Financial timeline

2009	Event

22 Jun	A report by SuperRatings suggests that Australian super funds are on track to record double digit losses for the 2009 financial year. The median balanced super fund recorded a 1.01% increase in returns in May. The ABS reports that sales of new motor vehicles in Australia increased 5.4% in May from the previous month - the biggest increase since 2005. The Japanese Trade Ministry reveals that sentiment among large manufacturers increased to minus 13.2 points and the tertiary index of money spent on services from phone calls to dining out increased 2.2% from Mar to Apr. The World Bank releases a new report which claims that "while the global economy is projected to begin expanding once again in the 2^nd half of 2009, the recovery is expected to be much more subdued than might normally be the case". The report also revises a previous forecast of a contraction of 1.7% decline in the global GDP and increases this to a contraction of 2.9% in 2009. The World Bank forecasts economic growth in developing countries of 1.2% in 2009 and indicates that without China and India, output would shrink 1.6%.

21 Jun	The Australian Federal Treasurer announces that all 144 retail banks, building societies and credit unions have signed up to the government’s "principles" to assist borrowers. US Trade Representative Ron Kirk claims that the US has to "stop talking about trade as on the second page of the agenda, and put it on the first page of the agenda, along with the stimulus, education and healthcare". China’s Commerce Ministry reportedly submit a proposal to the State Council requesting that the Government take measures to stop the fall in foreign direct investment. Rightmove Plc claim that the average cost of a home in the UK dropped 0.4% to 226,436 pounds in Jun. The average cost had previously risen by 2.4% in May.

19 Jun	The US Federal Deposit Insurance Corporateion announces that a total of 40 banks have failed in this year in US. The IMF first deputy managing director announces that "while the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economic recovery". The German Federal Statistics Office releases figures which show that German producer prices decreased by 3.6% year-on-year in May - the biggest annual decline since Apr 1987. The Melbourne Institute reports that it expects Australia’s GDP to be flat in the June quarter, before expanding by 0.3% in the Sep quarter and then by 0.5% in the Dec quarter.

18 Jun	The US Labor Department release figures which show that US initial jobless claims for the week ended Jun 13 were up 3,000 to 608,000. This is up from a revised-up figure of 605,000 claims the previous week. The US Labor Department reports that 48 US states and the District of Columbia recorded increases in their unemployment rates in May. Only 1 state recorded a rate decrease and 1 state had no change. Several states and regions reported their highest unemployment figures since the report began in 1976. The Japanese government raises its assessment of the economy for the second straight month and states that "while the economy is in a difficult situation, movements of picking up are seen in some areas". The EU leaders back a reform of the EU’s financial supervision but aggress that it should not weaken national powers to regulate their own financial industries. The Swiss National Bank releases its stability report and the report indicates that Switzerland might have to create rules to split off parts of its dominant banks if the economy worsened. The ACCI/Westpac Australian survey of industrial trends reveals that its actual composite index rose 3.9 points to 38.9 in the June quarter. The Reserve Bank of Australia releases data which shows that Australian consumers spent $A17.376 billion on their credit cards in April - a drop of 7.5% from the March figures. A Reserve Bank of Australia paper shows that the "major banks’ NIM" (net interest margin - the main indicator of bank profitability) "currently averages 2.27%, which is a little above the level before the onset of the financial market turbulence in mid-2007". The Melbourne Institute household financial conditions index rose from 28.3 in March to 31.5 in June. The ABS reports that merchandise imports into Australia fell by $A801 million in May, seasonally adjusted.

17 Jun	The US Labor Dept reports that the US CPI figure has fallen 1.3% over the past year - this is the largest year-over-year decline since April 1950 and is mainly due to a 27.3% decline in the energy index. Core CPI rose 0.1% in May when compared with the April figure. The UK’s Office for National Statistics reveals that Britain’s unemployment rate increased by 0.7 percentage points in the 3mths to April to 7.2%. This is up 1.9 percentage points from a year earlier. The Bank of England Governor claims that "there are some signs that the British economy is beginning to stabilise" but he also added that "there are some equally solid reasons for believing that the path to full recovery could be protracted". US President Barack Obama announces that the US government is "proposing a sweeping overhaul of the financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression". The Reserve Bank of New Zealand governor announces that "we expect the economy to begin growing again toward the end of the year, but the recovery is likely to be slow and drawn out. It could also be erratic". The World Bank projects Chinese GDP growth of 7.2% in 2009 and claims that "growth in China should remain respectable this year and next, although it is too early to say a robust, sustained recovery is on the way". The Australian Investment and Financial Services Association announces a new consumer charter for fund members designed to instil confidence in the market. The charter involves moving away from commissions to a fee-based system. The ABS report that Australian dwelling commencement volumes dropped 4% to a seasonally adjusted 30,949 units in the March quarter - the lowest level since the June quarter of 2001. The Westpac/Melbourne Institute leading index of economic activity rose by 0.7% in April and was down 3.5% over the year.

16 Jun	Brussels-based industry association ACEA reports that new car registrations fell 4.9% to 1.27 million vehicles in May - the 13th straight month of falls. The Bank of Japan decides to keep interest rates on hold at 0.1% and indicated that "it is too early for the Bank of Japan to implement exit strategies". Minutes released on the June policy meeting by the Reserve Bank of Australia show that "board members did not see a pressing case" for any further cuts to interest rates.

15 Jun	The US Treasury releases data which shows that China owned $US763.5 billion in US securities in April, down from $US767.9 billion in March. It is the first month since June 2008 that China has failed to purchase more US T-bills. US Treasury Secretary Tim Geithner comments the US financial system is in "the early stages of repair" but also stresses that the economy faces "an enormously challenging period ahead". A US government report reveals that the dollar amount of new loans issued by the 21 biggest recipients of taxpayer funds under the government’s TARP initiative decreased 7% to $US273 billion in April from nearly $US295 billion in March. The Australian Treasurer claims that the Federal Govt’s stimulus packages will put 80,000 long-term unemployed people in work over the next decade. The ABS reveal that Australia’s total personal finance commitments rose by 0.2% in April, seasonally adjusted, to $A6,270 billion. Credit for commercial purposes dropped 12.9% in the same month and housing finance commitments increased 1.9%.

14 Jun	The IMF managing director states that "we see, at the IMF, a recovery towards the beginning of 2010. 2009 is already done, we know it’s a bad year". He also stated that "the large part of the worst is not yet behind us". The leaders of Russia, China, India and Brazil state that the first summit of BRIC leaders will be used to "speak more about the possible ways to reform international financial institutions".

11 Jun	A report released by Bankwest on "Retiring in the Downturn" estimates that 73% of Australia’s 4 million elderly residents have had their retirement plans disrupted because of the economic crisis. The ABS report that Australia’s unemployment rate increased from a revised 5.5% in April to 5.7% in May - a loss of 30,000 jobs. The April unemployment figure had previously been 5.4%. The Westpac-Melbourne Institute inflation survey index finds that the median expected rate of inflation was up from 2.3% in May to 2.8% in June. New Zealand’s central bank leaves its official cash rate unchanged at 2.5%. US company RealtyTrac report that for the total number of lenders filing foreclosure notices in May there was a decline of 6% from the April figure but an increase of 18% when compared with the May 2008 figure. A report released by the US govt reveals that US household net worth fell by $US1.3 trillion to $US50.4 trillion in the 1st quarter of 2009. US stock holdings dropped 5.8% to $US5.2 trillion and mutual funds holdings dropped 4.1% to $US3.3 trillion. US home values also dropped 2.4% to $US17.9 trillion. China’s customs authorities report that Chinese exports fell 26.4% in May from a year earlier and imports were down 25.2%. Japan’s Cabinet Office reveals that Japan’s economy recorded an annualised 14.2% contraction and a quarterly contraction of 3.8% in the first quarter of 2009. The Real Estate Institute of New Zealand release figures that show that the median price of a residential property in New Zealand decreased from $NZ340,000 in April to $NZ337,500 in May and down 2.2% from the previous May. The Reserve Bank of New Zealand decides to leave the official cash rate unchanged at 2.5% but the Governor made it clear he sees room for additional cuts. The German deputy finance minister announces that the G8 ministers will meet to discuss eventual exit strategies from the crisis policies. The IMF revises its 2010 growth forecast from 1.9% in April to 2.4%.

10 Jun	A report by Access Economics suggests that Australian retail sales are unlikely to achieve a respectable level again until the jobless rate stops rising - estimated to be early 2011. The Westpac-Melbourne Institute index of consumer sentiment increased 11.3 index points in June to 100.1 points. The 12.7% increase in June was the largest monthly increase in 22yrs. The ABS release figures which show that Australian housing finance increased by 0.9% in April to 60,395 loans. Construction finance rose 1.3% in the same period. First-home buyers are taking out a record 28% of the value of all Australian home loans. Australia’s Prime Minister suggests that "we have a rational basis for confidence in the future". The US National Federation of Independent Business members release their June "optimism index" report and this shows that 9 of the index’s 10 index factors were improved or unchanged from May’s report. Statistics New Zealand releases figures which show that New Zealand’s terms of trade were 5.2% lower in the 1st quarter than a year earlier. The figure was also down 3% from the previous quarter. Bank of Japan data shows that Japanese wholesale prices dropped 5.4% in May from a year earlier - the fastest drop in 22yrs.

9 Jun	The ANZ Australian job advertisements survey shows that total job advertisements in May dropped 0.2% from the previous month to an average of 136,457 a week - the smallest monthly decline in 13mths but still down by 49.1% on the May 2008 figure. Statistics New Zealand reports that the seasonally adjusted volume of residential building work dropped 0.4% in the March quarter - it was also the lowest figure recorded for 7yrs. The US Treasury announces that 10 US banks have won clearance to repay $US68 billion in taxpayer money that had been given to them during the credit crisis. The Chinese State Administration of Foreign Exchange announces new rules to support overseas investment by Chinese companies.

8 Jun	US credit reporting agency TransUnion reports that credit card delinquency rates increased 11% in the first quarter from the previous year and up 9.1% from the previous quarter. The US Congressional Oversight Panel suggests that bank stress tests would need to be repeated if the US unemployment rate rises beyond the regulators assumed levels. A Republican congressman states that during a visit to China concerns were raised by Chinese leaders about the US budget deficit and comments made about looking to diversify from the US dollar. The head of the World Bank states that "any forecast in this environment is hazardous, but I think China is likely to surprise on the upside."

5 Jun	The US Labor Dept reveals that the US unemployment rate increased from 8.9% in April to 9.4% in May, the highest level since July 1983.

4 Jun	The ABS reveal that the Australian balance of goods and services was a deficit of $A91 million in Apr, seasonally adjusted, from a downwardly revised $A2.3 billion surplus in Mar. The Australian Finance Minister claims that even though Australia has not entered a technical recession the Treasury expects the jobless rate to reach 8.5% by mid-2010. The Japanese Ministry of Finance report that capital spending, excluding software, fell by 25.4% in the first quarter of 2009 from a year earlier - the largest drop since the data began in 1955.

3 Jun	Australia escapes a technical recession with the announcement of an unexpected rise of 0.4% in GDP for the 1^st quarter of 2009. US payroll-processing firm, Automatic Data Processing, reveal that private-sector employers cut 532,000 jobs in May, a 2.4% improvement from the revised 545,000 decrease in Apr. The US Mortgage Bankers Association announces that its seasonally adjusted index of mortgage applications decreased 16.2% to 658.7 for the week ended May 29. The US Institute for Supply Management’s non-manufacturing index increased from 43.7 in Apr to 44.0 in May - its strongest since Oct 2008. The Duke University/CFO Magazine CFO confidence survey shows that US and Asian CFO’s predict a turnaround in the global recession earlier than those in Europe. The US Commerce Department reports that factory orders rose 0.7% in Apr after a revised 1.9% decrease in Mar. The Centre for Economics and Business Research (CEBR) forecasts that the US, Canada and Europe will contribute 49.4% to the world’s total GDP in 2009 - the first time since the beginning of the Industrial Revolution that non-Western economies produced more than half the world’s GDP. The US Labor Department reports that 13 cities in the US had unemployment rates top 15% in Apr and another 93 reached above 10%. US Federal Reserve Chairman Ben Bernanke tells the US House of Representatives’ Budget Committee that "unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth". The OECD reveals that consumer prices in the 30 OECD countries increased by 0.6% in the 12 months to Apr. This was down on the 0.9% increase recorded in the year to Mar . China’s State Council & Cabinet claim that "the impact of the global financial crisis on China has not yet bottomed out; there are still many uncertain and unstable factors; and the economic recovery does not have a solid foundation". Markit’s Eurozone services business expectations index rose from 54.4 in Apr to 59.1 in May

2 Jun	The Australian dollar opens at an eight-month high of 81 US cents. The ABS report that general government final consumption expenditure increased by 0.3% in the Mar quarter and general government gross fixed capital formation decreased by 0.6%. The ABS reveal that permits for new home building in Australia increased a seasonally adjusted 5.1% in Apr - following on from a 3.5% rise in Mar. Building approvals in the year to Apr fell 16.1%. The ABS release figures which show that Australia’s current account deficit narrowed in the 1^st quarter to $A4.61 billion from a revised $6.36 billion in the 4^th quarter. The Reserve Bank of Australia decides to leave interest rates on hold at 3% because they claim there are signs of a recovery in the global economy. The US Treasury Secretary states that in his meetings with Chinese officials in Beijing they expressed "justifiable confidence in the strength and resilience and dynamism of the American economy".

1 Jun	The TD Securities-Melbourne Institute monthly inflation gauge drops by 0.3% in May, after an unchanged reading in Apr. Figures released by the ABS show that Australian company gross operating profits fell by 7.2% in the Mar quarter after an 8% fall in the previous quarter. The Australian Industry Group/PricewaterhouseCoopers Performance of Manufacturing Index increases 7.4 points to 37.5 in May. The ABS reveal that Australian consumers increased their spending in Apr by 0.3% to $A19.35 billion. The Australian Housing Industry Association reports that new home sales in Apr rose by 0.5% after growing by a revised 3.1% in Mar. The US Commerce Department reports that US consumer spending decreased 0.1% in Apr after a revised fall of 0.3% in Mar, previously reported as a 0.2% fall. According to data released by the US Commerce Department spending on construction projects in the US rose 0.8% in Apr - the biggest increase since Aug 08. The increase follows on from a revised 0.4% increase in Mar, previously reported as a 0.3% increase. The US Institute for Supply Management’s index of national factory activity increased from 40.1 in Apr to 42.8 in May - the highest level since Sep 08. A report released by the US Treasury Department shows that amongst the 500 financial institutions that received TARP funds there has been a drop of 0.8% in the total amount of loans outstanding (their lending activity) in Mar. Statistics Canada release new figures which show that Canada’s GDP fell 5.4% in the 1^st quarter of 2009 - its worst results since 1991.

31 May	The Chinese banking regulator and Finance Ministry release a joint statement warning to increase their risk management and "raise their ability to deal with risk and promote stable and relatively fast economic development".

29 May	The Bank of Korea’s index measuring expectations increased from 71 in May to 76 for June - an 8mth high. The Japanese Trade Ministry reports that Japan’s industrial output rose 5.2% from March to April - the biggest rise since 1953. The Reserve Bank of Australia reports that total credit provided to the private sector by financial intermediaries increased by 0.1% in April and over the year to April, total credit increased by 4.6%. The RP Data//Rismark Australian Home Value Index releases figures which show that Australian house prices have increased 2.8% over the first 4mths of 2009. Australian Prime Minister Kevin Rudd announces that "we have absolutely no plans" to lift the age at which Australians can access their superannuation savings.

28 May	OPEC decide to keep output steady and the Saudi oil minister announces "the price is good, the market is in good shape, recovery is under way. What else could we want?" The US Labour Dept releases figures which show that new US unemployment claims in the week ending May 23 decreased by 13,000 from the previous week’s revised figure of 636,000. The US Mortgage Bankers Assoc releases a National Delinquency Survey which reports that foreclosures were initiated on 1.37% of all first mortgages during the 1st quarter of 2009 - a 27% increase from the 1.08% rate during the final quarter of 2008 and a 36% rise from the first quarter 2008. This is the largest quarter-over-quarter increase in foreclosure since the records began in 1972. The US Commerce Dept reveals that new orders for durable US manufactured goods rose 1.9% in April - the biggest gain in 16mths. March orders were revised down sharply from their previously reported 0.8% decrease to a decrease of 2.1%. Data released by the US Federal Reserve shows that for the week ended May 27, the size of the US commercial paper market fell by $US35.9 billion to $US1.248 trillion outstanding - the lowest level since 2001. The ABS releases data which shows that Australia’s new private capital expenditure fell by a seasonally adjusted 8.9% in the March quarter to $A22.96 billion. Forecast spend is for $A76.93 billion in the 2009/2010 financial year - down 4.5% from forecast figures released in Feb. The Reserve Bank of Australia deputy governor tells a industry conference that among the developed economies, only Australia, New Zealand, Denmark and Norway still had official interest rates above 1%. The New Zealand Finance Minister announces that the NZ Govt will be in a deficit for 10yrs and he unveiled a budget which forecasts gross debt peaking at 43% of GDP in 2016/17. The US Federal Deposit Insurance Corp announces that the number of lenders on its "problem bank" list increased from 252 in the 4th quarter of 2008 to 305 in the 1st quarter of 2009 - the highest level of troubled institutions since 1994. Manpower Inc releases results of an annual survey which show that worldwide, 30% of employers are still having trouble filling positions because of the lack of suitable talent - this is only down 1% from a year ago. The US organisation Hope Now claims that nearly 270,000 US homeowners were issued mortgage workouts in April which is up from the 250,000 issued in March. They also claim that their members and other mortgage lenders granted 127,000 mortgage modifications in the same month, plus an additional 142,831 repayment plans. The National Assoc of Realtors reports that existing home sales increased 2.9% in April to a seasonally adjusted annual rate of 4.68 million units - up from a revised rate of 4.55 million in March. The National Assoc for Business Economics Outlook issues a report which suggests the group expect that economic growth will rebound in the 2nd half of 2009 but before that they still expect to see decline in the 2nd quarter economic activity.

27 May	The EU proposes the creation of regulatory bodies to oversee financial supervision across national borders because the EC President says that "our measures will help establish confidence and restore demand for credit". The inaugural Global Proxy/ Melbourne Institute Australian shareholder confidence index rose by 10.1% from 96.7 points in Mar to 106.5 index points in May. The ABS release figures which show that Australian construction work in the Mar quarter dropped by a seasonally adjusted 3.7% to $A34.5 billion. The Westpac/Melbourne Institute leading index of Australian economic activity increased by only 0.3% in Mar and was down 5.1% over the year. Japanese gov data shows a trade surplus of $US 728 million for Apr - down 85% from the same month last year but Japan’s third straight monthly surplus. The Australian Dept of Education, Employment and Workplace Relations skilled vacancies index for May 2009 is 35.1 points - down 7% from Apr and down 62.6% when compared to May 2008.

26 May	An international business confidence survey by Servcorp has 1 in 5 international businesspeople citing Australia as the country best surviving the recession. China comes in second place, India & Singapore are in equal third place and New Zealand is in ninth position. Statistics South Africa reveal that South Africa has officially entered a recession with GDP figures for the 1st quarter of 2009 decreasing by an annualised rate of 6.4% compared with the 4th quarter of 2008, when GDP contracted by 1.8%. This is South Africa’s first recession in 17 years. The Conference Board’s US index of consumer attitudes increased from a revised 40.8 in Apr to 54.9 in May - it is the biggest one-month gain since Apr 2003 when many Americans believed the war in Iraq was nearing its conclusion. The US Committee on Capital Markets Regulation urges the US gov to look at a merger of the separate banking, securities and commodities regulators in the US to form a Financial Services Authority. The German Federal Statistics Office reports that German exports dropped 9.7% from the 4th quarter 2008 to the 1st quarter of 2009 and company investment decreased 7.9%. The Office also confirmed its initial GDP estimate of a decrease of a seasonally adjusted 3.8% in 1st quarter. The S&P/Case-Shiller US National Home Price index dropped a record 19.1% during the 1st quarter of 2009 compared with the 1st quarter of 2008. The Case-Shiller 20-city index also dropped a record 18.7% in the same period. The Chinese State Information Centre reports that monthly retail sales figures may be overstating China’s domestic consumption and that "overall consumption is no less affected than other economic indicators in the economic downturn" and "boosting domestic demand remains an arduous task". The Bank of Korea reveals that the South Korean household sentiment index increased from 98 in Apr to 105 in May - the highest level since the 3rd quarter of 2007 and the first time since early 2008 that the index has been above 100. The New Zealand ASB housing confidence survey for the 3mths to Apr shows that 59% of respondents felt that now was a good time to buy - increasing from 53% in the previous quarter. The Australian Federal Treasurer announces that it may take up to 4 budgets to make up the "infrastructure deficit that has been left in this country over a long period of time". The Melbourne Institute wage report for the May quarter shows total pay growth for the year to May was a modest 3.3% and 9% of respondents reported a pay cut - the highest pay cut rate in the past 4 quarterly surveys.

25 May	China’s National Development and Reform Commission states that it may encourage private investment in state-controlled industries such as railways, oil and power generation. Nobel Prize-winning economist Paul Krugman claims that the he would "not be surprised to see world trade stabilise, world industrial production stabilise and start to grow two months from now". The German IFO business climate index rose from 83.7 in Apr to 84.2 in May - economists had expected the index would rise to 85.0.

25 May	Thailand official enters a recession with latest GDP figures showing a fall of 7.1% last quarter from a year earlier. GDP had declined a revised 4.2% in the previous quarter. The Australian Securities and Investments Commission (ASIC) lifts is ban on short selling financial stocks. The ban had been in place since Sep 21 2008. Australian Institute of Management National Salary survey 2009 finds that 23.5% of companies surveyed plan to shed permanent staff levels during the next year - up from a figure of 8.4% in the 2008 survey.

