China: Export rebound may lose steam on Europe crisis, yuan gain
China’s unexpected rebound in overseas shipments to a record last month may lose steam as the European debt crisis, a moderating US recovery and yuan appreciation curb demand for goods from the world’s largest exporter. Customs officials said Europe’s debt woes and the “sharp decline” in the value of the euro have started to affect China’s sales to the bloc. (Bloomberg)
China: Trade surplus widens in June, adding pressure on yuan
China’s trade surplus widened to the highest this year and exports climbed more than estimated to a record in June, adding pressure on the government to let the currency gain after the US said the yuan “remains undervalued”. The gap increased 140% to USD20bn from a year earlier. (Bloomberg)
China: Forex reserves increase at slowest pace in 11 years
China’s foreign exchange reserves, the world’s largest, rose at the slowest pace in 11 years in the second quarter as expectations for a yuan appreciation diminished and the European sovereign debt crisis saw capital move out of emerging markets. The nation’s holdings rose by USD7.2bn at the end of June from the end of March, the smallest increase since the second quarter of 2001. Reserves dropped 2% in May, the first monthly decline since February 2009. (Bloomberg)
US: Wholesale inventories rose 0.5% in May, sales fell
Inventories at US wholesalers rose in May for a fifth month as companies ensured they had enough goods on hand to keep pace with demand. (Bloomberg)
Japan: Consumer prices declined at slower pace in May
Japan’s consumer prices fell at a slower pace in May, a moderation that may be insufficient to ease government pressure on the central bank to fight deflation. Prices excluding fresh food slid 1.2% from a year earlier, easing from a 1.5% decline in April. (Bloomberg)
US: Economy in US expands 2.7%, less than forecast
The US economy grew at a 2.7% annual rate in the first quarter, reflecting a smaller gain in consumer spending and a bigger trade gap. The increase was smaller than a 3% estimate issued last month. (Bloomberg)
Global: G-20 agrees to cut deficits once recoveries cemented
Group of 20 leaders endorsed targets to cut deficits and agreed to pursue higher capital requirements for banks once their economic recoveries take root. Advanced economies will aim to at least halve deficits by 2013 and stabilize their debt-to-output ratios by 2016. (Bloomberg)
Global : IMF raised its forecast for global growth this year, reflecting a stronger-than-expected first half, while warning that financial- market turmoil has increased the risks to the recovery. The world economy will expand 4.6% in 2010, the biggest gain since 2007, compared with an April projection of 4.2%, the Washington-based fund said in revisions to its World Economic Outlook. Growth next year is projected to be 4.3%, unchanged from the April forecast. (Source: Bloomberg)
U.S : Consumer credit declined more than forecast in May. The USD 9.1b decrease followed a revised USD 14.9b slump in April that was initially estimated as a USD 1b increase, the Federal Reserve reported. (Source: Bloomberg)
U.S : Jobless claims declined last week to 454,000. Initial claims for benefits decreased by 21,000 in the week ended July 3. (Source: Bloomberg)
E.U : IMF says sovereign, banking risks threaten stability. The International Monetary Fund urged European Union policy makers to take further "decisive" steps to combat a sovereign-debt crisis that it said poses a threat to the world financial system. "Recent global stability gains are threatened by a confluence of sovereign and banking risks in the euro area that, without continued and concert attention, could spill over to other regions," the IMF said in an update released of its Global Financial Stability Report. (Source: Bloomberg)
U.K : BOE keeps stimulus as budget cuts threaten recovery. The Bank of England kept its bond-stimulus plan in place and left its benchmark interest rate at a record low to help prevent the economic recovery from stalling during the biggest budget squeeze since World War II. The Monetary Policy Committee, led by Governor Mervyn King, held the target for its asset-buying plan unchanged at GBP 200b (USD 303b). The bank also kept its key interest rate at 0.5%. (Source: Bloomberg)
Japan : Machine orders in May slump most since 2008, a sign that any rebound in business investment may be too weak to drive an economic recovery that is showing signs of losing momentum. Orders, an indicator of future capital spending, slid 9.1% MoM in May from April. (Source: Bloomberg)
China : Moderately loose' policy will stay as economic growth becomes better balanced between consumption, investment and exports. Money and loan growth was "reasonable" in the first six months and liquidity in the banking system "basically appropriate," the central bank said in a statement after its second-quarter monetary policy meeting. (Source: Bloomberg)
Australia : June jobs growth capped the best quarter in almost four years. The 45,900 increase last month exceeded all 22 forecasts in a Bloomberg News survey. (Source: Bloomberg)
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