27th May 2011
From the Guardian, the tsunami has caused Japan to come out of deflation for the first time in 2 years. Food and energy shortages caused by earthquake and tsunami push inflation to 0.6% – but central bank still expected to ease monetary policy.
From the New York Times, another case of an inside trader being caught out, Donald L. Johnson, however in the grand scheme of things didn't come out that well. "Over a three-year period, Mr. Johnson took that secret corporate information and, directly from his work computer, traded in an online brokerage account in his wife's name, reaping illegal profits of about $750,000."
In the Telegraph, Greece may not be able to claim some of its next cash injection. Jean-Claude Juncker said the stricken country was unlikely to be able to guarantee its funding over the next 12 months, preventing the IMF from releasing funds under its own rules. The fresh doubts over Greece's financial aid package caused investors to flee to the safe haven of German bonds. The euro also gave away earlier gains, hitting a two-and-half month low against sterling.
From the Guardian, although yesterday we heard that consumers were back in recession due to their lack of spending, apparently consumer confidence is up, because of the royal wedding and sunshine.
Google wallet has been unveiled, according to the Guardian. The Google Android phone will begin trials for ‘wave and pay' purchases in stores on the US. Gary Hocking, the Payments Council's acting chief executive, said: "The introduction of mobile payments will offer more choice to customers, simplifying how we can make a financial transaction and increasing flexibility in our everyday lives."
While from the BBC News, Google is being sued by PayPal over claims that they stole PayPays technology for their Google Wallet.
The Independent has reported that big bonus payments are back, during the recession we saw a decline in the amount paid in bonuses. The biggest bonuses are seen in the finance and business sector, which is ironic as many consider they were the ones who have caused the historically high income squeeze the UK is enduring at the moment. TUC general secretary Brendan Barber said: "This analysis confirms that the City's unique heads-we-win, tails-you-lose bonus system is back.
In the Wall Street Journal, Israeli central bank chief is the newest person to out themselves forward to become the new head of the IMF.