Mindful Money’s news round-up: Wednesday 1st June 2011

1st June 2011

Story of the day:

The Independent, are discussing investments in wine, and how they are on the increase because of the rising middle classes in the East, particularly China, with the price of investment wines comfortably outperforming nearly every other asset class – with the exception of gold – over the past decade. "There are a number of factors which have driven prices up, but they all, in effect, relate to supply and demand," says Sam Gleave

Fine wine goes well with a balanced portfolio – but it's getting scarce

And the best of the rest:

From the Telegraph, another example of how adverse weather is affecting economies. Australia's economy suffered its biggest quarterly contraction in 20 years during the first three months of 2011, as extensive flooding and Cyclone Yasi halted the country's once-in-a-lifetime mining boom.

Australian economy suffers worst GDP decline in 20 years

Also from the Telegraph, Glencore has been barred from borrowing from the European Investment Bank (EIB) after the bank launched an investigation into what it said were "serious concerns" about the way the Swiss commodities trading house is run.

Glencore blocked from borrowing by European Investment Bank

In the Guardian, A bitter rift has opened up between the world's most powerful bank and one of its most fearsome dictators after Goldman Sachs invested $1.3bn (£790m) of Colonel Gaddafi's money – and lost virtually all of it.

Goldman Sachs lost 98% of Gaddafi's $1.3bn investment

From the New York Times, A new rescue package for Greece is taking shape, one that would offer billions of euros in new loans in return for accelerated privatization and tougher tax collection measures on the part of the beleaguered Greek government, European officials said on Tuesday.

New Rescue Package for Greece Takes Shape

Manufacturing appears to have slowed worldwide, as reported in the BBC, UK, Eurozone and China are feeling the effects

This is Money have reported what the outcome of this stall in growth in manufacturing will cause: The likelihood of an interest rate rise this year shrank today after manufacturers reported the first drop in new orders in nearly two years.

Rate rise 'off books' as manufacturing slumps

Also from This is Money, Investors could unwittingly be gambling more than a third of their savings on risky commodities such as oil and copper, amid growing concerns that prices could fall.

Are gold, silver and oil heading for a fall?

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