Monday, April 11, 2011

20110411 1226 Global Economic Related News.

China: Export growth shows economy tolerating rate increases
China’s faster-than-expected growth in exports and imports last month may allow Premier Wen Jiabao to strengthen his fight against inflation, which probably exceeded his target for the ninth straight month in March. Overseas shipments jumped 35.8% last month while imports climbed 27.3% to a record, pulling the trade balance unexpectedly into surplus after a USD7.3bn shortfall in February, the customs bureau said yesterday. Inflation accelerated to 5.2% in March, exceeding the government’s 2011 target of 4% for the third month, according to the median estimate in a Bloomberg News survey. (Bloomberg)

China: Reports first quarterly trade deficit in seven years
China’s first quarterly trade deficit in seven years may ease pressure on the world’s biggest exporter to allow faster appreciation of the yuan. Asia’s largest economy had a deficit of USD1.02bn in the first three months of the year compared with a surplus of USD13.9bn a year earlier, the customs bureau said on its website today. Imports jumped 32.6% to a quarterly record of USD400.7bn, helped by stronger domestic demand and higher global commodity prices, the bureau said. China’s trading partners, including the U.S., say faster yuan appreciation is needed to help address global imbalances that contributed to the financial crisis. Premier Wen Jiabao said last month exchange-rate reform must be gradual to maintain social stability, and that boosting domestic demand is the best way the nation can contribute. (Bloomberg)

China: Wen urges regions to curb real estate in drive to restrain inflation rate
Chinese Premier Wen Jiabao asked local governments to take responsibility to keep housing affordable and said stabilizing consumer prices in the country is the top priority. The Chinese government is intensifying efforts to curb speculation in the real-estate market after housing prices gained for 19 consecutive months through December. Consumer prices in February climbed 4.9% from a year earlier, exceeding the government’s annual inflation target of 4%. (Bloomberg)

Japan: Edano says Japan doesn’t need BOJ to help fund disaster relief
Chief Cabinet Secretary Yukio Edano said Japan can fund earthquake rebuilding without the central bank purchasing government bonds, the clearest signal yet that Prime Minister Naoto Kan won’t embrace more aggressive plans for stimulating the economy after last month’s disaster. We will secure necessary funding for reconstruction,” Edano said in a roundtable interview yesterday in Tokyo. “There will be difficulties, but I believe we can secure enough funding without the Bank of Japan underwriting bonds.” Some lawmakers have called for the BOJ to directly purchase bonds to fund rebuilding from the 11 March earthquake and tsunami that devastated the country’s northeast, a proposal central bank Governor Masaaki Shirakawa has rejected. While Edano last week said an initial spending package could be as much as JPY4tn (USD47bn), he gave no specifics yesterday as to where the funding will come from. (Bloomberg)

US: Retail sales in US probably rose as job gains overcame surge in gasoline
U.S. retail sales probably climbed in March, indicating an improving labour market is helping Americans cope with rising gasoline prices, economists said before a report this week. A 0.5% gain would follow a 1% increase in February, according to the median forecast in a Bloomberg News survey ahead of Commerce Department figures 13 April. Data this week on consumer and producer prices will probably show food and energy costs rose. (Bloomberg)

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