20110511 1015 Global Economic Related News.

China: Bigger-than-forecast surplus on record exports
China reported a trade surplus that was more than three times larger than forecast in April as exports surged to a record, bolstering the U.S. case for faster yuan gains as officials from both nations meet for annual talks in Washington. The surplus widened to USD11.4bn and exceeded the forecasts of all 27 economists in a Bloomberg News survey. Exports climbed 30% to USD156bn while import growth slowed to 22%, the customs bureau said today. The rebound in China’s surplus to its highest this year may add pressure on the world’s biggest exporter and holder of foreign-exchange reserves to address imbalances and reduce inflation through steeper yuan appreciation. U.S. Treasury Secretary Timothy F. Geithner and Chinese Vice Premier Wang Qishan pledged yesterday to tackle currency conflicts between the world’s biggest economies. (Bloomberg)

China: Wang calls for shift in China growth model as surplus jumps
China’s vice premier, leading annual economic talks with the U.S., signaled internal divisions over his government’s pledge to reduce reliance on overseas demand as the nation posted a wider trade surplus led by record exports.“The biggest challenge for us in this respect is to make sure that everyone is on the same page,” Wang Qishan said in an interview on the “Charlie Rose” show airing on PBS and Bloomberg Television. “We need to come to the same conclusion that we must transform our economic development pattern.” (Bloomberg)

South Korea: Unemployment rate declines to a 3-month low
South Korea’s unemployment rate fell to a three-month low as an economic recovery spurred hiring at manufacturers and health and social welfare service providers. The jobless rate fell to 3.6 percent in April from 4 % in March, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 12 economists was for a rate of 3.8%. An improving job market, combined with higher energy and food costs that are fueling inflation at home, may compel the Bank of Korea to raise its benchmark interest rate to 3.25% when it meets on May 13. (Bloomberg)

Australia: Cuts spending to fight inflation, set path to surplus
Australia’s government will end 23 years of spending growth to ease inflation from a mining boom and support the return to a budget surplus, even as it plans measures to help companies hurt by a record-high currency. The underlying cash deficit will narrow to AUD22.6bn (USD24.4bn) in the 12 months to June 30, 2012, less than half the AUD49.4bn gap this fiscal year, Treasurer Wayne Swan said in Canberra yesterday. The government plans AUD22.2bn in savings over the next four years that it projects will help deliver a AUD3.5bn surplus in 2012-13, an election year. (Bloomberg)

EU: ECB against Greece debt restructuring
European Central Bank officials warned of catastrophic consequences if Greece was allowed to restructure its sovereign debt. Fellow board member Juergen Stark said restructuring “wouldn’t be a solution to the problems that Greece needs to overcome. Concern at the Frankfurt-based ECB is growing after Greek bon yields soared to all-time highs on speculation the government will be unable to meet its refinancing needs under the conditions of its current EUR110bn (USD158bn) bailout package. Greece’s credit rating was yesterday cut two levels by Standard & Poor’s, which said further reductions are possible as the risk of default rises.

U.S: Cost of imported goods climbs in April as a slumping dollar and growing economies overseas pushed up the cost of fuel and food. The 2.2% MoM increase in the import-price index followed a revised 2.6% MoM gain in March. (Source: Bloomberg)

U.S: March wholesale inventories increase 1.1% MoM; Sales jump 2.9% MoM. At the current pace of sales, wholesalers had enough goods on hand to last 1.13 months, matching the level in June 2008 as the lowest on record. Distributor inventories, which also reflect rising imports, may continue to add to gross domestic product in the current quarter. (Source: Bloomberg)

U.K: Retail sales surged the most in five years last month as public holidays and the warmest April on record spurred spending, the British Retail Consortium said. Sales rose 5.2% YoY in April on a like-for-like basis, which excludes new-store openings. The reading follows a 3.5% YoY drop in March, and taken together the data suggest sales over the two months stalled, the BRC said. (Source: Bloomberg)

Philippines: Exports growth slowed in March, rising less than estimated after electronics sales dropped and as Japan's record earthquake disrupts trade in Asia. Shipments abroad expanded 4% YoY to USD4.35b after rising a revised 8.3% YoY in February. (Source: Bloomberg)

Australia: Reports trade surplus in March, rebounding from a deficit the previous month as increased exports of iron ore and coal outpaced higher imports of gasoline. The excess was AUD 1.74b (USD 1.88b), from a revised AUD 87m deficit in February. (Source: Bloomberg)