US - Housing starts unexpectedly fell in April to 523,000 pace

Housings starts in the US unexpectedly fell in April as home builders continued to struggle almost two years into an economic recovery. Work began on 523,000 houses at an annual pace, down 11% from the prior month and less than the 569,000 median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed in Washington. Building permits, a sign of future construction, also decreased. Falling home values and the prospect of more foreclosures entering the market mean home construction will be slow to gain traction. Unemployment at 9% and stagnant wages indicate any recovery in housing may take years to unfold. (Bloomberg)


UK - Inflation quickens to 4.5%, forcing letter from King

UK inflation accelerated more than economists forecast in April to the fastest since October 2008, forcing Bank of England Governor Mervyn King to explain publicly why officials haven ' t raised interest rates yet. Consumer prices rose 4.5% in April after a 4% increase in March, data showed. The median forecast of 32 economists in a Bloomberg News survey was 4.1%. Core inflation quickened to the fastest in at least 14 years. King said in a letter to Chancellor of the Exchequer George Osborne that the surge is being driven by higher sales tax and increases in energy and import prices. (Bloomberg)


US - April industrial production unexpectedly stalls on autos

Industrial production in the US unexpectedly stalled in April, reflecting a drop in automobile output after supplies of parts were disrupted by the Japanese earthquake and tsunami. Output at factories, mines and utilities was unchanged after a 0.7% gain in March, figures from the Federal Reserve showed. Manufacturing fell 0.4%, while it rose 0.2% excluding automobiles. Economists had forecast a 0.4% gain in industrial production, according to the median estimate in a Bloomberg News survey. Production of automobiles and parts dropped 8.9% in April, a decline that may be temporary as Japanese manufacturers recover from the March disaster. (Bloomberg)


EU - Finance ministers approve EUR78bn Portugal bailout

European Union finance ministers cleared the way for Portugal to receive EUR78bn (USD111bn) in aid, making it the third euro - area country to fall back on official loans. The endorsement came at a meeting of EU finance ministers in Brussels, European Commission economics spokesman Amadeu Altafaj said. (Bloomberg)