Monday, December 27, 2010

20101227 0959 Global Economics Related News.

China: Increases rates to counter highest inflation in two years
China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years, and more moves may follow. The benchmark one-year lending rate will rise by 25 basis points to 5.81% and the one-year deposit rate will climb by the same amount to 2.75%, the People’s Bank of China said in a one-sentence statement on its website. (Bloomberg)

France: AAA credit rating affirmed by S&P on budget confidence
France’s standing as one of the world’s safest borrowers was affirmed by Standard & Poor’s, reflecting that the Euro-area’s second largest economy will rein in its budget deficit. At the end of a year in which rating companies downgraded the debt of Euro nations from Spain to Ireland, S&P said that France deserves a AAA sovereign credit rating because of the “wealth and depth” of its economy. (Bloomberg)

US: Consumer spending, investment increase
Americans increased spending in November for a fifth straight month and companies stepped up orders for equipment, more evidence the US economy is gaining momentum heading into 2011. Household purchases rose 0.4% after a 0.7% increase in October that was almost twice as large as previously estimated, figures from the Commerce Department showed. The agency also reported a 2.6% gain in bookings for capital goods like computers and electronics. (Bloomberg)

US: Home prices probably fell, confidence up
Home prices probably dropped in October, a sign housing will remain a weak link as the US recovery accelerates into the new year, economists said before reports this week. Property values in 20 cities were down 0.2% from October 2009, the first year-over-year decline since January, according to the median forecast of 14 economists surveyed ahead of a report from S&P/Case-Shiller. Other data the same day may show consumer confidence rose to a seven-month high in December. (Bloomberg)

1 comment:

Learn stock said...

US home prices continue to drop in 2010. They should give incentive to buy real estate.