U.S: Government closure would delay economic data releases. A partial shutdown of the federal government forced by the budget impasse in Congress would delay release of U.S. economic data, making it more difficult to determine the influence on growth of the recent jump in commodity prices. About 800,000 government workers would be affected by a shutdown, an administration official said. That would include staff at the Labor and Commerce Departments who compile information on everything from consumer prices and the unemployment rate to retail sales and trade. (Source: Bloomberg)
E.U: Labor productivity increased in March at the strongest pace since July, Markit Economics said. The seasonally adjusted EU Productivity purchasing managers index increased to 54.2 last month from 53.9 in February, Markit said in a report. "The expansion was again broad-based by nation and industry," it said. (Source: Bloomberg)
China: Will increase gasoline, diesel, jet fuel prices, according to the National Development and Reform Commission. The ceiling for gasoline prices will rise by CNY 500 (USD 76.40) a metric ton and for diesel prices by CNY 400, the nation's top planning agency said in a statement on its website. The cost of No. 3 jet fuel will rise by CNY 500 a ton to CNY 6,840, it said in a separate statement. (Source: Bloomberg)
Taiwan: Consumer prices rose by the most in four months in March as food and transportation costs increased, supporting the case for the central bank to raise borrowing costs again. The consumer price index climbed 1.41% YoY, compared with a 1.33% YoY advance in February, the statistics bureau said in Taipei. (Source: Bloomberg)
Australia: Home-Loan approvals declined for a second month in February as floods and a cyclone disrupted the housing market on the nation's east coast. The number of loans granted to build or buy houses and apartments dropped 5.6% MoM from January, when they fell a revised 6.3% MoM, the statistics bureau said in Sydney. (Source: Bloomberg)
US: Service industries in US expand less than forecast on higher fuel costs
Service industries in the US grew less than forecast in March, showing higher fuel costs are raising concern sales will cool. The Institute for Supply Management’s index of non- manufacturing companies fell to 57.3 from 59.7 in February, lower than the 59.5 median forecasts of economists surveyed by Bloomberg News. Readings greater than 50 signal growth. Unrest in the Arab world has caused gasoline prices to climb to the highest level in more than two years, representing a headwind for consumer spending, while the aftermath of the disaster in Japan may disrupt supplies to American factories. Minutes of the Federal Reserve’s meeting last month, which took place before the latest run-up in prices, showed policy makers were divided over when to begin removing record stimulus. (Bloomberg)
US: Lockhart says FED unlikely to tighten us monetary policy before year-end
Federal Reserve Bank of Atlanta President Dennis Lockhart said he doesn’t expect the central bank to tighten US monetary policy by the end of the year with inflation low and the economic recovery fragile. “I wouldn’t rule it out entirely, but at this stage I personally am not leaning in the direction of thinking that is absolutely required,” Lockhart said to reporters today during an Atlanta Fed conference at Stone Mountain, Georgia. (Bloomberg)
UK: UK manufacturing production unexpectedly stalls, casts doubt on rebound
UK manufacturing growth unexpectedly stalled in February as declining production of goods from chemicals to plastics dented the industrial recovery. Factory output was unchanged from January, when it rose 0.9%, the Office for National Statistics said today in London. The median forecast of 26 economists in a Bloomberg News survey was a 0.6% increase. Overall industrial production unexpectedly slumped by 1.2% as oil output fell. The report casts doubt on the strength of the economy’s rebound from a contraction in the fourth quarter at a time when higher raw-material costs threaten to squeeze manufacturers’ margins. The Bank of England may maintain its emergency stimulus program tomorrow to support the recovery during the government’s budget squeeze. (Bloomberg)
Portugal: Seeks EU bailout, joining Greece, Ireland
Portugal will seek a bailout from the European Union after the nation’s political crisis helped push borrowing costs to record levels and forced it to become the third euro-region country to seek a rescue. “I tried everything but we came to a moment that not taking this decision would bring risks we can’t afford,” Prime Minister Jose Socrates said in a televised statement from Lisbon late yesterday. “The government decided to make the European Commission a request for financial aid.” Portugal is seeking a rescue that may be worth as much as EUR75bn (USD107bn), according to two European officials with knowledge of the situation. Bond yields have surged since Socrates offered to resign on 23 Mar after parliament rejected proposed budget cuts, leaving him in charge of a caretaker government with limited powers until a 5 June election. (Bloomberg)
China: Swaps signal further rate increases adding to Yuan pressure: China credit
The cost of fixing borrowing costs in China suggests policy makers will raise interest rates at least once more this year as food and fuel costs surge, adding pressure on the Yuan to strengthen. The five-year non-deliverable swap rate jumped 26 basis points in the past three weeks to 4.23%, after a report showed a higher-than-forecast inflation rate of 4.9% in February. The People’s Bank of China’s latest increase was announced yesterday before an 15 Apr report that will show consumer prices climbed 5.2% in March, according to the median estimate in a Bloomberg News survey of nine economists. (Bloomberg)
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