Wednesday, June 13, 2012

20120613 0943 Global Economy Related News.

India: Factory output missing estimates adds to rate-cut case
Indian industrial production rose less than estimated in April, adding to the case for an interest-rate cut to bolster a weakening economy. Production at factories, utilities and mines increased 0.1% from a year earlier, after a revised 3.2% drop in March, the Central Statistical Office said. The median of 37 estimates in a Bloomberg News survey was for a 1.7% climb. (Bloomberg)

Spain: Record yields show Italy bailout risk as crisis spreads
Spain‟s benchmark borrowing costs climbed to a record, raising the specter of sovereign bailouts for the government in Madrid and then Italy that would stretch European Union finances to their limit. The yield on Spanish 10-year government debt rose for a third day, touching 6.83%, the highest since 1997, after Fitch Ratings predicted that Prime Minister Mariano Rajoy will miss budget-deficit targets he‟s made the foundation of his economic policy. Italian 10-year yields rose to the highest in almost six months. (Bloomberg)

UK: Factory output dropped more than forecast in April
UK manufacturing fell more than economists forecast in April, pointing to continued weakness in the economy at the start of the second quarter. Factory output dropped 0.7% from March, led by pharmaceuticals, aircraft maintenance and food and drink production, the Office for National Statistics said. The median forecast of 30 economists in a Bloomberg News survey was for a decline of 0.1%. Overall industrial output was unchanged on the month, weaker than the 0.1% increase forecast by economists. (Bloomberg)

US: Prices of US goods imports decrease by most in two years
Prices of goods imported into the US fell in May by the most in almost two years, reflecting lower costs for fuel and food. The 1% decrease in the import-price index, the biggest since June 2010, follows an unchanged reading in April, Labor Department figures showed. The drop matched the median forecast in a Bloomberg News survey. Prices excluding fuel fell 0.1%. (Bloomberg)

US: Confidence at US small companies holds near 14-month high
Confidence among US small businesses held in May near a 14-month high as more companies projected the economy will improve, a survey found. The National Federation of Independent Business‟s optimism index declined to 94.4 from April‟s 94.5 reading that was the highest since February 2011, the Washington-based group said. Four of the measure‟s 10 components increased and two were unchanged. (Bloomberg)

US stocks advance amid speculation of more economic stimulus
US stocks advanced, rebounding from yesterday‟s decline, amid speculation the Federal Reserve will take steps to stimulate the economy and after the European Central Bank endorsed a plan to guarantee bank deposits. The S&P 500 advanced 1.2% to 1,324.18 and the Dow Jones Industrial Average increased 162.57 points, or 1.3%, to 12,573.80. Trading volume for exchange-listed stocks in the US was about 6.2bn shares, 8.6% below the three-month average. (Bloomberg)

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