Friday, February 25, 2011

20110225 0954 Global Economic Related News.

India: Mukherjee cutting debt sales drives flatter curve
For the first time in seven years India’s government may be preparing to reduce debt sales, spurring a rally in longer-dated bonds. Yields on 10-year bonds fell to within 27 basis points of two-year debt on 23 Feb, the least since December 2008, data compiled by Bloomberg show. Eight of 12 economists in a Bloomberg News survey predict policy makers will cut borrowings in the year starting April. (Bloomberg)

EU: Europe economic confidence rises more than economists forecast
European confidence in the economic outlook improved more than economists forecast to the highest in 3 1/2 years in February, led by surging optimism in Germany. An index of executive and consumer sentiment in the euro region advanced to 107.8 from 106.8 in January 2011, the European Commission said. That’s the highest since August 2007. Economists had forecast a February reading of 106.8, the median of 28 estimates in a Bloomberg survey showed. (Bloomberg)

US: Consumer comfort rises to highest level since ‘08
Consumer confidence climbed to the highest level since April 2008 as Americans grew less pessimistic about their finances. The Bloomberg Consumer Comfort Index, formerly the ABC News US Weekly Consumer Comfort Index, was minus 39.2 in the period to 20 Feb, compared with minus 43.4 the prior week, a report showed. (Bloomberg)

US: Jobless claims fall
Fewer Americans than forecast filed first-time claims to collect jobless benefits last week, indicating companies are reducing the pace of firings as they grow more confident in the economic outlook. Applications for unemployment insurance decreased 22,000 to 391,000 in the week ended 19 Feb, the Labor Department said. Claims have fallen in three of the past four weeks, pushing down the monthly average to the lowest level since July 2008. (Bloomberg)

US: Sales of new US homes fell more than forecast in January
Purchases of new houses in the US fell more than forecast in January, reflecting declines in the West and South that indicate a California tax credit and bad weather may have played a role. Sales declined 13% to a 284,000 annual pace, figures from the Commerce Department showed. The median estimate of economists surveyed by Bloomberg News projected a decrease to a 305,000 rate. Demand dropped 37% in the West and 13% in the South. (Bloomberg)

U.S: Orders for durable goods increase in January on surge in aircraft. Bookings for goods meant to last at least three years rose 2.7% MoM after a 0.4% MoM drop in December. Orders excluding transportation equipment unexpectedly dropped, reflecting a recurring pattern of declines in capital goods in the first month of a quarter. (Source: Bloomberg)

U.K: Retail-sales gauge in February declines to eight-month low and stores expect no growth next month as Britons curtail spending, the Confederation of British Industry said. Retailers saying sales volumes increased from a year ago outnumbered those reporting declines by 6 percentage points, compared with 37 percentage points in January. An expectations gauge for March was at zero. A separate quarterly index showed selling prices are rising at the fastest pace in almost two decades. (Source: Bloomberg)

Indonesia: Investment grade rating looms as Fitch raises outlook. Indonesia moved closer to attaining an investment grade rating, its first since the Asian financial crisis more than a decade ago, after Fitch Ratings raised its outlook on the sovereign to positive from stable. The company affirmed its BB+ grade on Indonesia's local and foreign-currency debt, one step below investment grade, it said in a statement. An upgrade will put Indonesia on par with India and Brazil. (Source: Bloomberg)

Vietnam: Will restrain lending growth and narrow the budget deficit as Prime Minister Nguyen Tan Dung seeks to curb inflation and revive investor confidence in an economy that has devalued its currency four times in 15 months. Dung cut the credit-growth target to below 20% from 23% for 2011, according to a resolution approved by the prime minister, which was presented by Deputy Prime Minister Nguyen Sinh Hung to government and central bank officials at a meeting in Hanoi. He told ministries to narrow the budget deficit to less than 5% of GDP this year and ordered a "cautious and tight" monetary policy. (Source: Bloomberg)

Australia: 4Q10 business investment climbed to a record as a mining investment boom driven by Chinese and Indian demand for natural resources capped a year of unprecedented job growth. Capital spending advanced 1.3% QoQ to AUD29.7b (USD29.8b), the highest on record. Investment in new plant and equipment, a contributor to GDP, gained 6.1% QoQ last quarter, the biggest advance in a year. (Source: Bloomberg)

N. Zealand: May cut rate as quake damage estimate up to NZD 12 b. Investors bet there is an 88% chance RBNZ Governor Alan Bollard will reduce the official cash rate by 25 basis points at the March 10 policy meeting. A central bank spokesman declined to comment on speculation the RBNZ may hold an unscheduled meeting to consider a policy change. (Source: Bloomberg)

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