20101126 1008 Global Economics News.

Japan's core consumer prices fell in October from a year earlier, down for the 20th consecutive month as persistent deflation, a strong yen and slowing global growth threaten the economy's outlook.Although

the pace of deflation narrowed markedly, that was largely due to a cigarette tax hike that took effect in October, doing little to ease concerns about the impact of a yen's rise [JPY=X 83.72 0.12 (+0.14%) ] and a slowing economy on the underlying price trend.

Vietnam: Trade deficit widens, adding Dong pressure
Vietnam’s trade deficit widened in November from October, threatening to put pressure on the country’s currency, which has already been devalued three times in the past year. The shortfall widened 16% to USD1.25bn from a revised USD1.08bn in October, according to preliminary figures released by the General Statistics Office in Hanoi. The trade gap was USD10.66bn in the 11 months through November. (Bloomberg)

Japan: Export growth slows more than forecast
Japan’s export growth slowed more than forecast in October, weakening the boost from trade that has led the nation’s recovery from its deepest postwar recession. Overseas shipments increased 7.8% from a year earlier, the Finance Ministry said. The median estimate of 21 economists surveyed by Bloomberg News was for a 10.7% gain. (Bloomberg)

China: Q3 current account surplus doubles
China's current account surplus more than doubled in the third quarter of 2010 from the same period last year, official data showed, propelled by strong demand for Chinese-made products. The current account surplus -- the broadest measure of trade with the world -- rose 103% to USD102.3bn between July and September, the State Administration for Foreign Exchange said on its website. For the first nine months, the current account surplus expanded by 30% y-o-y to USD204bn, the data showed. (BT)

China: PBOC plans to strengthen liquidity management
The People’s Bank of China said it will strengthen liquidity management and “normalize” monetary conditions, reinforcing forecasts for higher interest rates to combat the highest inflation rate in two years. The nation will use quantitative and price tools to manage liquidity, Hu Xiaolian, a central bank deputy governor, said in a statement on the bank’s website. PBOC adviser Xia Bin said at a conference in Shanghai that both higher rates and bank reserve ratios may be needed to control liquidity. (Bloomberg)

EU: No risk of euro zone breakup in Irish crisis
Senior euro zone officials dismissed any risk of the single currency area breaking up after financial markets, alarmed by Ireland's debt crisis, forced the borrowing costs of Portugal and Spain to record highs. "There is zero danger," Klaus Regling, chief of the euro's financial safety net, European Financial Stability Facility (EFSF), told German daily Bild in an interview when asked if the euro zone could break apart. "It is inconceivable that the euro fails," he said. (BT)

EU: ECB may yet delay exit
The European Central Bank (ECB) may have to delay its exit from emergency measures again as Ireland’s bailout fails to stern the region’s sovereign debt crisis. Investors are dumping Spanish and Portuguese bonds on concern they will have to follow Ireland and Greece in asking for European Union bailouts, making it more difficult for the ECB to proceed with its withdrawal of liquidity support for banks. (Starbiz)