Global Update: Japan, Italy, Greece, Spain, and Yemen Crisis & Turmoil

A lot is going on around the world, not much of it very rosy for financial markets, so we thought we'd collect some of the top headlines of the last couple days here for your convenience:

• Japanese Economy Collapses: Q1 GDP Drops At Double Consensus Rate, Epic Nominal Plunge Of -5.2%
• What happens when Greece defaults - The New Drachma will devalue by some 30-70 per cent (probably around 50 per cent, though perhaps more), effectively defaulting 0n 50 per cent or more of all Greek euro-denominated debts.
• S&P: Italy ratings outlook negative on debt fears - In a statement, S&P said Italy's current growth prospects were "weak" and that there was a faltering commitment on the part of the government to undertake necessary reforms to revive the econoomy.
• Spain's Socialists suffer worst defeat in 30 years - Spain's ruling Socialists suffered thumping losses in local elections Sunday as protesters vented outrage over the highest jobless rate in the industrialized world... The big winner of the night was the conservative opposition leader Mariano Rajoy's Popular Party, widely forecast to romp into government next year for the first time in eight years.
• Yemen crisis escalates as deal falters - The crisis in Yemen today escalated as Yemeni loyalist forces fought running gun battles with opponents of President Ali Abduallah Saleh in Sana'a - a day after he reneged on a Gulf-brokered deal in which he would step down.