Friday, October 1, 2010

20101001 1057 Global Economics News.

Japan: Factory production unexpectedly fell in August
Japan’s industrial production unexpectedly fell in August, adding to concerns the nation’s export-led recovery is slowing. Factory output decreased 0.3% from July, the third monthly decline, the Trade Ministry said in Tokyo. The median estimate of 26 economists surveyed by Bloomberg News was for a 1.1% gain. (Bloomberg)

Taiwan: Raises key rate, seeks to prevent property speculation
Taiwan increased its benchmark interest rate for the second time this year and said it will try to prevent realestate speculation after a jump in home prices fueled concern the economic recovery may stoke a property bubble. Central bank Governor Perng Fai-nan and his board raised the rate by 0.125 percentage point to 1.5%. (Bloomberg)

China: US Yuan legislation will hurt world economic growth
China said a measure passed by the US House of Representatives aimed at pushing up the value of the yuan will hurt the global economy if it becomes law. The House of Representatives voted for a measure that would let domestic companies petition for duties on imports from China to compensate for the effect of a weak yuan. China said the legislation would do nothing to cut the US trade deficit and only risk harming growth. (Bloomberg)

EU: Ireland puts EUR34bn price on Anglo Irish
Ireland’s central bank has put a EUR34bn price on bailing out stricken Anglo Irish Bank under a worst-case scenario and said Allied Irish Banks needs to raise an additional EUR3bn by end of the year. Ireland has already injected nearly EUR23bn into Anglo Irish Bank and insisted the Anglo bill which was expected to propel government debt to over 100% of GDP, would be manageable because it would be spread out over at least a decade. (StarBiz)

EU: September inflation quickens on energy costs
European inflation accelerated to the fastest in almost two years in September, led by higher energy costs. Euro-area consumer prices rose 1.8% from a year earlier after increasing 1.6% in August, the European Union statistics office in Luxembourg said. That’s the fastest pace since November 2008 and in line with the median forecast of 33 economists surveyed by Bloomberg News. (Bloomberg)

US: Business activity picks up, claims fall
Business activity in the US unexpectedly accelerated and fewer workers filed claims for jobless benefits, easing concern the world’s largest economy is retrenching further. The Institute for Supply Management-Chicago Inc. said its business barometer climbed to 60.4 in September. Readings greater than 50 for the ISM-Chicago index signal expansion. The median forecast of 57 economists surveyed by Bloomberg News projected the gauge would fall to 55.5. The number of applicants for unemployment insurance payments fell more than projected last week, another report showed. (Bloomberg)

US: Economy expands at a slow 1.7% in Q2
The US economy grew at a 1.7% annual rate in the 2Q, marking the start of a slowdown in growth that has concerned the Federal Reserve. The revised increase in gross domestic product was more than the median forecast of economists surveyed by Bloomberg News and compares with a 1.6% estimate issued last month, figures from the Commerce Department showed. The world’s largest economy grew 3.7% in the 1Q. (StarBiz)    

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