Tuesday, September 7, 2010

20100907 1012 Local & Global Economic News.

China: Property bonds rebounded from their worst first half in two years as a record USD6.8b in offshore debt sales spurs confidence the borrowers have the resources to weather a slowing economy. All but one of the eight dollar bonds sold between January and June have recovered at least 75% of their losses, according to prices from BNP Paribas SA, ING Groep NV, Nomura Holdings Inc. and Royal Bank of Scotland Group Plc. (Source: Bloomberg)

Australia: Construction contracted for third month in August for a third straight month, a sign the central bank's six interest rate increases between October and May are eroding demand for new dwellings. The index was little changed at 43.2 points from 43.3 in July, according to a survey by the Australian Industry Group and Housing Industry Association released in Sydney. A reading below 50 shows the industry is contracting. (Source: Bloomberg) 

Malaysia: Ringgit climbs to 13-year high
Malaysia's Ringgit climbed to the strongest level in 13 years as better-than-expected growth in US employment brightened the outlook for exports to the world's biggest economy. The currency strengthened for a fourth day and benchmark stock indexes rose across Asia after a US government report showed private payrolls increased 67,000 in August, more than the 40,000 forecast in a survey of economists. Malaysia's trade ministry last week reported a 13.5% gain in July exports, an eighth straight advance. (BT)

NZ: Economy facing hit from major earthquake impact
New Zealand's prime minister warned that the country's economic recovery will be hurt by the weekend's powerful 7.1-magnitude earthquake that smashed buildings and wrecked roads and rail lines in the city of Christchurch. "There will be considerable disruption to the (regional) and national economy in the short term," but activity should pick up as reconstruction gains momentum, Prime Minister John Key said. The country's economy has now recorded two quarters of minor growth after struggling to escape 18 months of recession. (StarBiz)

EU: To defend its clout at IMF as US seeks overhaul
European finance ministers this week will try to protect their clout at the International Monetary Fund after the US unexpectedly forced a debate on which countries sit on the institution’s board of directors. With the meeting in Brussels, European officials are under pressure to reduce the number of their seats to give emerging economies more voice. They’re rushing to respond to a US decision last month to block a proposal to maintain the IMF board in its current 24-seat form. (Bloomberg)

UK: Manufacturing expands at record rate, EEF says
UK factory production grew at a record pace in the third quarter on surging export demand, the Engineering Employers Federation said. The number of manufacturers saying sales rose in the three months through September exceeded those reporting declines by 33%, compared with 30% in the second quarter, the EEF said in a quarterly survey released in London. That’s the highest since the report began in 1995. A gauge of exports also rose to a record high. (Bloomberg)

US: Obama proposes USD50bn plan to fix roads, railways, runways President Barack Obama proposed spending at least USD50bn to rehabilitate the nation’s transportation infrastructure to help spur an economy that’s lost jobs for three straight months. At a Labor Day rally in Milwaukee two months before midterm congressional elections, Obama called for a six-year program to fix roads, railways and runways, and to modernize the air- traffic control system. The funds would be included in a transportation authorization bill that’s stalled in Congress. (Bloomberg)

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