20100825 1000 Local & Global Economic News.

Malaysia: BNM says ringgit move will boost trade
Recent moves to allow the ringgit to be used more widely for trade settlement will bolster the country's trade with major Asian trading partners, the central bank said. "The recent changes in the foreign exchange administration rules are part of the liberalization process aimed at achieving greater efficiency in the conduct of international trade as well as promoting a conducive business," (Financial Daily)

Singapore: Bond sales beat record as economy fires, costs plunge
Singapore bond sales are accelerating as companies on an island vying for the title of world’s fastest-growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1bn this year, topping the record USD13.2bn of notes sold in 2001. (Bloomberg)

India: Curbing inflation is its priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report. “Inflation has emerged as a major concern,” (Bloomberg)

Japan: Currency moves ‘one-sided’ as yen climbs
Japan’s Finance Minister Yoshihiko Noda said recent currency movements have “clearly” been one-sided as the yen climbed to its highest level since 1995 against the dollar and more than an eight-year high against the euro,, referring to the yen’s advance against the dollar and the euro. (Bloomberg)

EU: German exports, investment drove second-quarter GDP
Exports and investment fueled Germany’s record economic growth in the second quarter, a detailed breakdown of the data showed. Exports rose 8.2% from the first quarter and equipment investment increased 4.4%, the Federal Statistics Office in Wiesbaden said. Gross domestic product surged 2.2% when adjusted for seasonal swings. (Bloomberg)

US: Home sales plunge as tax credit wanes
Sales of existing houses plunged by a record 27% in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the US economic recovery. Purchases plummeted to a 3.83m annual pace, the lowest in a decade of record keeping, figures from the National Association of Realtors showed. (Bloomberg)

E.U: Industrial orders rose more than economists forecast in June . Orders in the 16 nation euro area increased 2.5% MoM from May, when they jumped 4.1% MoM, the European Union's statistics office in Luxembourg said. (Source: Bloomberg)

Germany: Exports, investment fueled economic growth in 2Q10 , a detailed breakdown of the data showed. Exports rose 8.2% QoQ from the first quarter and equipment investment increased 4.4% QoQ. GDP surged 2.2% QoQ when adjusted for seasonal swings. That's the fastest since records for a reunified Germany began in 1991. (Source: Bloomberg)

Ireland: Cut one step by S&P as bank rescue costs rise . Ireland's long-term sovereign credit rating was cut one step to AA by Standard & Poor's on concern about the rising cost of supporting the country's struggling banks. S&P raised its estimate for recapitalizing the banking system to as much as EUR 50b (USD 63b) from a previous estimate of as much as EUR 35b. (Source: Bloomberg)