Wednesday, July 14, 2010

20100714 1208 Global Economic News.

Philippines: Export growth quickens, boosting economy
Philippine exports rose at a faster pace in May as the global recovery spurred demand for electronics, sustaining the nation’s economic expansion and supporting President Benigno Aquino’s efforts to boost incomes. Shipments abroad increased 37.3% from a year earlier to USD4.24bn after climbing a revised 28.2% in April, the National Statistics Office said in Manila. (Bloomberg)

India: May increase rates, Singh’s advisers signal
The Reserve Bank of India may raise interest rates for a second time this month to slow inflation, Prime Minister Manmohan Singh’s top economic advisers signaled. “If inflation persists at double digit levels for several months together, some action by the Reserve Bank is required,” Chakravarthy Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said in New Delhi. (Bloomberg)

Japan: May hold policy stance on rebound at risk from Europe
The Bank of Japan may refrain from easing monetary policy tomorrow, choosing to preserve its arsenal in case economic weakness in Europe or a further advance in the yen threatens the nation’s export-led recovery. Governor Masaaki Shirakawa and his board will keep the main interest rate at 0.1% and forgo fresh liquidity injections, according to all 16 economists surveyed. Shirakawa said last week that the economy is “likely to stay on a recovery trend” and domestic demand is poised to rise. (Bloomberg)

UK: Inflation slows less than economists forecast
UK inflation slowed less than economists forecast in June as higher costs of goods from fuel to food kept the rate of price increases above the government’s 3% limit. Consumer prices rose 3.2% from a year earlier, compared with 3.4% in May, the Office for National Statistics said in London. Economists predicted 3.1%, according to the median of 27 forecasts in a Bloomberg News survey. (Bloomberg)
US: Trade deficit unexpectedly widened in May
The trade deficit in the US unexpectedly widened in May to the highest level in 18 months as a gain in imports outpaced an increase in shipments abroad. The gap expanded 4.8% to USD42.3bn as US companies imported more automobiles and consumer goods, Commerce Department figures showed in Washington. The deficit was projected to narrow to USD39 bn, according to the median forecast. (Bloomberg)

US: June budget deficit narrowed to USD68.4bn
The US government posted a smaller budget deficit in June compared with the same month last year as the economic recovery brought in more tax revenue. The excess of spending over receipts fell to USD68.4bn last month from USD94.3bn in June 2009, according to a Treasury Department report issued. It was the 21st consecutive shortfall. For the fiscal year to date, the budget deficit totaled USD1trn compared with USD1.42tn during the prior year to date. (Bloomberg)

U.S : Small-business confidence drops to three-month low in June as projections for profits, sales and economic conditions weakened. The National Federation of Independent Business's optimism index decreased to 89 from May's 92.2 reading that was the highest since September 2008. Seven of the index's 10 components dropped, led by a decline in the economic outlook six months from now. (Source: Bloomberg)

Germany : Investor sentiment drops in July as stress tests loom. The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, fell to a 15-month low of 21.2 from 28.7 in June. (Source: Bloomberg)

Portugal : Credit rating cut two notches to A1 at Moody's Investors Service because of a growing debt burden and weak economic growth prospects. "The Portuguese government's financial strength will continue to weaken over the medium term," Moody's said in a statement, adding that the outlook is stable. "The Portuguese economy's growth prospects are likely to remain relatively weak unless recent structural reforms bear fruit over the medium-to-longer term." (Source: Bloomberg)

Japan : The public pension fund sold more government bonds than it bought for the first time in nine years, underscoring concern that an aging population will make domestic investors less able to finance state borrowings. The fund sold a net JPY 443.2b (USD 5b) of Japanese government bonds in the year ended March 31. (Source: Bloomberg)

Australia : Business confidence little changed in June after falling the previous three months, as retail and wholesale companies reported improved sentiment. The confidence index dropped 1 point from May to 4, according to a National Australia Bank Ltd. survey of more than 500 companies between June 24 and June 30. (Source: Bloomberg)

Crude Oil : IEA forecasts world oil demand growth to slow in 2011 as advanced nations trail China and other developing countries. Worldwide daily crude oil consumption will climb 1.3 million barrels, or 1.6% YoY, to average 87.8 million a day, the Paris-based adviser said in a monthly report, leaving its estimate for this year unchanged at 86.5 million. (Source: Bloomberg)

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