Friday, October 15, 2010

20101015 1011 Global Economics News.

Singapore: Risks recession bump on road to world’s fastest economy
A slide in Singapore’s manufacturing in the second half of 2010 risks pushing the country into its second recession in as many years even as the economy stays in the running to be the world’s fastest growing for the full year. The 19.8% annual rate of decline in GDP in the third quarter halted a record pace of expansion in the first half, according to a trade ministry report. The government says the economy may expand as much as15% this year, a prediction echoed by the International Monetary Fund and eclipsed only by Qatar, which is forecast by the lender to grow 16%. (Bloomberg)

China: Economy to slow in 2011, inflation under control
China's economic growth in 2011 will probably be marginally weaker than economists had expected three months ago as the government maintains its curbs on credit growth, according to a Reuters poll. The normalization of monetary policy will meet its objective in controlling inflation, the poll also showed. The median forecast of 27 analysts is for China's GDP to grow 10% in 2010, the same as in the previous poll published in July. They expect economic growth to slow to 8.9% in 2011. That compared to 9.0% in the previous quarterly poll. (Bloomberg)

South Korea: Holds key rate as won surge imperils exports
The Bank of Korea left borrowing costs unchanged for a third straight month as an appreciating won threatens export growth while offering a damper for inflation in Asia’s fourth-largest economy. Governor Kim Choong Soo and the policy board kept the seven-day repurchase rate at 2.25%, the central bank said in Seoul. Six of 10 economists surveyed by Bloomberg News forecast the decision. The rest predicted a 0.25 percentage point increase, following a similar move in July from a record- low 2%. (Bloomberg)

EU: German institutes say economy to grow 3.5% in 2010
The German economy, Europe’s largest, will expand more than twice the pace previously projected this year as consumers step up spending, the country’s leading institutes said in a twice-yearly joint forecast. GDP will rise 3.5% in 2010 and 2% in 2011, the institutes said. In April, they forecast the economy to expand 1.5% this year and 1.4% next year. That was before the Federal Statistics Office in Wiesbaden said surging exports helped fuel the fastest expansion in two decades in the second quarter. (Bloomberg)

US: Trade gap grows, jobless claims rise
Companies in the US are buying more foreign-made semiconductors and cars as they invest in equipment and build stockpiles, while also keeping a tight rein on payrolls, reports showed. The trade deficit widened 8.8% to USD46.3bn in August from USD42.6bn the prior month as a rise in imports swamped gains in exports, Commerce Department figures showed. The number of Americans filing claims for jobless benefits unexpectedly climbed by 13,000 to 462,000, according to the Labor Department. (Bloomberg)

US: Producer prices rose in September on food, fuel
Wholesale costs in the US for goods other than food and energy rose in September for a second month at a pace that suggests limited demand is restraining inflation. The so-called core producer price index increased 0.1% last month, Labor Department figures showed. Including volatile food and energy costs, wholesale prices rose 0.4%, exceeding the median estimate in a Bloomberg News survey of economists. (Bloomberg)

U.S: Jobless claims unexpectedly increased by 13,000 to 462,000 in the week ended Oct. 9. The total number of people on unemployment insurance rolls decreased to the lowest level since November 2008, while those getting extended benefits declined. (Source: Bloomberg)

U.S: Home seizures reach record in September as lenders review foreclosures . Lenders took over 102,134 properties last month, RealtyTrac Inc. said in a report. That was the highest monthly tally since the company began tracking the data in 2005, surpassing the August record of 95,364. Foreclosure filings, including default and auction notices, rose 3% MoM to 347,420. One out of every 371 households received a notice. (Source: Bloomberg)

China: Five-year plan may boost domestic demand as growth slows . The 12th five-year policy statement since the founding of the People's Republic in 1949, the plan will be discussed by top Communist Party officials this month before its formal unveiling at the National People's Congress in March, Bloomberg BusinessWeek reports in its Oct. 18 edition. The 12th Plan is forecast to emphasize a shift to domestic consumption, which makes up around 36% of GDP, and reduce reliance on export manufacturing and heavy industry. The talks come in the aftermath of the deepest drop in global trade since World War II, which, along with U.S. moves toward protectionism over China?s exchange-rate policy, have highlighted the dangers of an export-reliant economy. (Source: Bloomberg)

Japan: September producer prices fell for the first time since July as the yen's gain makes imports cheaper, adding to deflationary pressure on the economy. The amount companies pay for energy and unfinished goods fell 0.1% YoY in September. (Source: Bloomberg)

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