24 May	The G8 energy ministers meet in Rome with representatives from emerging and oil producing countries and they hear from the Italy’s economic development ministry that when "the crisis is over, the risk of insufficient energy supply exists, and as a result high and unstable prices". Britain’s finance minister reiterates that he believes "we will return to growth by the end of the year". The World Bank President claims in an interview that the impact the financial crisis is having on unemployment could risk a "great human and social crisis, with major political implications" and that it is "a good breeding ground for populist, protectionist policies". The Australian realestate.com.au Consumer Insights Buy report shows 55% of respondents have a high degree of concern about their job security, 38% said they would spend less on buying property and 32% indicated they would delay their purchase.

23 May	The US Federal Reserve Chairman indicates that the Fed Reserve is likely to keep benchmark interest rates near zero for a while because the "upturn, when it begins, is likely to be gradual amid the balance sheet repair of financial intermediaries and households".

22 May	The US Bureau of Labor Statistics reports that the unemployment rate declined in 21 states in Apr and 11 states had no rate change during the month. Nationally, the unemployment rate rose from 8.5% in Mar to 8.9% in Apr. A new rule approved by the US Federal Deposit Insurance Corp means that they will have the power to charge big US banks a one-time fee to replenish the bank failures insurance fund. FDIC will charge US insured depository banks a 5 basis point assessment based on each institution’s assets, minus its Tier 1 capital. The total number of US bank failures for 2009 reaches 36. This figure is up from a total of 25 for all of 2008.

21 May	Standard & Poor’s lowers its outlook on the UK to negative but affirm the nation’s ‘AAA’ long-term and ‘A-1+’ short-term sovereign credit ratings. The agency cited high levels of government debt as one of the reasons for the revision. The US Labor Dept releases figures which show that a total of 631,000 people filed new claims in the week ended May 16 - a decrease of 12,000 from an upwardly revised figure of 643,000 the previous week. The Reserve Bank of New Zealand announces that total credit card billings rose a seasonally adjusted 2.3% in Apr, compared with a revised 2.8% fall in Mar. The Conference Board’s index of leading indicators increased 1% in Apr after a revised 0.2% fall in Mar. The Director of the US Congressional Budget Office states that "even if the economy returns to positive growth this year, the loss in output, income and employment during the recession and the next few years will be huge". The US dollar drops to its lowest level in 2009 against a number of currencies, including the Euro.

20 May	China’s State Administration of Foreign Exchange announces that China’s foreign financial assets increased by 23% last year to $US2.92 trillion. The US Treasury Secretary announces that the US financial system is "starting to heal" and reveals that major banks had raised $US56 billion since stress tests showed a number of them were in need of more capital. Mexico’s national statistics institute reveals that Mexico’s GDP fell 8.2% in the 1st quarter of 2009. The latest GDP figures do not take into account the impact of Swine Flu and the gov estimate that flu’s impact will cost the economy around $US2.3 billion. The US Federal Reserve’s latest forecasts for the US economy show sharper declines than previously forecast. New estimates show unemployment rising to between 9.2% and 9.6% in 2009 and the GDP estimates show a drop of between 1.3% and 2% in 2009. The Japanese government reveal that Japan’s GDP dropped 4.0% in the 1^st quarter of 2009 - the biggest contraction on record. Japan also recorded a 15.7% annualised rate of decline in the same quarter - the worst recorded by a large developed economy during the current crisis. The World Bank country director for China tells a forum in Beijing that until China sees "a recovery in private investment, it’s hard to get too excited about the future". Property research group IPD report that total returns for Australian property dropped to a negative 1.5% for the 12 months to Mar 09 - a 16yr low. The ABS reports that Australian total hourly rates of pay, excluding bonuses, rose 0.8% in the Mar quarter. The Westpac - Melbourne Institute index of consumer sentiment fell 4.3% from 92.7 points in Apr to 88.8 points in May. The ABS releases figures which show that Australia’s international merchandise imports fell 6.3% from a revised $A17.314 billion in Mar to $A16.288 billion in Apr, unadjusted.

19 May	Minutes from the Reserve Bank of Australia May meeting show that the decision to leave interest rates unchanged in May was in part because of tentative signs of improvement in the global economy, particularly Asia. In an effort to stimulate their economy, the Chinese State Council announces they plan to subsidise purchases of cars and home appliances to replace older models in both rural areas and major cities. The Chair of the EU’s CEIOPS Committee of National Insurance Regulators announces that Europe’s 20 biggest insurers will face a compulsory stress test in 2010 to gauge their strength in the face of the financial crisis. The Chicago Board Options Exchange Volatility Index falls below 30 for the first time in 8 months. The index fell 4.76% to 28.80. The US Commerce Department releases housing data which shows that construction of homes and apartments in the US fell 12.8% in Apr to a seasonally adjusted annual rate of 458,000 - the lowest level since records started in 1959. The ZEW Indicator of Economic Sentiment in Germany rose from 13 index points in Apr to 31.1 index points in May - the highest level since Jun 2006. The Reserve Bank of Australia Governor announces that he believes a "recovery will get under way towards the end of the year" but the start of that recovery will be slow.

18 May	The FASB votes to adopt two rules which may force financial institutions to bring more off balance sheet assets onto their books. China’s State Administration of Foreign Exchange indicates that it will ease inspection procedures in an effort to encourage more investment aboard by Chinese companies. Election results in India see India’s benchmark Sensex index increase more than 17% - the biggest single-day gain in almost two decades. The US Small Business Administration announces that an emergency loan program designed to help struggling-but-viable small businesses will open for applications in mid-Jun. The National Association of Home Builders/Wells Fargo index of builder confidence rose from 14 in Apr to 16 in May - the highest level since Sep 2008. The World Bank President predicts that the global economy may return to growth in late 2009 or in 2010. A survey released by Bankwest shows that almost 60% of NSW residents have not adjusted their finances in the current economic downturn and that 1 in 3 residents have no savings. The HIA/Commonwealth bank first home-buyer affordability index shows that monthly housing repayments in Australia on a typical first-home mortgage dropped to $A1800 in the Mar quarter - down 11% from the previous quarter. Australia’s Prime Minister reveals that Australia’s projected public debt will be 13.8% of GDP in 2013/14 which "comes out at about $A300 billion".

17 May	The IMF’s first deputy managing director announces that a global recovery will probably start in 2010 but the "recovery is likely to be more gradual than in past recessions". The chairman of Infrastructure Australia announces that the group is "generally very happy" with the government’s response to its infrastructure report.

15 May	The US Labor Department reports that the Consumer Price Index declined 0.7% on an annual basis in Apr - only the 2^nd year-over-year decline in nearly 54 years. The German Federal Statistics Office reports that Germany’s GDP was down 3.8% in the 1^st quarter of 2009 and that it is mainly as a result of slumping exports and a drop-off in investment. The EU Statistics Office announces that EU GDP in the 1^st quarter 2009 fell 2.5% from the last quarter of 2008. The US Air Transport Association estimates a 7% decline in air travel this US summer compared to same time last year. The Association predicts that there will be 14 million fewer airline passengers this summer. The Chinese Commerce Ministry announces that China’s Jan-Apr FDI dropped 21.0% from the same period in 2008 to $US27.67 billion. Statistics New Zealand report that NZ retail sales fell for the 6^th consecutive quarter in the 1^st quarter 2009. Sales volumes dropped a record 2.9% on the previous quarter, seasonally adjusted. China’s Deputy Central Bank Governor announces that China will push ahead with derivatives innovations and encourage domestic financial firms’ investments abroad despite the global financial crisis. The Australian Prudential Regulation Authority (APRA) reveals that 159 organisations left the financial services industry in 2008 because of the global financial crisis. Property Information service RP Data reports that the number of million dollar suburbs in Australia dropped from 151 to 134 in the year to Feb.

14 May	The US Labor Department reveal that a total of 637,000 people filed new claims for jobless benefits in the week ended May 9 - an increase of 32,000 from an upwardly revised 605,000 the previous week. The US Labor Department announces that the Producer Price Index increased 0.3% in Apr and that food prices increased 1.5% - the biggest increase since Jan 2008. The SEC votes 5-0 to propose that investment advisors who hold their client’s assets undergo a surprise exam once a year to make sure those assets exist. A spokesperson for the US Treasury Department announces that 6 life insurance companies have qualified to receive TARP bailout money. Rating Agency Standard & Poor’s announces that the US banking crisis has "merely entered a new phase" and might not end before 2013. The ABS release data which shows the value of commercial lending commitments in Australia in Mar increased by $A5.187 billion (20.5%) to $A30,498. Personal finance commitments dropped 2.2% from Feb to Mar to $A6,284 billion.

13 May	Moody’s, Standard & Poor’s and Fitch ratings agencies all raise no major concerns about the Australian federal budget and does not threaten the nation’s AAA rating. RealtyTrac’s Apr US housing foreclosure report shows that 342,000 homes received notices of default, auction notices or undergoing bank repossessions in Apr - this equates to 1 in every 374 US homes receiving a filing. The US Commerce Department figures show that total retail sales in the US dropped 0.4% in Apr, compared with Mar’s revised decline of 1.3%. The US Treasury Secretary announces that he plans to propose a new framework to Congress in the coming weeks which will tighten up the regulations surrounding derivatives. Figures released by Eurostat show that Mar Euro-Zone industrial output fell by 2% from Feb and by 20.2% from Mar 2008.

12 May	A survey released by American Express and CFO Research Services reveals that 59% of CFO’s surveyed expect "a decrease in headcount" and 70% responded that the economy won’t recover until sometime in 2010. The US National Association of Realtors reports that the national median home price of single family homes sold during the 1^st quarter dropped 13.8% to 169,000 year over year - the largest year-over-year decline in the 30 year history of the report. The Chinese General Administration of Customs announces that China’s exports fell 22.6% in Apr from a year earlier and imports fell 23.0%. The US Government releases its monthly budget report and it reveals a deficit of $US21 billion in Apr - the first Apr deficit in 26 years. The EIA slash their forecast for 2009 world oil demand from 420,000 barrels per day to 83,67 barrels per day - the lowest level in 5 years. The Australian Government announce a budget deficit of $A57.6 billion and forecast GDP to contract by more than 0.5% in 2009/10. Figures released by the ABS suggest that first home buyers made up a record 27.3% of all home loans granted in Australia in Mar.

11 May	The Society of Indian Automobile Manufacturers report that car sales in India rose an annual 4.3% in Apr and sales of trucks and buses fell 11.3%. The Deputy Governor of the People’s Bank of China tells a financial conference that "China’s economy has a relatively big potential for sustainable growth. China’s economy is expected to sustain rapid growth for some period in the future". Senior US administration officials estimate that 750,000 jobs will be saved or created by the early Aug 2009 because of the economic stimulus plan. Access Economics forecast in their Budget Monitor that there will be a $A53.2 billion deficit in Australia in 2010/11. The NAB monthly Australian business survey and economic outlook business conditions index increased 7 index points to minus 10 points in Apr. Figures released by PricewaterhouseCoopers show that spend on Australian online advertising rose 14% in the 1^st quarter of 2009. Statistics New Zealand report that New Zealand’s spending on debt and credit cards at retailers rose for a 3^rd month in Apr by 0.3%. Transactions at core retail industries (excluding motor vehicle outlets) rose 0.5% in Apr.

10 May	The UK Chancellor of the Exchequer indicates that he will urge China to allow more companies to list in London and support more British companies listing on China’s stock markets. The Chancellor is due to meet the China’s Vice Premier in London this week.

9 May	The US President uses his weekly radio address to announce that he has urged Congress to approve new regulations to halt credit card industry abuses, such as sudden rate hikes, unfair penalties and hidden fees.

8 May	The US Commerce Department reveal that wholesale inventories shrank for the 7^th month in a row in Mar to $US411.7 billion - their lowest level since Nov 07. The US Labor Department releases figures which show that the US unemployment rate has hit a 25 year high with employers cutting an additional 539,000 jobs in Apr - the smallest monthly job loss figure since Oct 2008. The Reserve Bank of Australia cuts its annualised GDP forecasts and predicts GDP will contact by 1.25% in the Jun 09 quarter and by 1% over the calendar year 2009. In 2010 they forecast that GDP will grow by 0.5% in the Jun quarter and by 2% over the calendar year.

7 May	The US Labor Department reports that the number of new applications for US jobless benefits dropped by 34,000 down to 601,000 people - the lowest level in 14 weeks. The US Federal Reserve releases its US banks "stress-test" results and they show that 10 out of the 19 banks need a total of about $US75 billion in new capital. Oil prices increase to above $US58 a barrel - near a 6 month high. The European Central Bank cuts its main interest rate by 0.25 percentage points to a record low of 1.0%. The German Economy Ministry releases figures which show that German manufacturing orders in Mar rose 3.3% from Feb - their first increase in 7 months. Chile’s central bank lowers its benchmark interest rate by half a point to a record low of 1.25%. The US Federal Reserve reports that US consumer borrowing in Mar dropped a record $11.1 billion to $US2.55 trillion - a fall of at an annual rate of 5.2% and the biggest percentage drop since Dec 1990. The Bank of England decides to leave interest rates at a record low of 0.5% for a second month running. The Bank also indicated that it would increase the size of its asset purchase program by �50 billion. Peru’s central bank cuts its benchmark lending rate from 5% to 4%. Thailand’s Finance Minister announces that there "are already some clear signals that the economy, even without government investment, is showing signs of recovery" The Australian Chamber of Commerce & Industry treat the decreased unemployment rate with caution by warning "we think the underlying trend is that there will still be a marked deterioration in the labour market." The Australian Industry Group - Housing Industry Association performance of construction index increased 6.2 index points in Apr to 36.5 points - the 2^nd straight monthly increase. The Australia Federal Government reveals that it estimates it will have to spend $A2 billion - $A3 billion a year servicing borrowing. The Australian Corporate Law Minister announces that Australia plans to tighten laws governing its $A30 billion margin-lending industry. The Australian Bureau of Statistics reports that Australia’s unemployment rate has fallen from 5.7% in Mar to a surprise 5.4% in Apr. Economists had predicted a 0.2% increase. Statistics New Zealand publishes the Household Labour Force Survey and it shows that the unemployment rate has risen from a revised 4.6% in the 4^th quarter of 2008 to 5.0% in the 1^st quarter of 2009.

6 May	The US Federal Deposit Insurance Corp Chairman recommends new powers to oversee companies that pose financial risks to the economy because the "current system has clearly failed in many instances to manage risk properly and to provide stability". The IMF downgrades China’s 2009 growth forecast to 6.5% - down from 9% in the previous year. The IMF also reports that China’s stimulus package is likely to keep China stable. US payroll processor ADP reports that businesses in the US with less than 500 employees collectively shed an estimated 414,000 jobs nationwide in Apr and companies will more than 500 employees dropped only 77,000 jobs in Apr. The UK Chancellor of the Exchequer Alistair Darling states that he believes London’s financial markets will still have a vital role to play in global finance in the years to come because they will be developing products with "emerging and developing economies". US Bank regulators announce that banks that need to raise capital under the government’s stress tests will have until Jun 8 to develop a plan and until Nov 9 to implement that plan. The US House votes to create an independent, bipartisan commission to probe the causes of the financial crisis. The commission will have the power to compel witnesses to testify and the 10-member commission will be appointed by Democratic and Republican leaders in Congress. The Australian Bureau of Statistics release figures which show Australia’s balance of goods and services increased by 43% in Mar to a surplus of $A2.498 billion, seasonally adjusted. The Cosmetic Physicians Society of Australasia announces that the global financial crisis has not put a dent in Australians’ appetite for cosmetic procedures because spending is up $A45 million. The Australian Bureau of Statistics reports that Australian retail trade at current prices rose 2.2% in Mar to a seasonally adjusted $A19.296 billion - much higher than the economists prediction of around a 0.5% increase.

5 May	Survey results released by America’s Research Group show that only 34.3% of consumers surveyed think the worst of the crisis has passed and 52% say that they don’t think the worst is over yet. The US Institute for Supply Management’s non-manufacturing index rose from 40.8 in Mar to 43.7 in Apr - the same level as Oct 2008. The British Bankers Association reveal that the 3-month Libor dropped to 0.99% - dropping below 1% for the first time since 1986 when the Association started keeping records. The Australian Industry Group/ Commonwealth Bank Performance of Services Index registers an increase of 4.3 points to 39.8 in Apr. According to figures released by the Australian Bureau of Statistics, Australian building approvals rose 3.5% to 10,494 units in Mar, seasonally adjusted. In the year to Mar period the figure dropped 16.5%. The Commonwealth Bank of Australia/Australian Chamber of Commerce and Industry Mar business expectations survey reveals that the general business conditions index fell to 31.7 points - the lowest level since the survey began in 1994. The Federal Chamber of Automotive Industries reports that new vehicle sales had dropped from 84,061 in Apr 2008 to 63,965 in Apr 2009.

4 May	The US Federal Reserve’s latest survey of loan offices shows that more than 90% of domestic lenders warn of further deterioration across loan portfolios like credit cards, commercial real estate and non-traditional mortgages. The latest construction spending figures released by the US Commerce Department show an increase of 0.3% in Mar but still 11.1% below the Mar 2008 figure. The Feb spending was revised down from a 0.9% decrease to a 1% drop. The US National Association of Realtors report that their Pending Home Sales Index showed a 3.2% gain to 84.6 in Mar - 1.6% higher than a year ago. The TD Securities/Melbourne Institute Australian inflation gauge remains unchanged in Apr following a 0.1% drop in Mar. The Australian Bureau of Statistics Australian house price index dropped 2.2% in the Mar quarter and in the year to Mar the figure is down 6.7%. The ANZ Job advertisements survey shows that the number of jobs ads in newspapers and on the internet in Australia decreased by 7.5% in Apr to an average of 136,770 per week. - the 12^th straight month of declines.

3 May	Economic research group IWH report that Germany’s car scrappage scheme is wasteful because studies show most claimants were intending to buy a car even without the handout. The Asian Development Bank claims that more than 56,000 children in Asia will die as a result of the economy crisis. The ADB also commented that "this is not only a financial crisis but also a social crisis". ASEAN and China, Japan and South Korean finance ministers agree to implement a $US120 billion currency swap agreement by the end of 2009. The Australian treasurer uses a regular economic briefing note to reveal that when looking into the upcoming budget "our only option is to make room for jobs and investment by shaving back other areas".

2 May	US Government officials reveal that the results of the Government’s 19 bank ‘stress tests’ will be made public on Thurs 7^th of May. US President Obama indicates that the financial sector will make up a smaller part of the US economy of the future because new regulations will restrict "massive risk-taking".

1 May	Three more US banks close, bringing the total number of bank failures in the US to 32 in 2009. US auto sales tracker Autodata releases figures which show that overall auto sales dropped 34% during the month of Apr in the US. The Reuters/University of Michigan Surveys of US Consumers reports that its final index of confidence climbed from 57.3 in Mar to 65.1 in Apr - the biggest one-month increase since Oct 2006. The Institute for Supply Management US manufacturing index increased from 36.3 in Mar to 40.1 in Apr. A report released by the Australian Property Monitors shows that the median house price in Sydney dropped 0.2% in the 1^st Quarter of 2009, resulting in a yearly fall of 4.1%. The report also showed that unit prices rose about 1% in the 1^st Quarter but were down 1.2% for the year. The Australian Industry Group/PricewaterhouseCoopers performance of manufacturing Index fell by 3.1 index points in Mar to a seasonally adjusted 30.1 points - its lowest level since the series began in 1992. The Australian Federal Treasurer announces that Australia will reveal a revenue write-down in the Federal Budget of about $A115 billion. A study by Veda Advantage shows that 1 in 10 Australians who owe money to lenders intend to borrow more to help cope with tougher economic conditions. The China Federation of Logistics and Purchasing reveals that China’s official purchasing managers’ index rose from 52.4 in Mar to 53.5 in Apr - the 5^th straight month of improvement. The South Korean Ministry of Knowledge Economy reports that overseas shipments decreased 19% to $US30.67 billion from a year earlier. The Japanese Statistics Bureau releases figures which show that Japan’s jobless rate rose from 4.4% in Feb to 4.8% in Mar - the biggest jump since 1967.

30 Apr	The US House of Representatives passes the Credit Cardholders Bill of Rights which is designed to stop credit card companies misleading or duping cardholders. The US Commerce Department announces that US consumer spending decreased 0.2% in Mar and that personal savings rose from 4% in Feb to 4.2% in Mar. In an attempt to curb local unemployment levels, the UK Government is advised by the Migrant Advisory Committee to reduce the number of jobs open to skilled workers from outside the EU from 800,000 to 530,000 The US Labor Department’s Employment Cost Index increased by just 0.3% in the 1^st Quarter 2009 - the lowest amount on record. The US Institute for Supply Management’s factory index rose from 36.3 in Mar to 38.4 in Apr. The National Australia Bank Mar quarter business expectations survey for the next 12 months falls 3 index points to minus-21 points - the lowest result since the start of the survey in 1988. The Reserve Bank of Australia reports that total credit grew by just 0.1% in Mar and was 4.9% higher than a year earlier. Personal credit fell by 0.3% in Mar and registered a 6.2% drop over the year. The New Zealand Government cut the official interest rate by half a percentage point to 2.5% - the lowest level since the official interest rate was introduced in 1999. The Japanese Trade Ministry announces that Japanese factory production increased 1.6% in Mar from Feb when it dropped 9.4%. Statistics New Zealand release figures which show that dwelling consent numbers fell a seasonally adjusted 30.4% in Mar when compared to a year earlier. The Ministry of Manpower reveals that Singapore’s seasonally adjusted unemployment rate rose to 3.2% in the first quarter from a revised 2.5% in the previous quarter.

