Thailand: Rate raised as spending pledges signal price gains
Thailand raised interest rates for the sixth straight meeting and signaled further increases as spending pledges by incoming leader Yingluck Shinawatra threaten to stoke inflation. The Bank of Thailand increased its benchmark one-day bond repurchase rate by 0.25% to 3.25%. The nation has boosted borrowing costs eight times in the past year. (Bloomberg)
China: Economy grows 9.5%, exceeding economist estimates
China’s economy and industrial output expanded more than analysts predicted, driving up stocks across Asia as the nation maintains momentum after monetary tightening to cool inflation. GDP rose 9.5% in the second quarter y-o-y after a 9.7% gain in the first quarter. Estimates were for a 9.3% gain. Industrial output advanced 15.1% in June, the most since May 2010. The nation’s growth was 2.2% q-o-q. Fixed-asset spending, excluding rural households, rose 25.6% in the first half y-o-y. Retail sales expanded 17.7% last month y-o-y while June housing transactions rose 31% m-o-m even after government curbs to cool the property market. (Bloomberg)
EU: Ireland cut to junk by Moody’s
Ireland joined Portugal and Greece as the third euro-area nation to have its credit rating reduced to below investment grade as European Union finance ministers struggle to contain the region’s sovereign-debt crisis. Moody’s cut Ireland to Ba1 from Baa3, citing the probability that the country, which received a bailout last year, will need additional official financing and for investors to share in losses before it can return to the private market to borrow. The outlook remains “negative.” (Bloomberg)
US: Budget deficit narrowed to USD43.1bn in June
The US posted a monthly budget deficit of USD43.1bn in June, smaller than a year earlier and reflecting a decline in spending. In June 2010, the shortfall was USD68.4bn. For the fiscal year to date, the budget deficit was USD970.5bn compared with USD1trn the prior fiscal year to date. In June, revenue and other fees decreased 0.6% to USD249.7bn. Individual income tax receipts so far this fiscal year rose 24.3% to USD814.9bn. Corporate income tax receipts rose 1% to USD134.3bn. Spending by the government fell 8.4% in June y-o-y to USD292.7bn. (Bloomberg)
Moody’s places US on review for cut as debt talks stall
Moody’s put the US under review for a credit rating downgrade as talks to raise the government’s USD14.3trn debt limit stall, adding to concern that political gridlock will lead to a default. The Aaa ratings of financial institutions directly linked to the US government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts. (Bloomberg)
US: Bernanke says Fed ‘prepared to respond’ if stimulus needed
Federal Reserve Chairman Ben Bernanke told Congress the central bank is prepared to take additional action, including buying more government bonds, if the economy appears to be in danger of stalling. “The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risk might re-emerge, implying a need for additional policy support,” Bernanke said. The Fed “remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate.” (Bloomberg)
No comments:
Post a Comment