MBIA, the world's biggest bond insurer, made a loss of $2.4billion in the last quarter and had to accept write-downs of $3.6billion. Meanwhile in France the Crédit Agricole bank is facing mounting losses at its investment-banking unit, Calyon. Freddie Mac, a state-backed housing finance company, has suffered its third consecutive quarterly loss.
Nissan, the Japanese carmaker has calculated that its profits up to March 31st 2009 will contract by about 30%. The reasons it gave for this were higher material costs, a strong yen and… "the slowdown in America". Carmakers across Asia report a similar situation.
In Britain house prices are expected to fall by 5 percent this year, while many analysts believe they could fall by twice that figure. According to the Royal Institution of Chartered Surveyors, last month (April) house prices experienced the most widespread decline for 30 years. Rising inflation is reducing the scope for further cuts in interest rates, thus keeping up the cost of mortgage repayments.
In the USA the housing market is experiencing the biggest price falls on record. Now many homeowners in the USA are left paying out on bigger mortgages than their homes are worth. The HSBC bank reassures us that US house prices will continue to fall at least into next year.
Meanwhile, the price of oil is hurtling towards the $130 a barrel mark, pushing the International Energy Agency to cut its forecast for the growth in demand for oil this year.
Recession? What recession?