29 Apr	Figures released by the Australian Housing Industry Association show that total new home sales increased by 4.2% to 8210 in Mar - it is the 3^rd month of gains and the highest level in 13 months. The Australian Government issues a "Communique of Principles" announcing they will review the operations of Australia’s superannuation system. New Zealand’s Apr National Bank Outlook survey shows that a net 15% of respondents expect a deterioration in business conditions in the year ahead - a figure which is well down on the Mar survey figure of a net 9% and the largest monthly improvement since Dec 2000. South Korea’s central bank reports that South Korea’s current-account surplus increased to $US6.65 billion in Mar - the highest figure since Jan 1980. Statistics New Zealand reports that New Zealand posted a $NZ324 million trade surplus in Mar. The German Economy Ministry forecasts that Germany’s economy will shrink by 6% in 2009 and there will be slight growth of 0.5% in 2010. The US Federal Reserve conclude their 2 day policy meeting by announcing that they have decided to hold benchmark overnight interest rates in the 0 to 0.25% range because though the economy continues to contract the "pace of contraction appears to be somewhat slower". The US Commerce Department reveals that the US GDP fell 6.1% in the first quarter - the 2^nd biggest drop recorded in 26 years. The largest drop was in the 4^th quarter of 2008 when the GDP dropped 6.3%. The US Labor Department reports that unemployment rates in 109 metropolitan areas has reached 10% or higher in Mar - 8 times more than a year ago. The US House of Representatives passes a $US3.44 trillion budget resolution for fiscal year 2010. Market researcher GfK release their index of UK sentiment and it shows a rise of 3 points to minus 27 in Apr - the strongest reading in a year. Brazil’s central bank cuts its benchmark interest rate (the Selic rate) from 11.25% to 10.25%. The World Health Organization raises its pandemic alert level to phase 5 and announce that "all countries should immediately now activate their pandemic preparedness plans".

28 Apr	The Economic and Social Research Institute forecasts that Ireland’s GDP will shrink by 11.6% in 2008-2010 and that GNP will contract 14% over the same period. The Institute claims that "by historic and international standards, this is a truly dramatic development" and would represent the worst decline for an industrialised country since the 1930s. The US Conference Board consumer confidence index increases from a revised 26.9 in Mar to 39.4 in Apr. Most economists had predicted an increase to 29.9 in Apr. It is announced that the US S&P/Case-Shiller home price index fell 18.6% between Feb 08 and Feb 09. The Australian Treasurer claims on radio that Australia’s recovery will be faster than IMF forecasts predict. The Treasurer stated that "We are in extraordinary times. We are in the middle of global recession. The forecasts do need to reflect that". Access Economics releases forecasts that predict that Australian unemployment will reach around 8.5% by the end of 2010 - this equates to around 1 million unemployed. They also claim that "rather than a recovery year, 2010 looks increasingly like a continuation of the bad news of 2009" The Bank of Korea announces that the household sentiment index rose to 98 from 84 in Mar - the highest level since the bank’s monthly series began in Jul 2008. Statistics New Zealand reveal that New Zealand spent $NZ 2.14 billion on research and development in the year to Sep 08 - up 17% from the amount spent 2 years earlier.

27 Apr	Stock markets around the world start reacting to the outbreak of the swine flu virus. The World Health Organisation raises its pandemic alert level to phase 4. The Australian Bankers’ Association comment on new consumer credit laws proposed by the government and they claim that the laws will result in consumers paying more for a loan and waiting longer for approvals. BIS Shrapnel releases forecasts which show that construction activity in the Australian engineering sector will fall by 20% over the next 2 years and that a recovery could possibly start in 2012 or 2013. The Australian government unveils new hardship assistance measures for borrowers in an attempt to ease the impact of the economic downturn. The Australian Federal Treasurer warns that Australia’s recession could be longer because it is "in part determined by the depth and length of the global recession". The Japanese Cabinet Office reports that it expects its economy to contract 3.3% in the 2009 fiscal year from Apr - the worst-ever performance in comparable data since 1996. The Vice Chairman of the China Banking Regulatory Commission is reported to have announced, in the China Securities Journal, that Chinese banks are forecast to extend at least 8 trillion yuan in new loans in 2009. AsiaHedge magazine makes the claim that almost 20% of Asia-Pacific hedge funds closed in the 15mths to Mar with 129 closing in 2008 - the most in at least 8 years. The Mexican Finance Minister states that there is a "high potential" that the outbreak of swine flu could adversely impact the economy. The IMF and G20 finance ministers hold a meeting in Washington and the finance ministers call for an urgent reform of banking systems in developed countries. The World Bank and the IMF claim that "the global economy has deteriorated dramatically" and that the global financial crisis is turning into "a human and development calamity"

24 Apr	The Bank of Korea announces that the South Korean economy grew by 0.1% on quarter in the first quarter of 2009 - narrowly avoiding recession. The IMF Managing Director announces that the global economic crisis is still "far from over" and that there will be "long months of economic distress in front of us". The Ifo German business index rises from 82.2 in Mar to 83.7 points in Apr. The UK Office for National Statistics reveals that Britain’s GDP fell 1.9% on the quarter in the first quarter of this year - the biggest fall since the 3^rd quarter of 1979. The US Commerce Department releases data which shows that new US orders for durable goods dropped 0.8% in Mar. The total of US bank failures rises to 29 for the year-to-date 2009.

23 Apr	The German Economy Ministry releases estimates which predict that unemployment will hit 10% in 2010 and that the economy will shrink by 6% this year. The Russian finance minister warns that the $US120 billion foreign currency reserve fund could run out by the end of 2010 if Russia keeps spending at the rate it is. The IMF indicates that it has doubled the borrowing limits of the poorest countries to help them fight the global economic crisis. The Markit’s Eurozone PMI rises to 40.5 points from 38.3 points in Mar - the highest reading in 6 months. The IMF chief economist suggests that the Australian government should spend more money on infrastructure projects such as roads, ports and other major projects and spend less on cash handouts. The IMF predicts that Australia’s growth will contract by 1.4% in 2009 before growing 0.6 in 2010 - they had previously predicted in Jan that growth would be "close to zero" in 2009. The IMF also predicted an unemployment rate in Australia of 7.8% by 2010. The Australian Federal Treasurer states that there are "no guarantees" the unemployment will not increase to above 10% in Australia. The ABS report that Australian sales of new motor vehicles decreased by 3.2%, seasonally adjusted, to 70.279 units in Mar.

22 Apr	The British Finance Minister announces, in his annual Budget, that Britain will increase its top rate of income tax to 50% from next year. The 50% rate will apply in 2010 to any income above �150,000. The British Finance Minister reveals an old-for-new vehicle swap scheme in the Budget. in an effort to boost the struggling car sector, motorists will be provided "with a �2000 ($4125) discount on new cars bought when they trade in cars over 10 years old." The IMF reports that the global economy will likely contract 1.3% this year and then rise 1.9% in 2010 but it warned "the longer this goes on, the longer and the deeper will be the recession". A chief economist with the Chinese State Information Centre announces that "the possibility for China to have a steady and quick recovery is not big due to the current external economic situation and structural problems with the domestic economy". The US Federal Housing Finance Agency reports that prices of US single-family homes rose by a seasonally adjusted 0.7% in Feb from Jan - the figure is down 6.5% from a year earlier. The British Treasury submits budget papers which estimate that the government bailout may cost taxpayers 50 billion pounds. The IMF had estimated that the bill may increase to about 132 billion pounds, or 9.1% of GDP. The US Senate votes to create an independent bipartisan commission to investigate the causes of the financial crisis. The commission will report its findings by the end of 2010. The Chinese Academy of Social Sciences releases a report which predicts that China’s economy will grow about 8.3% in 2009. The ABS releases Australia’s Mar quarter CPI figures and they show an increase in the headline CPI of 0.1%, an increase of 1.0% in the trimmed mean CPI and an annual growth rate of 2.5%. The Australian Minister for Small Business claims that the May budget will support small businesses but refuses to outline how they will receive this support. The Department of Education, Employment and Workplace Relations reveals that skilled job vacancies dropped 8.9% in Apr compared to Mar. The Department’s skilled vacancies index in Apr was 37.1 points - 61% lower than Apr 2008. The Japanese Finance Ministry reports that Japan’s exports fell at a slower pace in Mar, dropping down 45.6%. The trade deficit dropped 99% in Mar from a year earlier to 10.96 billion yen. Access Economics comments that they "don’t think we’ll see another round of cash payments, tax bonuses or welfare handouts" by the Australian Government but rather they will spend on infrastructure projects. The Australian Chamber of Commerce and Industry claims that the Federal Government needs to avoid a large deficit and that "we wouldn’t be thinking that we should go much further into deficit than we currently are".

21 Apr	The Governor of the Reserve Bank of Australia states that "I think the reasonable person…would come to the conclusion that the Australian economy, too, is in recession". The official Mar quarter GDP figures are due 3 Jun. The IMF releases its latest Global Financial Stability Report and in the report it claims that "writedowns could reach a total of around $US4 trillion" - this figure is almost double to figure IMF predicted in Jan. The British Office for National Statistics announces that the Retail Prices Index annual inflation rate was negative 0.4% in Mar. It is the first time since Mar 1960 that "annual inflation measured by the RPI…..fell below zero". The German ZEW Institute investor confidence monthly index rose for a 6^th consecutive month up from minus 3.5 points in Mar to 13 points in Apr - reaching its highest level in nearly 2 years. The Apr survey by Watson Wyatt reveals that 67% of US companies surveyed are planning no further hiring freezes and 53% are planning no additional job cuts. Wall Street reacts positively to comments made by the US Treasury Secretary that most US banks have enough capital to keep lending. The Bank of Canada cuts its benchmark interest rate from 0.5 to a historic low of 0.25 and the bank informs the markets that it expect rates to stay at that level until the end of the 2^nd quarter of 2010. The Australian Government announce that they are trying to implement most of the OECD’s recommendations on boosting youth employment during the global financial crisis. The Reserve Bank of Australia Apr board meeting minutes show that the RBA cut interest rates because of a weaker-than-expected drop in demand in production. The minutes also how the RBA are predicting that demand will recover at the end of the year. A survey by the NSW Business Chamber finds that 24% of small to medium-sized businesses in NSW expect to cut staff within 3 months and 1 in 4 of the companies surveyed had reduced staff hours in the first quarter of this year.

20 Apr	The Australian Prime Minister tells a jobs forum that a recession was now "inevitable" The Australian Retailers Association index shows that 23% of businesses had to terminate employees in the 3 months to Mar and that 11% added staff during this period. The index also shows that 11% of retailers expect to increase staffing levels in the current quarter and only 8% expect more sackings. The ABS release figures which show that the Australian producer price index at the final stage of production dropped 0.4% in the Mar quarter and that the annual PPI rate was 4.0%. The head of research at the Chinese Ministry of Finance reportedly states that China’s economy is bottoming out and this will pave the way for resources tax. The IMF announce that Colombia has applied for $US10.4 billion credit line as a precautionary measure. The Dow suffers its biggest decline in 7 weeks following concerns about financial sector earnings. The Dow Jones Industrial average lost 290 points (3.6%). The US President reveals that he has informed his Cabinet that they need to come up with ways to cut $US100 million in spending. The Bank of New Zealand - Business NZ’s performance of services index rose 0.8 points to 47.1 in Mar. The US National Association of Business Economics Apr Industry Survey suggests that the "economy is at an inflection point but has not yet reached a turning point’. The Conference Board’s US Leading Economic Index dropped 0.3% in Mar but an economist at the Conference Board stated "the recession may continue through the summer, but the intensity will ease". The US Federal Reserve Vice Chairman suggests that the US economic recession may be easing and that real GDP may "stabilize later this year". The Vice Chairman also warned that a recovery may be gradual.

19 Apr	The Confederation of British Industry predicts in its latest economic forecast that the UK recession will ease in the 2^nd quarter of 2009 but warned that the recovery will by "slow and fragile". US President Barack Obama admits that "while there have been some encouraging signs that our economy may be stabilising, the risks remain real and significant". Fortune magazine claims that "last year was the worst economic performance in the 55 year history of the Fortune 500 list of America’s biggest 500 companies" and that profits for those corporations dropped 84.7% from the previous year. Russian President Dmitry Medvedev claims that 1.07 million temporary jobs need to be created in the coming year in Russia. The OECD Secretary-General comments that the stimulus packages are starting to show results in some countries but governments need to be prepared to do more.

18 Apr	A senior economic advisor to the US President claims that the US is "in a great recession for sure" and that the recovery will be a "long slog" but that the rate of decline "is going to slow" The OECD Vice Director General states that despite some signs of improvement the world economy remains in a state of "extreme uncertainty".

17 Apr	The total of US banks that have failed in 2009 reached 25 today, according to the Office of Thrift Supervision.

16 Apr	The ABS import price index for the Mar quarter shows a fall of 2.8% and the export price index dropped 4.6% in the same quarter - the fastest rate of decline since 2006 for imports and since 2003 for exports. Japan’s Cabinet Office reports that the confidence index increased from 26.7 in Feb to 28.9 in Mar. Statistics of New Zealand announce that the Consumer Price Index rose 0.3% in the Mar quarter, taking the annual inflation rate to 3.0% - down from 3.4% in the previous quarter.

16 Apr	The IMF report that the "current recession is likely to be unusually long and severe and the recovery sluggish". The IMF managing director went on to say that "2009 will almost certainly be an awful year" and that it is a "truly global crisis, and nobody is escaping". An ECB policymaker announces that the ECB will unveil alternative financing measures next month and may possibly trim interest rates again. The US Dept of Labor reveal that initial jobless claims dropped 53,000 from 663,000 to 610,000 in the week ended Apr 11. Also, a record 6.02 million people continued to file unemployment claims during the week ended Apr 4 - the figure was up 172,000 from the previous week. The US Commerce Dept releases figures which show that initial construction of US homes fell to a seasonally adjusted annual rate of 510,000 in Mar - down nearly 11% from a revised 572,000 in Feb. The Nasdaq composite reaches a 5-month high with a gain of 2.7% (44 points). Research group NPD reveal that overall US video game sales dropped 17% in Mar to $US1.43 billion. Video game software sales dropped 17% to $US792.8 million in the month and hardware sales dropped 18% to $US455.6 million. According to RealtyTrac the total US foreclosure filings reached 803,489 in the 1st quarter 2009 - a 24% increase from the previous year and a 9% increase from the previous quarter. The Reuters/University of Michigan preliminary index of US consumer sentiment increased from 57.3 in Mar to 58.5 in Apr. The Chinese National Bureau of Statistics reveals that China’s GDP fell from 6.8% to 6.1% in the Mar quarter - it is the weakest growth since quarterly records began in 1992. The Australian Banking Association responds to criticism of banks holding on to interest rate cuts by saying that "the current debate over bank interest margins and bank funding costs is missing much needed balance and accuracy". Data released by the Reserve Bank of Australia shows that spending with credit cards was $17.1 billion in Feb and that credit cardholders repaid just $16.8 billion of their outstanding debts in Feb - the lowest level in a year.

15 Apr	Figures released by the Australian Bureau of Statistics show that the total wealth of the private sector in Australia dropped more than 2% in the last quarter of 2008 to a figure of $4850 billion. The US Federal Reserve’s latest survey of business conditions nationwide reveals that 5 of its 12 regional banks reporting a moderation in the pace of the economic decline. The US Treasury Department announce the names of the first 6 participants to sign up for the Government’s loan modification program. The National Association of Home Builders/Wells Fargo US Housing Market Index rose by more than 50% in Apr, rising from 9 to 14 in the index - it is the biggest increase since May 2003. The OPEC Monthly Oil Market report estimates that demand for oil will drop by 1.37 million bpd in 2009 to average 84.2 million bpd. The US Labor Department’s Consumer Price Index declined by 0.1% in Mar and the overall index was down 0.4% since Mar 2008 - the first 12mth decline since Aug 1955. The US Federal Reserve releases figures which show that US industrial output declined 1.5% in Mar to its lowest level in a decade. The head of the financial stability department at the Reserve Bank of Australia announces that "restoring the global banking system to health is a precondition for a recovery in credit supply and economic activity" and therefore, it should "take priority over longer-term reforms" The Westpac-Melbourne Institute Leading index fell at an annualized rate of -5.1 in Feb. The index commentators suggested that the drop was "truly remarkable"

14 Apr	US President Barack Obama provides a progress update to the US people about the US economy and states that "we are beginning to see glimmers of hope" but we "by no means are out of the woods just yet" The Polish Finance Minister reveals that Poland is going to ask the IMF for $US20.5 billion flexible credit line. Statistics New Zealand announce that New Zealand’s retail sales rose by 0.2% in Feb - the first rise in 5 months. The Rockefeller Institute of Government releases a report which shows that revenue of US states decreased 4% in the 2008 4^th quarter and sales tax collections had their biggest drop in 50 years. The latest Retirement Confidence Survey released by the Employee Benefit Research Institute shows that only 13% of US workers surveyed indicated that they were "very confident" about having enough money to live comfortably through retirement - it is the lowest number since the question was first asked in 1993. The US Commerce Department reports that total retail sales fell 1.1% in Mar after previously posting gains for the past 2 months. The US Producer Price Index shows a decrease 1.2% in Mar following a 0.1% increase in Feb. The US Commerce Department releases figures which show that business inventories declined 1.3% in Feb and that Jan inventories were revised up from 1.1% to a 1.3% fall. The ABS releases figures which show that total personal finance commitments fell 0.2%, seasonally adjusted, to $A6,493 billion in Feb. The National Australia Bank (NAB) monthly business survey’s measure of business conditions rose 3 index points in Feb to minus 17 points - a level not seen since Jun 1992. The measure of business confidence rose 9 index points in Mar to minus 13 points. The Singaporean trade ministry states that the Singapore economy may shrink 6%-9% this year - this is the 3^rdreduction of forecasts since Jan.

13 Apr	The Australian Federal Treasurer announces that he will monitor the health of the Chinese and US economic figures this week, whilst he is preparing the government's budget. US Treasury prices rise after the Federal Reserve purchases another $US7.4 billion in Government debt. US real estate research firm Reis report that in the 1^st quarter of 2009, retail tenants at strip malls, neighbourhood centres and regional malls, vacated 8.7 million square feet of commercial space. Store vacancy rates at malls rose 9.5% in the 1^st quarter. India's Prime Minister reveals that India’s economic growth slowed to slightly less than 7% in the 2008-09 fiscal year that ended in Mar. Bank of Japan data shows that Japanese wholesale prices in Mar were down 2.2% from the same month a year earlier. The Chinese Premier reveals that China’s industrial output rose by 8.3% in Mar. The Institute of International Finance calls on the IMF to secure the $US500 billion in new resources pledged by the G20 at their summit. The US Treasury Department announces that the G7 finance ministers will meet in Washington on Apr 24 and this will be followed by a G20 ministerial session.

10 Apr	The US Government reveals that the total number of banks that have failed has reached 23 for 2009. The US Treasury Department reveals that the federal budget deficit for the first half of fiscal 2009 increased to $US956.8 billion - more than $US500 billion above the gap for all of the prior fiscal year. The Japanese Prime Minster announces a $US150 billion stimulus package. The International Energy Agency forecasts that world oil demand will drop by 2.4 million barrels per day in 2009.

9 Apr	Australia’s unemployment rate rose to 5.7% in Mar from 5.2% in Feb - the highest level in 5 years. The US Labor Department report that the total number of people filing initial jobless claims fell from 674,000 to 654,000 in the week ended Apr 4. A US Government report shows that the US trade deficit shrank by 28.3% in Feb - its smallest level since Nov 1999. The Bank of England decides to leave interest rates at a record low of 0.5%. The Bank also indicated that it would take 2 more months to complete its $US110 billion quantitative easing program to fight recession.

8 Apr	The Westpac Australian Consumer Confidence Index for Apr rises 8.3% month-on-month and 6% year-on-year. The ABS reveals that there was just a 0.41% increase in home loans written for Australian owner occupiers in Feb. Economists had been expecting an increase of 2%. The German Federal Statistical Office releases date which shows that German exports fell 23.1% in Feb from previous year and that manufacturing orders dropped 3.5% in Feb. The Irish Government announces plans to cleanse its banks of risky loans after proposing tax hikes and cuts in spending the previous day. News that the US Treasury had indicated that life insurers met requirements for government funds pushed the Dow Jones life insurers’ index up by 6%. The VIX volatility index closes at its lowest level since early Jan - the index is a benchmark gauge of investor anxiety. The minutes from the US Federal Reserve’s meeting in Mar show that projections for economic activity in 2009 and 2010 were revised down. The Federal Reserve expects the economy to be flat in the 2^nd half of 2009 and glow slowly in 2010. The SEC announces five proposals to curb the practice of short-selling and they indicated they will seek public comments over the next 60 days.

7 Apr	The Australian Federal Government announces that they plan to scrap the National Broadband tender process and will instead build the network on its own through a joint public-private company. The Australian Industry Group/Housing Industry Association Performance of Construction Index rises 0.9 points, seasonally adjusted, to 30.4 in Mar. The Australian Reserve Bank cuts interest rates by 25 basis points to 3% - a 49 year low. A quarterly Business Roundtable survey of US CEO’s shows that the economic outlook index has sunk to -5 - the lowest level since the series began in 2002. The US Federal Reserve reports that US consumer credit dropped 3.5% in Feb after rising 1.8% in Jan. Moody’s Investor Services reveals that 35 companies defaulted in Mar - the highest number in a single month since the Great Depression. They also revealed that the rate at which speculative-grade corporate borrowers worldwide failed to meet their obligations increased from 4.1% to 7%.

6 Apr	The One News-Colmar Brunton poll shows a net 3% of New Zealand respondents are optimistic about the NZ economy over the coming 12 months - this is up from a net 9% pessimism level in Feb.

2 Apr	The Hudson Report Employment Expectations survey finds that 17.8% of Australian firms expect to cut their workforce in the Jun Quarter and 18.6 % plan to add staff during that quarter. The ABS release figures which show that Australia’s surplus on goods and services increase from $926 million in Jan to $2.11 billion in Feb - the 2^nd biggest on record.

