Wednesday, March 9, 2011

20110309 1215 Global Economic Related News.

China: China may deflect Geithner pressure with smaller trade surplus
China may deflect international pressure for faster RMB appreciation by reporting the nation’s smallest trade surplus in 10 months tomorrow. The excess was USD4.9bn in February, from USD6.5bn a month earlier, according to the median estimate in a Bloomberg News survey of 21 economists. Data for the first two months of the year is typically distorted by the timing of a Lunar New Year holiday. A smaller surplus may support China’s contention that the world’s second-largest economy is moving toward balanced trade as imports climb.(Bloomberg)

China: BRIC miners surpassed by Zhongjin, Yunnan sales
China’s biggest mining companies are selling the most bonds among the largest emerging economies this year, tapping demand from investors attracted by the highest relative yields since 2009. Yunnan Copper Industry Co., China’s third-largest producer, will price RMB1bn (USD152mn) of one-year bonds tomorrow, after Zhongjin Gold Mining Co., the nation’s second- biggest maker of the precious metal, sold 600 million RMB of similar-maturity debt last week at a yield of 4.38%. Mining companies raised RMB16.7bn this year, up from RMB2.8bn a year earlier, data compiled by Bloomberg show.(Bloomberg)

Japan: Debt redemption rush may fuel long-bond rally
Japan will redeem a record amount of government bonds this month, forcing investors to buy longer- term securities to avoid lower interest payments after coupons on some maturities fell by more than half since 2006. About JPY15.6trn (USD190bn) of coupon-bearing government debt will mature in March, the biggest monthly amount since World War II, according to Deutsche Securities Inc. The coupons on the notes coming due are more than twice prevailing levels for similar maturities, so investors need longer-term securities to keep their interest rates the same.

Vietnam: Raises interest rates as dung shifts focus to inflation
Vietnam’s central bank raised a main policy interest rate to 12%, boosting borrowing costs for the third time in as many weeks as the government steps up its fight against inflation. The refinancing rate, one of the main policy tools identified by the State Bank of Vietnam last week, was increased from 11% effective yesterday, according to a statement on the central bank’s website. The bank also lifted the discount rate to 12% from 7%.(Bloomberg)

US: Home sales accelerate as US price decline signals rebound
The third decline in US home prices in three years is driving a pickup in sales as bargain hunters rush to buy before mortgage rates rise, even as values may slump further. Mounting foreclosures pushed the median price for a US existing home to USD158,800 in January, the lowest level since 2002, according to the National Association of Realtors. At the same time, sales climbed 22% from October, the biggest three-month gain since the end of a homebuyer tax credit. (Bloomberg)

US: Confidence at US small companies climbs to three-year high
Confidence among US small companies rose in February to the highest level in three years as hiring and sales expectations increased, a survey showed. The National Federation of Independent Business’s optimism index climbed to 94.5, the highest since the recession began in December 2007, the Washington-based group said today in a statement. The reading compares with the average 100.7 during the previous expansion that started in November 2001. At the same time, earnings expectations remained negative, and fewer businesses said it was a good time to expand. (Bloomberg)

U.K: Housing price gauge rose for a fourth month in February as demand increased and transaction levels improved, the Royal Institution of Chartered Surveyors said. The number of real-estate agents and surveyors saying prices fell exceeded those seeing gains by 26ppts, down from 31 ppts in January, the London-based group said. (Source: Bloomberg)

Germany: Factory orders rose in January on surging domestic demand. Orders, adjusted for seasonal swings and inflation, advanced 2.9% MoM from December, when they fell 3.6% MoM. In the year, orders rose 16% YoY. (Source: Bloomberg)

China: At 60% risk of banking crisis, Fitch gauge signals. China faces a 60% risk of a banking crisis by mid-2013 in the aftermath of record lending and surging property prices, according to a Fitch Ratings gauge. Fitch sees the risk of "holes in bank balance sheets" should a property bubble burst, Richard Fox, a London-based senior director, said in a phone interview on March 4. The risk assessment is from a macro-prudential monitor used by the ratings company. (Source: Bloomberg)

China: More Chinese cities and regions will raise minimum wages this year after six provinces already did so, as labor shortages spread inland, Yin Weimin, Minister of Human Resources and Social Security, said in Beijing. Labor shortages in manufacturing hubs on China's east coast are persisting and spreading to central and western regions as economic growth spurs demand for workers and population growth in rural areas slows, Yin said at a news briefing. The changing mindset of migrants who prefer to find jobs nearer their hometowns is also affecting the supply of labor, he said. (Source: Bloomberg)

Japan: Current account surplus narrowed in January as export growth cooled. The gap shrank 48% YoY the Finance Ministry said in Tokyo. Exports rose 2.9% YoY and imports increased 15.6% YoY. (Source: Bloomberg)

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