Monday, March 29, 2010

20100329 1241 Global Economic News.

US consumer confidence was higher than anticipated in March as companies slowed the pace of job cuts and stocks advanced. The Reuters/University of Michigan final consumer sentiment index for this month held at 73.6. The preliminary reading for the measure, released March 12, was 72.5. Economists forecast the final gauge would fall to 73. (Bloomberg)

The US economy recorded growth of 5.6% in 4Q09, down from a previous estimate of 5.9%. It compares with growth of 2.2% in 3Q09. However, the figures for the full year’s GDP were unchanged, showing a 2.4% decline, the biggest 12-month fall since the 10.9% recorded in 1946. The downward revision in the quarterly figures, slightly worse than the 5.7% expected by economists, was driven by a decline in business investment and inventories. Consumer spending was also less buoyant than originally thought. (Times Online)

World Trade Organization (WTO) economists in Switzerland estimated global trade would grow 9.5% in 2010 (-12.2% by volume in 2009), coming off the worst decline in decades. Trade among developed countries would expand by 7.5% in 2010, while trade among developing countries is expected to grow 11.0%. With a nearly global recession receding, economists "see the light at the end of the tunnel," said WTO Director-General Pascal Lamy. "But we must avoid derailing economic revival through protectionism," Lamy added. (WTO)

Profits in China's major industrial enterprises more than doubled in the first two months this year compared with a year earlier, the National Bureau of Statistics (NBS) said. The combined profit of major industrial enterprises with annual business revenues exceeding RMB5m was RMB486.74bn from Jan-Feb 10, up 119.7% (-37.3% in Jan-Feb 09). (Xinhua)

China’s banking regulator ordered lenders to take more care when making real-estate loans, widening efforts to prevent property speculators from causing asset bubbles and bad debt. Banks should not lend to developers found by state agencies to have held land without building houses, the government said in a statement posted online. They should also stop approving new lines of credit to 78 government-controlled companies whose core business isn’t property development if they use collateral other than construction projects already in progress, the statement said. (BT)

Japan’s consumer prices fell for a 12th month in February, adding pressure on the central bank to eradicate deflation that is hampering the economic recovery. Prices excluding fresh food slid 1.2% yoy after dropping a 1.3% in each of the preceding two months. (Bloomberg)

Singapore’s visitor arrivals grew by 24.2% yoy to 857,000 in February (908,000 in Jan). The growth was the highest ever recorded, and this was also the third consecutive month of record visitor arrivals. The city-state's top five visitor-generating markets in February were Indonesia (144,000 visitors), followed by China (143,000 visitors), Malaysia (69,000 visitors), Australia (55,000 visitors) and United Kingdom (48,000 visitors). (Bernama)

Singapore’s industrial production increased for a third straight month as rising exports of electronics and pharmaceuticals spurred output, bolstering economic growth. Manufacturing gained 19.1% yoy in February (39.2% in Jan). The median forecast was for a 13.7% gain. (Bloomberg)

Vietnam’s trade deficit widened in March from February as imports climbed. The shortfall this month was US$1.35bn (-US$1.33bn in Feb). For the year to date, Vietnam posted a US$3.5bn trade gap, compared with a surplus a year earlier. (Bloomberg)

Greek Prime Minister George Papandreou, fresh from winning a European Union aid package last week, now has to prove he can keep his nation’s finances afloat. His government still has to raise as much as €15.5bn (US$21bn) by the end of May, almost as much debt as it sold in the first quarter, says Petros Christodoulou, head of the country’s debt agency. Failure to do so could spark a new round of the fiscal crisis and trigger the use of the aid plan crafted by EU leaders in Brussels on March 25. The EU and International Monetary Fund pledge to help Greece finance the region’s biggest budget deficit should it run out of options in capital markets helped lift the euro from a 10-month low against the dollar and drove stocks higher around the world. (Bloomberg)

Bank of Thailand Deputy Governor Bandid Nijathaworn said on Friday, “Political factors don’t have a significant impact on the financial markets. The movements are normal and reflect economic fundamentals. “The impact may be felt in tourism, consumption and confidence. Still, the level of impact depends on how quickly the situation can be resolved. “We will monitor how the political situation develops and assess it at our next meeting.” (Bloomberg)

Thai Prime Minister Abhisit Vejjajiva and leaders of anti-government protests said they would try again this evening at 7 pm, after failing to reach an agreement yesterday in nationally-televised talks on how to solve the country's political crisis. (Today Online)

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