1 Apr	The Australian Treasurer announces that it looks like unemployment will climb higher than the previous forecast of 7%. To combat a rise in unemployment Japan’s Labour Ministry starts offering Y300,000 to each migrant worker of Japanese descent who agrees to go home, plus Y200,000 for each dependent family member. The majority of these workers come from Brazil and Peru. A report by ADP Employer Services shows that US private sector job losses increased in Mar to 742,000 and Feb’s figure was revised up from 697,000 to 706,000. The Moody’s Credit Card Index reveals that US credit card charge-offs increased to a record high of 8.82% in Feb - the 6^th consecutive month of increases and more than 300 basis points higher than a year ago. Sales Tracker Edmunds.com reports that auto sales at the top auto manufacturers dropped more that 36% from year ago levels in Mar. The US Commerce Department reveals that spending on construction projects dropped 0.9% to a seasonally adjusted annual rate of $US967.5 billion - the lowest figure since Mar 2004. The US Institute for Supply Management manufacturing index increases from 35.8 to 36.3 in Mar. The US National Association of Realtors reports that its monthly Pending Home Sales Index increased 2.1% to 82.1 from the historic low of 80.4 in Jan. The leaders of the National Governors Association send a letter to the US Treasury Secretary seeking financial support for state housing authorities that are unable to sell bonds because of the frozen credit markets. The Business Council of Australia president calls for coordinated economic action within Australia because we need to "promote effective national solutions through what might be called the ‘A9’ - the 6 state governments, 2 territory administrations and the Federal Governments’. The Australian Finance Minister agrees that most Australian’s think the economy is in a recession already and states that "there is little doubt now that we are going to see a further degree of negative growth". The Federal Department of Education, Employment & Workplace Relations Skilled Vacancies Index shows a 10.8% drop in the number of Australian job advertisements in Mar - down 57.9% from Mar 2008. Figures released by the ABS show that Australian retail sales fell by 2% in Feb - the biggest fall in 9 years. The ABS report that building approvals rose in Australia by 7.8% in Feb - the first rise since Jun 2008. The Bank of Japan’s Tankan index of sentiment fell to a record low of minus 58 in Mar - down from minus 24 in Dec. The New Zealand central bank Governor releases a statement which states that "we believe the rise in longer-term interest rates is unwarranted and inconsistent with the monetary policy outlook"

31 Mar	The Australian Prime Minister tells a business lunch that the G20 should increase the resources of the IMF and that major risks are still posed by "potential economic collapse of emerging markets" and "the process of deleveraging". The French President threatens to walk out of the G20 summit if there is a failure to commit to introducing tougher financial regulations. Japan’s Prime Minister announces that the government is drawing up new stimulus measures and that they will contain "bold new ideas" but he declined to give a price tag for the package. It is the 3rd stimulus package announced by the Japanese Government since Sep. The OECD predicts that the world’s richest economies will contract by 4.3% in 2009 and that unemployment in its 30 member countries is likely to reach 10%. Market research group Gartner release a statement which predicts that information technology (IT) spending will decline 3.8% in 2009 to $US3.2 trillion. The US Treasury confirms that it will extend its guarantee program for money market funds until Sep 18. The Dow Jones industrial average has is first month of gains after 6 straight months of declines. The Conference Board US Consumer Confidence Index rises to 26 in Mar after a revised reading of 25.3 in Feb - the Feb figure was the lowest since the index was created in 1967. The S&P Case-Shiller Home Price Index reveals that housing prices in 20 major US cities in Jan dropped down 2.8% from Dec and down 19% from a year earlier. Rules surrounding the Buy American rules released by the US General Services Administration show that the US will allow products sold to the government to contain components made overseas. The Reserve Bank deputy governor tells a business conference that Australia’s economy will probably contract this year but that he believes the Australian housing market "will hold up better than overseas" and this is primarily because "we did not have the same deterioration in lending standards that occurred elsewhere" Fitch Ratings release a statement which shows that Mortgage delinquencies in Australia on full-documentation home loans that are past 30 days due increased from 1.5 to 1.75% for the Dec quarter. An Australian Community and Public Sector Union survey shows that 88% of public sector workers surveyed said their workloads where increasing. The survey also shows that 45% felt less secure in their jobs and 56% said their agencies were suffering cutbacks. The Australian Chamber of Commerce and Industry (ACCI) urges workers to take leave during the economic crisis to help boost the local economy. The call comes after the ACCI revealed that 123 million days and $AU33.3 billion of annual leave had been stockpiled. The Rabobank Rural Confidence Survey reports that 48% of Australian farmers surveyed expect conditions to worsen in the next year - up from 39% last quarter. The RP Data-Rismark Hedonic Property Index shows that Australian residential property values have risen 1.1% in the first 2 months of 2009 and that Sydney and Melbourne were the key drivers of the 2009 rebound. The RBA releases figures which show that total credit provided by financial intermediaries was unchanged in Australia in Feb and that the annual growth rate went down to 5.4% - its slowest pace since 1994. The Interactive Advertising Bureau and PricewaterhouseCoopers report on internet advertising shows an interest in internet advertising revenue by 10.6% in 2008 to a record $US23.4 billion. Figures released by the Japanese Labor Ministry show that Japan’s jobless rate increased 4.4% in Feb from 4.1% in Jan. The figures show that the ratio of jobs available to each applicant dropped to 0.59 from 0.67 - the biggest drop since 1974. The Bank of Korea’s business survey index increased to a seasonally adjusted 58 - the highest since Nov 2008. The Asian Development Bank predicts that Asian economies will expand at the slowest pace since 1998 and that Asia, excluding Japan, will grow 3.4% this year - a figure that is half the Sep estimate of 7.2%

30 Mar	The HIA survey shows that Australian sales of new homes rose by 3.9% in Feb - the second consecutive monthly increase. The Japanese Trade and Industry Ministry releases figures which show that factory production in Feb dropped 9.4% from the previous month. The GfK index of UK consumer confidence increased 5 points to minus 30 in Mar - the highest level since May. The US National Assoc of Realtors reports that sales of vacation and investment homes in the US decreased to 30% of all transactions of existing and new homes in 2008. The Assoc also found that more than 4 out of 10 investment buyers and more than 3 in 10 vacation-home buyers paid in cash for their properties. The US group Hope Now report that nearly 250,000 homeowners in Feb received either mortgage modifications or repayment plans for their lenders.

29 Mar	Britain’s Finance Ministry reveals that they will not push G20 leaders for specific spending pledges but reiterated that "by acting together…..the effect is so much better". The US Treasury Secretary announces that the gov has about $US135 billion left for bank bailouts but refused to say whether they will ask Congress for more this year. The OECD Secretary General reveals that US and EU unemployment will reach 10% this year. The Canadian Prime Minister announces that the immediate challenge for governments around the world "is to put the fire out" and that monetary authorities and governments "must do everything necessary to stop the precipitous decline in output and employment". The World Bank forecasts that Russia’s economy will probably shrink 4.5% this year because of the slump in oil prices and the spread of the global economic crisis. The UK Business Secretary calls for criticism of British banks to halt so that lenders can begin rebuilding their business and contribute to the economy.

27 Mar	A study by the University of Melbourne’s Centre for Corporate Law and Securities Regulation shows that the number of middle income earners declared bankrupt because they can owe as little as $A2000 has increased sharply. Resi Mortgage surveyed 700 customers about the future for their finances and they found that there was an 8% increase in Australians wanting to consolidate their debt. The US Commerce Dept releases figures which show that consumer spending increased 0.2% in Feb - the second straight month of increases. The Chinese Statistics Bureau reveals that Chinese industrial companies’ profits dropped for the first time on record and that net income sank 37.3% in the first 2mths of 2009 from a year earlier. The Japanese Trade Ministry announces that Japan’s retail sales figures decreased 5.8% in Feb - the biggest drop in 7 years. Statistics New Zealand announces that seasonally adjusted production-based GDP contracted 0.9% on the quarter in the 3mths ended Dec 31. This figure represents that biggest quarterly decline since Sep 1992 quarter when the economy contracted 0.9% The Reuters/University of Michigan US Surveys of Consumers reports that is final index of sentiment rose from 56.3 in Feb to 57.3 in Mar. The index of consumer expectations rose from 50.5 to 53.5.

26 Mar	Global hotel specialist, Hotels.com, reports that the global economic crisis is forcing hoteliers to cut room rates and that its Hotel Price index shows a decrease of 12% in 2008 when compared to previous year. The US gov confirms that the US GDP fell at an annual rate of 6.3% during the final 3mths of 2008 - the biggest drop in 26 years during the 4th quarter. Market Research firm J.D. Power & Assoc report that US auto sales in the first 2 weeks of Mar were down 40% compared to the same period last year. The US Labor Dept reveals that the number of people filing initial claims for unemployment benefits increased to 652,000 people - up 8,000 from the previous week. The number of people continuing to file for jobless benefits increased 122,000 to 5,560,000 people in the week ending Mar 11 - the highest number since the gov began keeping records in 1967 The RBA releases its half-yearly Financial Stability Review and it claims that Australian banks have performed well despite the current stress on financial systems. The report also remarked that a marked feature of this crisis is the "increase in the price of risk, after risk had been underpriced in many markets for a number of years" The head of the RBA’s economics arm suggests that Australia’s housing market is in much better shape than many overseas because falling mortgage rates have boosted affordability and may increase home building later this year.

25 Mar	The RBA Governor Glenn Stevens states that further interest rate cuts in Australia could still be effective but declined to say whether they would cut them further. A report released by the Energy Information Administration shows that crude in US storage rose last week by 3.3 million barrels to 356.6 million barrels - the highest since Jul 1993. The US Commerce Department releases figures which show that durable goods orders rose 3.4% to $165.6 billion in Feb - the biggest increase since Dec 2007 and following on from a revised 7.3% decrease in Jan. The Managing Director of the IMF states that "discussion about a new currency is absolutely legitimate" but he does not believe the US dollar’s days as a reserve currency are over. The US Mortgage Bankers Association releases its seasonally adjusted index of mortgage applications and it shows an increase of 32.2% to 1,159.4 for the week ended Mar 20. Refinancing made up 78.5% of all the applications. The Westpac-McDermott Miller New Zealand consumer confidence index drops down from 101.3 in the Dec quarter to 96.0 in the 3 months to Mar. A reading below 100 shows more pessimists than optimists. Data released by the Michigan Department of Energy, Labor & Economic Growth reveals that unemployment in the US state of Michigan hit 12% in Feb. The state had the highest unemployment of any US state in Jan. The US Census Bureau reveals that new home sales increased by 4.7% to a seasonally adjusted annual rate of 337,000 in Feb - the first increase since Jul 08 and up from a record low in Jan of 322,000. A quarterly economic forecast report released by the UCLA Anderson School of Management estimates that real US GDP will decline 6.8% in the 1st quarter of 2009, 4.5% in the 2^nd quarter, and another 1.7% in the 3^rd quarter. The report also forecasts that in 2010 there will be average quarterly growth of 2.7%, followed by average quarterly growth in 2011 of 4.1%. Australian Treasurer Wayne Swan announces that the federal government will provide a temporary, voluntary guarantee for state government borrowing. The Japanese Finance Ministry reveals that Japanese exports dropped 49.4% from a year earlier - the largest decline since at least 1980, when the data began to be recorded.

24 Mar	The CEO’s from 4 US stock exchanges send a joint letter to the SEC urging to have new rules instituted to restrict "abusive" short selling because it "destroys the overall confidence in our capital markets" Britain’s Prime Minister calls for global standards of financial regulation and states that "worldwide fiscal and monetary stimulus to the economy can be twice as effective in every country if it is adopted by all countries" US President Obama reaches out to major world newspapers with a message encouraging leaders of the G20 economies to take action to stimulate their economies because the global economy is facing challenges "that cannot be met by half measures or isolated efforts of any nation" The deputy head of the International Energy Agency expresses concern that OPEC’s output curbs may lead to a decline in oil inventories held by industrialised countries in the next few months and this would lift oil prices The UK Office for National Statistics reports that the UK CPI inflation rate rose from 3.0% in Jan to 3.2% in Feb. This figure is more than a full percentage point above the Bank of England’s 2% target for Feb Japan’s central bank governor claims that corporate credit conditions in Japan remain severe and that Japanese banks should bolster their capital bases The latest remittance outlook by the World Bank technical group suggests that remittance flows to developing countries are likely to fall 5 to 8% in 2009. The IMF indicates it will double credit limits for countries struggling with the global economic crisis and that they will relax loan conditions for emerging nations that require short-term assistance. The airline industry body IATA estimates that world airlines are likely to lose $US4.7 billion in 2009 because of the global recession. This figure is up on the previous 2009 estimate they released in Dec for a loss of $US2.5 billion Prominent US economist Martin Feldstein, the former head of the National Bureau of Economic Research, reveals that he believes the US recession will continue into 2010 and that another stimulus package will be required. The US Treasury Secretary and US Federal Reserve chairman dismiss suggestions made by the Chinese central bank governor that a new world currency should be created. China’s suggestion follows on from similar suggestions raised by Russia. The Australian Reserve Bank Assistant Governor claims that Australia’s payments system is falling behind best practice and that a lack of coordination between members of the payments system was adversely impacting the system.

23 Mar	The US National Association of Realtors announces that sales of existing homes increased by 5.1% to an annual rate of 4.72 million in Feb - up from 4.49 million in Jan. The Japanese Land Ministry reveals that residential land prices in Japan fell 3.2% over the year to Jan and that commercial land value fell 4.7%. A report by the German central bank states that the "global economy’s sharp slowdown is affecting German economic production more and more" and that this could lead to a much sharper downturn this year. a A Westpac economist informs an Auckland regional job summit that house prices in New Zealand are now "around fair value" and that house prices would drop by 5% in 2009 and stay flat in 2010. The World Trade Organisation (WTO) estimates that global trade will shrink by 9% in 2009 and that commerce in rich countries would fall by about 10%. Trade has grown unabated since 1982. The US Treasury Secretary outlines a new $US500 billion federal program to remove troubled assets from bank balance sheets. The Treasury Secretary detailed a new Public Private Investment Program which will set up funds to provide a market for the troubled loans and securities. The Dow Jones industrial average gains 497 points - its biggest one-day point gain since Nov 21. The Australian Treasurer states that "it will be virtually impossible (for Australia) to avoid a period of negative growth". A joint survey by the Japanese Cabinet Office and the Finance Ministry shows that sentiment among manufacturers was minus 66 points this quarter compared with minus 44.5 in the previous quarter. The decrease was the largest since the report began in 2004. The ACTU is seeking a $A21 a week increase in the minimum wage for Australia’s low-paid workers and they are urging the Fair Pay Commission to "reject recent calls by employer lobby groups for a wage freeze ". The Australian dollar gains for the 10^th day - the longest straight-gain since Oct 2007.

22 Mar	US President Barack Obama indicates that "systemic risks are still out there" and that if some of the big institutions fail they could "bring a lot of other financial institutions down with them". Australian Prime Minister Kevin Rudd announces that it will be "virtually impossible for Australia to sustain a positive economic growth for the period ahead." He also indicated that the May budget would need to be really tough to cope with current situation. The head of an inquiry into Australian executive salaries has indicated that pay levels have risen sharply in recent years but he believes we are "now entering into a period where there will probably be cutbacks in executive pay cheques due to the economic situation." The Australian Prime Minister has states that he will be pushing for China to have a greater role in the IMF. The US President claims that we "are starting to see flickers of hope" in the recession-ravaged US economy and that "that promises the possibility at least of the housing market bottoming out and stabilizing". He also stated that he was "incredibly confident" the US economy would rebound within a year. The New Zealand Prime Minister announces that NZ employers will be able to offer staff a cash payment to replace a 4^th week of their annual leave. The Venezuelan President reveals that Venezuela will invest $US20 billion in 2009 in non-oil sector development projects out of a total $US100 billion over the next 4 years. A director of the Development Research Center of the State Council in China claims that "China has the ability to become the first in the world to step out of the crisis and keep stable growth for the mid and long term". The Confederation of British Industry indicates that the UK public finances are in an "alarming state" and that the UK Government should refrain from further fiscal stimulus so that they don’t prolong the economic downturn.

20 Mar	Estimates released by the US Congressional Budget Office show a US budget deficit between $US1.67 - $1.85 trillion in 2009. On the back of new figures released by the IMF, the Australian Treasurer states that "what we are seeing is a sharper contraction in the global economy and the consequences of that for Australia is slower growth and higher unemployment". The Chairman of the Australian regulator APRA is reported as saying that Australia’s financial system is strong but it can’t guarantee that "no Australian financial institution will fail on our watch".

19 Mar	The RBA assistant governor of economics states that in the current environment "it’s not going to be possible for Australia to avoid some further weakness in 2009" but he claims that actions by policy makers will help "alleviate finance strains and restore growth over time." The Australian Treasurer tells reporters that the "impact of the global recession gets worse by the week" and he said that it "doesn’t appear" to be a bottom in sight for the global downturn. The ABS reveal that Australian dwelling starts dropped 9.9% in the Dec quarter, seasonally adjusted, and by 19.5% annually. In the year 2008 the total dwelling commencements fell by 19.5%, seasonally adjusted. The Westpac-ACCI survey of industrial trends revealed that its main index of actual activity fell 6.4 points to 34.0 this quarter - levels not seen since the 1991 recession. The ABS release figures which show that new motor vehicle sales in Australia fell by a seasonally adjusted 3.5% to 73,190 vehicles in Feb - a figure not seen since Mar 2003. The US House of Representatives overwhelmingly voted to place a 90% tax on bonuses at firms bailed-out by the US government. The tax will apply to employees whose total annual pay exceeded $US250,000 at firms that received more than $US5 billion in government assistance. The UK Treasury chief rejects calls to cap the pay of executives in banks that are part of the government’s bailout package. Oil prices increase to above $US50 with the Brent North Sea crude for May delivery rising $US3.01 to $US50.67 in London. The IMF downgrades its forecasts for global growth to a contraction of 0.5 percentage points to 1.0% in 2009 on an annual basis. This is down from a previous estimate of a contraction of between 0.5% to growth of 0.5%. More than 1 million French protestors marched at a rally in Paris in an attempt to force the French President to boost wages and protect jobs as the economic crisis deepens. Civil servants also took part in a 1 day strike. The International Organization of Securities Commissions states that they believe registration and supervision of hedge funds would cut risk in financial markets. The US Labor Dept reveals that the number of people filing initial claims for unemployment benefits fell by 12,000 last week but the number of people filing for more than a week hit a new high by increasing 185,000 to 5,473,000. The Conference Board index of leading economic indicators fell 0.4% in Feb. The US Treasury Dept announces a $US5 billion bailout program for US auto parts makers. The Japanese gov announces plans for a 1.5 trillion yen jobs package and the Labour Minister proclaimed that the "priority now should be on protecting jobs". Iceland’s central bank cuts its key interest rate by 1 percentage point to 17% - the first cut since Oct. The US markets down after a 2 week 14% rally. The fears relate to the $US1 trillion the government will inject into the financial system through buying treasuries, and buying assets and debt from the balance sheets of some mortgage lenders.

18 Mar	The US Federal Open Market Committee announces that it will buy up to $US300 billion worth of longer-term US government debt over the next 6mths and it will also expand purchases of mortgage-related debt to help improve credit market conditions. In its quarterly report on China, the World Bank indicates that it expects China’s GDP to shrink to 6.5% in 2009. The US Labor Dept reveals that the US Consumer Price Index rose 0.4% in Feb after rising 0.3% in Jan. The US Commerce Dept releases figures which show that the US current account deficit contracted sharply to $US132.8 billion in the 4th quarter. The 3rd quarter figure was $US181.3 billion. A report released by the National Retail Federation predicts that Americans will cut back on spending during the Easter holiday and they expect consumers to spend 14% less than last year on Easter candy, gifts, food and decorations. The annualised growth rate of the Westpac Bank-Melbourne Institute leading index of economic activity dropped down from -2.8 in Dec to -3.1 in Jan. It is the weakest reading since Aug 1990. New Zealand’s housing affordability remained largely unchanged in Feb according to interest.co.nz. A small rise in median house prices from $NZ330,000 to $NZ325,000 offset a fall in mortgage rates.

17 Mar	The Centre for European Economic Research reports that German investor confidence increased in Mar to minus 3.5 points from minus 5.8 in Feb. The Chief of the Centre stated that the "bottom of the recession is likely to be reached this summer". Figures revised by the Swiss Economic Ministry show that Switzerland’s economy will shrink by 2.2% and not a contraction of 0.8% as previously predicted. The British Prime Minister apologizes for the banking crisis and indicated that he wishes he had pushed for tougher regulations for the financial sector a decade ago. The US Labor Department reveals that US producer prices rose by a less than expected 0.1% in Feb. The US Commerce Department release figures which show that housing starts unexpectedly rose to a seasonally adjusted annual rate of 583,000 in Feb - up 22% from a revised 477,000 in Jan. The Bank of Japan announces that it will offer up to $15.5 billion in subordinated loans to Japanese banks to boost their depleted capital. The World Bank urges the G20 nations to toughen their stance against protectionism by agreeing to report any new trade restriction measures to the WTO every 3 months. Forecasts provided by an IMF official show that they expect the global economy to contract 0.6% in 2009. The Reserve Bank of Australia’s Mar board minutes are released and they show that the RBA is leaving its options open when considering an interest rate cut in Apr. The Business Coalition for Tax Reform suggest that the Australian government take over the current state-based payroll tax system as a step towards cutting compliance costs and preventing more job losses. A report by PricewaterhouseCoopers and law firm Blake Dawson suggests that Australia needs a distressed debt market because it would allow financials institutions to on-sell bad debts and free up money to keep lending.

