidents discuss bilateral ties
President Hu arrives in Yekaterinburg for SCO, BRIC meetings
Chinese president leaves for SCO, BRIC meetings
BRIC to speed up development after financial crisis: expert
Latest News
SCO leaders kick off summit in Yekaterinburg
Chinese president meets Indian prime minister
China ready to enhance cooperative ties with Uzbekistan: president
Chinese, Kyrgyz presidents discuss bilateral ties
China, Tajikistan to boost cooperation
Chinese president meets Pakistani leader on bilateral ties
Chinese, Uzbekistani presidents discuss bilateral ties



The annual SCO summit, scheduled for Monday and Tuesday, will discuss how to tackle the international financial crisis and how to enhance cooperation in political, economic, security and other areas among its member states.

Founded in 2001, the SCO consists of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Mongolia, India, Pakistan and Iran are observers of the organization.

Special reports: President Hu attends SCO, BRIC meetings, visits 3 nations

Hu and Karimov are in the Russian city for a Shanghai Cooperation Organization (SCO) summit.

Chinese President Hu Jintao (2nd R) meets with Uzbekistan’s President Islam Karimov (2nd L) in Yekaterinburg, Russia, June 15, 2009. (Xinhua Photo)
Photo Gallery>>>


Chinese, Uzbekistani presidents discuss bilateral ties
www.chinaview.cn 2009-06-15 18:36:21

YEKATERINBURG, Russia, June 15 (Xinhua) — Chinese President Hu Jintao and Uzbekistani President Islam Karimov met here Monday to discuss ways to expand bilateral cooperation.


Le président français s’en est vivement pris à l’OMC, estimant que l’organisation régissant les règles du commerce mondial ne pouvait “être seule à décider de tout”. “Chaque institution spécialisée doit avoir sa part dans la définition des normes internationales”, a-t-il expliqué. Le président français, qui a assuré que la France mettrait toute son énergie à lutter contre le protectionnisme, a également réclamé “une conditionnalité environnementale” et “sociale” pour les grandes institutions financières. “Il n’est quand même pas normal que le FMI ou la Banque mondiale viennent au secours d’un pays sans que l’on puisse lui demander de respecter des règles élémentaires en matière d’environnement, de droit du travail ou de santé publique.”

Prônant un changement de la gouvernance globale des institutions financières, Nicolas Sarkozy a déclaré “irresponsable” de croire que la crise économique et financière actuelle est une simple “parenthèse.” “Cette analyse est absolument suicidaire.” Il a dénoncé la tentation de ceux qui voudraient réduire la portée des décisions prises par le G20 le 2 avril à Londres.”Céder à cette tentation serait une faute historique”, a-t-il déclaré. “Je le dis à tous les chefs d’Etat et de gouvernement du G20 : c’est pour chacun d’entre nous une responsabilité historique d’aller au bout de ce que nous avons entrepris, c’est une responsabilité historique de ne laisser aucun groupe de pression, aucune bureaucratie, aucun intérêt particulier y faire obstacle.” Nicolas Sarkozy a invité les Etats-Unis à se montrer les plus ambitieux dans cette voie.



G8 Finance Ministers’ Meeting Ends in Lecce

Family photo of the G8 Finance Ministers 13/06/2009 The G8 Finance Ministers’ Meeting has launched the “Lecce Framework,” a set of shared principles on stricter rules of conduct regarding market propriety and transparency. There was also talk at the meeting of initial signs of economic recovery, but the G8 ministers took the view that it was early days yet to lower the guard against the “worst crisis since 1929.”

Thus, Italy is seeking to foster a new global governance by encouraging the reform of the international institutions and increasing cooperation between the G8 and the G20, the forum of economic and financial ministers and central bank governors.
With a view to boosting cooperation, British Prime Minister Gordon Brown, who currently holds the G20 Presidency, met with Prime Minister Berlusconi in Rome on 19 February to finalise the priorities that need to be addressed at forthcoming international meetings.

The building which houses Di.Coma.C. (Direzione di Comando e Controllo) in Coppito, L’Aquila The G8, an Opportunity To Rethink the Global Economy’s Ground Rules.

In an interview with a Spanish daily on 8 March, Prime Minister Berlusconi highlighted the fact that it is necessary to define common ethical and legal standards and new rules governing the transparency, propriety and integrity of international economic and financial activity at this time of global economic difficulty.
Following Italy’s proposal, the principal economy and economic institutions at world level leaders met in London for the G20 on 2 April accepted the final document by highlighting the social crisis and they commit themselves to sustaining the people with new job opportunities and welfare.


