Friday, July 29, 2011

20110729 1201 Local & Global Economic Related News.

Malaysia : Malaysia may reduce export of fish to ensure there is enough to meet the domestic need,  Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar said. There had been a  drastic rise in the volume of fish exports of late, with statistics showing 7,222 tonnes for  Apr, 17,553 tonnes for May and 30,536 tonnes for Jun. The ministry might impose  conditions for fish exports and enforce regulations to ensure adequate supply for the  domestic market, he said. (Bernama)  

Malaysia : Sarawak continues to attract significant  approved investments in the manufacturing  sector totaling RM3.2bn for the first six months of this year. International Trade and  Industry Minister, Datuk Seri Mustapa Mohamed, said investments in manufacturing  projects approved for the whole of last year in Sarawak was only RM3.9bn. (Bernama)  

Malaysia : Malaysia expects to remove  compliance cost for businesses amounting to RM4bn by  2015.  Malaysian Productivity Corporation has been given the task to review existing  regulations with a view to remove  unnecessary rules and compliance costs, said  International Trade and Industry Minister Datuk Seri Mustapa Mohamed.  
  • On the investment environment, he said local businesses were confident with Malaysia's  economy and were willing to invest in their own country.   
  • This is based on the fact that more than half of the RM24.0bn investments, with a  potential employment of over 37,000 people, approved by MITI as at May this year came  from domestic sources. (Bernama)  

Thailand : Thailand’s manufacturing output unexpectedly increased by 3.3% in Jun (-3.7% in May),  marking the first rise in five months boosted by electrical appliances and automotive  production. The median estimate was for a 3.25% decline. (Bloomberg)  

Thailand : Thailand’s  manufacturing production index (MPI) rose by 3.32% yoy to 200.64pts in  Jun while the utilisation rate was 63.58%. Major industries that contributed to the increase  were electronics, household appliances, air conditioners and automotive. (Bangkok Post)  

Philippine : The  Philippine central bank raised the  reserve requirement ratio to 21% from 20%  effective 5 Aug,  but left its policy rate unchanged at 4.5%. The decision came largely  expected. This marks the second hike in reserve ratio this year as the central bank seeks  to avoiding raising interest rates as it weighs the risk of slowing global growth. (Bloomberg)  

Hong Kong : Hong Kong’s export growth slowed in Jun as demand from the U.S. dropped and sales  to China and Europe climbed “moderately.” Overseas  shipments gained 9.2% yoy to  HK$292bn (US$37.5bn) in Jun (10.1% in May), the government said. Economists forecast  a reading of 8.4%. Imports increased 11.5% yoy in Jun, leaving a trade deficit of HK$40.3bn, the report showed. (Bloomberg)

Japan : Japan’s  retail sales rose 1.1% yoy in Jun, marking the first increase in four months. It  came above market estimate for a 0.5% gain. Machinery, which includes household  appliances and cars led the increase. (Bloomberg)  

Japan : Japan's retail sales rose in Jun, marking the first gain since a devastating Mar earthquake  and tsunami in a further signal of recovery in the  world's third-biggest economy, data  showed. Sales rose by 1.1% yoy in Jun (-1.3% in May), lifted by purchases of machines,  appliances and electronic equipment, the Ministry of  Economy, Trade and Industry said.  Economists expected a reading of -0.4% in Jun. (AFP, Bloomberg)

South Korea  : South Korea’s  current-account surplus rose to an eight-month of US$2.99bn in Jun  (US$2.18bn in May) as global demand for cars and steel bolstered exports. (Bloomberg)  

Indonesia : Indonesia’s plan to ban exports of low-quality grade  thermal coal may discourage new  investment in the world’s biggest exporter of the power-station fuel, said a production  company executive. A ban may also hurt India and China, which seek coal with a heating  value of as much as 4,500 kilocalories a kilogram for blending with higher-grade domestic  output, said president director of PT Bhakti Energi Persada. (Bloomberg)  

India: Food inflation eases to slowest pace since February 2009
India’s food inflation decelerated to the slowest pace since February 2009 after prices of pulses, milk, meat and fish eased. An index measuring wholesale prices of agricultural products gained 7.33% in the week ended 16 July from a year earlier, the commerce ministry said in a statement in New Delhi yesterday. It rose 7.58% the previous week. Food costs may rise, India’s central bank said this week after it raised interest rates for the 11th time since mid-Mar 2010. (Bloomberg)

