20100802 1246 Local & Global Economics News.

China: Manufacturing grows at slowest pace in 17 months
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. The Purchasing Managers’ Index fell to 51.2 from 52.1 in June. (Bloomberg)

South Korea: Consumer prices and exports rose
South Korea’s consumer prices rose 2.6% in July from a year earlier. Exports increased for a ninth month in July as weakness in won and the global economic recovery boosted demand for the nation’s cars, electronic goods and semiconductors. Overseas shipments increased 29.6% from a year earlier. (Bloomberg)

Australia: RBA may extend rate pause, averting damage to Gillard
Australia’s central bank may keep its benchmark interest rate unchanged for a third month after inflation slowed, averting an increase in mortgage costs that risked damaging Prime Minister Julia Gillard’s election campaign.. (Bloomberg)

EU: Banks on Europe’s edge face USD122bn bill
Banks in Europe’s most indebted nations need to refinance USD122bn of bonds this year, likely paying high interest costs even after receiving a clean bill of health from regulators. Italian banks must refinance a total of USD69bn of bonds this year and USD157bn in 2011, while Spanish lenders have USD28bn and USD73bn of debt that needs to be paid. (Bloomberg)

EU: Inflation hits 20-month high, jobless at 10%
European inflation accelerated to the fastest pace in more than 20 months on rising energy costs and unemployment held at the highest in almost 12 years. Euro-area consumer prices rose 1.7% from a year earlier in July after increasing 1.4% in June. Jobless rate remained at 10% for a fourth month in June. (Bloomberg)

US: Lack of consumer spending points to economic slowdown
The world’s largest economy will probably keep cooling in the third quarter as a lack of jobs prompts American consumers to rein in spending. The economy in the US grew at a slower-than-forecast 2.4% annual rate from April through June after expanding at a 3.7% pace in the previous 3 months. Household purchases climbed at a 1.6% rate following a 1.9% gain that was smaller than previously estimated. (Bloomberg)

US: Financial system may need USD76bn in capital, says IMF
The US financial system remains fragile and banks subjected to additional economic stress might need as much as USD76bn in capital, according to results of IMF stress tests. The findings suggested that while the nation’s banking system is stable, it remains vulnerable. Home prices, commercial real estate loans and economic growth have the potential to cause shocks that could expose banks to more losses. (Bloomberg)