Friday, March 23, 2012

20120323 0955 Local & Global Economy Related News.

Economy: Bank Negara’s international reserves at RM427bn
Bank Negara Malaysia (BNM)’s said its international reserves totaled RM427bn (US$134.8bn) as at Mar 15. It added that the international reserves were sufficient to finance 9.7 months of retained imports and was 4.1 times the short-term external debt. (Financial Daily)

US: Optimism for outlook reaches 8-year high
The number of Americans saying the US economy is getting better rose in Mar to the highest level since 2004 as a decline in claims for unemployment benefits offered more evidence of a labor-market recovery. 34% of respondents to Bloomberg’s monthly consumer expectations survey said the economy was improving, the largest share since Jan 2004. The pickup boosted the monthly expectations index to the highest in a year. Figures from the Labor Department showed jobless claims decreased by 5,000 to 348,000 in the week ended Mar 17, the fewest since Feb 2008. (Bloomberg)

US: Jobless claims fall 5,000 to 348,000
Applications for weekly unemployment benefits set a new four-year low in another sign that the US labor market continues to gradually improve. Initial claims fell by 5,000 to a seasonally adjusted 348,000, the lowest level since February 2008. Claims from the prior week were revised up to 353,000 from an original reading of 351,000. (MarketWatch)

EU: Euro-area services, manufacturing contracted in Mar
Euro-area services and manufacturing output contracted more than economists forecast in Mar, adding to signs the economy has slipped into recession. A euro-area composite index based on a survey of purchasing managers in both industries dropped to 48.7 from 49.3 in February, London-based Markit Economics said in an initial estimate Thursday. Economists forecast a gain to 49.6, according to the median of 21 estimates in a Bloomberg News survey. A reading below 50 indicates contraction. (Bloomberg)

UK: Osborne’s budget revenue forecasts called into doubt by IFS
The Institute for Fiscal Studies said that the revenue assumptions used in UK Chancellor of the Exchequer George Osborne’s in his budget that may turn out to be overoptimistic. The research group questioned whether Osborne’s decision to lower the top rate of income tax to 45% from 50% next year will only cost 100m pounds ($158m) a year, as the chancellor said Wednesday. It said there are also concerns about whether caps on relief for higher-rate taxpayers will bring in 300m pounds and an increase in stamp duty on purchases of the most expensive houses and apartments will produce 300m pounds as Osborne expects. (Bloomberg)

UK: Retail sales decline more than economists forecast
UK retail sales fell more than economists forecast in Feb as households curtailed spending after a weaker-than-estimated increase the previous month. The Office for National Statistics said sales including fuel fell 0.8% from Jan, the most in 9 months. Economists forecast a 0.5% decline, according to the median of 23 estimates in a Bloomberg News survey. The increase in Jan was revised to 0.3% from 0.9%. (Bloomberg)

China: Factory activity shrinks for 5th month
The HSBC flash purchasing managers index showed that China's manufacturing sector activity shrank in Mar for a fifth successive month, with the overall rate of contraction accelerating and new orders sinking to a four-month low. The PMI, the earliest indicator of China's industrial activity, fell back from Feb's 4 month high, slipping to 48.1, within a whisker of the level that economists at HSBC consider a crucial level dividing decline from growth. Slowing activity could mean a further relaxation of monetary policy to help underpin growth in the world's second biggest economy, but lingering inflation risks uncovered by the survey highlight the dilemma facing China's policymakers who are determined to keep a lid on prices. The PMI reading, down from February's 49.6, is likely to reinforce the more bearish views on China's economic trajectory. (Reuters)

India: Gopalan says may cut rates in Apr as prices ease
Economic Affairs Secretary R. Gopalan said the Reserve Bank of India may start cutting interest rates from April as easing inflation gives the central bank room to bolster growth. He also said that the inflation rate may be 6.5% to 6.7% for the year starting Apr 1. It was 6.95% in Feb, close to a 26-month low, after exceeding 9% for most of 2011. The central bank kept borrowing costs unchanged for a third straight meeting last week, and has said cuts will depend on a sustained easing of prices. (Bloomberg)

Japan: Unexpected trade surplus adds to rebound signs
Japan reported an unexpected trade surplus for Feb and higher-than-forecast exports, adding to evidence of a rebound in the world’s third-biggest economy. The finance ministry said overseas shipments dropped 2.7% from a year earlier. The median forecast of 28 economists surveyed by Bloomberg News was for a 6.5% decrease. Imports rose a morethan-estimated 9.2%, leaving a surplus of 32.9bn yen ($395m). (Bloomberg)

Argentina: Consumer confidence index falls In March
A closely watched gauge of consumer confidence in Argentina fell to its lowest level in a year-and-a-half in March as Argentines were less upbeat about the economy and their personal situation, according to a report Thursday by Torcuato di Tella University. The university's consumer confidence index fell 4.6% on the month to 50.22, and was down 12.5% from March 2011. It was the index's lowest level since October 2010. (Dow Jones)

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