Friday, December 10, 2010

20101210 0951 Local & Global Economics News.

Malaysia: Production growth eased in October as global demand weakens
Malaysia’s industrial production growth slowed in October as weakening global demand capped output by manufacturers and mining companies. Production at factories, utilities and mines rose 3% y-o-y after gaining 5.6% in September. That compares with the median economist estimate for a 2.1% increase. Manufacturing output increased 4.5% in October, after a 7.6% gain the previous month. Mining fell 1.1%, while electricity production advanced 5%. (Bloomberg)

China: Property prices rose at slower pace
China’s property prices rose at a slower pace for a seventh month in November, when the government raised the reserve-ratio requirement for banks twice and expanded measures to limit the risk of asset bubbles. Home prices in 70 cities climbed 7.7% y-o-y, slower than the 8.6% increase in October and the 8% median estimate. China has tightened measures on home purchases this year, suspending mortgages for third-home purchases and pledging to speed up trials of property taxes nationwide. (Bloomberg)

Japan: Economy grew faster than initial estimate
 Japan’s economy expanded more than the government initially calculated in the third quarter because of a bigger-than-reported increase in capital spending. 3Q GDP grew at an annualized 4.5% rate y-o-y, faster than the 3.9% reported last month. In nominal terms, the economy grew 2.6%, less than the 2.9% earlier projected, as price declines deepened. Q-o-q, the economy expanded 1.1%. Capital investment advanced 1.3%, more than the 0.8% increase in the preliminary report. (Bloomberg)

South Korea: Bank of Korea holds interest rate
The Bank of Korea left borrowing costs unchanged after an appreciation in the nation’s currency moderated economic growth. The central bank left the seven-day repurchase rate at 2.5%, in line with economist predictions. The benchmark rate remains below November’s 3.3% pace of inflation (Bloomberg)

Australia: Employment growth exceeds forecasts
Employment in Australia jumped by the most in 10 months in November, driving up the nation’s currency and stocks as investors bet the economy will accelerate after slowing last quarter. Payrolls gained 54,600 from October, more than double the median forecast for a 20,000 increase. The jobless rate fell to 5.2% from 5.4%, even as more people entered the workforce. Australia’s participation rate, which measures the labor force as a percentage of the population over 15 years old, increased to 66.1% from 65.9% a month earlier. (Bloomberg)

EU: Ireland’s rating cut by Fitch
Ireland’s credit rating was cut three levels by Fitch Ratings to BBB+ from A+, the second cut in two months. The outlook on the rating, which is three steps above non-investment grade, is “stable”. Fitch commented that the downgrade reflects Ireland’s additional fiscal costs of restructuring and supporting the banking system and that its credit profile is no longer consistent with a high investment grade rating. (Bloomberg)

Brazil: GDP slowed less than forecast
Brazil’s economy slowed less than economists forecast in the third quarter on soaring investment and consumer spending. GDP grew 0.5% q-o-q and 6.7% y-o-y, compared to economist expectations of a 0.4% and 6.8% expansion. The pace of economic growth slowed from the revised 1.8% q-o-q expansion in 2Q and 2.3% expansion in 1Q. (Bloomberg)

US: Initial jobless claims fell, wholesale inventories rose
The number of workers filing first- time claims for unemployment insurance payments fell last week in the US, showing the labor market continues to improve. Applications for jobless benefits decreased to 421,000 from a revised 438,000 the prior week. The four-week moving average, a less-volatile measure, dropped to the lowest level in more than two years. Meanwhile, inventories at US wholesalers rose 1.9% in October as companies stocked up to meet the biggest sales gain in seven months. This compares to a 2.1% rise in September. (Bloomberg)

US: Lending to small businesses fell in 3Q
Lending to US small businesses fell in the third quarter, showing the companies that account for more than half of total job creation are still struggling to emerge from the recession. Net borrowing by non-financial noncorporate businesses shrank by an annualized USD162.7bn, the seventh consecutive quarterly decrease. Still, it was the smallest drop of the contraction in lending that began in the first three months of 2009. (Bloomberg)

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