20100430 1041 Global Economic News.

US initial jobless claims fell 11,000 to 448,000 in April 24 week after seasonal adjustment. The level was only slightly above the 445,000 level expected by the market. Initial claims were revised up to a 459,000 level in the April 17 week. The number of people filing continuing claims totalled 4,645,000 in the week ended April 17.

• That figure was down 18,000 from the preceding week's revised 4,663,000 claims, and slightly above the 4,625,000 economists expected. Continuing claims were down for the fourth straight week. (CNN Money, Xinhua)

US Treasury Secretary Tim Geithner said the Obama administration continues to encourage China to "shift" to an economic policy that is more focused on domestic consumption, less reliant on exports, and open to currency reforms. Geithner added the administration wants China to "renew the process of reforming their exchange rate so we allow the market to play a greater role in determining the level of that exchange rate." (Xinhua)

President Barack Obama announced he will nominate Federal Reserve Bank of San Francisco President Janet Yellen to serve as vice chairman of the Fed Board of Governors as well as his choices for the two other board vacancies. The trio would lend support to Fed Chairman Ben S. Bernanke as he keeps interest rates low to ensure a sustained recovery and prepares for a potentially reduced role in bank supervision. Yellen would replace Donald Kohn, who said in March he would step down June 23 after a 40- year Fed career. (Bloomberg)

Thailand’s central bank raised its economic growth forecast as exports rebound, even as prolonged political protests threaten the country’s recovery from last year’s slump. Gross domestic product may expand 4.3%-5.8% in 2010, Assistant Governor Paiboon Kittisrikangwan said. That compares with a January forecast of 3.3%-5.3%. (Bloomberg)

Thailand’s economic growth in the first quarter was estimated at between 8%-9% yoy, a Finance Ministry official said. “The first quarter growth is very good, driven by ezxports,”Satit Rungkasiri, chief of the ministry’s fiscal policy office, said. (Malaysia Reserve)

Loans to households and companies in Europe declined in Mar 10 as sluggish economic expansion reduced demand for credit. Loans to the private sector fell 0.2% yoy, their seventh straight annual drop, after declining 0.4% in February. M3 money supply declined an annual 0.1% in Mar 10 (-0.3% in Feb). (Bloomberg)

European confidence in the economic outlook improved to the highest in more than two years amid signs the euro-area recovery is strengthening even as Greece’s fiscal crisis spreads across the region. An index of executive and consumer sentiment in the 16 euro nations rose to 100.6 in April (97.9 in Mar). That exceeded the 99.4 median estimate in a survey. (Bloomberg)

The Bank of Japan will probably keep the benchmark interest rate unchanged and debate whether to expand a credit program at a board meeting today as it gauges the strength of the recovery and outlook for deflation. Governor Masaaki Shirakawa and his colleagues will hold the key interest rate at 0.1%, all 16 economists surveyed said. (Bloomberg)

South Korea’s industrial production grew for a ninth straight month in Mar 10 as the global economic recovery fuels overseas demand for cars and electronics. Output jumped 22.1% yoy (18.8% in Feb), more than the median estimate for a 19.8% gain in a survey. On a mom basis, production increased 1.6%. (Bloomberg)

Discussions on the financial aid package for Greece should conclude “in the next days,” European Union Economic and Monetary Affairs Commissioner Olli Rehn said, after delays in the talks undermined markets across Europe. (Bloomberg)

The IMF said while Greece’s sovereign debt situation has not had a major impact on flows to the Asian region, the main risk scenario is one of worsening global risk aversion, should the jitters spill over to some of the larger European economies. “Problems in Europe could force a further retrenchment of European banks from the region, possibly reigniting some dollar and euro funding pressures in Asian markets.” (Bloomberg)