US nonfarm payrolls showed a lost of 36,000 jobs in February, fewer than the 68,000 jobs predicted by the market. The results were still worse than the previous month, as just 26,000 jobs were lost in January, according to a revised estimate. But there was no significant change in the number of unemployed workers, and the unemployment rate held steady at 9.7%. Economists surveyed were expecting an increase to 9.8%. The government said the winter storms that blanketed the East Coast with several feet of snow last month possibly skewed the results. (CNN Money)
US consumer credit increased in January for the first time in a year, with total consumer borrowing rising seasonally adjusted US$5bn (-US$4.6bn in Dec 09), or an annual rate of 2.5% to US$2.456tr. Economists surveyed predicted a decline of US$4.5bn in January. (CNN Money)
Two regional Federal Reserve Bank presidents said they believe the central bank should keep rates low until the recovery picks up. Chicago Fed President Charles Evans told reporters he needs to see signs of “highly sustainable” growth before supporting steps toward tighter monetary policy. St. Louis Fed President James Bullard said that, with the economy at an early stage of renewal, policy makers want to remain “very accommodative.” (Bloomberg)
White House adviser Paul Volcker said it's too soon for US policy makers to withdraw the stimulus measures and interest rate cuts used to fight the worst slump since the Great Depression. “This is not the time to take aggressive tightening action, either fiscally or monetary-wise,” said Mr Volcker, pointing to 'high' unemployment. “So I think we have to, as best as we can, maintain the expectation that it will be taken care of in a timely way.” (SBT)
If President Obama's 2011 budget were put into effect as proposed, the US federal government would add an estimated US$9.8tr to the country's accrued debt over the next decade, according to a preliminary analysis from the Congressional Budget Office (CBO). Of that amount, an estimated US$5.6tr will be in interest alone. By 2020, the agency estimates debt held by the public would reach US$20.3tr, or 90% of GDP. That's up from 53% of GDP in 2009. (CNN Money)
French President Nicolas Sarkozy said the euro region is ready to rescue Greece should the government struggle to fund its budget deficit, arguing that the country is “under attack” from so-called speculators. “I want to be very clear: if it were necessary, the states of the euro zone would fulfill their commitments. There can be no doubt in this regard,” he said. (Bloomberg)
It is too early for Japan to end its massive stimulus spending because the world's second biggest economy is still slowly recovering from a severe recession, the finance minister said. "We actually want to move to an exit strategy soon but it would make things worse’” he said. (Channel News Asia)
A plan by Japan to raise the limit on sales of bills used for currency intervention and accounting for earnings on foreign reserves in yen may offer additional funds for a budget hit by dwindling tax revenues. The borrowing ceiling for the so-called foreign-exchange special account will be lifted by ¥5tr (US$56bn) to ¥145tr for the next fiscal year should the parliament approve the proposed 2010 budget. (Bloomberg)
Chinese central bank governor Zhou Xiaochuan said the nation should be careful in exiting anti-crisis policies, suggesting that the government may not let the yuan appreciate soon against the dollar. “We must be very cautious about the timing of normalising the policies, and this includes the renminbi rate policy. A global recovery isn’t solid,” he said. (Bloomberg)
Top Chinese officials said the nation’s trade surplus is shrinking and urged caution in exiting crisis policies, suggesting that the yuan may not appreciate soon against the dollar. The surplus slid by a total 50.2% yoy in January and February, Commerce Minister Chen Deming said. (Bloomberg)
China plans to nullify all guarantees local governments have provided for loans taken by their financing vehicles as concerns about credit risks on such debt surges. The Ministry of Finance will also ban all future guarantees by local governments and legislatures in rules that may be issued as soon as this month, said Yan Qingmin, head of the banking regulator’s Shanghai branch. (Bloomberg)
China said it could take up to three years for its exports to return to pre-financial crisis levels, as the Asian powerhouse shifted its focus to domestic demand. "Our exports have just started growing again. We will need 2-3 years (for exports) to get back to 2008 levels," said commerce minister Chen Deming. He warned the world economy was not yet on a secure footing and it was "too early to say" demand for Chinese exports would grow this year. (Channel News Asia)
Taiwan’s consumer prices rose 2.4% yoy in February (0.3% in Jan) for a second consecutive month as increased demand during the Lunar New Year holiday drove up food and transportation costs. Market projected for a 2.1% gain. (Bloomberg)
Thailand’s foreign-exchange reserves rose 0.9% to US$141.8bn in the week ended 27 Feb, from US$140.6bn a week earlier. The central bank’s holdings of forward contracts fell 5.3% to US$12.5bn in the same period, from US$13.2bn a week earlier. (Bloomberg)
Philippine inflation increased 4.2% yoy in February (4.3% in Jan), which stayed above 4.0% for a third month as oil and food costs rose, putting pressure on the central bank to further withdraw monetary stimulus. Economists forecast it would rise by 4.3% in February. (Bloomberg)
The Singapore Tourism Board forecast visitor arrivals of 11.5m to 12.5m this year, with tourism receipts of S$17.5bn to S$18.5bn. (Bloomberg)
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