MORNING BRIEFS

*lucky day everything AOKAY!
Recovery far off, but confidence emerges anyway
The economy's recovery remains distant, but consumers, economists and government officials are all showing signs of increased confidence. "We've had some improvement, but ... we're still nowhere near a meaningful recovery or even a slight recovery," said Paul Ashworth, a senior economist at Capital Economics. The Washington Post (6/2)

*let the stupidity and pilfering begin...
Council, mayor agree to raise New York City sales tax
The Bloomberg administration has reached an agreement with the New York City Council. The two sides agreed to close a $1 billion budget by raising the city sales tax by half a percentage point to 8.875%. Under the terms of the deal, Bloomberg is backing off proposals to tax plastic shopping bags. The New York Times (6/1)

Accounting quirk goes from helpful to painful for banks
When the market treats a bank as less creditworthy -- spreads on credit default swaps widen or cash bonds deteriorate -- accounting rules allow the bank to record unrealized, and often substantial, gains. CDS and bond spreads have narrowed recently as investors become more comfortable with the financial landscape. The development means some banks might face losses. The Wall Street Journal

*more PPT on the financials today you watch..
JPMorgan, AmEx plan to sell shares to repay TARP funds: JPMorgan Chase, which received $25 billion through the government's Troubled Asset Relief Program, is working to raise $5 billion by selling ordinary shares. Meanwhile, American Express is looking to sell $500 million in common stock as it aims to repay the $3.4 billion it received through TARP. The moves follow an announcement by the Federal Reserve that banks need to demonstrate their ability to tap public equity markets and issue debt without state backing. Financial Times (free registration) (6/2)

*keep your eyes on Canada
Commentary: Canada in good shape but not unscathed
Between Canada's deep-seated tradition of cautious lending and firm financial regulation, companies in the country have not needed bailouts, columnist David Wighton writes. But the nation is not going through the financial crisis untouched. Principally because of plummeting commodity prices last year, Canada's economy contracted a stunning 5.4% in this year's first quarter. The Times (London) (02 Jun.)