16 Mar	Mexico announces that it will place tariffs on nearly 90 US industrial and agricultural products after the US cancelled a program that allowed some trucks from Mexico to operate in the US. The Mexican Economy Minister claims that Mexico "consider that this action of the United States is mistaken, protectionist and clearly in violation of the (NAFTA) treaty". The Pew Research Centre’s Project for Excellence in Journalism releases its 2009 State of the News Media report and claims that the US "newspaper industry exited a harrowing 2008 and entered 2009 in something perilously close to free fall" The US Treasury indicates it will buy up to $US15 billion in securities backed by loans to small business in an attempt to help ease a freeze in credit to small businesses. The US automotive task force announces that "bankruptcy is not our goal" and that they will try to solve the industry’s problems "outside bankruptcy to the maximum extent possible". The US Mortgage Asset Research Institute report on mortgage fraud finds that cases of reported fraud jumped 26% from 2007 to 2008 and that the most prevalent form of fraud is application fraud (61%) followed by misleading tax returns and financial statements (28%). The NAHB/Wells Fargo US Housing Market Index remains unchanged at 9 in Mar from Feb but still remains only 1 point higher than the all-time low reached in Jan. The Financial Accounting Standards Board indicates it wants to overhaul mark-to-market accounting and allow companies to exercise more judgment in determining if a market for an asset is active and if a transaction is "distressed". The US Federal Reserve reports that industrial production fell 1.4% in Feb - the fourth straight month of decline and the lowest level since Apr 2002. The Treasury International Capital report reveals that foreign purchases of US debt increased in the first month of 2009 with $US10.7 billion in net foreign purchases of long-term Treasurys. China purchased an additional $US12.2 billion and Japan purchased another $8.8 billion of US government bonds. The Brazilian Prime Minister urges countries to avoid turning to protectionist policies when considering policies to combat the global economic slump. The PM stated "Protectionism is a drug that provides temporary relief, but in the end leads to major crisis". The Australian government announces a 14% cut to the skilled migration program. The Immigration Minister claimed that "economic circumstances in Australia have changed……. it is prudent to reduce this year’s migration intake accordingly." The ABS releases figures which show that total personal finance commitments in Australia rose 1.4% in Jan, seasonally adjusted, to $AU6.492 billion. Statistics New Zealand announces that seasonally adjusted manufacturing sales volume in the 4^th quarter dropped 5.4% from the previous quarter. It is the biggest fall since the series began in 1994.

15 Mar	The US Federal Reserve chairman states that the world came "close to a global financial meltdown" in 2008" and that if they had not instituted emergency intervention it could have been a "much, much worse outcome". He also stated that he things the US has averted the risk of another great depression. OPEC decides to leave existing output targets unchanged and will meet again in May to review progress. G20 Finance chiefs outline guidelines on how governments should rid banks of distressed securities. The Bank of England has indicated that the UK residential mortgage-backed bond markets may stay shut throughout 2009 because "liquidity conditions have yet to normalize to any significant degree".

13 Mar	The Finance Sector Union demand that the Australian government extract job guarantees from the big banks in exchange for government assistant.

12 Mar	The Australian Treasurer announces that the government will revise its unemployment forecasts given the increase in ABS unemployment figures this week. The Government had previously estimated 5.5% by Jun and 7% in mid 2010. The US Labor Department reveals that first-time requests for unemployment insurance increased to 654,000 from the previous week’s upwardly revised figure of 645,000. The number of people receiving benefits for more than a week increased by 193,000 to 5.3 million - the most on records dating back to 1967. The US Federal Reserve releases figures which show that household net worth decreased by a record 9% in the 4^th quarter - it is the 6^th straight quarterly drop. The US Commerce Department reports that retail sales dropped down 0.1% in Feb - the 7^th drop in 8 months. BusinessEurope announces that it estimates that some 4.5 million workers may lose their jobs in the European Union this year because of plunging company profits. The Word Bank President warns that growth in the world economy would likely decrease by 1 or 2% in 2009 and that "we haven’t seen numbers like that since WWII". The US Commerce Department reveals that US business inventories decreased 1.1% in Jan and that Dec’s inventory figures were revised from a drop of 1.3% decline to a 1.6% decline. US lawmakers pressure the Financial Accounting Standards Board for new guidance on mark-to-market accounting within 3 weeks. The ABS releases figures which show that Australia's unemployment rate increased from 4.8% to 5.2% in Feb - the highest level since Mar 2005. Most economists had predicted a 5% increase. New Zealand’s central bank cuts interest rates by 50 basis points down to a record low of 3.0%. The Japanese Cabinet Office reveals that Japan's GDP in the 3mths ended Dec 31 contracted 12.1% - less than the 12.7% reported for that quarter last month. The Chinese National Bureau of Statistics reports that China's annual industrial output growth slowed to 3.8% in Jan and Feb from 5.7% in Dec.

11 Mar	The US Labor Department reports that 4 US states' jobless rates are higher than 10% and that 42 of the US states' recorded month-over-month unemployment rate increases. Research released by Spectrem Group shows that the number of American households with a net worth of $US1 million or more, excluding the value of their primary residence, dropped 27% to 6.7 million in 2008. The US Mortgage Bankers Association releases figures which show is seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 11.3% to 723.4 for the week ending Mar 6. The US Treasury Department reveals that the federal budget deficit for the first 5 months of fiscal 2009 increased to $US764.5 billion. Brazil's central bank cuts its benchmark interest rate, the Selic rate, by 1.5 percentage points to 11.25%. The ABS report that the Australian housing finance commitments for owner-occupied housing increased 3.5% in Jan, seasonally adjusted, to 55,628. Total housing finance by value rose by 0.7% in Jan, seasonally adjusted, to $A18,889 billion. The Australian Department of Education, Employment & Workplace Relations reveals that their employment indicator dropped down to -0.421 in Mar - the 15^th straight month of decreases. ASIC reveals that it saw almost double the amount of alleged attempts to manipulate the market in 2008. Insider trading allegations rose from 20 to 28 and market manipulation allegations rose from 9 to 19 in 2008. The Westpac-Melbourne Institute index of consumer sentiment dropped 0.2% to 85.6 points in Mar - the 14th straight month the level has been under 100 points.

10 Mar	The Chinese gov reveal that China’s CPI dropped by 1.6% in Feb from a year earlier. It is the first time the country has reported deflation in 6 years. The IMF warns that millions of people in developing nations could be thrown back into poverty because of the global financial crisis. They also warned that the global economy was likely to contract this year in what some are calling a "great recession". The CEO of private equity company Blackstone informs an audience at the Japan Society that "between 40 and 45% of the world’s wealth has been destroyed in less than a year and a half". The Libor climbs 2 basis points to 1.33 % - the highest level since Jan 8 and also representing a rise for the 11th consecutive day. In an effort to bolster the financial markets, the SEC report that they may propose that the so-called uptick rule be reinstated within a month. Wall Street posts its biggest gains for 2009 with the Dow up 379 points, the Nasdaq up 7% and the S&P up 6.4%. The US Commerce Dept reports that total Jan wholesale inventories dropped 0.7% compared to a revised 1.5% fall in Dec - it is the 5th-consecutive month of decreases. Fitch’s US Prime Credit Card Delinquency Index increased to a record 4.04% in Jan and in the last 3mths the index has increased 23%. The ANZ job advertisement survey shows that in Feb the total number of Australian job advertisements dropped 10.4% from the previous month and on an annual basis, the number of job advertisements in newspapers and on the internet dropped 39.8% in the 12 months to Feb - it is the worst results in the history of the survey. The NAB monthly business survey's measure of Australian business conditions drops 9 index points to minus 20 points - a level not seen since Jun 1992. The measure of business confidence rose 10 index points in Feb to minus 22 points. The New Zealand Ministry of Economic Development releases figures which show that the number of NZ companies failing in the 7 months since Jul has risen more than 40% to 3487 companies when compared to same period last year. The Bank of New Zealand’s confidence survey shows that a net 23% of respondents expected the economy to worsen in the coming year - up from a figure of 6% 3 months ago. The survey also showed that sentiment has improved significantly for residential real estate.

9 Mar	The Dun & Bradstreet survey of business expectations shows that 65% of firms contacted expect declining profits in the Jun quarter. 57% of those surveyed expect a drop in sales and 27% stated they expected to cut staff during the Jun quarter. A push by US officials for additional economic stimulus measures to be undertaken at the G20 summit in Apr is rejected by European Officials with the European chairman stating "recent US calls on Europe for an additional budgetary effort do not suit us". New York oil prices increased to a 2 month high amid speculation that OPEC will decide on further output cuts this week. The Chinese Government announce that they have sent a Chinese business delegation to Europe in search of M&A targets as part of an effort by China to help the world through the economic crisis. The delegation will visit Germany, Switzerland, Spain and Britain. The Conference Board’s US Employment Trends Index decreased in Feb to 91 - down 3.2% from the previous month and down 21.7% from the previous year. The 2009 Mortgage Choice survey of 1,012 first homebuyers indicates that 76% of respondents currently want to purchase a house - this is up from 54% a year earlier. Statistics New Zealand releases figures which show construction adjusted for inflation fell 6.5% in the 4th quarter from the 3rd quarter. The Japanese Finance Ministry reveals that Japan recorded a current account deficit of Y172.8 billion in Jan - it is the country's first current account deficit in since Jan 1996. The Chinese State Information Centre is reported to have forecast that China’s economy will expand 6.5% in the first quarter from a year earlier.

8 Mar	Two key congressional Republicans publicly state that the US gov should let some big troubled banks fail rather than commit more federal funds to prop them up. The Ulster Bank Purchasing Manager’s Index rose to 28.2 in Feb from a record 25.7 in Jan - it is the 21st straight month of contraction in Irish construction activity. A World Bank report suggests that the global economy is likely to shrink for the first time since WWII and that trade will decline by the most in 80 years.

6 Mar	The HIA/AIG Performance of Construction Index dropped 4.6 index points to 29.5 in Feb - the lowest reading since the survey began in Sep 2005. The US Labor Dept reports that the US unemployment rate rose to a 25 year high of 8.1% in Feb. It is the first time since the collection of data began in 1939 that losses have exceeded 600,000 for 3 straight months. The Dow Jones Stoxx 600 Index reaches it lowest level since 1996.

5 Mar	The ABS reports that Australian building approvals fell by 3.7% in Jan. ASIC announces that it will extend its short-selling ban on financial stocks until May 31. The Chinese Premier announces that China will achieve 8% growth this year despite the deepening global financial crisis. The ECB forecast that the eurozone economy could shrink by more than 3% in 2009. The Bank of England drops interest rates to 0.5% and indicated that it will print more money to tackle the UK’s recession. The European Central Bank lowers its main interest rate by 0.50 points to a record low of 1.50%. The US Commerce Dept releases figures which show that US new factory orders fell 1.9% in Jan from the previous month. The US Labor Dept reveals that the number of Americans filling new claims for unemployment dropped to 639,000 last week - down from 670,000 the previous week.

4 Mar	The Standard & Poor’s 500 index rebounds from a 12 year low after 5 days of losses - up 2.37%. Automatic Data Processing reports that the US private sector lost 697,000 jobs in Feb - up from the 630,000 jobs economists had predicted. The US Federal Reserve releases its regional business survey which shows that the US economy has "deteriorated further" in almost all of the country over the past 2 months. The Shanghai Composite Index is up 6.1% on reports that the Beijing Gov will add to its $US585 billion stimulus program. Figures released by the ABS show that Australia’s GDP for the Dec quarter dropped 0.5%. It is revealed that the Australian Industry Group - Commonwealth Bank performance of services index dropped by 8.8 index points in Feb to 32.2 points. Japan’s Finance Minister announces that the gov will take the "extraordinary measure" and use $5 billion from its currency reserves to help companies raise funds. The Chinese Federation of Logistics and Purchasing reveal that the Purchasing Managers Index rose to a seasonally adjusted 49 in Feb from 45.3 in Jan - shrinking for the 5th month in a row.

3 Mar	The Bank of Canada cuts its key lending rate by 0.5% to 0.5%. In the period since Dec 07, the Bank has cuts its interest rates by 400 basis points. Automobile trade association ANFAC reports that car sales in Spain fell by 49% in Feb when compared to a year earlier. US Autodata also released figures showing that US auto sales fell by 40% in Feb. The OECD’s chief economist announces that countries must proceed with wide and deep reforms in an effort to raise efficiency. The chief economist also stated that "more flexible product and labour markets are likely to strengthen country resilience". The Nationwide Building society’s UK index of sentiment rose to 43 in Feb from 41 in Jan - the worst result since data began in 2004. Vietnam’s Prime Minster announces that Vietnam will spend 300 trillion dong (US$17 billion) in 2009 in a bid to halt slowdown in economic growth. The US National Assoc of Realtors Pending Home Sales Index reveals that the number of sales contracts signed in the month of Jan fell 7.7% to 80.4. It is the lowest level since tracking began in 2001. The 5 year credit default swaps (CDS) on Australian debt increased to a record 180 basis points at the New York close on Monday. The Reserve Bank of Australia keeps rates unchanged at 3.25%. The ABS reveal that Australian retail sales for Jan increased 0.2%, seasonally adjusted, to a record total of $A19.2 billion. The ABS release figures which show that in Dec the general government gross fixed capital formation fell by 3.6% and gross fixed capital formation by public corporations increased by 1.3%.

2 Mar	The ABS report that the seasonally adjusted Australian current account deficit was $A6.499 billion in the Dec quarter - down from the revised Sep quarter deficit of $A9.498. Concerns about the US banking system pushes the Dow Jones industrial average below 7,000 for the first time in more than 11 years. The US Commerce Dept reveal that US consumer spending increased by a seasonally adjusted 0.6% in Jan - first increase after 6mths of decline. The IMF’s Western Hemisphere Dept Head informs a conference of finance officials that "the IMF is likely to move its global growth forecasts down further, probably into negative territory". In Jan the IMF forecast global growth of 0.5% in 2009. The International Air Transport Assoc (IATA) announce that airline lost up to $US8 billion in 2008 and losses in the 4th Qtr alone exceeded $US4 billion. The New Zealand Institute of Economic Research forecasts that the NZ economy will start to emerge from recession in late 2009 but a full recovery could take 4 years. The group also estimates that the economy would contract 1.5% in the year to Mar 2009. The Australian Industry Group - PwC Australian Performance of Manufacturing Index dropped by 4.9 points in Feb to 31.7 points - it is the weakest result since the survey began in Sep 1992. Reports suggest a proposal suggested by the Australian regulator APRA could see banks rewarded for aligning bonuses with prudent investment practices and that those banks that do not abide by the new framework will be required to develop extra capital. The RBA reports that Australian’s personal borrowing levels, including credit cards, margin and personal loans, dropped by 0.2% in Jan - levels not seen since the 1991-92 recession. The TD Securities-Melbourne Institute inflation gauge increased by 0.7% in Feb - bringing the annual increase to 3.1% and taking the figure above the Reserve Bank’s target range of between 2-3%. The ABS release figures which show that company gross operating profits dropped 6.5% in the Dec quarter, seasonally adjusted. The New Zealand Prime Minister states that his government is considering a 9-day fortnight, with federally funded training on the 10^thday.

1 Mar	The EU leaders meet to discuss the global financial crisis and the Czech Prime Minister said that they "agreed that as much as possible we should use the single market as a motor for growth". The Hungarian Prime Minister also stated that "we should not allow a new ‘Iron Curtain’ to….divide Europe into two parts". The ASEAN summit calls for "bold and urgent reform" of the international financial system and the group began implementing a road map for creating a single economic community. Hometrack Ltd reveals that the average cost of house in England and Wales declined 10% from a year ago to 157,000 pounds. The Australian Finance Minister revels that government projections show that the unemployment rate will reach about 7% in 2010. Jan’s Australian unemployment rate was 4.8%.

28 Feb	The UNCTAD Secretary-General states that the world economy will shrink at least 1% this year but that "it certainly could be deeper than minus one". UNCTAD’s projections are based on estimates of 2.5 to 2.6% growth in developing countries.

27 Feb	The US Commerce Department reports that the revised US GDP figure shrank 6.2% annual pace from Oct though Dec - a sharp decline from a previous estimate of 3.8%. The Japanese Trade Ministry reports that Japan’s factory output dropped 10% in Jan. The ASB New Zealand housing confidence survey for the 3 months ending Jan found 53% of respondents think now is a good time to buy - up 5% from the previous quarter.

26 Feb	The US President delivers a $US3.6 trillion budget to Congress and it forecasts a federal deficit of $US1.75 trillion for 2009 (12.3% of the US GDP) - a level not seen since 1942. The US Labor Dept reports that the figure for first-time requests for unemployment benefits increased to 667,000 from the previous week’s figure of 631,000 - it is the most new claims since Oct 1982. Figures released by the German Labor Agency show that the unadjusted jobless rate increased from 8.3% in Jan to 8.5% in Feb. The number of people out of work in Germany is 3.552 million. Credit rating agency Standard & Poor’s declares that Japan’s economy is sinking into it’s worst recession since World War II. The Chinese Banking Regulatory Commission reports that the "financial crisis has had limited impact on the Chinese banking system" and that the non-performing loan ratio for China’s banks dropped 3.71 percentage points to 2.45% at the end of 2008. German Chancellor Angela Merkel announces that Eurozone nations would have to show solidarity towards each other in the current crisis. This provides fuel to speculation that stronger members of the group could offer help to ailing partners. The UK Finance Minister launches a new Asset Protection Scheme which is expected to insure more than �500 billion worth of bank’s toxic assets. The US Commerce Dept reveals that durable goods orders decreased 5.2% to $US163.8bil in Jan - the lowest level since Dec 2002. The US Federal Deposit Insurance Corp reports that the US banking industry reported its first quarterly loss and stated that "there is no question that this is one of the most difficult periods we have encountered during the FDIC’s 75 years of operation". The ABS releases figures which show that new private capital expenditure rose 6% in real terms, seasonally adjusted, in the Dec quarter. The median market forecast predicted a fall of 3%. The Assistant Treasurer introduces 2 appropriation bills to raise another $A2.2 billion to mainly pay for parts of the Australian gov’s national building and jobs plan. Singapore’s Trade Ministry reveals that Singapore’s GDP dropped by an annualized 16.4% last qtr from the previous quarter.

25 Feb	US Bank regulators have announced plans for ‘stress tests’ to be carried out on the "capital adequacy" of troubled major US commercial banks in Apr. The US gov also set out a 6mth deadline for the banks to raise new capital deemed necessary after the balance sheets review. The Coleman Report highlights that analysis of US Small Business Administration-backed loans found a failure rate of 11.9% in the last year. The Japanese Ministry of Finance reports that Japan posted a record 952.6 billion yen trade deficit in Jan. The UK Office for National Statistics reveals that its second estimate of final-quarter GDP showed a contraction of 1.5% in the last 3 months of 2008 - the fastest pace since 1980. It also coincides with comments by The Bank of England policy maker that the UK’s recession will probably deepen "significantly". The US National Assoc of Realtors show that existing home sales dropped 5.3% last month to a seasonally adjusted annual rate of 4.49mil units - their lowest levels in almost 12 years. The ABS releases figures which show that total construction work done in Australia rose 1.7% in the Dec quarter in volume terms, seasonally adjusted. The total building work done in the Dec quarter rose to $18.176 billion, seasonally adjusted. The Department of Education, Employment & Workplace Relations has revealed that the Australian skilled job vacancies index fell 11% in Feb in trend terms. The index figure was 46.4 points in Feb - 52.4% lower than Feb 08.

24 Feb	Spain’s finance ministry reports that the government budget showed a deficit of 3.8% of GDP in 2008, compared with a surplus of 2.2% in 2007. US Federal Reserve Chairman Ben Bernanke announces that he sees a "reasonable prospect" of an end to the deep recession in 2009 if stimulus programs work as intended but he warned that full economic recovery could take 2 or 3 years. The Conference Board US consumer confidence index dropped down from 34.7 in Jan to 25.0 in Feb - the lowest level since the index began in 1967. The S&P/Case Shiller home price index shows that the prices of US single-family homes fell 8.5% in Dec from a year earlier - the biggest drop since the data series began 21 years ago. The Ifo German business confidence index declined 82.6 points in Feb - its lowest pace since 1991. The Belgium National Bank’s business barometer, seen by many to be key indicator for sentiment in the eurozone, dropped from minus 27.7 points in Jan to minus 31.6 in Feb. Australian Immigration Minister, Chris Evans, indicates that there will be a cut in the number of skilled migrants and that "our skilled persons have access to those job opportunities first and that migration continues to meet the shortfalls in the skills areas where we need them". The Australian Prime Minister announces that an extra $AU298.5 million will be injected into the Job Network to give assistance to workers who are retrenched.

23 Feb	Wall Street shares plunge and the Dow Jones Industrial Average drops 3.4% to 7,114.94 - the lowest level since May 1997. US unveils details of a new Capital Assistance Program for struggling banks. The plan could lead to bigger government stakes but President Obama states that he believes keeping banks in private hands is "the best way to go". The Treasury secretary urges the Australian Fed Government not to be discouraged from making significant tax reforms because of current global financial crisis. Dr Henry stated that "times of economic weakness are often also the best time to implement large change" It is revealed that the S&P 500 has fallen almost 17% in 2009 - the worst start to a year on record. The Australian Government indicate they will not follow the UK’s lead in tightening restrictions for skilled migrants because of the global financial crisis. The UK has announced much tougher entrance restrictions for non-EU workers from Apr. Research agency SuperRatings announces that Super is likely to suffer again in 2009 and that "there would appear to be no good news for any Australian who holds investments in other than defensive style assets like cash or fixed interest". The HIA forecasts that housing starts will decline this financial year before growing again in 2009/10 and 2010/11. Singapore’s Prime Minister states that Singapore’s economy could shrink more than 5% this year, with latest gov forecasts showing shrinkage of between 2.0% and 5.0%.

22 Feb	A statement from European leaders indicates that they are all in agreement that there needs to be a global crackdown on tax havens and strict new regulations of hedge funds. Finance Ministers from Japan, China, South Korea and 10 Southeast Asian nations agree to form a $120 billion pool of foreign-exchange reserves that could be used by the countries to defend their currencies as part of a wider effort to defend their countries from the fallout of the global financial crisis.

21 Feb	The US President announces that he plans to cut the US Budget Deficit by 2013 and plans to do this by increasing taxes on the wealthy and cutting spending for the war in Iraq.

20 Feb	US stocks tumble on fears the government may be forced to nationalise some big banks - the Dow industrials ends trade for the week at a 6.5 year low. The US CPI rose 0.3% in Jan after falling 0.8% in Dec. Gold rises to its highest price in almost a year - up 13% this year. Germany’s upper house approves a 50 billion euro stimulus package.

