Thursday, August 5, 2010

20100805 0941 Global Economic News.

Thailand: Economy may expand as much as 8% in 2010, Korn says
Thailand’s economy may expand as much as eight percent this year, more than previously forecast, as exports and spending gather strength, Finance Minister Korn Chatikavanij said.“We are surprised by the rebound in exports and also the level in private investment and consumption as well,” he said. “Even with the political crisis, we can expect 7%. If things hum along the way they are, perhaps 8% will be achievable.” (Bloomberg)

Indonesia: Pledges ‘special attention’ on inflation, holds rate
Indonesia’s central bank pledged “special attention” to rising inflationary pressures, signaling less commitment to holding its benchmark interest rate at a record low. Bank Indonesia kept its reference rate at 6.5%, it said in a statement in Jakarta, matching all 22 economists’ forecasts in a Bloomberg News survey. The board pledged steps as needed to keep price gains within its target. (Bloomberg)

China: Said to tell banks to stress test for 60% home-price drop
China’s banking regulator told lenders last month to conduct a new round of stress tests to gauge the impact of residential property prices falling as much as 60% in the hardest-hit markets, a person with knowledge of the matter said. Banks were instructed to include worst-case scenarios of prices dropping 50% to 60% in cities where they have risen excessively, the person said, declining to be identified because the regulator’s requirement hasn’t been publicly announced. (Bloomberg)

EU: Retail sales unchanged as Germany, France show declines
European retail sales were unchanged in June as households cut spending in Germany and France. Sales in the 16-nation Euro area showed no increase from May, when they rose 0.4%, the European Union’s statistics office in Luxembourg said. From a year earlier, June retail sales gained 0.4% after rising 0.6% in May. (Bloomberg)

EU: Services, manufacturing growth accelerates
Growth in Europe’s services and manufacturing industries accelerated in July, suggesting the recovery will maintain its momentum. A composite index based on a survey of euro-area purchasing managers in both industries rose to 56.7 from 56 in June. A reading above 50 indicates expansion. (Bloomberg)

US: Service companies grew at faster pace
Service industries expanded in July at a faster pace than forecast, reflecting an increase in employment that eases the risk US economic growth will slacken in the second half of the year. The Institute for Supply Management’s index of non- manufacturing businesses, which covers about 90% of the economy, rose to 54.3 from 53.8 in June. Readings above 50 signal expansion. (Bloomberg)

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