Wednesday, September 1, 2010

20100901 1216 Local & Global Economic News.

Malaysia, Indonesia: May hold rates as risks cloud recovery
Malaysian and Indonesian policy makers will probably keep interest rates unchanged this week to support their economies as the global recovery slows. 15 out of 17 economists surveyed by Bloomberg News predict Bank Negara Malaysia will leave its benchmark overnight policy rate at 2.75% after three consecutive increases, while two expect another boost to 3%. Bank Indonesia will keep its reference rate at 6.5% on 3 Sept, according to 16 out of 17 economists in a separate survey. (Bloomberg)

Thailand: Manufacturing growth slows as demand cools
Thailand’s industrial production growth slowed in July as a faltering global recovery cooled demand for the country’s electronics, giving the central bank less room to keep raising interest rates. Manufacturing output rose 16.3% from a year earlier, after a revised 21.9% gain in June, the Bank of Thailand said. (Bloomberg) India: Economy expands 8.8%, fastest pace since 2007 India’s economy expanded at the fastest pace in 2 1/2 years, increasing pressure on the central bank to extend the most aggressive round of monetary-policy tightening in Asia. Gross domestic product rose 8.8% in the three months through June from a year earlier, after an 8.6% increase in the previous quarter, the Central Statistical Organisation said in a statement in New Delhi. (Bloomberg)

Japan: Kan’s stimulus plan may fail to offset impact of yen
Japanese Prime Minister Naoto Kan’s economic stimulus plan may fail to support the nation’s economic expansion as the yen’s surge to a 15-year high forces exporters to move production abroad. Stimulus measures should be coupled with effective steps to weaken the yen, said Katsuichi Shimizu, a managing director at Canon Inc., the world’s biggest camera maker. The government should also heed calls from the Keidanren, Japan’s biggest business lobby, to stimulate investment by cutting corporate taxes, said Naoki Iizuka, a senior economist at Mizuho Securities Co. in Tokyo. (Bloomberg)

Australian: Economy poised to strengthen as trade, retail surge
Australia’s current-account deficit narrowed to the least since 2002, and retail sales and building approvals rebounded, signaling the economy is strengthening even as recoveries in Japan and the US show signs of faltering. The second-quarter shortfall on goods, services and investment moved to AUD5.64bn (USD5.05bn) from AUD16.5bn in the first quarter, the Bureau of Statistics said. (Bloomberg)

EU: Inflation slows, jobless holds at 12-year high
European inflation slowed this month and unemployment held at the highest in almost 12 years in July as companies continued to cut costs to help shore up earnings. Euro-area consumer prices rose 1.6% from a year earlier after increasing 1.7% in July, the European Union statistics office in Luxembourg said. The jobless rate held at 10% for a fifth month which is the highest since August 1998, according to a separate report. (Bloomberg)

UK: Consumer confidence unexpectedly rises on growth
UK consumer confidence unexpectedly rose in August for the first time in six months in a sign that rebounding economic growth is cheering shoppers, a report by GfK NOP Ltd. showed. The index of sentiment rose 4 points to minus 18, the research group said in an e-mailed statement in London. Economists predicted a drop to minus 24, according to the median of 16 forecasts in a Bloomberg News survey. (Bloomberg)

US: Consumer confidence climbs more than forecast
US consumer confidence climbed more than forecast in August as Americans turned less pessimistic about the outlook for jobs, easing concern households will retrench. The Conference Board’s confidence index rose to 53.5 from a five-month low of 51 in July, according a report from the New York-based research group. Other reports showed business activity slowed in August and home prices held up in the three months to June. (Bloomberg)

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