20100726 1442 Global Economic News.

China: Banks said to see risks in 23% of USD1.1trn loans
Chinese banks may struggle to recoup about 23% of the USD1.1tn they have lent to finance local government infrastructure projects, according to a person with knowledge of data collected by the nation’s regulator. About half of all loans need to be serviced by secondary sources including guarantors because the ventures can’t generate sufficient revenue. (Bloomberg)

Taiwan: Industrial output increased 24.3% in June
Taiwan’s industrial production rose for a 10th straight month in June on increased orders for computers, mobile phones and television screens. Output climbed 24.3% from a year earlier, after rising a revised 31.0% in May. The global recovery spurred exports and factory production, sending Taiwan’s jobless rate to its lowest level in 18 months. (Bloomberg)

South Korea: Economy posted 1.5% expansion in second quarter
South Korea’s economy grew 1.5% in the second quarter from the previous 3 months, the central bank said in Seoul today. From a year earlier, GDP rose 7.2%. (Bloomberg)

India: May raise interest rates as higher prices spark protests
India’s central bank is likely to raise rates for the 4th time since March after a strike to protest rising prices brought much of the nation to a halt this month. The Reserve Bank of India will probably increase its reverse repurchase rate by a quarter point to 4.25%, all 20 forecasts in a Bloomberg News survey showed. (Bloomberg)

EU: Shows strength as UK, German indicators top forecasts
The British economy grew at the fastest pace in 4 years in the second quarter and German business confidence surged to a 3-year high this month, indicating Europe’s recovery may be stronger than forecast. UK’s GDP rose 1.1% in the 3 months through June, almost twice as fast as the 0.6% gain predicted by economists. In Munich, the Ifo institute said its business climate index, based on a poll of 7,000 executives, jumped to 106.2 this month, confounding expectations of a decline. (Bloomberg)

US: Geithner says companies ‘cautious’ about hiring
Treasury Secretary Timothy F. Geithner said US companies scarred by the financial crisis remain very “cautious” and are trying to get more productivity from current employees before hiring new ones. Job growth is “not as fast as we need” and employers “are still cautious, still very cautious,” he said in an interview. (Bloomberg)

Germany: Business confidence unexpectedly surged to a three-year high in July after exports boomed and economic growth accelerated. The Ifo institute said its business climate index, based on a survey of 7,000 executives, jumped to 106.2, the highest since July 2007, from 101.8 in June. (Source: Bloomberg)

Brazil: Fixed-rate bonds are beating inflation-linked debt for a fourth straight month , the longest streak since 2005, after central bankers confirmed investor expectations that consumer price increases are slowing. Fixed-rate bonds gained 1.2% this month, compared with a 0.9% return for notes linked to the IPCA index. (Source: Bloomberg)

Singapore: Consumer prices rose for a sixth month in June as an increase in car and electricity prices pushed transportation and housing costs higher. The consumer price index climbed 2.7% YoY. (Source: Bloomberg)

Vietnam: Inflation slows in July . Consumer prices rose 8.19% YoY this month compared to 8.69% YoY in June. (Source: Bloomberg)