Australia: Producer prices rose more than economists forecast in 1Q11 as costs for petroleum refining and electricity, gas and water increased. The producer prices index advanced 1.2% QoQ in the January-to-March period from the prior quarter, when it gained 0.1% QoQ. The index rose 2.9% YoY. (Source: Bloomberg)
China: Open to buy more bonds of indebted Euro-area countries
China is open to buying more bonds of indebted euro-area nations as part of a strategy to bolster the European Union economy and diversify away from investments in U.S. debt, said the Chinese ambassador to the EU. Song Zhe said China owns “several billion euros” of bonds sold by Greece and Portugal and might embark on another round of purchases of sovereign debt in the euro area. Song said China believes the EU can overcome the euro area’s debt crisis, which was triggered by Greece last year and has since engulfed Ireland and Portugal. With the International Monetary Fund, the EU organized a EUR110bn rescue of Greece last May and a EUR85bn bailout of Ireland in November and is now preparing EUR80bn in emergency aid for Portugal. (Bloomberg)
Japan: Compiles USD 49b extra budget for quake relief efforts. The government will fund the budget without increasing the JPY 44.3tr in new bond issuances set for the year ending March 2012, according to a government statement released in Tokyo. The outlays will be financed by using JPY 2.5tr from pension funds as well as money originally intended to increase payments to family with children. (Source: Bloomberg)
Japan: Demand for bank loans rose for the first time in two years as the nations strongest earthquake on record spurred companies to borrow. An index of demand for loans to businesses was at 8 in the period between March 11 and April 12, the Bank of Japan said in a survey of loan officers in Tokyo. It was the first positive reading since April 2009, a sign demand increased. (Source: Bloomberg)
Japan: OECD halves growth forecast to 0.8%
The impact of last month's devastating quake-tsunami disaster will slash Japan's economic growth to 0.8% this year, the Organization for Economic Cooperation and Development (OECD) said yesterday, halving its earlier forecast of 1.7%. But massive government and business investment in reconstruction is expected to drive a sharp rebound in 2012, with the economy seen expanding 2.3%, up from the OECD's previous estimate of 1.3% given in a November report. “While it is still too early to assess the full extent of the damage, the immediate impact will be to reduce output, although this will later be reversed by reconstruction efforts,” the Paris-based OECD said. (StarBiz)
Germany: Business confidence fell for a second month in April
German business confidence fell for a second month in April after oil prices rose to the highest in 2 1/2 years, damping the global economic outlook and threatening to curb domestic consumer spending. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped to 110.4 from 111.1 in March. The index rose to 111.3 in February, the highest since records for a reunified Germany began in 1991. (Bloomberg)
U.K: Budget deficit narrowed in March and remained within Chancellor of the Exchequer George Osbornes borrowing plans for the year. Net borrowing was GBP18.6b (USD30.7b), compared with GBP10.1b a year earlier, the Office for National Statistics said in London. The annual shortfall was GBP141.1b, below a government forecast of GBP145.9b. (Source: Bloomberg)
UK: Retail sales unexpectedly rose in March on food spending
UK retail sales unexpectedly rose in March as the biggest jump in spending on food in 10 months outweighed a decline at other shops. Sales rose 0.2% from February, when they dropped 0.9%, the Office for National Statistics said today in London. From a year earlier, sales increased by 1.3%. The report suggests a surge in commodity prices and inflation that’s double the central bank’s 2% target has yet to squeeze shoppers at a time when the government’s fiscal cuts have dragged down confidence. The Bank of England kept its benchmark interest rate at a record low of 0.5% this month and minutes of the meeting show officials saw risks that an increase to tame price gains could dent spending. (Bloomberg)
US: Leading indicators, consumer confidence climb
The index of US leading indicators increased for a ninth month in March and Americans’ confidence rose for a fourth week, signaling the expansion may withstand higher fuel costs. The Conference Board’s gauge of the outlook for the next three to six months rose 0.4% after a revised 1% gain in February that was larger than previously estimated, the New York-based group said today. Further improvement in the labor market is needed to help accelerate consumer spending, which accounts for about 70% of the economy, and sustain recent gains in production. (Bloomberg)
U.S: Philadelphia area manufacturing slowed in April as measures of orders and sales fell. The Federal Reserve Bank of Philadelphias general economic index dropped to 18.5, the lowest level since November, from 43.4 the prior month which was the highest level since 1984. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware. (Source: Bloomberg)
U.S: Initial jobless claims declined less than forecast, indicating the labor market will take time to improve. Jobless claims decreased by 13,000 to 403,000 in the week ended April 16. The number of people on unemployment benefit rolls and those receiving extended payments declined. (Source: Bloomberg)
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