Tuesday, November 1, 2011

20111101 1006 Local & Global Economic Related News.

Malaysia: Online consumer confidence falls in Q3
Malaysia's online consumer confidence experienced the biggest quarterly decline in the third quarter of this year since the third quarter of 2008, dropping nine points to an index of 101. According to the latest global online consumer confidence findings from Nielsen, the drop in Malaysian consumer optimism echoes the discouraging economic data released during the quarter. (BT)

Taiwan: Taiwan GDP rises least in two years
Taiwan’s economy expanded at the slowest pace in two years last quarter as a faltering global recovery hurt exports, prompting the government to cut its growth outlook for this year and 2012. Gross domestic product climbed 3.37% in the three months through September from a year earlier, after rising 5.02% in the second quarter, the statistics bureau said in a preliminary estimate in Taipei yesterday. The median of 13 forecasts in a Bloomberg News survey was for a 3.56% gain. Europe’s debt crisis and elevated US unemployment have sapped demand for Asian exports, contributing to an easing in economic growth in nations from China to South Korea. (Bloomberg)

EU: Spain economy stalls in third quarter, adding to government’s difficulties
The Spanish economy stalled in the third quarter as unemployment surged, adding to the Socialist government’s difficulties three weeks before a general election. Gross domestic product stagnated from the previous quarter, when it grew 0.2%, the Bank of Spain in Madrid estimated today. From a year earlier, GDP rose 0.7% in the third quarter. Internal demand fell while exports and tourism bolstered the economy, the central bank said. Prime Minister Jose Luis Rodriquez Zapatero’s plan to cut Spain’s borrowing costs from euro-era records has crimped domestic demand while eroding the Socialists’ popularity as they reduced public wages and froze pensions. (Bloomberg)

EU: Europe seeking crisis-fighting funds faces resistance before Cannes G-20
European governments are running into initial resistance as they seek to use this week’s Group of 20 summit to turn early praise for their revamped crisis- fighting strategy into financial support. The G-20 leaders convene 3 to 4 Nov in Cannes, France, a week after euro-area authorities pledged to magnify the capacity of their rescue fund to EUR1trn (USD1.4trn) and look beyond their borders for help in doing so as they combat the debt turmoil posing the biggest threat to global growth. While the help of China and cooperation of the International Monetary Fund were immediately sought, pledges of hard cash are proving hard to come by as G-20 members press for more details of the plan. (Bloomberg)

US: Business activity grows as factories accelerate economic recovery
Business activity in the US expanded in October at about the same pace as in the prior month, a sign overseas demand and business investment will help keep the economy expanding. The Institute for Supply Management-Chicago Inc. said today its business barometer decreased to 58.4 in October from 60.4 the prior month. A level of 50 is the dividing line between expansion and contraction. The group’s employment gauge climbed to a six-month high. Improving consumer spending is lifting sales at manufacturers like Chrysler Group LLC, combined with rising demand from emerging economies and the need to replace outdated equipment, means assembly lines will keep humming. (Bloomberg)

US: Raises borrowing estimates on spending, lower revenue
The US Treasury Department raised its estimate for fourth-quarter government borrowing by USD21bn to USD305bn, reflecting in part lower revenue and higher spending. The estimates set the stage for the Treasury’s quarterly refunding announcement later this week. Officials on 2 Nov will reveal their plans for sales of longer-term notes and bonds during the current quarter. “The increase in borrowing relates to lower receipts, higher outlays and changes in the cash balance assumptions partially offset by higher net issuances of state and local government series securities,” the Treasury said in a statement today in Washington, revising upward the fourth-quarter projection of about USD285bn made three months ago. (Bloomberg)

US stocks decline amid growing concern about European funding
US stocks slumped, giving the S&P 500 Index its biggest decline in almost a month, amid concerns European leaders will struggle to raise funds to contain the region’s sovereign debt crisis. Stocks extended losses in the final hour of trading after Greek Prime Minister George Papandreou said he will put the European Union’s new agreement on financing for Greece to a referendum. The S&P 500 dropped 2.5% to 1,253.30, erasing its 2011 gain. The Dow Jones Industrial Average lost 2.3% to 11,955.01. (Bloomberg)

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