Tuesday, June 21, 2011

20110621 1218 Global Economic Related News.

China: Existing housing market cools in May amid measures
China’s efforts to cool home prices is damping the market for existing homes, with prices in May falling from the previous month in 23 of 70 cities measured. That’s more than the 16 cities that posted declines in April, data from the National Bureau of Statistics posted to its website 18 June showed. Existing home prices in Beijing fell 0.2% from April while those in Shanghai increased 0.2%. The price of new homes, typically sold by developers, rose last month in 67 of the 70 cities monitored. (Bloomberg)

Japan: Exports declined more-than-expected 10.3% in May
Japan’s exports fell more than economists estimated in May, adding to signs the world’s third-largest economy may struggle to recover from the 11 March earthquake and tsunami. Exports decreased 10.3% from a year earlier after April’s revised 12.4% drop, the Finance Ministry said. The median estimate of 25 economists surveyed by Bloomberg News was for an 8.4% decline. The nation posted a trade deficit of JPY853.7bn (USD10.7bn), the second biggest since comparable data were made available in 1979. Shortages of power and parts have disrupted production and slowed overseas sales, prompting Japanese companies including Honda Motor Co. to forecast weaker earnings. Higher unemployment in the US and weakening demand in Asia indicate Japan won’t be able to rely on global demand to pull itself out of a slump caused by the quake. (Bloomberg)

EUR: Finance chiefs fail to agree on Greek aid payment
Euro-area finance ministers reached no agreement on a scheduled EUR12bn (USD17.1bn) aid payment to Greece, Belgian Finance Minister Didier Reynders said. “The latest tranche normally should be released in mid- July on the basis of a decision we take in early July,” Reynders told reporters in Luxembourg. This is because “we are now starting the negotiations on the participation of the private sector on a voluntary basis” in a second bailout package for Greece and “we have to wait for the decision of the Greek parliament on the enactment of the plan.” (Bloomberg)

IMF: Lipsky says IMF not negotiating new Greek bailout program
The International Monetary Fund isn’t negotiating a second rescue package for Greece while it weighs whether to approve the next payment of the country’s initial program, acting IMF head John Lipsky said. “We are not negotiating a new program,” Lipsky said. “There always exists that possibility, but there has been no request by the Greek authorities to negotiate such a new program. We are concentrated today on the existing program and what is needed to put it back on track and to therefore allow the next disbursement.” Greece was due to receive the fifth payment of its original EUR 110 bn (USD157.5bn) rescue this month. Under the original bailout, Greece was due to return to markets and sell about EUR 30 bn in bonds next year. The country remains shut out of markets and the IMF has called on the EU to come up with a plan to close that funding gap before it will release its funds. (Bloomberg)

Taiwan: Export orders rose more than estimated in May, bolstering the case for another interest-rate increase next week to damp accelerating inflation stoked by economic growth. Orders, an indication of shipments in the next one to three months, climbed 11.53% YoY, after a 10.14% YoY gain in April, the Ministry of Economic Affairs said in Taipei. (Source: Bloomberg)

Thailand: Export rose at the slowest pace in seven months in May as disruption to supplies after the earthquake in Japan, the nation's largest trading partner, interrupted auto shipments. Overseas sales increased 17.6%YoY, the commerce ministry said in Bangkok. That compares with a 24.6% YoY climb in April reported earlier. (Source: Bloomberg)

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