Friday, October 22, 2010

20101022 0933 Global Economics News.

China: 9.6% growth adds weight to calls for yuan gains
China’s economy grew 9.6% in the third quarter and inflation accelerated to the fastest pace in almost two years, adding weight to calls for the engine of the global recovery to let its currency appreciate more rapidly. Consumer prices jumped 3.6% in September from a year earlier, the statistics bureau said in Beijing. (Bloomberg)

China: PBOC rate increases likely in 2011, survey shows
China’s central bank will likely hold off from adding to this week’s interest-rate increase until 2011, when it will raise borrowing costs at least twice to tame inflation, according to economists surveyed by Bloomberg. The People’s Bank of China will leave the benchmark one-year lending rate at 5.56% through December. (Bloomberg)

Asia: Leads global recovery, raising inflation concern, IMF says
Asia’s world-leading economies will keep drawing capital because interest rates in the US and other advanced nations will be low for a prolonged period, the International Monetary Fund (IMF) said, urging officials in the region to withdraw stimulus to contain inflation. “The main short-term policy challenge for Asian policy makers is to manage the exit from policy stimulus now that the recovery is well under way.” (Bloomberg)

UK: Retail sales unexpectedly drop, mortgage approvals fall
UK retail sales unexpectedly dropped in September for a second month and mortgage approvals fell to the lowest in 1 1/2 years as consumers braced for the deepest budget squeeze since World War II. Sales fell 0.2% from August, when they declined 0.7%, the Office for National Statistics said in London. Mortgages approved by the six biggest banks dropped to 44,000 from 45,000 in August, the Bank of England said in a separate report. (Bloomberg)

US: Seeks G-20 cooperation on currencies, pushes China on yuan
Group of 20 policy makers will try to resolve differences over exchange-rate policies this weekend as US officials continue to press China to let the yuan appreciate faster. The US is pushing for the G-20 to agree on a statement of cooperation on exchange-rate issues, a US official said. The US has said it wants currencies to respond to market forces and economic fundamentals, rather than government intervention. (Bloomberg)

US: Leading index rises, signaling growth
The gauge of the US economy’s prospects rose in September for a third month, signaling the recovery will extend into 2011. The New York-based Conference Board’s index of leading economic indicators climbed 0.3%, matching the median forecast of 57 economists surveyed by Bloomberg News. The number of claims for jobless benefits last week was consistent with little progress in the labor market, another report showed. (Bloomberg)

U.S: Philadelphia-area manufacturing expanded in October to 1 from minus 0.7 a month earlier. Readings greater than zero suggest expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware. (Source: Bloomberg)

U.S: Initial jobless claims fell 23,000 to 452,000 in the week ended Oct. 15. The total number of people receiving unemployment insurance fell, while those getting extended payments rose. (Source: Bloomberg)

E.U: Services and manufacturing industries expanded at the weakest pace in a year in October . A composite index based on a survey of euro-area purchasing managers in both industries fell to 53.4 from 54.1 in September, London-based Markit Economics said. A reading above 50 indicates expansion. (Source: Bloomberg)

E.U: Consumer confidence remained unchanged in October . An index of consumer sentiment in the 16-nation euro area held at minus 11, the same as in September. (Source: Bloomberg)

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