Global: Zoellick says world economy one shock away from food crisis
World Bank President Robert Zoellick said the global economy is “one shock away” from a crisis in food supplies and prices. Zoellick estimated 44m people have fallen into poverty due to rising food prices in the past year, and a 10% increase in the food price index would send 10m more people into poverty. The United Nations Food Price index jumped 25% last year, the second steepest increase since 1991, and surged to a record in February. (Bloomberg)
US: Home sales, construction probably rose
March increases in home sales and construction probably failed to make up for the ground lost the prior month, showing the US residential real estate market continues to struggle almost 2 years into the economic recovery. Purchases of existing homes rose 2.5% to a 5m annual rate after dropping 9.6% in February, according to Bloomberg survey. (Bloomberg)
US: Yields fall most in 11 months on Europe, cooling inflation
Treasuries gained, pushing 2-year and 10-year yields down the most in 11 months, as US inflation cooled and speculation rose that Europe’s debt crisis is worsening. US notes rose for the first week in a month as President Barack Obama pledged to cut deficit by USD4trn within 12 years. (Bloomberg)
U.S: Consumer sentiment rose more than forecast in April, indicating job gains are helping Americans cope with rising fuel costs. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 69.6, higher than forecast, from March's 67.5 reading that was the lowest since November 2009. (Source: Bloomberg)
U.S: Industrial production increases more than forecast in March. Output rose 0.8% MoM, the fifth straight gain, after a revised 0.1% MoM rise in February. Manufacturing, which makes up 75% of the total, climbed 0.7% MoM following a 0.6% MoM increase. Utility output and mining also rose. (Source: Bloomberg)
E.U: Inflation in March accelerated more than previously estimated. Inflation in the 17-nation euro region quickened to 2.7% YoY from 2.4% YoY in February, the European Union's statistics office in Luxembourg said. That's above an initial March estimate of 2.6% YoY and the fastest since October 2008. (Source: Bloomberg)
EU: Euro drops most since Nov 2010 on concern debt crisis worsening
The euro fell the most since Nov 2010 against the yen and dropped from a 15-month high versus the dollar on concern a bailout for Greece may fail to prevent the first default by a country in the 17-nation currency region. Euro fell 2.3% and 0.4% respectively to JPY119.96 and USD1.44 yesterday. (Bloomberg)
Ireland: Credit rating was cut two levels by Moody's to the lowest investment grade as the government struggles to lower the budget deficit and restore economic growth. Moody's reduced the rating to Baa3 from Baa1, leaving the country's outlook on negative, according to an emailed statement. That's the same rating as Iceland, Tunisia, Romania and Brazil. Standard & Poor's on April 1 cut Ireland's rating one level to BBB+ with a stable outlook. (Source: Bloomberg)
Greece: Plans USD 110b in cuts, asset sales to slash debt. Greece will enact EUR 26b in deficit cuts and EUR 50b in asset sales through 2015, the Finance Ministry said. The measures will cut the deficit to near 1% of gross domestic product by 2015, from a targeted 7.4% this year, Finance Minister George Papaconstantinou said. (Source: Bloomberg)
China: More tightening ahead after raising reserve ratio
China increased banks’ reserve requirements to lock up cash and cool inflation, and central bank Governor Zhou Xiaochuan said monetary tightening will continue for “some time”. Reserve ratios will rise a half point from 21 April, pushing the requirement to a record 20.5%. (Bloomberg)
India: Inflation accelerated more than economists estimated in March as the cost of fuel and manufactured goods rose, putting pressure on policy makers to raise interest rates in Asia's third-largest economy. The benchmark wholesale-price index rose 8.98% YoY after an 8.31% YoY gain in February, the commerce ministry said in a statement in New Delhi. (Source: Bloomberg)
Taiwan: Approved property and luxury taxes after home prices surged to a record and the government said demand for costly goods is stoking inflation. A 15% tax will apply to commercial and residential investment properties sold within a year of purchase and 10% to those sold within two years, the Ministry of Finance said in a statement on its website. A 10% tax will apply to sales of luxury goods such as yachts and airplanes worth at least NTD3m (USD103,352), and furs and furniture valued at NTD500,000 or more, it said. (Source: Bloomberg)
Singapore: Retail sales fell in February as purchases of motor vehicles plunged and consumers spent less on food and clothing. The index measuring purchases excluding automobiles fell 3.5% YoY after gaining a revised 16% YoY in January, the Statistics Department said in a statement. Including vehicles, which are sold subject to
government caps, total retail sales dropped 12.1% YoY. (Source: Bloomberg)
Philippines: Remittance rose at the slowest pace in 10 months in February as political unrest in the Middle East threatened earnings of nannies and engineers working overseas. The funds increased 6.2% YoY to USD1.5b, the central bank said in a statement in Manila. Remittances grew 7.6% YoY in January. (Source: Bloomberg)
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