19 Feb	US Labor Dept data shows that the number of US unemployed still on the benefits rolls jumped to a record high of 4.99 million in the week ended Feb 7. The Reserve Bank of Aust governor tells a House of Representatives Economics Committee hearing that Australia faces a "difficult year ahead’ and in regards to interest rates "it is not my present expectation we’re going to find ourselves at nothing". The RBA announce that Australian spending on credit and charge cards increased by 19.4% in Dec when compared with Nov. The number of purchases using credit cards increased by 27.2% in Dec.

18 Feb	The NSW Premier indicates that the infrastructure built in NSW from federal government’s stimulus package will bypass the usual planning and local government approval processes. All of the projects will be approved by a newly appointed Infrastructure Coordinator General. The Australian Tax Office announces that the stimulus package one-off payments to taxpayers could be sent out to the public as early as Apr. The British PM calls for a "grand bargain" between national leaders to help the global economy and urged leaders to "come together to make decisions". The US Federal Reserve forecasts that the US economy will shrink 0.5 to 1.3% in 2009 - this was down from previous estimates of a 0.2% contraction and a 1.1% increase. Output for 2010 is estimated to grow between 2.5% and 3.3% and in 2011 it is estimated to grow between 3.8% and 5%. US President unveils a $US275 billion mortgage plan designed to help millions of people avoid housing foreclosure. The plan includes $US75 billion for homeowners stuck in a negative equity trap. China’s deputy director of the State Administration of Foreign Exchange announces that China is a long term investor who pursues the principles of safety, liquidity and profitability in that order. Fang Shangpu also said that China was strongly opposed to trade and investment protectionism. The US Commerce Department report that initial construction starts dropped to a seasonally adjusted annual rate of 466,000 in Jan which is down 16.8% from the Dec figure and also the lowest level since records began in 1959. The US Mortgage Bankers Association reveals that its seasonally adjusted index of mortgage application activity increased 45.7% to 875.3 in the week ending Feb 13. The US Federal Reserve report that US industrial production dropped a larger-than-expected 1.8% in Jan. New York mayor outlines plans to spend $US45 mil on job training and other programs to aid unemployed bankers and help reinvigorate the city’s business community. The French President adds 2.6 billion euros to the government’s emergency spending plans. The Australian Trade Minister indicates that the economic downturn will not affect efforts to increase exports to Asia and said that even if exports "drop dramatically they are still going to return to what was an historically high figure". Veda Advantage’s consumer credit demand index reveals that Australian credit card and personal loan applications decreased by around 15% in Jan when compared to same time last year.

17 Feb	The US President signs into law the $US787 billion dollar American Recovery and Reinvestment Act. The Office for National Statistics reveals that UK 12 month inflation dropped to 3.0% in Jan from a rate of 3.1% in Dec. The Consumer Prices Index on a monthly basis dropped by 0.7% in Jan from Dec. The National Assoication of Home Builders/ Wells Fargo Housing Market Index increased 1 point to 9 - up from the record low of 8 in Jan. Research firm Zew Institute report that German investor confidence increased in Feb to -5.8 points - up from -31.0 points in Jan and the fourth monthly increase in a row. The Russian Deputy Economic Development Minister is quoted as saying that the Russian "forecast has worsened to a 2.2% contraction in GDP for 2009". The head of the IMF declares compares the global economy to a house and states "today, the house is burning…..so we have to act as firefighters". Dominique Strauss-Kahn also goes on to declare that he is "not optimistic" about the global economy and that there needs to be unity at international meetings.

15 Feb	The Melbourne Institute Wages Report for Feb shows that growth in total pay rose to 4.2% in the year to Feb, compared with 4% in the 12 months to Nov. The Korean Ministry of Knowledge Economy reports that sales from the 3 biggest department store chains rose 10.4% in Jan from a year earlier. The sales figures had previously dropped down 4.5% in Dec.

16 Feb	The EU has indicated they may take action against EU member states which let their budget deficits go over the 3% EU Stability & Growth Pact barrier. France, Greece & Spain have already forecast that their deficits will rise above 3% of GDP. The Russian Statistics Office reveals that industrial production in Russia dropped by 16% in Jan when compared with a year ago and down 19.9 when compared with Dec figures. The Bank of England deputy governor announces that there was "roughly a three in four" chance that growth in the UK would be weaker than the central projection and that the UK could be heading into a deeper recession than previously anticipated. The Korea Customs Service releases figures which show that Sth Korean Jan export figures dropped by a record 33.8% from a year earlier. The International Energy Agency forecasts that there could be an oil supply crunch from 2010 once global demand recovers. The Confederation of British Industry predicts that unemployment will increase throughout 2009 and peak at 9.6% in the first half of 2010. The Hungarian Prime Minister announces that the gov is looking at overhauling taxes worth as much as $US3.8 billion in an effort to revive the economy. The Japanese Cabinet Office reports that Japan’s GDP decreased 3.3% in the last quarter of 2008 - resulting in an annual decline of 12.7% - the biggest drop since the 1974 oil shock. The Japanese Economic and Fiscal Policy Minister describes it as "the worst ever crisis in the post-war era". The Bank of New Zealand and Business New Zealand performance of services index dropped from 48 in Dec down to 42.7 in Jan - the 10^th straight month of contraction. Statistics New Zealand report that producer input prices decreased by 2.2 in the 4^th quarter of 2008 - first decrease in 7 quarters. The Housing Industry Association and Commonwealth Bank First Home Buyer Affordability Index shows an improvement by 39.2% to 153.6 points in the Dec quarter.

15 Feb	The G7 finance ministers announce that there is no quick fix for global financial crisis and that the "severe downturn" is "expected to persist through most of 2009". The Confederation of British Industry estimates that the UK GDP will contract by 3.3% this year- the worst slump since 1980.

13 Feb	Eurostat releases figures that show that GDP for the Euro zone in the last quarter of 2008, decreased 1.5% from the previous quarter - the deepest contraction on record. The US Senate passes the $US787 billion American Recovery and Reinvestment Act of 2009. A new version of the Australian Government’s economic stimulus package passes through the lower house overnight and is then passed by the Senate. The Bank of Thailand states that the latest financial crisis is not as bad as their 1997 financial crisis and that the nation’s economy can withstand the current situation because of the resilience of local companies and banks. Statistics New Zealand report that retail sales in NZ dipped 0.6% from the 3^rd quarter - the 4^th straight quarter decrease. The Real Estate Institute of NZ reveals that house sales dropped 28.5% in Jan from a year earlier - the lowest level since at least 1989.

12 Feb	Research firm comScore announce that US online retail spending dropped 3% in the 4^th quarter of 2008 when compared with the previous year but retail e-commerce sales in the US increased by 6% in 2008 over the previous year.. The ECB’s survey of Professional Forecasters shows that forecasters predict that the eurozone economy will decrease by 1.7% in 2009 but increase by 0.6% in 2010. The US Commerce Department reports that total retail sales rose 1% in Jan - the first rise in 7 months and the biggest increase since Nov 07. The US National Assoc of Realtors reveals that home prices dropped 12.4% during the 4^th quarter of 2008 - the largest year-over-year decline since they began keeping records in 1979. The US Federal Reserve study of US household income & worth estimates that median family net worth decreased by 17.8% in 2008 and that mean net worth decreased by 22.7%. The US Commerce Department releases figures which show that inventories fell 1.3% in Dec - the biggest monthly drop since Oct 2001. RealtyTrac report that foreclosure filings went down 10% between Dec and Jan but they still remain 18% higher than Jan 2008 figures. The Australian Government’s $42 billion economic stimulus package fails to pass the Senate. The Australian Institute of Company Directors issues a new set of remuneration guidelines and urges company boards to rethink executive salary arrangements. The National Australia Bank’s commerce survey’s business conditions measure dropped 12 points in the Dec quarter to minus-16 - the lowest reading since Sep 1992. The ABS reveals that the number of people employed in Australia gained 1,200 in Jan. This rise was due to the fact that there was an increase of 33,700 people in full-time employment but a drop in part-time employment by 32,600. The Bank of Korea cuts its benchmark interest rate to 2% - a record low and the 6th reduction since early Oct. The People’s Bank of China reveals that in Jan China’s banks extended 1.62 trillion yuan of new local-currency loans and M2 increased 18.8% from the previous year. The Bank of Japan announces that Japan’s producer prices dropped down 0.2% in Jan from the previous year - the first fall since Dec 2003.

11 Feb	The ABS release figures which show Australian financed dwelling commitments increased 6.4%, seasonally adjusted, in Nov. The Irish Government announce that they are injecting 7 billion euros into Ireland’s top two banks. The International Energy Agency cuts its forecast for global oil demand to 84.7 million barrels per day in 2009. This figure is down 570,000 bpd less than previously forecast in Jan. The British Bankers’ Assoc announces that the Libor rose 0.01 percentage points to 1.23% on Wednesday. China’s General Administration of Customs releases data which shows that Chinese imports dropped 43% in Jan from a year earlier and exports also dropped 17.5% over the same period. The US Commerce Dept monthly report shows that the US trade deficit shrank 4% in Dec. The US Mortgage Bankers Assoc reveal that requests for loans to buy homes dropped 25% last week to an 8 year low. The Bank of England quarterly inflation report forecasts that British inflation will reach just 0.5% in 2 years. US lawmakers reach a "middle ground" on the $US789 billion economic stimulus package. The Westpac-Melbourne Institute index of consumer sentiment dropped 4.6% in Feb down to 85.8 points. Rabobank’s annual Australian Agriculture in Focus report reveals that food prices look set to drop in 2009, despite the global financial crisis. The West Australian premier suggests that commodity prices have probably bottomed out and that there is "some evidence that volume is starting to increase again and prices are starting to edge up".

10 Feb	The US Treasury Secretary unveils a three-part program to stabilise the financial system. The program includes an initial public-private investment fund of $US500 billion to help cleanse the banking system of toxic real-estate assets. The market reacts negatively, citing lack of detail in the program. The EU finance ministers urge coordinated action to tackle the economic crisis and state that their "ambition is to ensure that at the highest levels there should be a clear ‘no’ to protectionism". The EC suggests that France’s loan package to French car manufacturers might contravene EU laws because of the insistence that jobs and assembly lines remain in France. Germany’s industrial federation BDI and the Slovak Prime Minister also expressed concern over the plan. The US Senate passes the $US838 billion economic stimulus package on a vote of 61-37. The Dun & Bradstreet business expectations survey reveals that the outlook for employment growth has slumped to its lowest level since the survey began in 1988. 24% of firms expect to reduce staff in the Jun Quarter. China’s central bank Governor reiterates that China’s exchange-rate strategy remains unchanged and that the exchange rate will be "determined by market supply and demand against a basket of currencies".

9 Feb	The French Government announces a 7.8 billion euros loan package for the French car industry. The French President indicated that it "is not a gift. It is not a subsidy. It is a loan offered at an interest rate of 6% ". The car manufacturers have had to commit to "close no sites over the duration of the loan and to do everything to avoid redundancies". The British Prime Minister has called on the old culture of big short-term bonuses to be banished and said there should be "no rewards for failure, rewards only for long-term sustainable success." The International Labour Organisation has warned that decisive action must be taken to protect workers and families from a "full-blown social recession". The ILO Director General added that the "social and political repercussions of a deep and prolonged recession are daunting". China releases a memo paper ahead of the London meeting of the Group of 20 in Apr and it contains calls for more power for developing countries in the IMF and World Bank. The Australian Treasurer indicates that he and the Prime Minister are in discussions with Australian banks about ensuring credit flow to businesses is "what it should be". The Olivier Job Index reveals that the number of Australian online ads dropped 35.26% in the year to Jan. The New Zealand Prime Minister reveals that he will announce a new recession package this month and that it would be in the "half billion dollar range".

8 Feb	UK Chancellor of the Exchequer Alistair Darling announces a review of how banks are managed. The review will also look at the whether link between bonuses and excessive risk taking and it will also look at how bank boards operate. The IMF announce that economic growth in Arab states of the Gulf is likely to slow to 3.5% in 2009 because of the drop in oil revenues. South Africa’s President signals that Sth Africa may consider a bailout package to save at risk companies in "very important sectors". Norway announces that they will establish two funds with total capital of $US14.8 billion with the intention to unlock bank lending and buy corporate bonds. The IMF release a briefing note which suggests that "spending measures are likely to be most effective" and that "tax cuts are likely to have a more modest growth impact - particularly if they are not targeted to credit constrained consumers".

6 Feb	The US Labor Dept report that 598,000 private sector jobs were lost in Jan resulting in the unemployment rate increasing from 7.2% in Dec up to 7.6% in Jan. The Australian Industry Group - Housing Industry Assoc performance of construction index increased 3.2 points to a seasonally adjusted 34.1. The figure has remained below 50 since Feb 2008. The RBA’s quarterly Statement on Monetary Policy reports that global situation is making it a "more difficult environment for growth of the Australian economy". The RBA predicts GDP growth of 0.25% for the year to Jun 30 and then 0.5% by the end of 2009.

5 Feb	The Bank of England cut interest rates by 50 basis points to 1.0% - the lowest since its creation in 1694. The European Central Bank keeps interest rates at 2%. Figures released by the German Economy Ministry show that German industrial orders dropped by 25.1% in 2008 - twice as fast as expected. A survey run by Halifax reveals that British house prices rose unexpectedly in Jan by 1.9% from Dec. However, prices dropped at a record pace on an annual basis, dropping 17.2% in the three months to Jan when compared to previous year. The US Treasury Secretary will reportedly unveil a new banking rescue plan on Monday 9th Feb which is aimed at stabilising the sector. The US Labor Dept reveals that initial claims for US unemployment benefits increased to a seasonally adjusted 626,000 last week - the highest level since Oct 1982. The "Buy American" provisions that are part of the new proposed US stimulus have been amended to include the provision that they "be applied in a manner consistent with the US obligations under international agreements". The Australian Government’s $42 billion economic stimulus package passes through the lower house of parliament. The Australian state premiers and territory leaders meet with the Prime Minister for a special meeting of COAG to discuss the details of the $42 billion package. Statistics New Zealand release figures which show that NZ’s unemployment rate increased from 4.2% to 4.6% in the past 3 months. The Institute for Supply Management reports that the US service sector index increased to 42.9 in Jan - the fourth straight month of contraction. China Federation of Logistics and Purchasing reveals that China’s national purchasing managers index rose to 45.3 in Jan - up from 41.2 in Dec. The US President announces a $US500,000 cap on pay for executives of troubled finance firms who ask taxpayers for bailouts. Russia and seven ex-Soviet states announce that they have signed an accord on plans for a common defence force and a common fund for fighting the economic crisis. US auto suppliers submit a request to the US Fed Treasury seeking $US25.5 billion in federal aid. The US National League of Cities survey shows that 84% of cities are facing fiscal difficulties - the highest figure since the surveys started in 1985. The US Mortgage Bankers Assoc reveals that its seasonally adjusted index of mortgage applications rose in the week ended Jan 30 by 8.6%. Challenger, Gray & Christmas Inc announce that job cut announcements by US employers jumped to 241,749 in Jan - up 45% from a figure of 166,348 in Dec. The ADP National Employment Report shows that 522,000 jobs were lost in the US private sector in Jan - down from market forecast of 535,000. The Research Bank of Australia cuts the official cash rate by 100 basis points to 3.25%. The main opposition party in Australia has indicated they will block the government’s $42 billion economic stimulus package. The Australian Bureau of Statistics reveals that retail sales for Dec rose 3.8% to a record $19.2 billion - the largest monthly increase since Aug 2000. The Australian Bureau of Statistics report that the total number of dwelling units approvals dropped 2.9% in Dec. Approvals for private sector other dwellings also fell by 2.8% and private sector housing approvals dropped by 2.3%. The Australian Government announces plans to sell a record $22-$24 billion of bonds to fund the economic stimulus package.

4 Feb	The Institute for Supply Management reports that the US service sector index increased to 42.9 in Jan - the fourth straight month of contraction. China Federation of Logistics and Purchasing reveals that China’s national purchasing managers index rose to 45.3 in Jan - up from 41.2 in Dec. The US President announces a $US500,000 cap on pay for executives of troubled finance firms who ask taxpayers for bailouts. Russia and seven ex-Soviet states announce that they have signed an accord on plans for a common defence force and a common fund for fighting the economic crisis. US auto suppliers submit a request to the US Fed Treasury seeking $US25.5 billion in federal aid. The US National League of Cities survey shows that 84% of cities are facing fiscal difficulties - the highest figure since the surveys started in 1985. The US Mortgage Bankers Assoc reveals that its seasonally adjusted index of mortgage applications rose in the week ended Jan 30 by 8.6%. Challenger, Gray & Christmas Inc announce that job cut announcements by US employers jumped to 241,749 in Jan - up 45% from a figure of 166,348 in Dec. The ADP National Employment Report shows that 522,000 jobs were lost in the US private sector in Jan - down from market forecast of 535,000. The Research Bank of Australia cuts the official cash rate by 100 basis points to 3.25%. The main opposition party in Australia has indicated they will block the government’s $42 billion economic stimulus package. The Australian Bureau of Statistics reveals that retail sales for Dec rose 3.8% to a record $19.2 billion - the largest monthly increase since Aug 2000. The Australian Bureau of Statistics report that the total number of dwelling units approvals dropped 2.9% in Dec. Approvals for private sector other dwellings also fell by 2.8% and private sector housing approvals dropped by 2.3%. The Australian Government announces plans to sell a record $22-$24 billion of bonds to fund the economic stimulus package.

3 Feb	The Research Bank of Australia cuts the official cash rate by 100 basis points to 3.25%. The British Finance Minister, Alistair Darling, informs the House of Lords that Britain is facing a deeper recession than other countries because of the relative size of the country’s financial sector. The US National Association of Realtors Pending Home Sales Index shows that , based on contracts signed in Dec, there has been an increase of 6.3% to 87.7% in Dec - the first increase since Aug. Figures released by US automotive makers reveal that automotive sales have dropped 38% in Jan - the worst levels since 1982. The US Treasury Department outlines the details of the 42 local banks that received a combined $US1.15 billion in government bailout funds. The Bank of Japan announces that it will spend $11 billion to buy shares held by Japanese banks to help them during the global financial crisis. US real estate website Zillow.com, reports that nearly 20% of the US home sales in 2008 were of bank-repossessed properties. A further 11% were short sales,which is when homeowners owed more in mortgage debt than the home’s value. The Australian Government anticipates that the jobless rate will reach 7% by 2010, with 800,000 workers being without jobs. The Australian Federal Government announce a $42 billion Nation Buildings and Jobs Plan stimulus package. The Treasurer believes the package will create 90,000 jobs over the next 2 years. The NSW Premier announces a 2-day jobs summit to be held in late Feb. The summit will involve NSW’s major employers and representatives from sectors most impacted by the global crisis. The ABS releases figures showing the balance of goods and services figure for Dec was a seasonally adjusted surplus of $589 million - down 40% from the downwardly revised $979 million surplus in Nov. The Commonwealth Bank - Australian Chamber of Commerce and Industry’s business expectations survey shows a drop of 6.3 points, seasonally adjusted, from Sep down to 34.9 points in Dec - the worst result in the survey’s 14 year history.

2 Feb	The Australian Prime Minister reveals that the federal government is facing a $115 fall in Australian tax receipts to the government. The US Federal Reserve reveals in its quarterly survey of banking lending practices that nearly 60% of banks said they had tightened lending standards on credit cards and other consumer loans and about 80% of domestic banks said they tightened lending standards on commercial real-estate loans. The Japan Automobile Dealers Assoc reports that only 174,281 new vehicles were sold in Japan in Japan - the lowest level since Feb 1968. The Chinese Premier calls on other countries to unite in coordinated action to tackle the economic crisis because "no single country can remain immune and address this in isolation". New Zealand’s Treasury Department estimate that NZ’s economy will stay in recession at least until the end of Mar 2009. The US Institute for Supply Management reveals that its index of national factory activity rose to 35.6 in Jan, up from 32.9 in Dec. ABN Amro’s monthly Purchasing Manager’s Index shows that India’s manufacturing activity contracted in Jan 2009 - the third straight month of contraction. The IMF announces they want to double their lending resources for governments to $US500 billion. The US Commerce Dept reveals that US construction spending fell in Dec by 1.4% - the biggest decline since Jul 2008. Overall, in 2008, construction spending dropped by a record 5.1%. The Australian Retailers’ Assoc reveals that Australian shoppers spent $6.5 billion during the period between Boxing Day through to late Jan. This is up on their estimated figure of $6.3 billion. The TD Securities-Melbourne Institute monthly Australian inflation gauge increased by 0.8% in Jan after a 0.2% drop in Dec. Access Economics Investment Monitor report reveals that the value of total investment projects in Australia was $607.2 billion in the Dec quarter - a 5.8% decline from previous 3 months. The Australian Industry Group/PricewaterhouseCoopers Performance of Manufacturing Index moved up a seasonally adjusted 2.9 points in Jan to 36.6 - the 8th straight month of contraction. The CLSA China Purchasing Managers’ Index rises to a seasonally adjusted 42.2 in Jan - the 6th straight month of contraction. South Korea’s Ministry of Knowledge Economy releases figures which show that Sth Korea’s exports dropped by a record 32.8% in Jan.

1 Feb	Australian Treasurer Wayne Swan reveals that the budget has fallen into deficit for the first time since 2001 and declares that this is "the medicine the country needs". The IMF downgrades its forecast for Australia and predicts that the economy will contract by 0.2% in 2009. The founder of the World Social Forum claims that the world economic crisis is leading to the destruction of globalisation and that "we have to define the world we want". The African Union’s summit hears plans to create a "United States of Africa" and reaches an agreement to transform the African Union Commission into a new AU Authority. The Chinese Ministry of Finance reveals that China entered into a deficit in 2008 after large amount of government. spending towards the end of the year. Spending by local and central governments increased by 30.8% on the previous year and 2008 ended with an implied public deficit of about 111 billion yuan.

30 Jan	Figures released by RP Data/Rismark show that Australian local property values fell 2.6% during the 2008 calendar year.

