Friday May 10 Housing and Economic stories

TOP STORIES:

Euro zone loan demand plummets in Q1, seen falling in Q2 -ECB - (www.reuters.com) Demand for corporate and household loans in the euro zone plummeted in the first three months of the year and banks see a further fall in the second quarter, the European Central Bank said on Wednesday. In its latest quarterly Bank Lending Survey, the ECB said banks also made it harder for firms and households to borrow in the first quarter, albeit at a slower pace than in the previous quarter. Banks expect to toughen loan requirements further in the months ahead even though their own funding conditions have improved further, the survey showed.

UK in dark mood as new recession may be confirmed - (finance.yahoo.com) Recession may just be a word. But in Britain it may become a habit — and a dangerous one at that. It's possible that official figures on first quarter economic growth, to be released Thursday, could show the country is back in recession, and tension is building. Although economists on average expect growth of 0.1 percent on the quarter, they warn it would take the smallest statistical variation to put the figure in negative territory. That would place the country in recession, typically defined as two consecutive quarters of economic contraction. Another recession — the third since the 2008 financial crisis — is already being referred to with foreboding in the media as a "Triple Dip." Experts warn that its confirmation would create a wave of negative media attention that would scare consumers away from spending, feeding into a vicious cycle that has the economy flat-lining.

Fake Report Erasing $136 Billion Shows Market’s Fragility - (www.bloomberg.com) A false report of explosions at the White House that wiped out $136 billion from the Standard & Poor’s 500 Index in about two minutes highlighted the risks of the computerized trading that dominates the $18 trillion market. The S&P 500 was up about 1 percent at about 1,578 at 1:07 p.m. New York time today when a posting on the Associated Press Twitter account said there had been explosions at the White House and President Barack Obama had been injured. The benchmark gauge for American stocks erased almost the entire gain, falling as low as 1,563.03 by 1:10 p.m. The index recovered from the plunge within three minutes as the news service said its Twitter account had been hacked and there were no explosions. The S&P 500 ended the session up 1 percent at 1,578.78.

Insight: Ageing deepens debt-laden Europe's economic woes - (www.reuters.com) Long after the debt crisis is over, Europe will be grappling with an even more serious problem - how to pay for growing numbers of old people. The population of some countries is stagnant or already shrinking, notably Germany's. That will reduce savings and potential economic growth. The workers who remain are getting older and so are less productive. That will hold back living standards. And the ranks of retirees are swelling. That will threatening the financing of pensions and health care. In the 27 countries of the European Union, each pensioner is today supported on average by four people of working age. By 2050, this old-age support ratio will have fallen to just 2:1, according to United Nations and EU projections.

U.S. Mint Runs Out of Smallest American Eagle Gold Coin - (www.bloomberg.com) The U.S. Mint ran out of its smallest American Eagle gold coin after demand surged following the biggest drop in futures in three decades. Sales of the coins weighing a 10th of an ounce were suspended after demand more than doubled in 2013 from a year earlier, the Mint said yesterday in a statement. Total sales of American Eagles in April have almost tripled from a month earlier, according to its website. Shoppers from India to China and Japan joined consumers in the U.S. and Australia in the rush to buy jewelry and coins after futures slumped 13 percent in two days through April 15. Indian buyers flocked to stores and banks for ornaments, coins and bars as purchases from the Perth Mint in Australia doubled and retail sales across China tripled.

OTHER STORIES:

China calls Japan-U.S. island drill "provocative" - (www.reuters.com)

Italy president names center-left's Letta as new premier - (www.reuters.com)

Taiwan Finds First Bird Flu Infection Outside China in Traveler - (www.bloomberg.com)

Insight: What ever happened to France's voice in Europe? - (www.reuters.com)

Gold ETPs Head for Record Monthly Drop as $20 Billion Wiped Out - (www.bloomberg.com)
Number of homes entering foreclosure plunges in California - (www.latimes.com)