Principal news stories from the Irish Independent, Irish Times, Irish Examiner, Financial Times and New York Times.

Japan today reported a rise in industrial production by 5.9% in May -  - matching a gain in April that was the biggest jump since March 1953, when production rose 7.9%. Meanwhile, car production fell for the eighth straight month in May, tumbling 41.4% from a year earlier and the government reported that retail sales fell for a ninth straight month.

US Economy: Richard Berner, a managing director, co-head of Global Economics and chief US Economist at the investment bank Morgan Stanley (MS) said last week that investors have taken cheer from less-bad US economic news over the past few months, but the recent stalling in both equity and credit markets suggests that more positive data are needed to extend the rallies that began in March. He says in the immediate short run, market participants may get their wish: Relative to expectations, MS says there are some near-term upside risks to US economic growth.  They are concentrated in severely depressed industries such as housing and motor vehicles, as financial conditions have become less restrictive and as inventory liquidation and job loss become less intense. 

Taoiseach Brian Cowen on Sunday announced the appointment of an innovation taskforce to advise the Government on Irish science strategy and on steps to realise the much talked about “smart economy.”  It seems at first glance to be designed to rubber-stamp existing public policy - - with the group dominated by insiders.

Innovation Ireland: The State agency Science Foundation Ireland (SFI), was established in 2000 to support “globally competitive scientific research.” It invests in academic-led scientific research in the strategic areas of Information and Communications Technology (ICT), Biotechnology and more recently, Sustainable Energy and Energy-Efficient Technologies and claims 8 spinout companies from its funded research, since 2002. State agency Enterprise Ireland (EI), which is responsible for support of indigenous firms and has the overall remit for assisting the commercialisation of publicly funded research, says in the last three years, 25 spinout companies have emerged from publicly-funded research in Ireland. However, this number jumps to over 100 in the 3-5 year period.

KB Home’s loss narrowed on smaller charges as the company’s orders again outpaced closings.

Emaar, the Middle East’s largest developer, is in talks to merge with three state-controlled property firms because of a sharp downturn in the emirate’s property market.

The CSO reported today that its bi-annual comparison of prices in Dublin with those outside the capital, that in May 2009,average prices were compared for four selected services, all of which showed significantly higher average prices in Dublin. These services include cinema entrance (11.4% higher in Dublin), ladies’ wash, cut & blow-dry (23.0% higher in Dublin), gents’ dry haircut (18.8% higher in Dublin) and gents’ wash, cut & blow-dry (47.7% higher in Dublin). Separately, the CSO reported Q1 2009 planning permissions were down 23.7%.

The two Irish ministers for finance who presided over the second period of monumental economic mismanagement, in the history of the Irish State in effect, today told the tens of thousands of victims of their recklessness, to go to hell. Taoiseach Brian Cowen rejected suggestions that he should apologise for his handling of the economy when he was minister for finance, while his predecessor Charlie McCreevy, now European commissioner for the internal market, said the economy was light years ahead of the“dark 70s and 80s.”

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