Friday, March 25, 2011

20110325 1124 Global Economic Related News.

Vietnam: Inflation climbs to 25-month high, adding rate pressure
Vietnamese inflation accelerated to a 25-month high in March on rising gasoline and power costs, adding pressure for another increase in interest rates. Prices rose 13.89% this month from a year earlier, compared with a 12.31% pace in February, according to figures released by the General Statistics Office in Hanoi. That’s the fastest since February 2009. Prices rose 2.17% from February. (Bloomberg)

South Korea: consumer confidence drops to 23-month low after quake
South Korean consumer confidence fell to the lowest level in almost two years, damped by Japan’s strongest earthquake and political unrest in the Middle East. The sentiment index declined to 98 in March from 105 in February, the fourth monthly drop, the Bank of Korea said in an e-mailed statement in Seoul. A number below 100 indicates pessimists outnumber optimists. (Bloomberg)

China: Manufacturing growth rebounds
Chinese factories have stepped up a gear this month while their price increases have slowed, indicating that the government has made some progress in taming inflation without unduly harming growth, a survey showed. The HSBC flash manufacturing purchasing managers’ index (PMI), the earliest available indicator of China’s industrial activity, rose to a two-month high of 52.5 in March, up from a final reading of 51.7 in February. A figure above 50 points to expansion on the month. (Financial Daily)

EU: Portugal said to need up to EUR70bn
A bailout for Portugal may total as much as EUR70bn (USD99bn), two European officials with direct knowledge of the matter said as a credit-rating cut threatened to deepen Portugal’s debt woes. Preliminary calculations put the cost of a lifeline between EUR50bn and EUR70bn, said the officials who declined to be named because the issue is confidential. Portugal continued to rule out a rescue, a day after the parliament’s rejection of budget cuts led Prime Minister Jose Socrates to offer to quit. (Bloomberg)

US: Goods orders unexpectedly fall, claims drop
Orders for long-lasting goods unexpectedly fell in February, raising concern over the sustainability of the rebound in US business investment. Bookings for goods meant to last at least three years dropped 0.9% after a 3.6% gain the prior month that was larger than initially reported, the Commerce Department said in Washington. Other reports showed fewer Americans filed claims for jobless benefits last week, and consumer comfort dropped to the lowest level in seven months (Bloomberg)

U.S. Jobless claims fell by 5,000 last week to 382,000, signaling the labor market is mending. The total number of people receiving benefits dropped to the lowest level in almost three years. (Source: Bloomberg)

E.U: Services, manufacturing growth slows in March. A composite index based on a survey of purchasing managers in the 17-nation euro region in both industries fell to 57.5 from 58.2 in February. A reading above 50 indicates expansion. (Source: Bloomberg)

U.K: Retail sales declined more than forecast in February after a surge the previous month when shoppers brought forward spending to beat a tax increase. Sales fell 0.8% MoM from January, when they jumped a revised 1.5% MoM. From a year earlier, overall sales increased 1.3% YoY. (Source: Bloomberg)

Portugal: Said to need up to EUR 70b; Rating cut. Preliminary calculations put the cost of a lifeline between
EUR 50b and EUR 70b, said the officials who declined to be named because the issue is confidential. Portugal continued to rule out a rescue, a day after the parliament's rejection of budget cuts led Prime Minister Jose Socrates to offer to quit. A downgrade by Fitch Ratings dealt a further blow as European Union leaders called on Socrates and the opposition parties to unite behind belt-tightening measures that might spare Portugal from becoming the third euro country to tap emergency aid. (Source: Bloomberg)

China: Will make more use of price tools to implement monetary policy and interest rates will be at the "core" of that strategy, Zhang Xiaohui, director of the monetary policy department of the People's Bank of China, said on its website. The central bank will shift the focus of policy away from the use of quantitative tools, Zhang said in a review of monetary policy since 2002. These instruments include banks' reserve requirement ratios and loan quotas. (Source: Bloomberg)

Japan: Consumer prices fell in February, may rise after quake. Consumer prices excluding fresh food declined 0.3% YoY. (Source: Bloomberg)

Japan: Export growth accelerated in February, before the nation's strongest earthquake killed thousands, shut factories and caused power shortages, in a disaster that may disrupt trade for months. Overseas shipments rose 9% YoY in February compared to Januarys 1.4% YoY gain, the Finance Ministry said in Tokyo. (Source: Bloomberg)

Philippines: The central bank increased borrowing costs for the first time since August 2008, joining India, South Korea and Thailand in raising interest rates this month as Asia steps up the fight against inflation. Bangko Sentral ng Pilipinas increased the rate it pays lenders for overnight deposits to 4.25% from a record-low 4%, according to a statement in Manila. (Source: Bloomberg)

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