THE US RECESSION

While most attention this week is on BHP's high-risk bid for Rio Tinto, market watchers will also be keeping a close eye on the fallout from a heap of bad news from the US, including a sharp fall in the ISM business activity index and signs of a services-led recession.

At the same time, doubts are emerging are whether the world economy has actually "decoupled" from the US.

See Business Spectator's full commentary on these stories below.


Sentiment says yes, evidence says maybe
Matthew Crowley
While sentiment in the US services sector has clearly taken a dramatic turn for the worst, economists want more evidence before declaring the US is in recession.

Recoupling in tight times
Edward Hadas
A global economy pulled forward by Brazil, Russia, India and China wasn't supposed to care about a US slowdown.

European resistance
Ralph Atkins, Financial Times
Eurozone 'decoupling' from US economy will be put to the test.

Uncle Sam falls off a cliff
Alan Kohler
Last night the Dow dropped more than it has for a year following shocking business activity data. Does anybody still doubt that the US is in recession? 11:19 AM

SCOREBOARD That's recession
Matthew Johnson
Take out the mathematical error and you'll find negative growth for the last quarter of 2007 and the first of 2008.

Shocked by services
Emily Barrett
Economists have been confounded by a sudden downturn in the US services sector.

Quantifying a crisis
Matthew Cowley
Standard & Poor's has released its figures on the extent of the bonds insurance crisis.