Wednesday, February 2, 2011

20110202 0943 Global Economic Related News.

U.S: Manufacturing in January grows by most since 2004, reinforcing forecasts the economic recovery will strengthen in 2011. The Institute for Supply Managements factory index rose to 60.8. Readings greater than 50 signal growth. (Source: Bloomberg)

Spain: AA rating affirmed by S&P as pension overhaul welcomed. The outlook remains negative, the rating company said in an e-mailed statement. It expects the country to have met its budget-deficit target of 9.3% of output last year and to approach the 6% objective in 2011, even as its growth forecasts are more pessimistic than the governments. (Source: Bloomberg)

China: Manufacturing growth in January maintains rate pressure. Chinas manufacturing expanded and input costs climbed, underscoring the case for more interest- rate increases to tame inflation pressures in the fastest- growing major economy. A reading of 52.9 for a purchasing managers index released by Chinas logistics federation on its website exceeded the 50 level dividing expansion and contraction. A PMI from HSBC Holdings Plc and Markit Economics rose to 54.5 from 54.4. (Source: Bloomberg)

S. Korea: January Inflation climbs to 4.1% YoY, adds rate pressure. The consumer-price index gained 3.5% YoY in December. Exports surged 46% YoY to a record USD 44.89b in January. (Source: Bloomberg)          

Indonesia: May keep rate at record low, tolerating inflation
Indonesia’s central bank may keep interest rates at a record low this week, tolerating inflation that has accelerated to a 21-month high as policy makers seek to avoid attracting more capital inflows. The reference rate will stay at 6.5% when policy makers meet on 4 Feb, according to 16 of 22 economists surveyed by Bloomberg News. Central banks from India to Thailand and South Korea raised borrowing costs in January as inflation accelerates across a region that’s leading the recovery from the 2009 global recession. (Bloomberg) India:

Manufacturing growth accelerated in January
India’s manufacturing growth accelerated and exports climbed the most in nine months, adding to the case for the central bank to extend Asia’s fastest interest-rate increases in the past year to curb inflation. The Purchasing Managers’ Index rose to 56.8 in January from 56.7 in December, HSBC Holdings Plc and Markit Economics said in an e-mailed statement today. A reading above 50 indicates expansion. India’s merchandise exports gained 36.4% in December from a year earlier, the trade ministry said in a statement in New Delhi today. (Bloomberg)

China: Factory output slowed in January
China’s factories slowed a touch in January under the weight of monetary tightening, but input prices rose quickly, keeping the pressure on the government to tackle inflation despite easing growth. The official purchasing managers’ index (PMI) fell to a five-month low of 52.9 in January, the China Federation of Logistics and Purchasing said yesterday, missing the median forecast of 53.5 in a Reuter’s poll. (Bloomberg)

EU: ECB fails to sterilize bond purchases with deposits
The European Central Bank failed to fully neutralize the liquidity created by its bond purchases for the third time since the program began. The Frankfurt-based central bank said today it drained EUR68.2bn (USD93.9bn) from money markets via seven-day term deposits, EUR 8.3bn less than the EUR 76.5bn it intended to absorb. The failure to drain the intended amount today adds further “downside pressure on overnight rates,” said Christopher Rieger, head of fixed-income strategy at Commerzbank AG in Frankfurt. (Bloomberg)

EU: Manufacturing growth quickens to 9-month high
European manufacturing growth was stronger than initially estimated in January, accelerating to the fastest pace in nine months on stronger output in Germany. A gauge of manufacturing in the euro region rose to 57.3 from 57.1 in December, London-based Markit Economics said in an e-mailed report today. That’s the highest since April and above the initially reported 56.9. A reading above 50 indicates growth. In Germany, output growth slowed less than initially estimated, with a gauge at 60.5, down from 60.7. (Bloomberg)

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