Wednesday, July 4, 2012

20120704 0954 Global Economy Related News.

Malaysia and the US are on the right track towards ever stronger business, political, security and cultural relations, notes US Ambassador to Malaysia Datuk Paul W. Jones, who commended both Prime Minister Datuk Seri Najib Tun Razak and US President Barack Obama who always continued to meet and exchange views in a variety of fields such as entrepreneurship, science and technology, arts, strengthening English and building friendships. (Bernama)

The Purchasing Managers' Index (PMI) for Singapore stayed at 50.4 in Jun, the same as in May. (ST)

The Bank of Thailand lowered its general inflation rate projection for 2012 to 3.3% from 3.5%, as inflation was moving downward in line with the global economic slowdown, according to BoT governor Prasarn Trairatvorakul. (Bangkok Post)

Bank of Thailand Governor Prasarn Trairatvorakul stated that any monetary policy adjustment will be based on prevailing economic conditions, and the interest rate at 3% currently is in favour of the economy, loan growth and consumer demands. (Thai Financial Post)

China: Slowdown cuts luxury spending as Hong Kong retail weakens

China’s slowdown dragged Hong Kong’s retail-sales growth to the weakest pace since 2009, as shoppers visiting from the mainland cut back on purchases of luxury goods such as jewelry and watches. Sales increased 8.8% in May from a year earlier to HKD36b (USD4.6bn), the government said. That was the smallest gain since September 2009, excluding seasonal distortions each January and February. (Bloomberg)


The National Bureau of Statistics and the China Federation of Logistics and Purchasing’s purchasing managers' index for the country's non-manufacturing sector rose to 56.7 in Jun from 55.2 in May, the best reading since a 10-month high of 58.0 recorded in Mar. (Reuters)

A slowing economy, uncertain fuel price regulations, new taxes and a weakening currency have slowed India’s new-car sales to a 2.8% gain in May from 7% the same month a year earlier. (WSJ)

Japan’s labor cash earnings fell 0.8% yoy in May (+0.2% in Apr), whilst manufacturing overtime hours worked rose 12.8% yoy (16.8% in Apr). Total employment gained 0.8% yoy (0.7% in Apr), with manufacturing employment increasing 0.1% yoy (0.0% in Apr). (Bloomberg)

Japan’s monetary base grew 5.9% yoy in Jun (2.4% in May), whilst at a seasonally adjusted annual rate, the measure gained 55.8% (-37.9% in May). (Bloomberg)

Japan pledged to continue providing Vietnam with Official Development Assistance to help develop infrastructure and cope with climate change, Japanese Foreign Minister Koichiro Gemba told visiting Deputy Prime Minister Nguyen Xuan Phuc. (Vietnam News)

Australia: RBA holds key rate at 3.5% as prior cuts buoy growth

Australia’s central bank kept interest rates unchanged at a 2 1/2-year low, saying its recent reductions in borrowing costs will help the economy weather a more subdued global outlook. Governor Glenn Stevens and his board left the overnight cash-rate target at 3.5%, the Reserve Bank of Australia said. The decision was predicted by all 28 economists surveyed by Bloomberg News. (Bloomberg)

UK: Mortgage lending declines, construction shrinks
UK mortgage approvals fell in May and construction shrank at the fastest rate in 2 1/2 years in June, adding to signs the housing market is slowing amid growing concern over the economic outlook. Lenders granted 51,098 loans to buy homes, compared with 51,627 the previous month, the Bank of England said. A gauge of building output based on a survey fell to 48.2 from 54.4 in May, a separate report by Markit and the Chartered Institute of Purchasing and Supply showed. (Bloomberg)

UK: Shop inflation slowest since November 2009, retailers say
UK shop-price inflation slowed in June to the weakest in more than 2 1/2 years as fuel and commodity prices fell, the British Retail Consortium said. Retail prices rose 1.1% from a year earlier, compared with 1.5% in May, the trade group and Nielsen Co. said. Non-food goods prices were 0.3% lower than a year earlier, the fifth consecutive monthly decline. (Bloomberg)

The number of people registered as unemployed in Spain fell by 98,853, or 2.1%, to 4.62m in Jun from the previous month, the steepest fall in unemployment numbers for the month of June since the series began in 1996. (AFP)


The IMF pared its growth forecast for the US economy to 2.0% (2.1% in the Apr forecast), warning that the Obama administration could be slicing the deficit too fast for the weak economy, and that the eurozone crisis and the US’ pre-programmed "fiscal cliff" combination of sharp spending cuts and tax increases at the year-end were veritable threats. (AFP)

US domestic vehicle sales rose to an annualized pace of 10.8m in Jun (10.6m in May), overshooting consensus of 10.0m, whilst total vehicle sales rose to an annualized 14.1m from 13.8m in May, again overshooting consensus of 13.9m. (Bloomberg)

The US ICSC-Goldman Store Sales Index gained 0.2% wow in the 30 Jun week (2.0% in the prior week), whilst on a yoy basis, the measure gained 1.4% (2.7% in the earlier week). (Bloomberg)


US: Orders to US factories rise for first time in three months
Orders placed with US factories rose in May for the first time in three months, easing concern that manufacturing is faltering. Auto sales for June also exceeded analysts’ estimates. The 0.7% increase in bookings followed a revised 0.7% drop in the prior month, the Commerce Department said. The median forecast of economists in a Bloomberg News survey called for a rise to 0.1%. (Bloomberg)

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