Thursday, May 26, 2011

20110526 1113 Local & Global Economic Related News.

Malaysia: Subsidy review may signal vote delay as oil rises
Malaysia has been discussing whether to trim subsidies for gasoline, diesel and electricity, which could result in higher prices. A proposal to change power rates will be re-examined and presented to the government again, Energy, Green Technology and Water Minister Peter Chin said after the cabinet meeting yesterday. Officials didn’t decide on fuel prices, the domestic trade minister said separately. (Bloomberg)

Japan: BOJ signals readiness to boost lending to support weak economy
The Bank of Japan indicated its willingness to expand lending programs to support reconstruction efforts after the nation’s record 11 March earthquake crippled factory production and pushed the economy into a recession. “We’re examining whether there’s a way to enhance” a JPY3trn (USD37bn) lending program for industries that can spur economic growth, Governor Masaaki Shirakawa said. Many BOJ board members in April discussed the potential need to expand a JPY1trn loan program designed to help companies in the aftermath of the quake, a record of the meeting showed. (Bloomberg)

Germany: Consumer confidence to fall third month in June, GfK says with concern that Greece may need to default and surging energy prices clouding growth prospects. The GfK Nuremberg-based market research company said that its consumer sentiment index, based on a survey of about 2,000 people, will fall to 5.5 next month from 5.7 in May. (Source: Bloomberg)

Spain: Producer prices climbed for a 17th month in April, adding to evidence of inflation pressure as the European Central Bank signals further interest-rate increases. Prices of goods leaving Spain's factories, mines and refineries rose 7.3% YoY, after climbing 7.8% YoY in March, the National Statistics Institute in Madrid said. From the previous month, prices gained 0.6% MoM, after advancing 0.9% MoM in March. (Source: Bloomberg)

UK: Exports boost economy as investment, consumer spending slump
UK exports helped the economy resume growth in the first quarter and outweighed the biggest slump in company investment and consumer spending in almost two years. Exports rose 3.7% in the quarter and net trade added a record 1.7 percentage points to gross-domestic-product growth, the Office for National Statistics said. Consumer spending dropped 0.6% and company investment plunged 4.4%. GDP rose 0.5% on the quarter and 1.8 % from a year earlier, matching initial estimates. (Bloomberg)

EU: Lagarde declares candidacy to replace Strauss-Kahn at IMF
French Finance Minister Christine Lagarde declared her candidacy to head the International Monetary Fund, saying she should be judged on the basis of experience rather than nationality. The IMF executive directors representing Brazil, Russia, India, China and South Africa united yesterday to protest publicly the presumption that the fund’s next chief once again be a European. The IMF has been led by Europeans since it was set up after World War II. (Bloomberg)

US: Home prices dropped 5.5% in first quarter
US home prices dropped 5.5% in the first quarter from a year earlier, the biggest decline in almost two years, as sales of discounted foreclosures undermined real estate values. Prices fell 2.5% from the fourth quarter, a Washington-based Federal Housing Finance Agency said. Economists projected a 1.2% drop from the previous three months, according to the median of five estimates in a Bloomberg survey. (Bloomberg)

US: Durable goods orders decline by most in six months
Orders for US durable goods dropped more than forecast in April, reflecting a slump in aircraft demand and disruptions in supplies of auto parts stemming from the earthquake in Japan. The 3.6% decrease in bookings for goods meant to last at least three years was the biggest since October and followed a 4.4% surge in March that was larger than previously estimated, a Commerce Department report showed. Economists projected a 2.5% April decline, according to the median forecast in a survey. (Bloomberg)

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