Tuesday, September 20, 2011

20110920 1040 Local & Global Economic Related News.

Automotive Sector : Malaysia Aug auto sales up 5.7% on year
Malaysia’s total vehicle sales in August rose 5.7% to 58,382 units from a year earlier, a trade body said on Monday. The Malaysian Automotive Association said sales volume was 16.0% higher than the previous month due to increased demand for cars during the festive season of Hari Raya.  The trade body also said sales for September 2011 is expected to be maintained at the August 2011 level. –Business Times

China: Home prices rise in all cities, defying state curbs
China‟s August new home prices rose in all 70 cities monitored for the first time this year, undercutting government efforts to cool the market through higher down payments and mortgage rates. Prices in Beijing advanced 1.9% from a year ago, while those in Shanghai increased 2.8%. New home prices climbed in 67 out of 70 cities in the first half this year and were up in all but two in July. (Bloomberg)

Greece: Loan talks will continue after “productive” meeting
Greece‟s Prime Minister George Papandreou‟s government will hold another call with its main creditors after a “productive” round of talks aimed at staving off default. Finance Minister Evangelos Venizelos held “substantive” discussions with European Union and IMF officials about securing a sixth installment of rescue funds, the finance ministry said. A second discussion will be held tonight. (Bloomberg)

Italy: Debt rating lowered by S&P on weaker growth outlook
Italy‟s credit rating was cut by S&P on concern that weakening economic growth and a “fragile” government means the nation won‟t be able to reduce the euro-region‟s second largest debt burden. The rating was lowered to A from A+, with a negative outlook. (Bloomberg)

US: Obama calls for trimming deficit with USD1.5trn in taxes
US President Baarck Obama cast himself as a champion of “fairness” for the middle class in the fight to reduce the deficit with a call for USD1.5trn in tax increases over the next decade, largely targeting the wealthy. He joined his call for a tax increase with a threat to veto any legislation Congress sends him that would reduce benefits from the Medicare health insurance plan for the elderly unless wealthy Americans also face higher taxes. (Bloomberg)

US stocks decline amid concern Greece may not qualify for aid
US stocks retreated, following the longest rally since July for the S&P 500 Index, amid concern Greece will fail to qualify for more financial aid needed to avoid a debt default. Stocks pared losses in the final hour of trading as Greece said discussions with European officials about the country‟s bailout were productive. Bank of America Corp and JPMorgan Chase & Co. slid at least 2.8%, following a slump in European lenders. The Dow Jones Industrial Average fell 108.08 points to 11,401.01. (Bloomberg)

Global: Merkel pledges “concerted action” to Obama
US President Barack Obama and German Chancellor Angela Merkel on Monday spoke by phone as doubts re-emerged in markets as to the likelihood of Greece defaulting. According to a White House statement, the two leaders agreed "concerted action would be needed in the months ahead to address the current economic challenges and to assure global economic recovery." Merkel's party was defeated in a regional election over the weekend, in a result seen as making Germany even more reluctant to participate in any Greek rescue effort. (Bloomberg)

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