Wednesday, January 5, 2011

20110105 1455 Global Economics Related News.

The Swiss central bank confirmed Wednesday it has excluded Irish government debt from a list of assets considered eligible as collateral for its repo deals – operations under which it lends money against collateral.The move, which was first reported by Irish blogger Lorcan Roche Kelly, happened in December after major credit rating agencies cut Ireland's rating below 'A'.

Australia: RBA’s McGauchie says flood impact may be significant
The worst flooding in half a century in Australia’s northern state of Queensland may have a “significant impact” on the nation’s economy as exports are interrupted, said central bank board member Donald McGauchie. Record rainfall triggered flooding across an area of Queensland the size of France and Germany, forcing towns to be evacuated, closing mines and spoiling crops. The state is Australia’s largest coal exporter and accounts for about 20% of the nation’s AUD1.28 trillion (USD1.29trn) economy. (Bloomberg)

China: Yuan gain to slow in 2011, top forecasters say: china credit
The yuan’s appreciation may slow this year after the currency strengthened beyond 6.6 per dollar for the first time in 17 years, as China seeks to stem inflows that may fuel inflation, the most-accurate forecasters for 2010 said. The yuan will advance 4.6% to 6.3 per dollar, after climbing 3.6% in just over six months, said Yen Ping Ho, the head of Asian foreign-exchange strategy for JPMorgan Chase & Co. in Singapore, whose 6.58 forecast was closest to the 31 Dec 2010 close among 21 analysts surveyed by Bloomberg a year ago.(Bloomberg)

EU: European inflation accelerates more than forecast
European inflation accelerated more than economists estimated in December on surging energy prices, exceeding the European Central Bank’s limit for the first time in more than two years. Euro-area consumer prices rose 2.2% in December from a year earlier after increasing 1.9% in November, the European Union statistics office in Luxembourg said today. That’s the highest rate since October 2008 and above the 2% median forecast of 21 economists in a Bloomberg survey. (Bloomberg)

US: Currency Carry Trade Losses May Bolster U.S. Dollar
Currency traders that seek profits by borrowing in nations with low interest rates to fund purchases in countries with higher yields are losing more money than at any time in at least a decade. The strategy lost 2.5% in 2010 as the dollar -- a favorite for financing the trades because of record low US rates -- appreciated, according to an index compiled by UBS AG, the world’s second-largest foreign-exchange trader. (Bloomberg)

U.S: Construction spending rose in November for third month, boosted by funding for homebuilding and federal government projects. The 0.4 %MoM increase followed a 0.7% MoM gain the previous month. (Source: Bloomberg)

U.S: Fed officials said recovery insufficient to alter QE2. "While the economic outlook was seen as improving, members generally felt that the change in the outlook was not sufficient to warrant any adjustments to the asset-purchase program, and some noted that more time was needed to accumulate information on the economy before considering any adjustment," the Fed said in minutes of its Dec. 14 policy meeting. (Source: Bloomberg)

U.S: Orders to factories increase in November. The 0.7% MoM increase in bookings topped the median forecast of economists surveyed by Bloomberg News which called for a 0.1% MoM drop. Orders for capital goods like computers rebounded after falling in October. (Source: Bloomberg)

Germany: Unemployment unexpectedly rose in December for the first time in 17 months as the coldest weather in more than 40 years led companies to shed staff. The number of people out of work rose a seasonally adjusted 3,000 to 3.15 million, the Nuremberg-based Federal Labor Agency said. (Source: Bloomberg)

U.K: Manufacturing in December expands at fastest pace since 1994. A gauge based on a survey of companies by Markit Economics and the Chartered Institute of Purchasing and Supply rose to 58.3 from a revised 57.5 in November. A measure above 50 indicates expansion. (Source: Bloomberg)

France: Consumer confidence unexpectedly fell for the first time in five months in December as consumers turned pessimistic about their personal finances. Sentiment declined to minus 36 from a revised minus 33 in November, Paris based national statistics office Insee said in a statement. (Source: Bloomberg)

Spain: Registered unemployment fell for the first time in five months in December. The number of people registering for jobless benefits fell by 10,221, or 0.25%, from November to 4.1 million, the Labor Ministry in Madrid said in an emailed statement. (Source: Bloomberg)

Greece: State revenue in 2010 rose 5.4% on an annual basis to EUR51.1b (USD68.4b), missing a revised target by about EUR280m, a finance ministry official said. In December revenue increased 10.6% to EUR5.75b, said the official, who declined to be identified by name because the data haven't been released officially. The ministry
will release preliminary data on Jan.10. (Source: Bloomberg)

Thailand: Inflation accelerated in December for the first time in five months, adding to the case for the central bank to raise borrowing costs further. An index of consumer prices rose 3% from a year earlier after climbing 2.8% in November, the Ministry of Commerce said. (Source: Bloomberg)

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