Japan: S&P signals downgrade on the horizon
S&P yesterday said Japanese Prime Minister Yoshihiko Noda's administration had not made progress in tackling the public debt burden, an indication it might be preparing to lower the nation's sovereign grade. "Japan's finances are getting worse and worse every day, every second … It may be right in saying that we are closer to a downgrade but the deterioration has been gradual so far," said S&P director of sovereign ratings Takahira Ogawa. (Bloomberg)
Taiwan: GDP rises at slowest pace since 2009
Taiwan cut its growth forecasts for this year and next after the island’s economy expanded at the slowest pace since 2009 last quarter, underscoring concern that a faltering global recovery is threatening Asia. GDP rose 3.4% in 3Q11 against a revised 4.5% registered in 2Q11. The statistics bureau lowered its 2011 expansion forecast to 4.5% and said growth will be 4.2% next year. The government previously estimated a 4.6% expansion for 2011 and 4.4% growth in 2012. (Bloomberg)
UK: Economic growth accelerates, boosted by stockbuilding
UK economic growth accelerated in the third quarter as stockbuilding and government spending offset weak consumer market spending and business investment. GDP rose 0.5% from the previous quarter, when it increased 0.1%. Consumer spending was flat on the quarter, while investment fell 0.2%. (Bloomberg)
EU: Merkel holds out on bigger ECB role
German Chancellor Angela Merkel again ruled out joint euro-area borrowing and an expanded role for the European Central Bank in fighting the debt crisis. “Euro bonds would level the difference in euro-region interest rates. It would be a completely wrong signal to ignore those diverging interest rates because they're an indicator of where work still needs to be done,” she said. (Bloomberg)
Germany: Business sentiment unexpectedly rose in November
German business confidence unexpectedly rose for the first time in five months in November, defying Europe’s worsening debt crisis. The Munich-based Ifo institute’s business climate index, based on a survey of 7,000 executives, increased to 106.6 from 106.4 in October. (Bloomberg)
Germany: Consumer, company spending boosted 3Q11 growth
Germany’s third-quarter economic rebound was driven by consumer and company spending even as the debt crisis threatened to drag the euro area into recession. Private consumption expanded 0.8% from the second quarter and company investment in plant and machinery jumped 2.9%. GDP advanced 0.5% from the previous three months, marking acceleration from the 0.3% growth notched in the second quarter. (Bloomberg)
Investments in Malaysia may drop-off next year, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. Exports may grow 8-9% this year, he noted. Malaysia is on an investment drive to hit an average of 12.8% in annual growth in private investment till 2015 under its 10th Malaysia Plan, although investments grew only 2% on average in 2006-10. To hit the growth target, the country would need to generate an average of RM115bn in private investment annually. So far, some RM15bn worth of ETP related investments have been committed for 2011 of which 66% or RM10bn have actually started as at 15 Oct, he added. (Malaysian Insider)
Inflation is no longer a concern as it has already peaked according to Minister in the Prime Minister's Department in charge of the Economic Planning Unit, Tan Sri Nor Mohamed Yakcop. The recent Oct consumer price index of 3.4% yoy was not a concern although it was 0.2% higher mom, which was attributed to higher food and transport cost, he said. “My view is inflation has peaked and we will see it moderating in the next few months,” he noted. On growth, although 2012 will be a challenging year as the global economic situation is not strong, he maintained his growth forecast of 5-6% as the government would have already started on projects and policies which are pro-growth. (Financial Daily)
India approved allowing overseas companies to own as much as 51% of retail chains that sell more than one brand. Overseas retailers may be required to invest a minimum of US$100m in India, with at least half of the total investment in back-end infrastructure. (Bloomberg)
India’s food inflation moderated to 9.0% yoy in the week ending 12 Nov from 10.6% in the previous week. (Bloomberg)
Consumer prices in Vietnam rose 19.83% yoy, after climbing 21.59% in Oct, the General Statistics Office said in Hanoi today. Prices rose 0.39% mom in Nov. (Bloomberg)
Vietnamese exports rose to US$8.6bn in Nov from US$8.39bn last month, the Statistics Office said. Exports in 11M11 climbed 34.7% yoy (+34.6% last month) to US$87.2bn. The country posted a US$700m trade deficit in Nov. (Bloomberg)
China's factory growth in 2012 is likely to fall by 1-2% pts from 11% this year due to weakening global demand, the Ministry of Industry and Information Technology said on Thursday. (Reuters)
China's recent move to revise reserve requirements for several rural banks does not amount to a cut in their reserve requirement ratio, the central bank was quoted as saying on Thursday. Some investors had speculated that the adjustment was part of a government campaign to relax monetary policy in some quarters of the economy. But the Financial News, published by the People's Bank of China, quoted the central bank's Zhejiang branch as saying that the fall in the reserve requirement ratio for six rural banks to 16% had kicked in automatically after a one-year policy plan expired this month. (Reuters)
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