Thursday, November 25, 2010

20101125 0944 Global Economics News.

China: May raise 2011 inflation target
China is considering raising its inflation target for 2011 even as it is campaigning to reassure people that price pressures will remain in check. A meeting of the country’s top officials next month to plot economic strategy for 2011 might pencil in inflation of 4%, up from a goal of 3% for this year, the China Business News reported. (Financial Daily) China: People’s

Bank of China plans to strengthen liquidity management
China’s central bank said it will strengthen liquidity management and “normalize” monetary conditions after having twice this month ordered banks to hold more in reserves to curb inflation that’s at a two-year high. The nation will use quantitative and price tools to manage liquidity, Hu Xiaolian, a deputy governor of the People’s Bank of China, said. China will also control the pace of bank lending for the remainder of this year as it will be difficult to stay within the government’s RMB 7.5tn (USD 1.13bn) target for new loans in 2010, she said. (Bloomberg)

Korea: Consumer confidence rebounds from 16-month low
South Korean consumer confidence rebounded from a 16-month low on expectations that the sustained economic recovery will boost household income and job prospects. The sentiment index rose to 110 from 108 in October, the Bank of Korea said in an e-mailed statement in Seoul. The poll was conducted before North Korea lobbed shells at a South Korean island on 23 Nov, which sent the won to a two-month low. A number exceeding 100 indicates optimists outnumber pessimists. (Bloomberg)

EU: Europe industrial orders drop the most in two years
European industrial orders slumped the most in almost two years in September, suggesting weaker global growth and a stronger euro are starting to hurt exports. Orders in the 16-nation euro area dropped 3.8% from August, when they rose 5.1%, the European Union’s statistics office in Luxembourg said. That’s the biggest plunge since Dec 2008 and sharper than the 2.5% drop forecast by economists in a Bloomberg News survey. Orders rose 14% from September 2009. (Bloomberg)

EU: ECB may be forced to delay exit again as debt crisis escalates
The European Central Bank may be forced to delay its exit from emergency measures again as the region’s sovereign debt crisis escalates. Investors are dumping Spanish and Portuguese bonds on concern they will have to follow Ireland and Greece in asking for European Union bailouts, making it more difficult for the ECB to proceed with its withdrawal of liquidity support for banks. Some economists now doubt the ECB will be able to signal a move back to limited auctions of three-month loans, which they regard as the next likely step in the bank’s exit, when policy makers meet next week in Frankfurt. (Bloomberg)

UK:Export growth helps economy expand at 0.8% pace
U.K. export growth helped the economy extend its recovery in the third quarter as growth in consumer, government and investment spending slowed by more than half. Gross domestic product rose 0.8% from the previous three months, when it increased 1.2%, the Office for National Statistics said. That matched an initial estimate on 26 Aug and the median forecast of 30 economists in a Bloomberg News survey. Exports rose 2.2% after a 2.3% increase in the previous three months. (Bloomberg)

US: Spending rises, jobless claims decline
Americans increased spending for a fifth month in October and filed the fewest unemployment claims in more than two years last week, pointing to strength in the largest part of the economy as the fourth quarter began. Household purchases advanced 0.4% after a 0.3% gain in September that was larger than previously estimated, the Commerce Department reported. Incomes climbed 0.5%. Jobless claims fell by 34,000 to 407,000 in the week ended 20 Nov, Labor Department figures showed. (Bloomberg)

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