Friday, October 21, 2011

20111021 0951 Global Economic Related News.

Philippines: Holds rate to protect economy from growth risks
The Philippines kept its benchmark interest rate unchanged for a fourth meeting, joining nations from Indonesia to South Korea in choosing to protect growth as a weakening global economy reduces the urgency to fight inflation. Bangko Sentral ng Pilipinas kept the rate it pays lenders for overnight deposits at 4.5%, according to a statement yesterday. The central bank maintained the reserve requirement ratio for lenders at 21% after ordering an increase in July that took effect the next month. (Bloomberg)


Brazil: Cuts rate to 11.5% on Europe crisis, slowing growth. The bank's board, led by President Alexandre Tombini, voted unanimously to reduce the benchmark Selic rate to 11.5% from 12%. (Source: Bloomberg)

India: Food inflation rate rose to the highest level in almost six months, maintaining pressure on the central bank to boost interest rates next week. An index measuring wholesale prices of agricultural products gained 10.6% YoY in the week ended Oct. 8, the commerce ministry said in a statement in New Delhi. It rose 9.32% YoY the previous week. (Source: Bloomberg)


Taiwan: Export orders rose the least in 2 years in September
Taiwan’s export orders increased by the least in two years in September, indicating the export-led economy remains under pressure from a faltering global recovery. Orders, an indication of shipments in the next one to three months, climbed 2.72% from a year earlier, after a 5.26% gain in August, the Ministry of Economic Affairs said yesterday. Orders from Japan fell 13.19% in September from a year earlier, after declining 9.52 percent in August. Demand from China and Hong Kong combined increased 5.67%, after rising 3.44%. Purchases from the U.S. climbed 9.33%, compared with a 9.05% gain in August. Orders from Europe were down 2.22%, after gaining 8.08% in August. (Bloomberg)

Japan: May add extra USD52bn in aid for companies hurt by Yen
Japan is preparing to unveil plans to spend an extra JPY4trn (USD52bn) to help its exporters cope with a surging yen and spur job creation, according to documents obtained by Bloomberg News. The government will add JPY2trn to the JPY8trn in foreign-exchange reserves being shifted to the state-run Japan Bank for International Cooperation to aid exporters and spur acquisitions overseas. A further JPY2trn will be allocated to encourage investment in domestic plants and to hire workers, according to another document obtained from two government officials who declined to be identified because the plan isn’t public .(Bloomberg)

Euro: EU recommends paying Greek aid loans ‘as soon as possible’
The European Commission recommended paying Greece the next installment of aid as “soon as possible” after Prime Minister George Papandreou secures parliamentary approval for new austerity measures. The draft report from the Brussels-based commission, one of three organizations providing financing to the country, said Greece’s debt remains “extremely worrying” and the ratio, which exceeded 140% of gross domestic product at the end of 2010, will remain “at very high levels for many years.” This will leave the country “vulnerable to adverse shocks,” it said. (Bloomberg)

US: Sales of existing homes fell as forecast in September
Sales of existing homes fell in September, extending a pattern of declines and gains that show the industry continues to be buffeted by consumer pessimism and unemployment above 9%. Purchases dropped 3% to a 4.91m annual rate, figures from the National Association of Realtors showed yesterday. The median price dropped 3.5% from a year ago and about one in five real-estate agents polled said contracts had been canceled, the group said. Growing pessimism about the economy, unemployment above 9% and limited access to credit are keeping some Americans from taking advantage of near record-low mortgage rates. (Bloomberg)

US: Factories lead recovery as jobs, housing flag
Manufacturing in the Philadelphia area unexpectedly expanded in October at the fastest pace in six months, signaling factories are helping support a US economy weighed down by weakness in the housing and labor markets. The Federal Reserve Bank of Philadelphia’s general economic index increased to 8.7 from minus 17.5 last month, the biggest one-month rebound in 31 years. Readings greater than zero indicate expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware. (Bloomberg)

US: Jobless claims decreased 6,000 last week to 403,000
The number of Americans filing applications for unemployment benefits declined last week to a level that shows little improvement in the labor market since the start of the year. Jobless claims dropped by 6,000 to 403,000 in the week ended 15 Oct, Labor Department figures showed yesterday. The four-week average fell to the lowest level since April. Some companies are still paring their workforces at the same time demand has fallen short of the level that may spur businesses to expand staff. (Bloomberg)

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