If our report of earlier in the week wasn’t bad enough about the British economy, more figures have come to light that suggest it’s almost in free fall, so rapid is the downturn. It’s a slump that is being repeated in more and more of Europe. The Irish economy is moving closer to recession, and now economists say that Denmark, Portugal, Italy and Spain are hovering on the brink as the European Central Bank prepares to lift rates tonight (our time) by 0.25% to 4.25%. That rate decision could very well change the dynamics of markets here, in Europe, the US and Asia. A rate of 4.25% from the ECB, compared to 2% from the US fed, has the potential to cause more damage to the US dollar, drive commodity prices even higher, especially oil, and further boost inflation. Commodity prices moved up sharply overnight with oil above $US144 a barrel, copper hitting a ...

By Jason Simpkins Associate Editor High oil prices, a steep drop in consumer confidence, declining home values and a weak dollar conspired to drive the Dow Jones Industrial Average to its lowest point in two years, and made for the benchmark index’s worst June since the Great Depression. After falling more than 300 points last Thursday and extending losses on Friday, the Dow lost 4.2% in the week ended closing at 11,346.51 - its lowest level since September 2006. All totaled, the Dow plunged 9.5% in June - its worst mid-year performance since the 18% drop in the 1930s. Story continues below… Sign up right now, and we’ll send you an important new report for free: “The Three Best Investments in Asia.”...

By Jason Simpkins Associate Editor Another fresh round of economic data was released yesterday (Tuesday) with the prognosis looking dire for the U.S. economy. Home prices as measured by the S&P/Case Shiller composite index of 20 metro areas fell 1.4% in April from March and slumped by a record 15.3% over the year. The group’s composite index of 10 metro areas dropped 1.6% in April, making for a record 16.3% annual drop. According to the S&P, 13 of the top 20 metro areas are still posting record annual declines with price losses in the double digits for half of the areas. Story continues below… Sign up right now, and we’ll send you an important new report for free: “The Three Best Investments in Asia.” ...

Dear Subscriber,

When Martin called me for a chat the other day, I had no idea he was going to record it, put it up on the Web, and give all of our readers a chance to hear it.

But I’m glad he did — for two reasons: First, because I’m headed for Shenzhen next week on a special new mission — to visit the company that I think will benefit more from the energy crisis than any company in Asia, and perhaps in the world. And second, because, with the latest correction, these stocks are now dirt cheap.

So in case you missed the …