30 Jan	The Reuters/University of Michigan Surveys of Consumers indicates that US consumer confidence rose to a 4 month high in Jan to 61.2. The US Commerce Dept reveals that the US GDP dropped at a 3.8% annual rate - the biggest drop since the first quarter of 1982. Germany urges the World Economic Forum to consider a United Nations Economic Council and the UK warned against financial protectionism. The Business Council of Australia calls on all levels of Australia government to make a coordinated response to avoid worst aspects of global recession. The Council recommended that disciplined short-term investment in areas such as infrastructure and education. The Australian Trade Minister, Simon Crean, suggests that a second financial stimulus package is not far off being completed by the Australian government.

29 Jan	The US Department of Labor releases figures showing that the number of Americans claiming jobless benefits in Jan (week ending Jan 17) rose 159,000 to 4.776 million - the highest reading since 1967. The US Department of Commerce reveal that new home sales dropped to an annual pace of 331,000 - their lowest levels since records began in 1963. US President Obama reacts to reports of multi-billion dollar Wall Street bonuses, calling them "shameful" and "the height of irresponsibility". The US Commerce Department reports that new orders for durable goods dropped for the fifth straight month in Dec to 2.6%. The EC indicates that they will not "stand idly by and ignore" the "Buy American" provision that is part of the $825 billion US stimulus package. Statistics New Zealand reveals that New Zealand posted a trade deficit of $NZ347 million in Dec - the total trade deficit for 2008 was $NZ5.6 billion. New Zealand’s central bank cuts the official interest rate by 1.5 percentage points to 3.5%.

28 Jan	The IMF announce that global banking industry losses may reach $US2.2 trillion in the current financial crisis - up from the previous estimate of $US1.4 trillion. The IMF report that world trade dropped by nearly 45% in annual terms in the final 3 months of 2008 and that the world economy will grow by only 0.5% this year - the slowest pace since WWII. An International Labour Organization report estimates that unemployment in 2009 could increase by a range of 18 million to 30 million workers. If the global financial downturn deteriorates further that number could increase to over 50 million more people unemployed by the end of 2009. Spain officially enters a recession after posting a drop in GDP of 1.1% in the 4^th quarter of 2008 - the first time the country has been in a recession since 1993. The US Labor Department announces that mass layoffs (involving 50 or more job cuts in a single sweep) totalled 21,137 in 2008 - the highest amount since 2001 and up from a figure of 15,493 in 2007. The US House of Representatives approves the $US825 billion Obama stimulus package. New Zealand property information website Zoodle predicts a 50% increase in property sales in New Zealand over the next 2 years.

27 Jan	The Conference Board reveals that their US Consumer Confidence Index dropped to 37.7 from a revised 38.6 in Dec. The annual PricewaterhouseCoopers survey for the World Economic Forum shows that less than a quarter of CEO’s surveyed had hope for revenue growth in the next 12 months. Only 24% indicated they were confident they would see any revenue growth in the next 3 years. Figures released by an S&P/Case-Shiller report show that US home prices dropped a record 18.2% in Nov from a year earlier. Australian welfare sector representatives meet with the Deputy Prime Minister to discuss the impacts of a slowing economy and specifically the issue of people at risk of defaulting mortgages. The Deputy Prime Minister calls on banks to take a more ‘sympathetic view’ on families who fall behind in mortgage repayments. The ABS released figures which show that in annual terms the Australian Dec quarter producer price index grew 6.4% - the highest level since the series began in 1999. The Australian Government announce a $4 billion fund to support the commercial property sector.

26 Jan	The Edelman Trust Barometer reveals that 62% of respondents trust businesses less than a year ago, with the biggest drops coming in Ireland (83%), Japan (79%) and the US (77%). The US National Association of Realtors reveal that the median home price dropped by a record 15.3% in Dec when compared to same period last year and the rate of sales of existing homes in the US rose 6.5% in Dec.

23 Jan	Figures from the UK Office for National Statistics confirm that the UK has entered a recession - the first time since 1991. The economy shrank by 1.5% in the Dec quarter of 2008 - the biggest drop since the recession of 1980. US Treasury Secretary-nominee Timothy Geithner announces that he aims to strengthen regulation of over-the-counter derivatives and seek registration of hedge funds to improve market transparency. Mary Schapiro, the incoming chairman of the US SEC indicates that she believes capital requirements for broker-dealers need to be tougher and that additional oversight capacity for her agency is essential. US Senate Democrats unveil their $US825 billion economic stimulus proposal. SuperRatings announce that Australian superannuation funds are likely to post negative returns for 2008-09 and that typical funds lost an average of almost 20% in 2008 The Australian Government releases the Dec quarter export prices and they show a jump of 15.9% from the previous quarter - the biggest increase since the series began in 1974. The Westpac-Melbourne Institute unemployment expectations index increased to 180.7 index points in Jan - the highest score since Nov 1982.

22 Jan	China’s National Bureau of Statistics releases figures which show that China’s 4^th GDP growth dropped from the Sep quarter figure of 9.0% down to 7.0%. The US Labor Department reveal that the number of US workers filing new claims for jobless benefits rose by 62,000 last week. The European Central Bank President announces that the global economy should start recovering in 2010 because "pickup should normally take place next year". The ACTU call on the Australian Government to organise a national jobs summit. The ACTU predicts that unless the government intervene between 200,000 and 250,000 jobs could be lost in next 12 months.

21 Jan	The Westpac-Melbourne Institute consumer sentiment index dropped by 2.2% in Jan to 89.9 points - this figure was down from Dec’s 92 points. On an annual basis, consumer sentiment has dropped 12.8%. The Hudson Employment Expectations survey reveals that Australian employer confidence has tumbled by 19.9 percentage points in the 1^st quarter of the 2009 financial year, when compared to the same quarter a year ago.

20 Jan	The Australian Council of Trade Unions suggests the Australian Government must introduce a new stimulus package aimed at reducing the threat to jobs. Statistics New Zealand releases the consumer price index figures for the 4^th quarter and it shows a drop of 0.5%- the steepest decline since Dec 1998. The annual inflation rate is 3.4% The French PM announces that French carmakers will get up to 6 billion euros of state aid to help them survive the financial crisis. The Bank of Canada cut its key interest rate by a half-point to 1 % - a level comparable to that of Jul 1958. The US Treasury Department reveals that it has asked 20 big banks receiving government bailout funds to provide more details about lending activity in a monthly report. The government also asked for more data on mortgage-backed securities and asset-backed securities purchases. Barack Obama is inaugurated as the 44^th US President. The Dow Jones Industrial Average drops to its worst Inauguration Day decline on the back of concerns about banks needing to raise more capital. The Congressional Budget Office analysis of President Obama’s economic stimulus plan finds that at least one-fourth of the $US825 billion plan won’t be spent before 2011. The Chief Executive of the Australian Industry Group suggests that even if Australia does not go into a recession it is "going to feel like one".

19 Jan	Australian Prime Minister, Kevin Rudd, suggests that Australian workers put their pay rise claims on hold to assist the nation in dealing with the global financial crisis. He also added that the scale of the global financial crisis "almost beggars belief" and that "things will get worse before they get better". The Japanese Ministry of Economy, Trade and Industry, announces that Japanese industrial output dropped a record 8.5% in Nov - it was the biggest fall since comparable records began in 1953 and down 16.6% when compared to the previous year. The UK unveils a second bank rescue package in an effort to free up credit to get the economy moving again. The British Prime Minister did not name a figure for the package but it has been reported to be around 200 billion pounds. The World Health Organisation warns that the global financial crisis may see a rise in mental illness and health problems and that people will make more use of overstretched publicly financed services. The European Central Bank is encouraged by France to head up efforts aimed at introducing central clearing for off-exchange traded derivatives. Access Economics quarterly Business Outlook predicts that Australia will enter a technical recession by the end of the year and it will be "the sharpest deceleration Australia’s economy has ever seen". The Outlook also indicates that NSW is in a recession but the NSW Acting Treasurer indicates that official forecasts show that the NSW economy is improving. The TD Securities-Melbourne Institute monthly inflation gauge fell 0.2% in Dec - the third consecutive month the gauge has dropped.

18 Jan	The Australian Minister for Superannuation and Corporate Law releases a statement announcing that margin lending providers would have to be licensed by ASIC from Jul 1. The Danish Government announces that they have agreed to a 13.4 billion euro line of credit to Denmark’s banks. The European Union Industry Commissioner signals that the 4^th Quarter figures the EC are to release next week show that the EU has slipped deeper into recession and he describes the quarter as ‘catastrophic in every respect’. Rightmove Plc releases figures which show UK house prices fell for the third consecutive month in Jan with the average price advertised by sellers slipping 1.9% to 213,570 pounds.

17 Jan	The British Prime Minister informs British banks that they must own up to the extent of their bad assets. He also said the global recession could deepen unless countries unite to try to solve the crisis.

16 Jan	Acting Australian Prime Minister Julia Gillard urges employers not to overlook the value of skilled staff and that they should remember how hard it is to get back skilled staff when the economic climate improves.

15 Jan	The ABS reports that the unemployment level in Australia rose to a 2 year high of 4.5% in Dec - up from 4.4% in Nov. Also, the number of full-time jobs in Australia fell by 43,900 in Dec and part-time positions grew by 42,800 - this resulted in total job loss of 1200. Figures released by the RBA show that Australians spent 9.3% less on their credit and charge cards in Nov when compared with Oct figures. The value of credit card repayments fell by 11.4% in Nov. According to RealtyTrac figures, foreclosures on US houses jumped by a record of more than 81% in 2008 - up 225% when compared with 2006. 3.1 million foreclosure filings were issued during 2008 and a total of 861,664 families lost their homes in during the year. NZ Prime Minister John Key has indicated that the NZ economy may not report growth in 2009. President-elect Barack Obama’s special economic recovery advisory board calls for tighter regulation of the financial sector and they also suggested that regulators be allowed to work independently from politics so their goals are not compromised. The European Central Bank cuts its benchmark interest rate by � a percentage point to 2% - the new figure matches a record low set in 2003 and 2005. The US Senate approves President-elect Barack Obama’s administration plan to spend the remaining $US350 billion of the $US700 billion financial bailout package. The US Labor Dept reports that initial jobless claims increased to 524,000 in the week ended Jan 10 - an increase from the upwardly revised figure of 470,000 the prior week.

14 Jan	The ABS release figures showing that the number of financed dwelling commitments for owner-occupied housing in Australia rose 1.3% in Nov to 49,192, seasonally adjusted. Total housing finance by value fell by 0.9%, seasonally adjusted, and construction finance fell 0.3%. Dun and Bradstreet’s Economic and Risk Outlook Report forecasts that Australia’s real GDP will slow to zero through 2009. The report also mentions that it expects the figure to rebound to 1% in 2010. Figures released by Statistics NZ show that there were 1168 building consents issued for new homes, including apartments, in Nov - the lowest monthly total since Jan 1992.

13 Jan	Consultancy firm Challenger, Gray and Christmas release survey results showing a record 1,484 chief executives departed US companies in 2008 - the highest level since the company began tracking the data in 1999. The health care sector had the highest turnover, followed by the technology and finance sectors. The US Commerce Department reveals that the US trade deficit fell 28.7% in Nov - the lowest level in 5 years. US Federal Reserve Chairman Ben Bernanke tells an audience at the London School of Economics that "stronger measures to further stabilise and strengthen the financial system" must accompany fiscal stimulus if an economic recovery is to be achieved. The NZ Institute of Economic Research’s quarterly survey of business opinion shows 44% of firms reported a decrease in activity in Dec quarter. 43% indicated they expected their trading activity to decrease further in the next quarter and 77% said they expected the general business situation to deteriorate in the next 6 months.

12 Jan	ANZ’s monthly survey of job ads shows that the number of job advertisements in major metro newspapers and on the internet dropped by 9.7% in Dec to average of 190,661 per week - this is down 29.9% from 12 months ago. Since last Dec job ads in newspapers have dropped 52%. The figures represent the weakest annual rate of growth since ANZ began surveying job ads in 1975. The China Assoc of Automobile Manufacturers reveal that annual growth of China’s vehicle sales slowed to a 10 year low of 6.7% in 2008. The G10 central bankers have indicated that they believe the global economy will slow dramatically this year but will post a "significant pick up" in 2010. British Prime Minister Gordon Brown tells a job summit in London that the government will provide new funds to train people who lose their jobs and our out of work for more than 6 months. He also outlined incentives for employers to hire people. The US President-elect Barack Obama indicates he is requesting access to the remaining $US350 billion of the $US700 billion bailout package so he has "ammunition" if the US weakens further. Germany announces that they will spend an extra 50 billion euros in the next 2 years in an attempt to help Germany "through the crisis and secure jobs". The Australian Fair Pay Commissioner indicates that any decision on minimum wages in 2009 will be guided by need to protect jobs.

11 Jan	The China Banking Regulatory Commission has posted a 10-point plan to encourage banks to increase lending to help finance the government's economic stimulus package. US President-elect Barack Obama indicates that the US Government's $US700 billion financial bailout package needs to be revamped.

9 Jan	The UK Office for National Statistics releases figures that show British manufacturing output for Nov was 7.4% lower than previous year - biggest fall since Jun 1981. The US Labor Department announces that the jobless rate has increased to 7.2%, up from 6.8% in Nov and the highest level since Jan 1993. The US Commerce Department releases the US wholesale inventories figures for Nov and they show a drop of 0.6%. Nov wholesale sales dropped a record 7.1%. The Bank of Korea cuts its benchmark interest rate by a half-point to 2.5% - a record low and the fifth cut since Oct.

8 Jan	The Bank of England has cut official interest rates by half a percentage point to 1.5% - the lowest level in its 315 year history. Cuts totalling 3.5 percentage points have been shed since the beginning of Oct. President-elect Barack Obama announces that one of the considerations in his economic stimulus plan is that 95% of working families will get a $US1,000 tax cut in an effort to get "people spending again".He also added that "If nothing is done, this recession could linger for years." The ACI - Housing Industry Association performance of construction index dropped 1.1 index points in Dec to 30.9 points - the lowest reading since the survey began in Sep 2005. The ABS reports that the Australian balance of goods and services was a surplus of $A1.448 billion, seasonally adjusted, in Nov. This figure was up from the upward revised figure of $A2.96 billion surplus in Oct. President-elect Barack Obama has indicated in an interview that "Wall Street has not worked" and pledged a "substantial overhaul" of the financial markets in the US. The US Federal Reserve announces that consumer borrowing dropped by $US 8 billion in Nov to $US2.571 trillion.The annual rate of consumer borrowing fell by 3.7% in the same month. Hedge Fund Research Incorporated reports that hedge funds lost 18.3% in 2008 - their worst year on record.

7 Jan	The German government announced a plan to offer up to 100 billion euros in aid for companies who are experiencing financial difficulties. The US Mortgage Bankers Association releases figures which show that seasonally adjusted index of mortgage application activity fell 8.2% for the week ending Jan 2.The figure had a reached a 5 year high the previous week. The latest ACCI Survey of Investor Confidence shows that Australian business confidence fell from 57.3 in Sep to 53.5 in Dec - the lowest level since the survey began. Figures released by the ABS show that Australian retail trade figures rose 0.1% in Nov. HIA report that sales of new homes in Australia fell by 1.1% in Nov after a 3.1% rise in Oct.

6 Jan	The Federal Chamber of Automotive Industries figures show that Australians purchased 1,012,164 passenger cars, SUVs and commercial vehicles in 2008 - only the second time in history that the 1 million milestone has been reached. This figure was down 3.6% on 2007 figures. S&P estimate that $US17 trillion in share value worldwide was lost in 2008. The estimate is based on the value of S&P’s Global Broad Market Indices which comprises of 46 major stock indexes around the world. The US National Association of Realtors Pending Home Sales Index shows that pending sales of existing US homes dropped to a 7 year low in Nov - down 4% to 82.3. Eurostat reveals that inflation in the european countries dropped in Dec to 1.6% - the lowest in over 2 years. The US Institute of Supply Management’s non-manufacturing index rose to 40.6 in Dec - up from 37.3 in Nov. The Australian Industry Group - Commonwealth Bank performance of services index rose 1.5 points in Dec to 39.3 points. Activity shrunk for the 9^thconsecutive month. The Federal Chamber of Automotive Industries releases figures which show sales of new cars and trucks fell 3.6% in Australia in 2008 but it was still the second best year on record. The Dun and Bradstreet National Business Expectations Survey shows that 59% of executives believe profits will fall in the Mar quarter and 54% anticipate declining sales during the same period. Figures released show that total value of trading on the New Zealand sharemarket in 2008 was down 18% on 2007.

5 Jan	Britain’s FSA announces that the ban on short-selling of shares will expire on Jan 16 but added that it could be reintroduced without consultation if necessary. US President-elect Barack Obama admits it is "very unlikely" the $US800 billion stimulus package would be ready by Jan 20. Autodata figures show that total US auto industry sales fell 36% in Dec to 896,124 - 2008 sales were down 18% to 13.2 million vehicles. Japan’s Automobile Dealers Association figures reveal that Japan’s sales of new cars, trucks and buses dropped down 6.5% from 2007 - the lowest levels since 1974.

2008	Event

18 Dec	The US Conference Board composite index of leading economic indicators dropped 0.4% in Nov - this follows on from a 0.9% drop in Oct. The Munich-based Ifo Economic Institute reveals that its German business climax index has dropped to 82.6 points in Dec after falling to 85.8 points in Nov. The British Office for National Statistics has revealed that British retail sales unexpectedly rose in Nov by 0.3% from the previous month. The World Bank chief tells reporters that "I am afraid that the first 6 months of 2009 are going to be a problem worldwide" and he also indicated that it was important that countries do notadopt protectionism measures during the economic crisis. The Irish Prime Minister has launched a "Building Ireland’s Smart Economy" recovery plan to combat the financial crisis. The plan involves a 500 million euro venture capital fund designed to boost enterprise. The Institute of International Finance (IIF) forecasts that global output will fall 0.4% in 2009 - down from an estimated 2.0% expansion this year. The French National Statistics Office has forecast that France’s GDP will probably decline 0.8% this quarter - the most since the end of 1974. Research by Hedge Fund Research shows that a record number of 344 hedge funds were liquidated in the 3rd quarter of 2008. The figures show that 693 hedge funds were closed in the first 9 months of the year in comparison to 409 in the same period last year. The Western Australian mid year economic review suggests that the state’s net debt will be 50% of revenue by 2010-11 and 60.9 % the following year. The new Treasury figures predict the state will move into deficit by 2011 and the state debt may triple to AU$16.7 billion in the same period.

17 Dec	The British Office for National Statistics releases figures which show that the number of people claiming jobless benefits in Britain jumped in Nov to 1.07 million people, up 75,000 from Oct - the biggest monthly amount for more than 17 years. OPEC cut oil output by 2.2 million barrels a day and combined with cuts by non-members Russia and Azerbaijan the eventual figure would be a cut of 2.8 million barrels. OPEC’s output target would change to 24.8 million barrels a day. The Chinese Finance ministry indicates China will lower import tariffs on raw materials for certain sectors next year to help Chinese manufacturers could with tough economic conditions. An average import tariff rate of 9.8% in 2009 will be maintained but they will look at rates on raw materials that are in strong demand by key industries. The EU statistics agency Eurostat confirms that the inflation in the EU has eased to 2.1% in Nov - a 14 month low. The Westpac/Melbourne Institute index of economic activity dropped to 0.6% in Oct - down from 1.1% in Sep. A NSW Business Chamber survey of almost 20,000 companies shows that more than half of the respondents indicated they will hire additional apprentices in 2009. Hiring intentions were up 150% on 12 months ago. ABS statistics reveal that merchandise imports into Australia rose 2.0% in Nov in seasonally adjusted terms and in unadjusted terms, merchandise imports fell by $889 million to $20.916 billion. The Dept of Employment reveals Australia’s index of skilled job vacancies fell 15.9%, seasonally adjusted in Dec - down 48.2% from the previous year.

16 Dec	China’s statistics bureau releases figures which show that fixed-asset investment in urban areas increased 26.8% to 12.76 trillion yuan in the first 11 months from a year earlier - down from the 27.2% increase in Oct. The US Fed Research cuts its key interest rate to a range of zero to 0.25% - down from 1.0% and at its lowest level on records which date back to Jul 1954. The US Labour Dept releases figures which show that US consumer prices dropped a record 1.7% in Nov - the 2nd consecutive record-breaking decrease. The Markit Eurozone’s purchasing managers’ index (PMI) dropped down to 38.3 points in Dec - down from 38.9 in Nov and the lowest figure in the survey’s 10 year history. OPEC’s secretary general suggests that OPEC would like to see non-members slash their oil production by between 500,000 and 600,000 barrels a day.

15 Dec	China’s central bank indicates that China’s money supply rose 14.8% year-on-year at the end of Nov. The managing director of IMF warns of a global recession but indicates the world economy could begin to recover in late 2009 or early 2010. Dominique Strauss-Kahn also warns of potential for social unrest unless stimulus packages are implemented and he suggested that China’s economic growth could slip to 5.0% or 6.0%. The US Federal Reserve reports that US industrial activity dropped by 0.6% in Nov - economists had forecast a 0.8% drop. The British Bankers’ Association announces that the interbank lending rate on 3-month loans in dollars (the Libor) fell 0.05% points to just over 1.87%. Japan’s central bank’s Tankan survey showed that business sentiment dropped to -24 in Dec - down from -3 in Sep and the biggest drop in 34 years. ABARE releases figures that suggest Australia’s earnings from commodity exports may be 10% less than forecast. Overseas sales are estimated at A$192 billion in the year ending Jun 2009 - down from earlier forecasts of A$214 billion. Access Economics is forecasting Australian retail sales to fall 0.1% in 2008-09 and anaemic growth of 0.9% in 2009-10.

14 Dec	The US Government indicated it will consider tapping into the $US700 billion bailout fund to aid the US auto manufacturers after a $US14 billion plan to help them failed to pass the US Senate. China has indicated that it will aim to expand the broad M2 measure of money supply by 17% in 2009. The Irish Government announce a €10 billion bank rescue package for Ireland’s 6 main banks. Canada’s Industry Ministry suggested that forestry and mining industries are being considered for assistance in Jan's budget.

