Monday, July 16, 2012

20120716 1055 Local & Global Economy Related News.

Malaysia-France trade reached RM16bn in 2011
Malaysia-France bilateral trade has been increasing sharply, clinching a record level of EUR4bn (RM16bn) last year, French Ambassador to Malaysia Martine Dorance said last Friday. Malaysia is now France’s second-largest partner, with exports totaling EUR2.2bn, mainly electronics and computer components at EUR1.2bn. Other sectors include rubber products, mineral products and petroleum products. (Malaysian Reserve)

Bank Negara Malaysia Governor, Tan Sri Zeti Akhtar Aziz, on 13 July said Malaysia's financial institutions were strong enough to face the impact of Europe's debt crisis following revelations that the European banks' exposure was estimated at less than 5% of the zone's GDP. (Bernama)

US Thomson Reuters/University of Michigan’s consumer sentiment index fell to 72.0 in Jul (73.2 in Jun), undershooting consensus of 73.5. (Bloomberg)

The US producer price index gained 0.1% mom in Jun (-1.0% in May), better than consensus of -0.4%, whilst on a yoy basis, the measure gained 0.8%, matching the pace of the previous month. (Bloomberg)

German Chancellor Angela Merkel gave no ground on Germany’s demands for more European control over member states in return for joint burden-sharing as she conceded that the bloc has yet to master the debt crisis. (Bloomberg)

Italy plans to sell public assets valued at as much as €20bn annually in order to cut its debt by one sixth within five years, Finance Minister Vittorio Grilli said. (Bloomberg)

Spain's new austerity plan will claw back €56bn (US$69bn) for the state between now and 2014. That figure excluded the effects of a planned energy and environment tax, said the document. The estimated impact of these measures is approximately €13.5bn in the remainder of 2012, €22.9bn in 2013, and €20bn in 2014. (Channel News Asia)

The ECB has advocated imposing losses on holders of senior bonds issued by the most severely damaged Spanish savings banks, though finance ministers have for now rejected the approach, according to people familiar with discussions. (WSJ)

The European Union's bailout fund is working on a €100bn package to prop up Spanish banks. (AP)

The European Union investigation into a “shocking” interest-rate rigging scandal in the world's biggest money market in London also includes Japan, EU Competition Commissioner Joaquin Almunia said. (AFP)

China’s Premier Wen Jiabao warned the momentum for a recovery in economic growth isn’t yet in place and that “difficulties” may persist for a while, but the current pace of economic expansion is within the targeted range and government measures to stabilize growth are “bearing fruit.” (Bloomberg)

China’s wages for urban households rose 13% yoy in 1H, and average monthly income for migrant workers rose 14.9%, according to d China's National Bureau of Statistics. (AWSJ)

China’s retail sales grew 13.7% yoy in Jun (13.8% in May), exceeding economist forecasts of 13.4%. (Bloomberg)

China’s business climate index declined to 126.9 pts in 2Q from 127.3 pts in 1Q. Meanwhile its entrepreneur confidence index weakened to 121.2 in 2Q from 123 pts in 1Q. (Bloomberg)

China's economy reported 7.6% yoy growth in 2Q12 (8.1% in 1Q12), the lowest since 1Q09. This was marginally lower than the 7.7% expected by the market. (China Daily)

China's industrial value-added output expanded 9.5% yoy in Jun, a pace faster than a month ago when it eased to a three-year low of 9.3%. (Xinhua)

China's fiscal revenue in the first half of this year grew 12.2% yoy to nearly Rmb6.4tr (US$1.01tr). (Xinhua)

China's urban fixed asset investment rose 20.4% yoy to Rmb15.07tr (US$2.38 trillion) in 1H12. The growth rate moderated by 0.5% pt compared to that in the first quarter, and was down 5.2% pts from the same period last year. (People’s Daily)

In the first half, land supply in China dropped compared to the same period last year. Land bids with a premium price over 50% decreased to 24 cases from 433 cases a year earlier. (China Daily)

India says it plans to issue fresh guidelines on sweeping new anti-tax evasion rules as it seeks to reassure rattled foreign investors and attract vital funds from abroad. The General Anti-Avoidance Rules (GAAR), introduced in this year's budget, had been widely criticised as a money-grabbing exercise by a government battling to curb its budget deficit. (Channel News Asia)

Singapore’s GDP fell an annualized 1.1% qoq in 2Q12, (+9.4% in 1Q12). The median estimate was for a 0.6% gain. (Bloomberg)

Singapore's retail sales growth almost ground to a halt in May, with just a 0.5% yoy increase (2.1% in Apr), and under expectations of a 2.6% gain. (Channel News Asia)

Bank Indonesia says it is confident inflation remains under control, prompting the central bank to hold its benchmark interest rate unchanged for a fifth consecutive month at 5.75%, last week. (Business Times)

The World Bank projects Indonesia’s economic growth in 2012 could fall to as low as 5.7% if the global crisis worsens. (IFT)

Bank Indonesia estimates that capital inflows from Europe will return to Indonesia in 4Q12, following the quantitative easing, bank recapitalization and lower interest rates in Europe. (IFT)

Bank Indonesia will introduce a monetary instrument that allows banks to swap their foreign currency Treasury bonds with foreign currency. This is the central bank’s strategy to deepen the financial market and stabilize the rupiah. (IFT)

The Aquino administration cited its target for the Philippines to land in the upper 30% of competitiveness rankings conducted by key international organizations by 2016. (Philippine Daily Inquirer)

The ADB reduced its inflation estimate for developing Asia to 4.4% this year from 4.6% in Apr. It cut its 2012 growth forecast for Asian economies excluding Japan to 6.6% from 6.9%, citing the impact of Europe’s debt crisis and slower expansion in China and India. (Bloomberg)

Thailand's ruling party said on Friday it would push ahead with plans to change the constitution after a court ruled that proposed amendments did not threaten the revered monarchy, a charge that might have led to the party's dissolution. The decision means the government is not in danger of falling and should ease political tensions that have spiraled in Thailand over the past few days. (Reuters)

The State Bank of Vietnam said the bad debt situation in the banking system is not as bad as feared by the public. (The Saigon Times)

The Economic Cycle Research Institute weekly leading index rose to 123.2 in the week ended July 6 from 121.9 the previous week, the highest level since May 11, when it was 124.5. The index's annualized growth rate rose to -2.2% from -2.8% a week earlier. (Reuters)

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