Monday, October 24, 2011

20111024 1045 Local & Global Economic Related News.

Consumer prices rose 3.4% yoy in Sep (+3.3% in Aug), mainly driven by  higher food costs. The median estimate was called for a 3.3% increase.  (Bloomberg)

The  international reserves of Bank Negara Malaysia (BNM) amounted to  RM427.9bn (US$134.4bn) as at 14 Oct 11, up from RM417.2bn (US$131bn) as at  30 Sep 11. The reserves position is sufficient to finance 10 months of retained  imports and is 4.6 times the short-term external debt. (BNM)

US households' caution about taking on debt and spending will stand them  in good stead when the economic recovery becomes more robust, Fed Governor  Elizabeth Duke said. Household debt-to-income ratios skyrocketed during  2001-2007, but households cut debt and spending significantly during the  financial crisis that began in 2007, Duke said. "Going forward, as income and  asset values recover, these improvements in the aggregate household position  should be felt by more and more US households," she said. (Reuters)

US: Manufacturing leads 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 U.S. 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)

EU: Leaders say bank recapitalization ‘essential’ part of package
European Union finance ministers will meet 26 Oct to complete work on bank-recapitalization plans, EU leaders indicated in a draft statement today. The finance chiefs, who met yesterday in Brussels for 10 hours, have progressed “on measures for the banking sector” and should “finalize this work” at a meeting on 26 Oct., the EU’s government heads said in the draft text obtained by Bloomberg News. (Bloomberg)

Eurozone government deficit was on average  6.2% of gross domestic  product in 2010 while government debt was 85.4%, the Eurostat said. Both  numbers are well over the euro zone limit of 3% and 60% for national deficit  and debt respectively. (WSJ)

European leaders outlined plans to aid banks and ruled out tapping the  European Central Bank’s balance sheet to boost the rescue fund, inching  toward a new strategy to contain the Greece-fueled debt crisis. (Bloomberg)

Japan will sell about ¥800bn(US$10.4bn) of additional government debt to  the market this  fiscal year to fund earthquake reconstruction and help  companies cope with a strong yen, the Ministry of Finance said. (Bloomberg)

Growth in Thai exports grew in Sep by 19.1% yoy (13.1% in Aug).  Imports surged 41.9% yoy in Sep  (44.0% in Aug) as the trade balance reversed from a  deficit of US$1,203m in Aug to a surplus of US$238m in Sep. Economists were  expecting yoy export and import growth of 21.0% and 32.6% respectively.  (Bloomberg)

Thailand’s forex reserves grew by US$2.1bn to US$181.7bn in Oct.  (Bloomberg)

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