20120824 1008 Local & Global Economy Related News.

Malaysia is set to gain in technology transfer and growth opportunities from the recent establishment of a joint-venture between Bluescope and Nippon Steel Corporation (NSC) of Japan. The 50:50 joint venture will open up new investment opportunities for Malaysia through NSC‟s technological development capabilities and substantial research and development base. (Bernama)

The residential property market may be cooling down in terms of actual sales due to  credit tightening measures by banks. The loan approvals percentage for residential properties declined to 46.8% in 1H12 from 50.1% in the same period in 2011. The number of loans applied increased by 2.9% yoy in 1H12. (StarBiz)

The US FHFA house price index gained 0.7% mom in Jun (a revised 0.8% in May), overshooting consensus of 0.6%, whilst on a yoy basis, the measure increased 3.6% (a revised 3.8% in May). (Bloomberg)

US President Barack Obama wants Congress to agree to  extend middle-class tax cuts now to take the edge off the looming "fiscal cliff" and leave tougher fiscal decisions for after November's election, the White House said. (Reuters)

US new-home sales grew 3.6% mom in Jul to hit an annualised 372,000 rate, 10,000 above consensus (a revised 359,000 in June). (Bloomberg)

US jobless claims  gained 4,000 in the 18 Aug week to 372,000 (a revised 368,000 in the prior week), the second straight week of increase and exceeding consensus of 365,000. (Bloomberg)

The flash reading of the US manufacturing PMI stood at 51.9 in Aug (51.8 in Jul), above consensus of 51.0. (Bloomberg)

The Conference Board leading index for China 0.7% mom to 236.4 rose in Jul, after a little-changed June reading, signalling that the nation‟s economy may be stabilizing. (Bloomberg)

China aims to turn a trickle of cross-border trade that is settled in yuan into a stream, with Latin America and the Middle East as the next possible focal points, Hong Kong's US-based commissioner for economic and trade affairs Donald Tong said. (WSJ)

The People's Bank of China injected a net Rmb278bn (US$43.77bn) into the interbank money market this week, the largest net injection since early Jan. (Reuters)

The  preliminary HSBC China Manufacturing Purchasing Managers Index fell to a nine-month low of 47.8 in Aug, compared with a final reading of 49.3 in Jul. (WSJ)

The flash reading of the eurozone’s manufacturing PMI came in at 45.3 in Aug from 44.0 in Jul, whilst the  services PMI  fell to 47.5 from 47.9. The composite PMI  rose to 46.6 from 46.5 in Jul, whilst economists surveyed expected an unchanged reading. (Bloomberg)

The flash reading of the Eurozone consumer confidence stood at -24.6 in Aug, down from a revised -21.5 in Jul. Economists had expected confidence to stand at -21.75. (Reuters)

German Chancellor Angela Merkel said she and  French President Francois Hollande  will coordinate on their  approach to Greece to keep pressure on the country at the heart of Europe‟s debt crisis to overhaul its economy. (Bloomberg)

Spain will  empower its banking authorities to swoop in on lenders that appear to be heading to trouble and if necessary liquidate them, Spanish media said. (AFP)

EU: Euro-area services, manufacturing contracted in August
Euro-area services and manufacturing output contracted for a seventh straight month in August, adding to signs of a deepening economic slump as European leaders struggle to contain the fiscal crisis. A composite index based on a survey of purchasing managers in both industries in the 17-nation euro area rose to 46.6 from 46.5 in July, London-based Markit Economics said on Thursday in an initial estimate. A reading below 50 indicates contraction. Economists had forecast an unchanged reading, the median of 19 estimates in a Bloomberg News survey showed. (Bloomberg)

UK: BBA July mortgage approvals rise 9.6% from June to 28,441
UK mortgage approvals rose 9.6% in July from the previous month to 28,441, the British Bankers Association said in an e-mailed statement on Thursday. Approvals are down from 34,125 a year earlier. (Bloomberg)

Germany: Quarterly growth driven by exports, households
Germany’s economic expansion in 2Q 2012 was driven by exports and household spending, a breakdown of the data shows. Exports rose 2.5% from the first quarter and private consumption increased 0.4%, the Federal Statistics Office in Wiesbaden said today. Economic growth slowed to 0.3% from 0.5% in the first three months of the year, the office said, confirming an initial estimate published Aug 14. (Bloomberg)

Australia’s Resources and Energy minister Martin Ferguson declared that “the resources boom is over,” adding that after having netted A$270bn in investment, the going “got tougher in the last six to 12 months.” (Reuters)

The  Indian government's efforts to push forward reforms that are key to stimulating economic growth are getting delayed due to frequent disruptions in parliament proceedings, Trade Minister Anand Sharma said. (WSJ)

South Korea has for the first time recognised damages arising from its free trade agreement with the European Union  which took effect last year, state-run Korea Trade Commission officials said. (AFP)

Singapore’s inflation rate slowed to 4% in Jul (5.3% in Jun), below market expectations of 4.5%.  (Bloomberg)

Thailand‟s general public and businessmen gave the government a passing score for its one-year administration, a failing grade for solving corruption and an incomplete for flood management, says a survey. (Bangkok Post)

Thailand’s Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong remarked that the  economic figures in 2Q12 are in line with the  government’s work while indicating the government‟s readiness to further stimulate domestic spending. (Thai Financial Post)

The Anti-Corruption Network indicates that the Thai corruption problem has been worsening despite the government‟s effort to tackle it. (Thai Financial Post)

The Philippines’ budget deficit widened to PP39.2bn in Jul (-PP11.7bn in Jun), the widest since Dec 2011 as the government stepped up its spending to support the economy's strong growth momentum. (Bloomberg, Reuters)

Bangko Sentral ng Pilipinas (BSP) announced that it would impose limits to housing loans extended by banks to individual borrowers and to investments by banks in securities sold by real estate firms. BSP is maintaining the maximum allowable “real estate exposure” of a bank at 20% of total loan portfolio, but is expanding the components of “real estate exposure.” (Philippine Daily Inquirer)

Standard & Poor’s revised Vietnam’s economic outlook to „BB-/Stable/B‟ from „BB-/Negative/B‟, and “in line with this,  it raised  its ASEAN scale long-term rating on Vietnam to „axBB+‟ from „axBB‟” in reflection of the firm‟s assessment of a reduction in the risks like high inflation, trade deficit and foreign exchange reserves to Vietnam‟s macroeconomic and financial stability. (The Saigon Times)