Wednesday, March 3, 2010

20100303 0939 Global Economic News.

US sales of North American-made automobiles surged in February from a year ago, with cars up 34.3% and light trucks up 15.3%. Ford saw car sales up 54% from a year ago and light trucks up 38%. (Xinhua)

Narayana Kocherlakota, president of the Minneapolis Federal Reserve Bank, warned Tuesday of slow progress in US economic growth and the employment picture, caused by uncertainties surrounding legislative initiatives from Washington and ongoing problems in the banking sector tied to commercial real estate. ( Xinhua)

European inflation slowed to 0.9% yoy in February (1.0% in Jan) after rising unemployment and a weakening recovery prompted households to scale back spending. It was in line with the median estimate. (Bloomberg)

Greek Prime Minister George Papandreou said his government is discovering “new holes” in the budget on a daily basis as it prepares to announce as much as €4.8bn (US$6.5bn) in extra deficit cuts. Bowing to pressure from the European Union and investors to do more to tame the EU’s biggest budget gap, the steps to be unveiled today will include higher tobacco, alcohol and sales taxes and steeper reductions in public workers’ bonus payments. (Bloomberg)

Australia’s central bank resumed raising interest rates after a one-meeting pause, judging that faster-than-anticipated economic growth will allay concerns that European deficits may roil global confidence. Reserve Bank of Australia Governor Glenn Stevens increased the benchmark overnight cash rate target to 4.00% from 3.75%, as predicted by economists. Stevens said rates should be closer to “average,” which he last week signaled may be 75bps higher than this new level of 4.00%. (Bloomberg)

The Bank of Canada maintained its economy-stimulating policy interest rate at 0.25% and repeated pledges to keep it there through the first half of this year, while leaving subtle room to change its mind next April. (Xinhua)

South Korea’s consumer prices climbed 2.7% yoy in February (3.1% in Jan), while remaining within the central bank’s annual inflation target range (2.0-4.0%), as oil-product charges increased. It matched economists’ forecast. On a mom basis, consumer price advanced 0.4% in February (0.4% in Jan). (Bloomberg)

China will target a higher budget deficit this year of more than RMB1.0tr, a senior lawmaker said. Beijing would again permit provincial governments to issue their own bonds this year. The sum would be similar to the RMB200bn issued in 2009. (Financial Daily)

Singapore's Purchasing Managers' Index for manufacturing expanded to 51.9 in February (51.4 in Jan), marking the tenth straight monthly rise and pointing to a positive outlook for the manufacturing and global electronics industry. The increase is attributed to higher new orders, new export orders and high level in production output. (Channel News Asia)

Thailand’s inflation slowed to 3.7% yoy in February (4.1% in Jan) as the prices of some commodities eased. That marks the fifth month of gains. The median estimate was for a 3.4% increase. (Bloomberg)

India’s exports rose 11.5% yoy to US$14.3bn in January (9.3% in Dec 09) for a third straight month as economic recoveries in the US and Europe created demand for the nation’s cars and jewelry. Imports expanded by 35.5% yoy in January (27.2% in Dec 09). (Bloomberg)

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