Monday, May 9, 2011

20110509 1421 Local & Global Economic Related News.

FDI: Foreign funds buy RM3.8b stocks in two weeks. Foreign funds were net buyers of Malaysian stocks over the past two trading weeks. (Source: Business Times)  

Germany: Industrial output rose in March, led by construction. Output increased 0.7% MoM from February, when it rose 1.7% MoM. In the year, production rose 11.2% YoY when adjusted for working days. (Source: Bloomberg)

U.K: Producer prices rose more than forecast in April, suggesting inflation pressures may still be building in the economy. The cost of goods at factory gates increased 0.8% MoM from March. (Source: Bloomberg)

Spain: Industrial production fell the most in five months in March, undermining the nation's efforts to emerge from the deepest economic slump in six decades. Output at factories, refineries and mines fell 0.9% YoY, adjusting for the number of working days, in the first decline since December. The institute revised its estimate of February output growth to 3.3% YoY from 3.6% YoY. (Source: Bloomberg)       

EU: Rises on bets debt issues won’t stop more rate increases
The euro rose against the dollar and yen on prospects the region’s debt crisis won’t keep the European Central Bank from raising interest rates further. The common currency gained versus 15 of its 16 major counterparts as European Union officials may require Greece to provide collateral for aid with policy makers struggling to prevent the euro area’s first sovereign debt restructuring, said a person with direct knowledge of the situation. Irish central bank Governor Patrick Honohan said the country will avoid economic “doomsday.” (Bloomberg)

EU: Finance chiefs see more help for Greece, reject euro exit
European nations may provide more aid to Greece, recipient of the first euro-area bailout, as it struggles to reduce a debt load that some investors say will lead to a restructuring. “We think that Greece does need a further adjustment program,” Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, said after an unscheduled meeting of European Union officials last night in Luxembourg. “This has to be discussed in detail” at this month’s gathering of finance chiefs, he said. Greek bonds have tumbled since mid-April when Portugal became the third euro nation to seek a rescue and German officials indicated they wouldn’t oppose a restructuring. Greece denied a report in Germany’s Spiegel magazine yesterday that said it threatened to withdraw from the euro. (Bloomberg)

US: Will urge china to boost interest rates in Washington talks
Treasury Secretary Timothy F. Geithner will urge China to allow higher interest rates when he meets with Chinese leaders this week, as the U.S. extends its push for a stronger yuan. Geithner will say China should relax controls on the financial system, give foreign banks and insurers more access and make it easier for investors to buy Chinese financial assets, said David Loevinger, the Treasury Department’s senior coordinator for China. Officials from both nations are meeting in Washington today and tomorrow as part of the annual Strategic and Economic Dialogue. The US is pushing for greater market access for financial firms as part of its broader effort to persuade China to ease the restrictions blamed for fueling global imbalances. US officials argue that a yuan kept artificially cheap to help exporters also makes it harder for China to lift interest rates and curb an inflation rate that hit a 32-month high in March.(Bloomberg)

U.S: Consumer credit rose by USD 6b in March, Fed says, led by a gain in non-revolving credit, which includes auto loans, and a pickup in credit-card used. The increase followed a USD 7.6b rise in February. (Source: Bloomberg)

U.S: Payrolls rise in April, exceeding forecasts. Payrolls expanded by 244,000 last month, the biggest gain since May 2010, after a revised 221,000 increase the prior month. The jobless rate climbed to 9%, the first increase since November, a separate survey of households showed. (Source: Bloomberg)

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