12 Dec	Figures released by India’s Central Statistical Organization show that India’s industrial output declined 0.4% in Oct from a year earlier - first annual decrease since Apr 1995. The Australian Federal Government announces a $4.7 billion infrastructure building plan which is designed to create jobs and boost the economy. RMIT’s Housing and Urban Research Institute has released some figures that suggest about 300,000 Australian households could face negative equity in 2009 if prices fall by 10% as predicted.

11 Dec	The South Australia Centre for Economic Studies released a report which indicates that Australia’s economy may require more help if international economic conditions continue to deteriorate and the number of people looking for employment could rise to 100,000 by the middle of 2009. China’s National Bureau of Statistics reports that China’s consumer price inflation fell to 22-month low of 2.4% in Nov. The US Labor Dept announced that the number of US workers filing new claims for jobless benefits rose by 58,000 to 573,000 last week - a 26 year high. The US Commerce Dept releases figures that show the US trade deficit rose 1.1% in Oct to $US57.2 billion. Total trade volume dropped 1.7% in Oct and the trade deficit with China increased from $US 27.8 billion to $US 27.9 billion in Oct. The latest Asian Development Bank Economic Monitor report indicates that Asia’s developing economies will slow to 5.8% in 2009, down on initial estimate of 7.2%. The Bank of Korea cuts its benchmark interest rate by 100 basis points to 3% - the lowest level since the bank began to set a policy rate in 1999. Eurekahedge releases figures that show the global hedge-fund industry lost $64 billion of assets in Nov - the 6th straight month of recorded loss. Figures released by the ABS show that Australia’s unemployment rate rose 0.1% to 4.4% seasonally adjusted in Nov. The number of people employed fell by 15,600 to 10,750,000, full-time employment rose 8,800 to 7,695,300 and part-time employment dropped by 24,400 to 3,054,600. The Melbourne Institute Survey of Consumer Inflationary Expectations has dropped to 2.5% in Dec - down from 3.3% in Nov and the lowest point in 5 years.

10 Dec	The Australian Department of Employment and Workplace Relations employment indicator fell for the 11th straight month in Dec - dropping to -0.189 from Nov’s -0.078. Chinese customs authorities report that China’s exports dropped 2.2% from the year-earlier period and imports dropped 17.9%. The drop in exports in Nov is the first drop in 7 years and the Nov trade surplus widened to $US40.1 billion. Italy officially enters a recession with new data showing the economy shrank by 0.5% in the 3rd quarter. This follows a decrease of 0.4% in the 2nd quarter. The World Bank announces that it will create a $US2 billion fast-track lending program to help 78 of the World’s poorest countries. The US Treasury releases figures that show a record budget deficit of $US164.4 billion for the month of Nov. China's National Bureau of Statistics reveals that China’s producer-price inflation slowed to 2.0% in Nov when compared with the same month last year and the figure was down 6.6% from Oct figure. Figures released by Statistics NZ show that NZ’s terms of trade dropped 2.3% in the Sep Quarter and import prices rose 11.1% in the Quarter - the largest quarterly increase since 1984. Export prices increased by 8.6% - the fastest rate for 2 years. China’s foreign direct investment (FDI) falls by 36.5% in Nov from the previous year but FDI in the first eleven months of the year rose 26.3% when compared with same period last year. The Westpac-Melbourne Institute index of consumer sentiment rose by 7.5% in Dec to 92.0 index points - up from 85.5 points in Nov. ABS figures show that Australian housing finance commitments for owner-occupied housing rose 1.3% in 0ct and total housing finance by value rose 1.9% during the same period.

9 Dec	The World Bank’s Global Economic Prospects report shows the 2009 global trade volume falling 2.1% - the first fall in 26 years. The report also forecasts that the global economy would only expand by 0.9% in 2009. The overnight Libor rate falls for the 7th day in a row to 0.14% and according to the British Banker’s Assoc the overnight Libor level on Monday 9th was the lowest level on record. US Fed regulators announce they will make $US40 billion available to credit unions who suffered losses from mortgage securities. Canada cuts its interest rates by 0.75% down to 1.5% - the lowest level in 50 years. The Canadian Bank Governor also declared that Canada is "now entering a recession". Official figures in Japan show that the economy shrank by 0.5% in the last quarter and that it has officially entered a recession.

8 Dec	The D&B business expectations survey shows that 58% of executives expect profits to fall in the Mar Quarter of 2009 and also 54% expect sales to drop-off during this period. Statistics NZ releases figures showing that residential building work in NZ dropped to its lowest level in 6 years in the 3rd Quarter - down by 7.9%. Volume for the past year fell by 22.1%. Figures released by NZ valuation agency, Quotable Value, show that NZ house prices fell 6.8% in the year to Nov. The ANZ Jobs Ads survey reveals that job advertisements on the internet and in newspapers dropped for the 7th-straight month in Nov. Ads in newspapers also suffered the biggest 2 month fall in the history of the 30-year old survey and in total internet and job ads were down by 18.6% for the year.

7 Dec	India announces a 200 billion rupees ($US4 billion) economic stimulus package. A new study released by the Bank of International Settlements reveals that international lending to emerging economies quadrupled after 2002 - reaching $US4.9 trillion in mid-2008.

6 Dec	India cuts its repo rate (rate at which it lends to commercial banks) to 6.5% and its reverse repo rate (rate at which it borrows overnight) to 5.0%

5 Dec	Statistics NZ show a fall in seasonally adjusted total wholesale trade sales by 1% in the Sep Quarter and there was an 11.3% fall in vehicle wholesaling. It was the largest recorded sales decrease since the series started in 1995. According to figures released by Statistics Canada, Canada suffered its biggest monthly job losses since 1982 with 70,600 jobs axed in Nov. The US Labor Department reveals that 533,000 jobs were axed in the US in Nov - the biggest monthly cut since 1974. The US jobless rate rose to a 15 year high of 6.7%. The Australian Industry Group - Housing Industry Association performance of construction index (PCI) dropped by 4.4 index points in Nov, down to 32 points - the 2nd biggest monthly fall since the survey began in Sep 05.

4 Dec	New Zealand cuts its official interest rate by a record 1.5% points, bringing it down to 5%. US Fed Reserve Chairman Ben S. Bernanke outlines possible options for trying to stem the amount of home foreclosures in the US. US Commerce Dept figures reveal that US factory orders dropped 5.1% in Oct - the biggest drop since Jul 2000. The US Labor Dept announces that the number of people on unemployment benefit rolls rose to 4.09 million in the week ended Nov 22 - the most since Dec 1982. The UK cuts interest rates by 100bps, down to 2.0% - the lowest level since 1951. The European Central Bank drops its benchmark rate by 0.75% point to 2.50% - the Eurozone’s biggest cut ever. The Goldman Sachs - International Council of Shopping Centres sales index of 37 stores shows that sales dropped in the US by 2.7% in Nov - the worst figures since the index began in 1969. France unveils a 26 billion euros stimulus plan. ABS figures reveal that Australian building approvals dropped by 5.4% in Oct - a 7 � year low. In the year to Oct, building approvals fell 26 %.

3 Dec	The Fed Reserve released its Beige Book report which shows economic activity across all Federal Reserve districts has weakened across the US over the past few weeks. The SEC vote to adopt new rules designed to provide more transparency for the credit rating industry. Most of the new rules take effect in 60 days. The ADP National Employment report shows that the US private sector lost 250,000 jobs in Nov - largest decline in 6 years. The latest figures released by ABS show GDP grew by 0.1%, seasonally adjusted, in the Sep Quarter, taking the annual growth rate to 1.9%, seasonally adjusted - the slowest pace in 8 years. The Australian Industry Group/Commonwealth Bank performance of services index dropped 4.3 points to 37.8 in Nov - 17.9 points lower than the same time last year.

2 Dec	Japan decides to leave rates unchanged at 0.3% and announces measures it hopes will "contribute to smooth corporate fundings towards the end of the financial year". Autodata releases figures that show US car sales dropped by 37% in Nov from a year ago. The US Mortgage Asset Research Institute releases figures showing reported incidents of mortgage fraud grew by 45% in the 2nd Quarter compared to the same time last year. The US Government Accountability Office releases its review of the $US700 bailout package and it calls for the Treasury to have more "effective oversight". Australia’s central bank cuts interest rates by 100 basis points to 4.25% - continuing the biggest round of rate reductions since the 1990s recession. ABS figures show that Australia had a current account deficit of $9.7 bill for the Sep quarter, down from Jun’s figures of $14.043 billion deficit. The New Zealand Institute of Economic Research (NZIER) forecasts that New Zealand’s current recession will be relatively shallow and last until the 1Q of 2009. Japan’s central bank calls an unscheduled monetary policy meeting to discuss ways to help companies raise money. United States governors discuss economic state aid with President-elect Barack Obama.

1 Dec	The Institute for Supply Management’s United States manufacturing report for Nov showed a fall from 38.9 points to 36.2 - the weakest reading since May 1982. The price of oil drops more than 9% to $US49 a barrel. The United Nation’s report on World Economic Situation and Prospects 2009 shows that world economic growth will slow to 1% in 2009, down from 2.5% in 2008. The report also calls for "massive economic stimulus packages that are coherent and mutually reinforcing on a global basis, and linked with sustainable development imperatives". The National Bureau of Economic Research (NBER) declares that the United States entered recession in Dec 2007. NBER claim that Dec 07 marked the end of economic expansion that began in Nov 2001. The United StatesCommerce Department reports that construction spending dropped by 1.2% in Oct - experts had predicted a fall of just 0.9%. The EU announces it will begin discussing new rules governing high-risk hedge funds. The Australian Industry Group/PwC Performance of Manufacturing Index shows a drop of 7.7 points (seasonally adjusted) in Nov, down to 32.7 - it marks the 6th straight month of contraction and is the lowest reading since the survey began in 1992. China’s purchasing managers’ index (PMI) dropped down to 38.8 in Nov from 44.6 in Oct - the lowest level since the survey started in 2005. The TD Securities and Melbourne Institute gauge of inflation fell 0.6% in Nov - the biggest monthly decline since the survey began in 2002.

30 Nov	Poland adopts an economic package for 2009-2010 worth about 24 billion euros ($US30.1 billion). Poland also lowered their economic growth forecast for 2009 down from 4.8% to 3.7%. The US National Retail Federation (NRF) reiterated its forecast that 2008 holiday spending will rise just 2.2% to $US470.4 billion, the smallest gain in 6 years.

28 Nov	Japanese Ministry of Economy, Trade and Industry figures show that factory output fell by 3.1% from Sep and that household spending slid 3.8%, the 8th consecutive drop. The US holds its biggest shopping day of the year, Black Friday. These sales are seen as lead indicator of US consumer spending and sentiment. The Indian statistics office figures show that the economy expanded at 7.6% in the Sep Quarter - the slowest pace since 2004. Australia's benchmark share index rose 4.3% on today and 9.5% for the week - its biggest ever weekly rise. Australia's Reserve Bank releases figures showing total credit provided to the private sector rose 0.6% in Oct - the 9th consecutive month in which credit growth was below 1%. ASIC states that the number of managed funds that have frozen redemptions in Australia has reached about 50. ASIC also told a parliamentary hearing that initial data shows that 100 people have applied to have their money released under new hardship provisions.

27 Nov	China cuts interest rates by 108 pb to 5.58%. The Australian Housing Industry Assoc (HIA) releases figures showing sales of new houses jumped 6.7% in Oct. According to ABS figures, capital spending in Australia rose 0.6% in real terms, seasonally adjusted, in Q3.

26 Nov	The US Commerce Department releases figures which show that US consumer spending dropped 1% in Oct - biggest monthly decline since Sep 2001. Durable goods orders also dropped more than forecast. The EU proposes an EU-wide stimulus package of 200 billion Euros. A Reuter's poll predicts that global oil demand is expected to decline slightly in 2008 and 2009, the first drop in a generation.

25 Nov	The US Federal Reserve announced a new US$800 billion stimulus package. $US600 billion is to be spent on purchases of mortgage securities and a separate US$200 billion on asset-backed securities. The US Commerce Department estimates show that the US economy shrank by a pace of 0.5 in the third quarter - the fastest pace since 2001. The Department also released figures that showed consumer spending has fallen at a 3.7% rate in the third quarter - the sharpest decline since 1980. The Bank of England Governor tells a Treasury committee that banks may require more capital injections and that "we should not shy away from that if that proves to be necessary". The World Bank has predicted that China’s GDP growth will slow to 7.5% in 2009 - China’s slowest rate since 1990. The Standard and Poor's/Case-Shiller Home Price Indices show that prices of US single-family homes dropped 17.4% in Sep from a year earlier. The OECD’s Economic Outlook report suggests that 21 of the 30 member economies will go through a protracted recession. The OECD’s Economic Outlook report suggests Australia will avoid a recession in the current global downturn and they predict growth of 1.7% in 2009 and 2.7% in 2010. The OECD also believe the Australia’s unemployment rate could reach 6% by 2010. The Australian Department of Education, Employment and Workplace Relations skilled vacancies index shows a drop of 4.8% in Nov - 29.1% lower than a year ago.

24 Nov	The IMF releases its regional economic outlook for Asia-Pacific and it suggests that "many countries have room to implement fiscal stimulus to address downside risks to growth". The price of crude oil rises by US$ 4.61 to US$54.54 on the New York Mercantile Exchange. The British Chancellor of the Exchequer announces a �20 billion (US$30.3 billion) economic stimulus package, which includes cuts in VAT. The US National Association of Realtors report that existing-home sales declined by 3.1% in Oct. The Dow experiences its biggest two-day point percentage gain in 21 years and its biggest 2-day point gain ever. The US Treasury Department announces that the mutual fund guarantees program will be extended from Dec 18 to Apr 30. The Australian Senate passes the National Rental Affordability Scheme Bill 2008, which is designed to expand "the mainstream private rental market". BIS Shrapnel has forecast that the Australian national number of dwelling starts will rise by 10% next year. Figures from SuperRatings show that for the 12 months to the end of Oct, the median balanced fund returns dropped 17.6%.

23 Nov	Venezuelan Energy Minister indicates that Venezuela will propose new cut in production of crude production of 1 million barrels per day at next OPEC meeting. A state television report mentions that China’s provincial governments have proposed more than 10 trillion yuan in infrastructure spending. The Canadian Prime Minister states that "recent private sector forecasts suggest the strong possibility of a technical recession at the end of this year and the beginning of next''. Reports suggest that Britain will announce a cut in VAT to 15%, down from 17.5%.

22 Nov	US President Bush speaks at the APEC meeting in Peru and urges against trade barriers and protectionism.

21 Nov	US President-elect, Barack Obama, selects Timothy Geithner to be the new Treasury Secretary - Geithner is currently the head of the Federal Reserve Bank of New York. Japan’s central bank makes unanimous decision to leave interest rates unchanged at 0.3%.

20 Nov	The Argentine Senate approves a bill to nationalize private pension funds. The US Congress announced that US auto manufacturers must submit viability plans before the congressional leaders make a decision on auto manufacturers loans. US Labor Department data shows that the number of Americans filing jobless claims is approaching a 16-year high. The price of crude oil fell below $US50 for the first time in almost 2 years.

19 Nov	US stocks fall to 5-year lows. The US Labor Department has revealed that the US consumer prices dropped 1% in Oct - the fastest rate since records were first published in 1947. The US Commerce Department has announced that construction starts on new US homes and housing building permits fell to record lows in Oct. Germany speculates that the EC is planning to announce a €130 billion ($US164.1 billion) package to stimulate the EU nations economies. Auto manufacturers from a number of different countries, including the US and Britain, called on their governments to help protect them. The Australian RBA governor states that Australia should not talk itself into "unnecessary economic weakness". Baltic Dry Index figures show that World freight prices for transporting dry materials have dropped to a low of 815 points - the lowest level since 1999. Analysis by Infometrics show that NZ housing sales dropped by 44% in the first half of 2008.

18 Nov	Australian Federal Government unveils $300 mil infrastructure spending package for local governments. OPEC cuts world oil demand forecast to 30.92 million barrels a day - 200,000 bpd less than last month’s forecast. Oil prices fall to $US54.39 - a 22-month low. UK inflation fell from a 16 year high of 5.2% in Sep to 4.5% in Oct. The Royal Institution of Chartered Surveyors reveals that rents for UK homes have fallen for the first time since 2003. US Treasury 2-year note yields fall to 5-year low. US home prices fell in 4 out of 5 cities in the third quarter, according to the US National Association of Realtors. US producer prices had a larger drop than forecasted, dropping to 2.8% in Oct. US industrial output rose in Oct by 1.3 % after a drop of 3.7% in Sep - Sep was the biggest fall in more than 62 years. US Treasury injects $US33.56 billion ($51.7 billion) into an additional 21 banks. The ABS reports that Australian retail sales rose by a seasonally adjusted 0.1% in Sep quarter. Japan goes into recession.

17 Nov	The Confederation of British Industry (CBI) states that it expects UK recession to be deeper and longer lasting than they previously predicted. US industrial output rose in Oct by 1.3 % after a drop of 3.7% in Sep - Sep was the biggest fall in more than 62 years. US Treasury injects $US33.56 billion ($51.7 billion) into an additional 21 banks. The ABS reports that Australian retail sales rose by a seasonally adjusted 0.1% in Sep quarter. Japan goes into recession.

14 Nov	The Eurozone officially goes into recession. Hong Kong goes into recession. G20 discussions begin in Washington. China capital spending shows signs of slowing.

13 Nov	The Australian Government releases proposed legislation for short selling which includes a plan to permanently ban "naked" short-selling. OECD cuts its economic output forecasts for the US, Japan and Euro zone. US workers claiming for jobless benefits hits a 25-year high. Germany goes into recession. NZ retail sales fall for the third consecutive quarter.

12 Nov	The $US700 billion bailout fund will focus on financial institutions with direct investments rather than buying toxic mortgage assets. The EC proposes central register and surveillance system in Europe for credit rating agencies. The Westpac-Melbourne consumer confidence index lifts by 3.5 points (4.3%) to 85.5 in Nov after an 11% drop in Oct. Figures released by the ABS show that total hourly rates of pay (excluding bonuses) rose 0.9%.

11 Nov	NSW Government hands down mini-budget and announces cuts in spending by more than $3billion. China’s inflation rate hits 17-month low of 4% in Oct, down from 4.6% in Sep.

10 Nov	The RBA announces that it expects Australia's growth to slow to 1.5% by the end of the year. China unveils a 4 trillion yuan ($586 billion) plan to sustain its economy.

7 Nov	A larger than expected fall in payrolls helps push US unemployment rate to 6.5%.

5 Nov	Australian new home approvals fall 7.2% in Sep.

4 Nov	The LIBOR for three-month loans falls to 2.71% from 4.82% on Oct 10. The US car industry saw 32% plunge in sales in Oct - the worst month since 1991.

3 Nov	South Korea announces 14 trillion won ($10.8 billion) plans to boost their economy in 2009.

1 Nov	Tokyo’s Nikkei Index lost 24% in Oct - the worst performance in 58-year history. Brazilian and Russian markets lost around a quarter of their value in Oct.

31 Oct	For the third month in a row, new home sales fall in Australia - down 1.8%. Japan announces a 5 trillion yen ($US51 billion) package of spending measures to support its economy. Germany also announces plans worth 25 billion euros ($US32 billion) to boost business.

29 Oct	US GDP contracted at a 0.3% pace from Jul to Sep - shrinking at fastest pace since 2001. China surprises with third rate cut in 2 months Fed Reserve also cuts US interest rate by half a percent.

28 Oct	US consumer confidence has plunged to record low in Oct - the lowest reading since the index began in 1967. Wall Street surges 10.88% on bargain hunting.

27 Oct	Japan's Nikkei average hits a 26-year-low, with a strong yen and tumbling bank shares weighing on the market. SuperRatings reports that average returns for a balanced superannuation recorded the worst annual result since the introduction of compulsory superannuation in 1992.

24 Oct	ASEAN nations create $US80b crisis fund.

22 Oct	Aust Treasurer Wayne Swan states that Aust Government will alter its $700bn guarantee on bank deposits on the back of increase in redemptions threatening cash trusts and mortgage funds.

21 Oct	ASIC extends its ban on covered short-selling on non-financial stock for a further 28 days with the ban on financial stocks to be continued until Jan.

20 Oct	China reports that annual GDP growth slowed to 9.0% from 10% in the second quarter - first time that China has seen single digit quarterly GPD growth since 2002.

18 Oct	The EC intends to make proposals to control risks in the $US60 trillion credit derivatives market.

16 Oct	Japan enacts an $18bn emergency spending plan to stimulate their economy.

14 Oct	The US government unveils a $250bn (�143bn) plan to purchase stakes in a wide variety of banks in an effort to restore confidence in the sector.

13 Oct	The UK Government announces plans to pump billions of taxpayers' pounds into three UK banks in one of the UK's biggest nationalisations. Kevin Rudd announces a $10.4 billion "economic security" stimulus plan for Australia.

12 Oct	The Australian PM announces that the Government will guarantee Australia's entire deposit base for three years and guarantee wholesale bank funding.

8 Oct	UK Government announces details of a rescue package for the banking system worth at least �50bn ($88bn). Europe announces a �550bn stabilization package. The Fed and five European central banks made a coordinated emergency 50bp rates cut in an attempt to stabilize the global financial markets. IMF’s biannual World Economic Outlook Report states that "The world economy is now entering a major downturn."

7 Oct	RBA surprises with a 1% rate cut which lowers cash rate to 6%.

3 Oct	The US House of Reps passes a $700bn government plan to rescue the US financial sector.

30 Sep	The Irish government says it will guarantee all deposits in the country's main banks for 2 years.

29 Sep	The US House of Reps rejects a $700bn rescue plan for the US financial system.

26 Sep	The Aust Government invests in triple-A rated mortgage-backed securities to boost competition.

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