20100505 0950 Global Economic News.

Orders placed with US factories unexpectedly rose in March, propelled by demand for capital equipment and petroleum that signals the US expansion gained speed at the end of the first quarter. The 1.3% increase in bookings matched the prior month’s gain, which was more than twice as large as previously estimated. Sales climbed 2.2%, the most since Nov 07. (Bloomberg)

More Americans signed contracts in March to buy previously owned homes before the expiration of a tax credit that has helped support the housing market. The index of signed purchase agreements, or pending home resales, increased 5.3% to 102.9, after rising 8.3% in February, the National Association of Realtors said. Economists projected a 5% gain. (Bloomberg)

The levy on large financial institutions proposed by the government should be applied for more than 10 years if necessary to recoup the cost of the TARP, US Treasury Secretary Timothy Geithner told Congress Tuesday. He also said the administration is designing the fee in such a way that would lead foreign governments to adopt a similar approach. That said, Geithner repeated such a fee would not be a substitute for tighter capital and liquidity requirements. (Xinhua)

European producer prices rose for the first time in more than a year in Mar 10 as a strengthening economy made it easier for companies to pass on higher costs. Factory-gate prices in the euro region rose 0.9% yoy (revised -0.4% in Feb), the first increase since Dec 08 and in line with economists’ forecasts in a survey. (Bloomberg)

The Reserve Bank of Australia signaled a higher bar for interest-rate increases after becoming the world’s first major central bank to withdraw “emergency” stimulus used during the global financial crisis. Governor Glenn Stevens raised the benchmark rate for a sixth time in seven meetings, to 4.5%, and said lending costs are back to “average” for most borrowers. The bank will hold off on a boost next month, according to all 24 economists surveyed after yesterday’s decision. (Bloomberg)

The U.K.’s recovery from recession is “doomed to disappoint” as the weakness of the pound fails to spur exports, Deloitte LLP economic adviser Roger Bootle said. The boost from the currency will be felt “only gradually” as the economy grows 1% this year and 1.5% in 2011. (Bloomberg)

The euro region faces the danger of further debt crises because of its delay in bailing out Greece and the failure to prepare a system to rescue other nations, former Bank of England policy maker Sushil Wadhwani said. “We don’t really have a credible mechanism in place to deal with potentially Portugal and Spain,” Wadhwani said. “My strong suspicion is that we have recurring sovereign debt crises. Although I’m not sure how long it’ll take for the next one.” (Bloomberg)

Thai protesters plan to extend the siege in Bangkok’s commercial center until Prime Minister Abhisit Vejjajiva announces a date for dissolving parliament after he proposed a Nov. 14 election. Abhisit “needs to announce when he will dissolve the house,” Jatuporn Prompan told supporters last night from the main protest site in Bangkok. “When that is announced, leaders will discuss it and will decide when to end the protest.” (Bloomberg)

The International Monetary Fund said Tuesday the executive board will hold a meeting Sunday to decide on the US$40bn Greek aid package, an IMF spokesperson said. (Xinhua)

Singapore's manufacturing economy expanded for the 12th consecutive month in April on the back of higher orders. The Purchasing Managers' Index (PMI) showed a reading of 51.9, an increase of 0.8 point over the previous month. A reading above 50 indicates that the manufacturing economy is expanding.

• The electronics sector continues to grow for the sixth straight month but at a slower pace at 51.8 points. The data also showed that the stockholdings of finished goods and imports have eased. Meanwhile, employment in the electronics sector continued to expand in April, having moderated in the earlier month. (Channel News Asia)

Thailand’s economy will recover quickly if the political unrest that killed 27 people last month ends “peacefully,” central bank Deputy Governor Bandid Nijathaworn said. Inflationary pressure is expected to rise in 2H10 after most of the government’s subsidy measures expire in June. “The central bank will use monetary policy to control inflation. We will keep core inflation within our target of between 0.5%-3.0%,” he added. (Bloomberg)