Top Stories
Spain tries to promote calm as Moody's downgrades credit ratings for sixteen Spanish banks. (1) Ahead of the G-8 summit, Germany's finance minister says that there will likely be another two years of financial turmoil. (2) Stocks jump ahead of the much anticipated Facebook IPO. (3)
Economic Releases & Statistics
The US Consumer Price Index (CPI) was reported as unchanged for April, in line with economist forecasts. Core CPI rose 0.2 percent. (4) Retail sales were up 0.1 percent last month, also in line with expectations. This follows a 0.7 percent rise in March. (5) Housing starts were up 2.6 percent in April over March, a possible sign of recovery. The seasonally adjusted rate stood at 717,000 unites versus economists' forecasts for a rate of 685,000. (6)
Stocks & Earnings
Gap Inc. reported flat earnings in the first quarter but raised its profit outlook, noting improved North American sales. (7) Intuit Inc.'s earnings were up 6.7 percent on growth for the tax season and strong small business product sales. (8) Walmart reported better than anticipated earnings with 2.6 percent growth year-on-year. Increases were noted in traffic and "average ticket." (9)
Global Currencies
The Euro headed for a third straight week of losses as traders look for Greece to exit the euro. Concerns over Spain also weighed on the market ahead of the G8 meeting. (10) The Reserve Bank of India has purchased over $2 billion worth of notes in the latest round of security auctions from the finance ministry. (11)
Oil & Energies
Supplies of crude oil were up 2.1 million barrels in the weekly Energy Department report. This compares to analyst forecasts for a 1.5 million barrel gain. Gasoline supplies were 1.4 percent lower, dropping 2.8 million barrels versus forecasts for a 480,000 barrel drop. Distillates were down 1 million barrels compared to forecasts for a 120,000 barrel gain. (12) India's imports of Iranian oil have dipped while shipments from Iraq, Saudi Arabia, and Kuwait have climbed. These statistics come ahead of EU and US sanctions on Iran. (13) A drop in US oil prices is being blamed on increased production and higher imports from Canada. On May 11, supplies at Cushing, OK reached a record of 45.1 million barrels. (14)
Grains & Field Crops
Dry weather in Australia, Russia, and the US has helped wheat prices gain on concerns that yields may fall. (15) Hot and dry weather also boosted corn prices, which have moved higher on news of accelerating purchases from China. (16) Prospects for a record wheat harvest in India have prompted speculation that the government may move to sell state supplies of the grain to Iran. (17) The Food and Agriculture Organization is reporting that global rice production should be up 2 percent on increases in China, India, Thailand, and other Asian growers. (18) Threat of continued economic weakness in the EU and US brought cotton futures prices to a 2 1/4 year low. (19)
Precious Metals
The World Gold Council is predicting that China will, "overtake India as the world's leading gold consumer," as demand rises 10 percent year on year and more than 255 metric tons in the first quarter. (20) India is expecting growth in platinum jewelry demand, and industry professionals see a "leap in imports" as the precious metal sits at a discount to gold.(21)
Other Commodities
Cocoa butter demand has slipped as traders remain uncertain about the fate of euro zone chocolate consumption. (22) Rising demand has left Vietnam farmer stockpiles of robusta coffee "thinner" and helped prices hit 8-month high. (23) Terre Forte is forecasting that Brazil's coffee crop will be nearly 54 million bags versus Conab's forecast for closer to 50 million. (24)
Next Week: 
1. http://www.cnn.com/2012/05/18/world/europe/money-spain-banks/?hpt=wo_c2
2. http://www.businessweek.com/news/2012-05-18/g-8-meets-as-schaeuble-says-markets-face-two-years-of-turmoil
3. http://www.foxbusiness.com/markets/2012/05/18/stock-futures-jump-facebook-ipo-on-tap/
4. http://www.businessweek.com/news/2012-05-15/u-dot-s-dot-consumer-price-index-unchanged-core-rate-climbs-0-dot-2-percent
5. http://www.bloomberg.com/news/2012-05-15/retail-sales-in-u-s-cool-on-early-easter-and-seasonable-weather.html
6. http://online.wsj.com/article/SB10001424052702303360504577407863169808408.html?mod=googlenews_wsj
7. http://online.wsj.com/article/SB10001424052702303448404577410522894741662.html
8. http://www.marketwatch.com/story/intuit-earnings-rise-on-stronger-tax-business-2012-05-17
9. http://www.cnbc.com/id/47463402
10. http://www.reuters.com/article/2012/05/18/markets-forex-idUSL5E8GIA2K20120518
11. http://www.bloomberg.com/news/2012-05-18/india-s-bonds-complete-third-weekly-advance-on-rbi-s-purchases.html
12. http://www.google.com/hostednews/ap/article/ALeqM5jRe4rxp3RXsT7OzRfJoUEUxhnHKA?docId=3d0d2f93c8304a6bb3d8f384c696067b
13. http://online.wsj.com/article/SB10001424052702303448404577407843978018060.html?mod=googlenews_wsj
14. http://www.latimes.com/business/money/la-fi-mo-oil-glut-20120517,0,3326267.story
15. http://www.businessweek.com/news/2012-05-17/wheat-set-for-longest-winning-streak-since-january-on-dryness
16. http://www.bloomberg.com/news/2012-05-17/corn-traders-most-bullish-since-march-on-u-s-heat-commodities.html
17. http://www.businessweek.com/news/2012-05-18/india-may-export-wheat-to-iran-as-state-inventories-swell
18. http://learningenglish.voanews.com/content/increase-rice-production-asia-africa/666440.html
19. http://www.reuters.com/article/2012/05/17/markets-cotton-idUSL1E8GG25P20120517
20. http://www.thestreet.com/story/11542320/1/dollar-wary-china-soon-to-be-worlds-top-gold-buyer.html
21. http://www.reuters.com/article/2012/05/16/platinum-india-idUSL4E8GG7BS20120516
22. http://af.reuters.com/article/commoditiesNews/idAFEUCOC120120518
23. http://www.bloomberg.com/news/2012-05-18/robusta-coffee-gains-to-eight-month-high-on-vietnam-sales.html
24. http://www.businessweek.com/news/2012-05-18/terra-forte-sees-brazil-s-coffee-crop-at-53-dot-9-million-bags
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