Economics Blog

Summer is here, so markets are definitely quieter now, with traders and sales people going on holidays…it’s movies and sports that are taking centre stage in everyone’s lives. This week, apart from oil prices breaching $142/bbl (rising oil prices are in the headlines every week, if not every day…but they are surprising people less by the day), the main events have got to be Wimbledon and Euro 2008.

Starting with Wimbledon, CNBC, for two consecutive days, in their desperate attempts to remain a financial news channel and yet report some sports stories, commented on the rising prices of strawberries and cream outside centre court…hint hint…inflation in the UK is rising! But I’d recommend switching to other channels if you want to find out results of matches going on at the moment…the Murray-Haas match was quite a thriller; but no doubt the biggest upset so far was third seed Djokovic’s loss against Marat Safin. Don’t get me wrong…Safin is a good player, but only on his day. And on this day, while Safin no doubt played well, it was more that Djokovic played horrendously that resulted in his exit. He started the match with a doubt-fault, and ended it one as well! Overall, my money is still on a Nadal-Federer final, as both are looking very good indeed.

Since today is the traditional rest day at the championship, the talk of the town is no doubt Euro 2008 finals. Germany are probably going in as the favourites, but with Ballack pulling a calf muscle and being doubtful for the final, the use of the word ‘probably’ is probably justified! Either way, doubt anyone will be furious if Spain were to go ahead and win, since they have really, never won anything ever. Then again, Germany have not won anything in a very long time…At the moment, I’d say it’s a pretty 50-50 chance for either team really!

We all know how much world leaders currently fear that the doom days are here, and that they will all be overthrown from their chairs if they can’t put an end to what they call an imminent ‘global recession’, thanks to a slowdown in the US coupled with rising commodity prices. Well, Friday’s jobless numbers in the US only intensified concerns that the economy is surely moving into a recession, and pulled down US stocks with it.

Now, I know that markets are closed over the weekend, but interestingly, another sign of a global slowdown has emerged over the last day and a half. This weekend is the Canadian Grand Prix, for all you F1-lovers, and for all of you who despise Formula-1, it is the still the weekend of the Canadian Grand Prix. And more than who’s on Pole position (first one to start the race), and who’s not, what’s grabbed the headlines this weekend is the fact that the Gilles Villeneuve circuit in Montreal is breaking apart, with track officials set to resurface the Casino hairpin prior to the race! The track has never been the best in the world, but to break apart completely is quite an achievement! World champion Kimi Raikkonen is complaining about it already, as is his team, Ferrari. Now, it remains to be seem whether this is a case of sour grapes, given that Hamilton (who races for competitors McLaren Mercedes) defeated them to pole position, or whether the track is really disintegrating! I know Formula-1 tracks are no GDP indicators, but the lack of money in every government’s pocket may well be evident from motor sport this weekend!