Wednesday, November 3, 2010

20101103 1052 Local & Global Economics News.

Malaysia: Malaysia-EU FTA set to be concluded by 2012
The Malaysia-European Free Trade Agreement (FTA) is set to be concluded by 2012, said EU Ambassador and head of delegation to Malaysia, Vincent Piket. He said the first round of the FTA meeting was scheduled for 6-9 Dec in Brussels, Belgium, while at the same time the Partnership and Cooperation Agreement (PCA) talks will be held at Putrajaya. (StarBiz)

India: Central bank raises rates for sixth time this year
India’s central bank raised interest rates for a sixth time this year in Asia’s fastest round of increases to cool inflation and said further monetary policy tightening in the “immediate future is relatively low.” The Reserve Bank of India boosted the repurchase rate by a quarter-point to 6.25% and the reverse repurchase rate by a similar margin to 5.25% with immediate effect, according to a statement in Mumbai. Fifteen of 23 economists had predicted the decision in a Bloomberg News survey. (Bloomberg)

China: Third-quarter yuan settlement almost triples
Trade settlement in the Chinese yuan in the third quarter almost tripled from the previous period as overseas demand for conducting transactions in the currency surged. Total trade settled using the Chinese currency was RMB126.5bn (USD18.9bn) in the July-to-September period, the People’s Bank of China said in a statement. That compares with RMB48.7bn in the previous three months, according to Bloomberg data. (Bloomberg)

Australia: Raises interest rate to 4.75%, ending 5-month pause
The Reserve Bank of Australia unexpectedly increased its benchmark interest rate on concern stronger growth will cause inflation to accelerate, driving the nation’s currency to parity with the US dollar. Governor Glenn Stevens raised the overnight cash rate target a quarter point to 4.75% in Sydney, saying the economy has “relatively modest amounts of spare capacity” and citing risk of “inflation rising again over the medium term.” (Bloomberg)

EU: Output growth quickens more than estimated
Europe’s manufacturing industries expanded at a faster pace in October than initially estimated as export demand strengthened. A gauge of manufacturing in the 16-nation euro region rose to 54.6 from 53.7 in the previous month, London-based Markit Economics said. It had previously reported an increase to 54.1 in October. A reading above 50 indicates expansion. (Bloomberg)

US: Manufacturing expands to five-month high
Manufacturing in the United States expanded in October at the fastest pace in five months as measures of production and orders placed with factories increased. The Institute for Supply Management’s (ISM) factory index increased to 56.9 from 54.4, the group said. (StarBiz)

US: Homeownership at decade low as foreclosures rise
The US homeownership rate was unchanged at a 10-year low in the third quarter as banks stepped up property seizures from borrowers who defaulted on mortgages. The homeownership rate was 66.9%, matching the second-quarter level that was the lowest since 1999, the US Census Bureau said. The homeowner vacancy rate, or the share of properties vacant and for sale, was unchanged at 2.5%, according to the report. (Bloomberg)

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