Thursday, November 4, 2010

20101104 0949 Local & Global Economics News.

U.S: Factory orders climbed more than forecast in September , adding to evidence manufacturing continues to lead the recovery. The 2.1% increase in bookings was the biggest since January and followed little change the prior month, the Commerce Department said in Washington. The data also showed a drop in orders for capital equipment was smaller than estimated in last week's report on durable goods, pointing to less of a slowdown in business investment. (Source: Bloomberg)

U.K: Index of growth in services businesses from banks to airlines unexpectedly rose in October to the highest level in four months. The gauge rose to 53.2 from 52.8 in September, Markit Economics and the Chartered Institute of Purchasing and Supply said in an emailed statement in London. A reading above 50 indicates growth. (Source: Bloomberg)

Spain: Registered unemployment rate, rose for the third month in October as the economy struggles to recover from an almost two-year recession. The number of people registering for unemployment benefits rose by 68,213, or 1.7%, from September to 4.09 million, the Labor Ministry in Madrid said in an email statement. (Source: Bloomberg)

Australia: Home-building approvals fell in September for a sixth straight month, a sign central bank Governor Glenn Stevens' interest-rate increases are crimping demand for new dwellings. The number of permits granted to build or renovate houses and apartments decreased 6.6% from August, when they dropped a revised 4.8%, the Bureau of Statistics said in Sydney. (Source: Bloomberg)

Malaysia: Trade Surplus hits RM7bn in September
Malaysia’s total export increased 6.9% to RM50.5bn in September from a year earlier, while imports grew 14.6% to RM43.5bn during the same period. Total trade rose 10.4% to RM93.9bn. A trade surplus was recorded in September, making it the 155th consecutive month of trade surplus since November 1997, the International Trade and Industry Ministry said. (Starbiz)

Japan: Bank of Japan confronts two-decade land slump with J-REIT plan
The Bank of Japan’s planned purchases of real-estate investment trusts and exchange-traded funds may bolster investor confidence and support markets that have failed to recover ground lost since the global financial crisis. Governor Masaaki Shirakawa and his policy board will start a two-day policy meeting today to discuss the purchases, which are part of a broader JPY5trn (USD62bn) fund unveiled last month. The bank brought forward its November meeting date by more than a week to speed up the purchases. (Bloomberg)

China: World Bank raises China GDP outlook
The World Bank raised its forecasts for economic growth in China this year and next, saying the strong fundamentals will help offset an expected slowdown in the global economy. In a quarterly update on China’s economy, the World’s second-largest economy would likely grow by 10% this year, up from an earlier forecast of 9.5%. Next year’s estimate was lifted to 8.7% from 8.5%. (Starbiz)

China: World Bank says China needs to raise interest rates further
The World Bank said China should raise interest rates and allow a stronger Yuan to damp inflation, along with guarding against a surfeit of capital inflows. Further normalization of the macroeconomic stance is needed to guard against macro risks, the World Bank said in a periodic report citing asset-price gains, bad loans and “strained” local-government finances. China’s controls over capital movements have proven effective so far and officials can tighten regulations and use exchange-rate flexibility to limit inflows, the report said. (Bloomberg)

US: Dollar weakens against Euro as Fed to buy added USD600bn
The dollar fell versus the euro after the Federal Reserve said it will pump more money into the economy by boosting asset purchases to spur inflation and employment, debasing the world’s reserve currency. The greenback dropped as the Fed said it will buy USD600bn under quantitative easing, fueling speculation about responses by other central banks. The dollar weakened 0.4% to USD1.4090 per euro at 2:19 p.m. in New York. (Bloomberg)

US: Service industries probably grew at faster pace
Service industries probably expanded in October at a pace that shows limited improvement in the US Economy, economists said. The Institute for Supply Management’s non-manufacturing index, which covers about 90% of the economy, rose to 53.5 last month from 53.2 in September, according to the median forecast of 75 economists surveyed by Bloomberg News. Growth at service providers is lagging behind manufacturing, helping explain why the economy is expanding less than the Federal Reserve may prefer. With unemployment holding near 10% and inflation below the Fed’s long-term goal, central bankers are forecast to ease monetary policy after their meeting today. (Bloomberg)

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