Monday, October 10, 2011

20111010 1232 Local & Global Economic Related News.

Malaysia: Malaysia to boost wages, help poor in pre-election budget
Malaysian Prime Minister Najib Razak will give cash to low-income families, raise civil servants‟ pay and boost spending on railways to spur growth as the global economy cools and elections loom. Gross domestic product may expand 5% to 6% next year after growing as much as 5.5% in 2011, Najib, also finance minister, said in an annual budget speech last Friday. The government may spend about RM232.8bn (USD74bn) in 2012, he said, 1.4% more than this year‟s outlay. The budget deficit is forecast to narrow to 4.7% of GDP from 5.4%. (Bloomberg)

Canada: Unemployment rate falls as economy adds 60,900 jobs
Canada‟s economy added the most jobs in eight months in September, led by hiring at schools, bringing the country‟s jobless rate to its lowest since 2008 and adding to evidence the country is averting a new recession. Employment rose by 60,900 after a decline of 5,500 in August, Statistics Canada said in Ottawa. The unemployment rate fell to 7.1%, its lowest since December 2008. Bloomberg News surveys called for a job gain of 15,000 and unemployment to remain at 7.3%. (Bloomberg)

UK: Weale says Bank of England can increase asset purchases plan
Bank of England policy maker Martin Weale said the central bank has “a lot of scope” to increase asset purchases if it‟s deemed necessary to boost economic growth. The UK central bank last week raised the ceiling for its asset purchases, or so-called quantitative easing, to GBP275bn (USD428bn) from GBP200bn. Governor Mervyn King said the move, the first loosening of U.K. monetary policy since the depths of the recession in 2009, was a response to what may be the worst financial crisis ever. (Bloomberg)

EU: Merkel, Sarkozy pledge bank recapitalization in next crisis plan
Angela Merkel and Nicolas Sarkozy, racing to stamp out the euro debt crisis threatening to engulf the financial system, gave themselves three weeks to devise a plan to recapitalize banks, get Greece on the right track and fix Europe‟s economic governance. Under increasing pressure to defuse turmoil that has raged for 18 months and facing growing concern that Greece is headed to default, Merkel said European leaders will do “everything necessary” to ensure that banks have enough capital. Sarkozy said they would deliver a plan by the 3 Nov Group of 20 summit. (Bloomberg)

US: Payroll gain in US beats forecasts, easing recession concerns
American employers added more workers in September than forecast and earnings and hours also rose, allaying concern the economy is slipping into another recession. Payrolls increased by 103,000 after a 57,000 gain in August, the Labor Department said yesterday in Washington. The median forecast in a Bloomberg News survey of economists called for an increase of 60,000. The figures reflected the end of a strike at Verizon Communications Inc. that brought 45,000 people back to work. The jobless rate held at 9.1%. (Bloomberg)

U.S: Payrolls gain beats forecasts in September. Payrolls increased by 103,000 after a 57,000 gain in August compared to a survey that called for an increase of 60,000. The figures reflected the end of a strike at Verizon Communications Inc. that brought 45,000 people back to work. The jobless rate held at 9.1%. (Source: Bloomberg)

U.S: Consumer credit fell by USD 9.5b in August following a USD 11.9b increase the previous month, the Federal Reserve said in Washington. Non-revolving credit, which includes student loans and financing for automobile purchases, slumped by the most in three years. (Source: Bloomberg)

Germany: Industrial production fell in August after surging in the previous month. Output fell 1% MoM from July, when it jumped 3.9% MoM. In the year, production rose 7.7% YoY when adjusted for working days. (Source: Bloomberg)

U.K: Output prices rose more than forecast in September, led by petroleum products and electrical equipment. Prices charged at factory gates rose 0.3% MoM from August, the Office for National Statistics said in London. (Source: Bloomberg)

Pakistan: Reduces key rate to boost expansion. Pakistan's central bank cut its benchmark interest rate by a more-than-expected 1.5 ppts to spur investment after terrorism and floods undermined economic growth. The State Bank of Pakistan lowered the discount rate to 12% from 13.5%. (Source: Bloomberg)

Vietnam: Central bank increased its refinancing rate for the first time since May, as the nation tries to steady its currency and tame Asia's fastest inflation. The State Bank of Vietnam raised the refinancing rate to 15% from 14%, effective Oct. 10, it said in a statement on its website. The central bank weakened the dong's reference exchange rate for the third straight day, to VND20,653 per USD from VND20,648 per USD. (Source: Bloomberg)

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