Major world
powers have agreed “on far-reaching proposals” on dealing with the crisis over
Iran’s nuclear program, Britain’s Foreign Secretary Margaret
Beckett
said today. “We are
now talking to the Iranians about our proposals.” The latest PEW Research
Centre survey shows that only 30% of Americans support bombing strategic military targets in
Iran. Despite the majority of
Americans believing that Iran wants nuclear technology for
weapons rather than power, the only action supported by the majority (64%) of
Americans is tough UN-imposed economic sanctions.

Wall Street rose
strongly overnight, but not it seems because of better international news.
The
FT reports: “‘It’s a lack of bad news more than anything
else,’ said Brian Williamson, equity trader at Boston Company Asset
Management.” However: “Volatility
made an unwelcome return to commodity markets yesterday as base metals endured
sharp falls and precious metals retreated after gold sank below support
levels.”

In Oz, the big
economic news concerns business fixed investment: “Investment
grows at China rate“. And The Oz also
reports that Treasury is modelling recession, no-one there nowadays being old
enough to have experienced one. (It’s not just the plod who look young to Henry
these days.) Here is a suggested simulation, Dr Ken – try a major fall in the
terms of trade and export volumes with the starting point a current account
deficit of, say, 6% of GDP on top of several years of strong “China speed”
investment in mining.

Even Treasury’s
model would be voting Labor in that scenario.

Read more at
Henry Thornton.