Germany cuts first-half public deficit to 0.6%

Germany's public deficit doubled in the first half of the year from the same period in 2009 despite strong growth but is still close to EU limits, official data showed on Tuesday.The biggest European economy recorded a public deficit of 42.8 billion euros (54 billion dollars) in the six-month period, up from 18.7 billion in the first half of 2009, the Destatis statistics office said in a statement.At constant prices, that represents 3.5 percent of gross domestic product (GDP), it added, above the European Union's Stability and Growth Pact limit of 3.0 percent.

The implosion in Spain continues, with the budget deficit heading in reverse, now revised up to 9.4% of GDP. Spain's original deficit target for 2012 was 4.4%, then revised to 5% then 5.3%. Yet another revision brought the target all the way up to 6.3%. So how is Spain doing? A few flashbacks will explain. On April 10 I optimistically wrote Inconsistencies in Spain's Budget Suggest Deficit will be 7% not 5.3%

Germany posted record figures for both imports and exports Wednesday, prompting analysts to predict Europe's top economy would avoid a recession as it continued to defy the eurozone crisis.The value of German exports hit 98.9 billion euros ($128.4 billion) in March and imports amounted to 81.5 billion euros, according to fresh data from federal statistics office Destatis."These were the highest monthly figures ever recorded for exports and imports (both previous all-time highs recorded in March 2011)," commented Destatis.

Spain is finally shedding some public workers, but the total is still substantially above the number employed at the peak of Spain's property bubble.

WASHINGTON — The number of Americans filing new claims for unemployment benefits dropped to its lowest level in nearly 5-1/2 years last week, signalling labor market resilience in the face of fiscal austerity. Initial claims for state unemployment benefits fell 4,000 to a seasonally adjusted 323,000, the lowest level since January 2008, the Labor Department said on Thursday. Claims for the prior week were revised to show 3,000 more applications received than previously reported.

TOKYO (AP) — Asian shares rose Wednesday as Japan's benchmark surged to its highest level since Sept. 2008 though wariness over corporate earnings pulled European indexes lower in early trading.

WASHINGTON — The number of Americans filing new claims for unemployment benefits unexpectedly fell to its lowest since the early days of the 2007-09 recession, a hopeful sign for the sluggish labor market. Initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 330,000, the lowest level since January 2008, the Labor Department said on Thursday. Claims have now fallen for two straight weeks, suggesting that if employers are concerned tax hikes enacted this year will affect consumer demand, this is not leading to more layoffs.