Bringing the Global Institutions Closer to People
Following the earthquake that struck Abruzzo and Italy on 6 April, a decision was reached to shift the Summit, initially due to be held in the Maddalena archipelago, to L’Aquila.  This, both as a mark of consideration towards, and of solidarity with, the people and the places struck by the quake; and as a further sign pointing in the direction of sobriety and of the institutions’ closeness to the people. The Italian Presidency’s priority aim is thus to bring the global institutions closer to people by focusing on their real problems, with the financial and economic crisis heading the list.

[from above page – and then pictures of the L’Aquila hosting for July 2009 meeting – ]


The new Summit Venue in L’Aquila


IPR strategy key to nation’s sustainable growth
2009-06-15 15:47 BJT

Since China began to implement its National Intellectual Property Strategy on June 5 last year, the nation has achieved remarkable progress in this field.

Intellectual property rights (IPR) protection is a serious concern for both the central and local governments, as well as for foreign businesses operating in China.

In June 2008, Chinese President Hu Jintao told a political bureau meeting that China would promote independent innovations through strengthening developments in science and education, human resources and intellectual property.

Premier Wen Jiabao, wrote an article for the Qiushi magazine, the primary theoretical journal of the Central Committee of the Communist Party of China, saying that the IPR strategy is important for China’s development as a nation’s technological and economic competitiveness depends largely on the competitiveness of its own intellectual property.

Tiana Lipu:” China should change its economic growth model and promote its independent IPR-protected innovations.”

[ . . . ]

More importantly, the improvements in IPR protection have also played a big role in establishing a market economy, strengthening independent innovations and raising the competitiveness of the nation and the core competence of many domestic businesses.



Intel veut élargir sa gamme de produits. Photo : Bloomberg

Le numéro un mondial des microprocesseurs, Intel, achète la californienne Wind River Systems pour un montant de 884 millions de dollars américains.

Intel soutient que l’achat de Wind River s’inscrit dans sa stratégie de développer de nouveaux produits dans d’autres marchés que ceux des ordinateurs personnels et des serveurs, notamment du côté des appareils mobiles et des systèmes intégrés.

Fondée en 1981, Wind River compte 1 600 employés et possède des activités dans 15 pays. Durant son exercice terminé le 31 janvier, la société a généré des revenus de 359,7 millions de dollars américains.



Captain America, thought dead, comes back to life
updated 51 minutes ago

By Chris Kokenes

NEW YORK (CNN) — Perhaps he should be called Captain Phoenix?
Captain America will return in a new comic book series July 1. Its title: “Captain America Reborn.”

[ . . . ]

“The tenor of the world now is when we’re at a point where we want to believe in heroes. Someone who can lead the way,” said Breevort. “It just feels like the right time.”

Captain America first appeared in 1941, just as the United States entered World War II. He was a symbol of American strength and resolve in fighting the Axis powers.

As originally conceived by creators Joe Simon and Jack Kirby, Rogers was born before the Great Depression in a very different America. He disappeared after the war and only reappeared recently in the Marvel timeline.



Related Stories

Home builder confidence falls slightly

Published: June 15, 2009 at 3:01 PM

WASHINGTON, June 15 (UPI) — Home builders
remain unconvinced the U.S. economy is on the road to recovery, an industry trade group said Monday.

The National Association of Home Builders said “single family home builders remain cautious and concerned about the fragile state of today’s economy.” As such, the NAHB/Wells Fargo Housing Market Index, measuring confidence among private contractors, slipped one point to 15 in June.




Regulation makeover 1:10pm ET

The Obama administration will take aim at thin capital reserves and eroded lending standards, and wants new powers for the Federal Reserve to make it the “systemic risk” regulator.  Full Article

Factbox: Obama’s regulation plans


U.S. financial regulation reforms outlined

Mon Jun 15, 2009 1:56pm EDT

By Kevin Drawbaugh

WASHINGTON (Reuters) – The Obama administration will target critical weaknesses in the troubled U.S. financial system, such as thin bank capital cushions and eroded lending standards, when it proposes an overhaul of financial regulation this week, two senior officials said on Monday.

In the fullest summary to date of the administration’s reform proposal, Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers said the plan will also urge stronger consumer and investor protections and new powers for the Federal Reserve.

[ . . . ]

Securitization, or the packaging and selling of loans as securities, has been blamed by critics for eroding lending standards in the mortgage business.

A Treasury spokesman said the administration would propose requiring lenders to retain 5 percent of the risk they securitize. A bill to do this was approved in May by the U.S. House of Representatives, but is languishing in the Senate.

Addressing another market implicated in the crisis, the officials said the Obama plan will urge oversight of OTC derivatives. It will call for unspecified “harmonizing” of futures and securities regulation, and stronger payment and settlement systems, they said.

[ etc. ]

“All derivative contracts will be subject to regulation, all derivatives dealers subject to supervision, and regulators will be empowered to enforce rules against manipulation and abuse,” according to the piece in the Post.

[ . . . ]



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