Wednesday, October 5, 2011

20111005 1141 Local & Global Economic Related News.

The government will impose anti-dumping duty if the presence of imported  goods harms the local industry, Dewan Rakyat was told Tuesday.  International Trade and Industry Minister Datuk Seri Mustapa  Mohamed said so far only one anti-dumping case was recorded, that of bicycles  imported from China. As a result, anti-dumping duty of 11.38-186.09% was  imposed on the bicycles imported from China. The anti-dumping duty was  imposed for five years from 18 Jan 03 to 17 Jan 08, he said. (Bernama)

Investment from Japan has continued to be strong in Malaysia's electrical  and electronic (E&E) sector, especially in the form of reinvestment, despite  the uncertainties and weakened global growth, said International Trade and  Industry Minister Datuk Seri Mustapa Mohamed. The strength of the yen and  increase in cost structure issues faced by Japanese companies in some countries  have made Malaysia an attractive destination. Asked on the FDI outlook for  4Q11, Mustapa said the momentum is there and Malaysia is on track to achieve  the FDI target of RM55bn this year. (Bernama)

Malaysia‟s  economic growth momentum that was established last year is  expected to continue,  Second Finance Minister Dato' Seri Ahmad Husni  Mohamad  Hanadzlah said. The government will adopt a stance of “cautious  optimism” for the immediate future, he said. “We are presently paying very  close attention to the developments in the external financial sector,” he noted.  (Bloomberg)

US factory goods orders fell during Aug, the second drop in three months as  manufacturers struggle to keep growing within a weak economy. Orders  declined by 0.2% mom to US$451.05bn in Aug (+2.1% in Jul and -0.4% in Jun),  the Commerce Department said. Economists had predicted that orders wouldn't  change in Aug. (WSJ)

EU: S&P: Europe faces rising risk of ‘double dip’
Deteriorating business sentiment in European markets and a projected slowdown of growth in the US are weighing on economic prospects for Europe, Standard & Poor’s Ratings Services said in a report. S&P now forecasts GDP growth in the eurozone to be 1.1% in 2012, versus 1.5% in its earlier projection. For the UK, S&P expects GDP growth rate of 1.7% in 2012, slightly below its 1.8% projection made in August. (Starbiz)

US: Orders for capital goods rise by most in three months
Orders for US capital equipment increased in August by the most in three months, a sign business investment and exports held up in the face of mounting concern over the European debt crisis. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 0.9%, the most since May, a Commerce Department report showed. Demand for all factory goods declined 0.2%. (Bloomberg)

US Federal Reserve Chairman Ben S. Bernanke said the  central bank stands ready to take  additional steps to boost US growth and cautioned  lawmakers against budget moves that would harm a “sluggish” recovery. The  Fed “will continue to closely monitor economic developments and is prepared to  take further action as appropriate to promote a stronger economic recovery in a  context of price stability,” Bernanke said. (Bloomberg)

Eurozone industrial producer prices index (PPI) fell by 0.1% mom in Aug,  according to a report published by Eurostat. The index for EU 27 nations fell by  0.2 percent, according to the report. On a yoy basis, PPI rose 5.9% in Aug.  Economists expected the PPI to drop 0.3% mom and rise 5.7% yoy in Aug.  (Xinhua)

EU: S&P: Europe faces rising risk of ‘double dip’
Deteriorating business sentiment in European markets and a projected slowdown of growth in the US are weighing on economic prospects for Europe, Standard & Poor’s Ratings Services said in a report. S&P now forecasts GDP growth in the eurozone to be 1.1% in 2012, versus 1.5% in its earlier projection. For the UK, S&P expects GDP growth rate of 1.7% in 2012, slightly below its 1.8% projection made in August. (Starbiz)

Greece: Has cash to meet needs until mid-November, Venizelos says
Finance Minister Evangelos Venizelos said Greece has enough cash to operate until mid-November, after euro-region finance ministers delayed a decision on the nation’s next emergency-loan payment. With cash needs covered until then, Greece has time to carry out reforms demanded in return for a new bailout plan, Venizelos told reporters in Athens today after returning from the ministers’ meeting in Luxembourg. The new package “will give a more radical and more complete answer to our problems,” Venizelos said. The ministers, who yesterday discussed re-crafting a July deal on private-investor participation in a new Greek rescue, pushed back a decision on the release of the country’s next EUR 8bn (USD10.6bn) loan installment until after 13 Oct. (Bloomberg)

Italy: Credit rating cut by Moody’s on weak growth outlook
Italy’s credit rating was cut by Moody’s Investors Service for the first time in almost two decades on concern that Prime Minister Silvio Berlusconi’s government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook, the New York-based company said. The action comes after Standard & Poor’s downgraded Italy on 20 Sept for the first time in five years. Italy was last cut by Moody’s in May 1993. Italy gave final approval last month to a EUR54bn (USD72bn) austerity plan aimed at balancing the budget in 2013 that convinced the European Central Bank to buy the nation’s bonds. (Bloomberg)

China: Expansion in services may ease slowdown concerns
China’s service industries expanded at a faster pace last month, rebounding from a deceleration in August, a pickup that may ease concern the world’s second- largest economy is slowing. A purchasing managers’ index rose to 59.3 from 57.6 in August, driven by retail spending, the China Federation of Logistics and Purchasing said on its website yesterday. HSBC Holdings Plc and Markit Economics said a separate index gained to 53 in September from a series-record low of 50.6 the previous month. Numbers above 50 indicate expansion. (Bloomberg)

Japanese wage earners' total  cash earnings fell 0.6% yoy in Aug (-0.2% in  Jul), dropping for the third month in a row, the labour ministry said. Overtime  pay, a barometre of strength in corporate activity, fell 2.2% yoy in Aug (+0.3% in  Jul) to its lowest level since May. (Reuters)

Singapore’s purchasing managers' index fell to 48.3 in Sep from 49.4 in  Aug. PMI for electronics fell to 47.2 in Sep from 48.0 in Aug. (Dow Jones)

The World Bank predicts slower growth in Indonesia of 6.4% in 2011 and in  6.3% in 2012. The bank had earlier predicted 6.7% growth for 2012. (Jakarta  Post) Downstream oil and gas regulator BPH Migas reported that in 9M11, the  consumption of  subsidized fuels had touched 30,767,194 kiloliters (KL) or  76% of the quota of 40,494,000 KL. (Jakarta Post)

Thailand is thinking of targeting headline  inflation rather than the current  core rate, which is used to guide monetary policy, Finance Minister Thirachai  Phuvanatnaranubala said. The central bank could target headline inflation of  3% plus or minus 1.5% pts. That effective range of 1.5% to 4.5% compares with a  target now for core inflation of 0.5% to 3.0%.  (Reuters)

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