Brazil : Brazil has begun shipping  rice to South Africa,  competing with Thailand, the largest  source of the grain for Africa’s biggest economy. (Bloomberg)  

EU : European confidence in the economic outlook weakened more than economists forecast  in Jul as a worsening debt crisis clouded growth prospects across the euro area. An index  of executive and consumer sentiment in the single-currency region fell to 103.2 from a  revised 105.4 in Jun. Economists had forecast a drop to 104. (Bloomberg)  

EU : Eurozone economic confidence  declined for the fifth consecutive month in Jul, the  European Commission said. The eurozone’s economic sentiment indicator (ESI) fell by  2.2pts to 103.2, while the monthly indicator, based on business and consumer surveys,  also dropped by 2.2pts to 102.4 in the European Union (EU).  

EU : The eurozone’s headline Economic Sentiment Index fell to 103.2 in Jul (105.4 in Jun), a  sharper decline than the drop to 104 expected by economists. It was the fifth straight  monthly decline in the ESI, and indicates that economic growth will weaken in the months  to come. (WSJ)  

EU : The eurozone’s headline measure of industrial confidence fell to 1.1 in Jul (3.5 in Jun), a  larger fall than expected. Economists had forecast a reading of 2.0. (WSJ, Bloomberg)  

US: Consumer confidence decreases on concern over economy
Consumer confidence dropped last week as Americans’ views of the economy plunged to the lowest level since the recession. The Bloomberg Consumer Comfort Index was minus 46.8 in the period to 24 July, the lowest since May, compared with minus 43.3 the prior week. 6% of those surveyed said the economy was in good shape, the fewest since April 2009. Seniors and the unemployed were among those showing the most negative readings, a sign that partisan wrangling over the nation’s budget deficit was jarring those likely to be affected by cuts in spending. (Bloomberg)

US: Jobless claims fall, home sales contracts rise
Applications for unemployment benefits fell more than forecast last week to the lowest level since April, a sign the weakness in the labor market is fading. Jobless claims dropped by 24,000 to 398,000 in the week ended 23 July, Labor Department figures showed yesterday. Another report showed the number of contracts to buy previously owned homes unexpectedly rose in June. Fewer firings are a first step toward gains in hiring that will help stem a slowdown in consumer spending, which accounts for about 70% of the economy. (Bloomberg)

US: Contingency plan said to give priority to bondholders
The US Treasury will give priority to making interest payments to holders of government bonds when due if lawmakers fail to reach an agreement to raise the debt ceiling, according to an administration official. The official requested anonymity because no announcement has been made. The Treasury has said about USD90bn in debt matures on 4 Aug and more than USD30bn in interest comes due 15 Aug. Overall, more than USD500bn matures in August. The USD90bn in six-month Treasury bills maturing 4 Aug pared losses after the comments. Obama administration officials will brief the public no earlier than after financial markets close tomorrow on priorities for paying the nation’s bills if the USD14.3trn limit isn’t raised, a Democratic Party official said earlier. (Bloomberg)

US : The advance figure for seasonally adjusted U.S. initial claims was 398,000 in the week  ended 23 Jul (422,000 in the prior week). Economists forecast a reading of 415,000. The  advance number for seasonally adjusted  U.S. continuing claims was 3,703,000  in the  week ended 16 Jul (3,720,000 in the previous week). (Reuters, U.S. Department of Labor)  

US : The number of contracts to purchase previously owned U.S. homes unexpectedly rose in  Jun as buyers tried to take advantage of lower prices and borrowing costs. The 2.4% mom  rise in the index of pending home resales followed  an 8.2% May gain, the National  Association of Realtors said. Economists forecast a 2% drop. (Bloomberg)  

US : A cut in the U.S.’s sovereign ratings may weaken the dollar and make Asian goods more  expensive, hurting the region’s trade outlook, the  Asian Development Bank said.A  depreciating dollar would also lead to financial losses for Asian nations who hold U.S.  Treasuries, Iwan J. Azis, head of the ADB’s Office of Regional Economic Integration, said.  (Bloomberg)  

No comments: