Monday, June 13, 2011

20110613 1007 Global Economic Related News.

India: Industrial output growth slows; rate pressure stays
India’s industrial production growth eased in April, a slowdown that has yet to curb pressure for more interest-rate increases to damp inflation. Output at factories, utilities and mines rose 6.3% from a year earlier after an 8.8% gain in March, the Central Statistical Office said in a statement in New Delhi, after it changed the base year to 2004-05. The median of 23 predictions in a Bloomberg News survey was for a 5.5% advance, based on 1993-94 prices. (Bloomberg)

China: Reports less-than-estimated USD13bn trade surplus
China reported a less-than-estimated USD13.1bn trade surplus in May, as surging imports signaled the nation’s demand may support global growth while adding pressure for higher interest rates. Inbound shipments climbed 28% from a year earlier and exports rose 19%, the customs bureau said on its website. The median estimate in a Bloomberg News survey of 23 economists was for a USD19.3bn surplus. The International Monetary Fund said last Friday that China can sustain economic growth of about 9.5% this year and next even as the government cools the real-estate market and reins in bank lending to counter inflation. (Bloomberg)

UK: Manufacturing drops on impact of holidays, Japan quake
UK manufacturing fell more than economists forecast in April as the extra public holiday for the royal wedding hurt orders and the impact of the Japanese earthquake hit supplies. Factory output dropped 1.5% from the previous month, the most since January 2009, the Office for National Statistics said in London. The median forecast of 24 economists in a Bloomberg News survey was a 0.1% decline. A separate report showed that prices at factory gates rose 0.2% in May, the least since September. (Bloomberg)

US: Obama says private sector must lead US in creating jobs
President Barack Obama said the private sector must take the lead in creating jobs as the economy recovers, with the government assisting by making sure workers have the necessary skills. “Government is not, and should not be, the main engine of job-creation in this country,” Obama said in his weekly address on the radio and Internet. “That’s the role of the private sector.” Obama said the government can work as a partner with businesses to enhance training and education for the jobs that are available. With the nation’s unemployment rate at 9.1% in May, up 0.1% from the previous month, the administration is focusing on measures that can encourage hiring. (Bloomberg)

US: Budget deficit in US narrowed to USD57.6bn in May
The US government posted a budget deficit of USD57.6bn in May, narrower than a year earlier, reflecting increasing tax revenue and a reduction in the estimated cost of the government’s financial industry bailout. In May 2010, the shortfall was USD135.9bn, according to the Treasury Department’s monthly budget statement, released in Washington. The economy has been adding jobs since October and corporate profits have climbed, leading to higher personal income and business tax collections. At the same time, the annual shortfall is projected to tie a record as spending also increases, based on data from the Congressional Budget Office. (Bloomberg)

U.S: Fed to expand annual capital exams to 35 largest banks to ensure they have an adequate buffer in an economic crisis. Bank holding companies with at least USD 50b in assets will be required to adopt "robust, forward-looking capital planning processes that account for their unique risks," the Fed said in a statement in Washington. (Source: Bloomberg)

U.S: May import prices unexpectedly rise on autos, clothing. The 0.2% MoM increase in the import-price index, its eighth consecutive gain, followed a revised 2.1% MoM climb in April. Costs advanced 12.5% YoY from May 2010, the biggest 12-month increase since September 2008. (Source: Bloomberg)

Japan: Producer prices rose for an eight month in May, pushed up by higher energy and raw material costs. Prices companies pay for energy and unfinished goods gained 2.2% YoY, after climbing 2.5% YoY in April, a Bank of Japan report showed. (Source: Bloomberg)

S. Korea: Bank of Korea raised interest rates for a third time this year to rein in inflation that has exceeded its target range and curb record household debt. Governor Kim Choong Soo boosted the benchmark seven-day repurchase rate to 3.25% from 3%, following quarter-percent increases in January and March, the central bank said in a statement in Seoul. (Source: Bloomberg)

Philippines: April export growth accelerated to a four-month high as rising sales of the nation's agriculture and mineral goods countered declining electronics shipments. Shipments abroad expanded 19.1% YoY in April to USD 4.3b after rising 4.1% YoY in March, the National Statistics Office said in Manila. (Source: Bloomberg)              

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