Malaysia - Zeti says inflation isn't a concern
Malaysia’s central bank Governor Zeti Akhtar Aziz said inflation this year will be within the bank’s forecast range and isn’t a concern that needs to be addressed. Malaysia’s economy is gaining momentum as private consumption and investment strengthen, even as events in the US and Europe have led to “uncertainty” for growth. (Bloomberg)
Malaysia - Exports to China surge to USD19.1bn
Malaysia's exports to China in the first five months of this year rose by 82.2% to USD19.1bn (RM61.69bn) compared with the same period last year. With the implementation of the Association of South-East Asian Nations (Asean)-China Free Trade Area (ACFTA), where tariffs of over 90% of the products were cut to zero, Malaysia's trade with China was expected to continue to grow. (Business Times)
China - Surging debt may weaken growth, limit stimulus
China’s efforts to contain the risks from a surge in local-government debt may hurt growth in the world’s third-biggest economy, investment bank China International Capital Corp. said. A report by the chief auditor last week indicated officials may take “relatively forceful measures” including strictly controlling new borrowing. The effect may be to “limit the source of funding for infrastructure projects and affect future economic growth.” (Bloomberg)
China - Strauss-Kahn says yuan revaluation won't occur 'very rapidly'
The revaluation of China’s currency won’t happen quickly or fix all the global economy’s imbalances, International Monetary Fund Managing Director Dominique Strauss- Kahn said. “I do not expect that things are going to change very rapidly. It will take time for the renminbi to reach its normal market value,” he said, using another term for the yuan. (Bloomberg)
US - Two-year yield near 2010 low as G-20 vows to cut deficits
Treasury two-year yields were near the lowest level this year after Group of 20 leaders endorsed targets to cut their budget deficits. US government debt held gains from last week after the G-20 said advanced economies plan to cut their deficits in half by 2013, curbing record debt sales. (Bloomberg)
U.S : Income gains boost spending, savings in May. Consumer purchases rose 0.2% MoM, after little change the prior month. Incomes climbed 0.4% MoM, and the savings rate increased to the highest level in eight months. (Source: Bloomberg)
Brazil : Rating outlook revised to positive by Fitch, which cited the country's "growth dynamics" and "prudent" policies. Fitch rates Brazil BBB-, the lowest investment-grade rating and in line with rankings from Standard & Poor's and Moody's Investors Service. Fitch last boosted the country's rating in May 2008, taking it up one level from BB+. (Source: Bloomberg)
Japan : Unemployment rate in May rises to 5.2% from 5.1%. The median forecast of 24 economists surveyed by Bloomberg News was for the rate to drop to 5%. (Source: Bloomberg)
Japan : Retail sales in May rise at slowest pace since January, a sign that government incentives to purchase cars and household appliances are fading. Sales advanced 2.8% YoY in May. (Source: Bloomberg)
India : Gasoline price increase may stoke inflation. India?s decision to allow fuel prices to rise may spur the inflation rate by almost a percentage point, the finance ministry said, adding pressure on the central bank to increase borrowing costs. The government on June 25 permitted gasoline prices to be market-determined for the first time since December 2003. Political parties had previously avoided loosening controls to win support from India's 828 million people who live on less than USD 2 a day. Diesel costs are regulated and will eventually be freed, the government said. (Source: Bloomberg)
New Zealand : Business confidence declined in June after the central bank raised interest rates and a sovereign-debt crisis escalated in Europe. A net 38.5% of companies surveyed expect sales and profits will increase over the next 12 months, down from 45.3% in May, according to a survey by ANZ National Bank Ltd. released in Wellington. (Source: Bloomberg)
U.S. growth trimmed on consumer, business spending
WASHINGTON, June 25 (Reuters) - U.S. economic growth was slower than previously reported in the first quarter on lower consumer spending on services, raising concerns the recovery would be too sluggish to bring down unemployment.
Gross domestic product expanded at a 2.7 percent annual rate instead of the 3 percent pace reported last month, the Commerce Department said in its final estimate on Friday.
Equities, dollar up, G20 has little impact
LONDON, June 28 (Reuters) - World shares rose after a four-day retreat with investors still cautious about global economic recovery but shrugging off the rather neutral conclusion to a weekend G20 leaders' summit.
"There are some legitimate doubts. Government finances in most of the mature economies are really in trouble, so we have to do something about that. But it will probably pressure growth," said Luc Van Hecka, chief economist at KBC Securities.
G20 parts ways in search of lasting recovery
TORONTO, June 27 (Reuters) - World leaders agreed on Sunday to take different paths for cutting budget deficits and making their banking systems safer, a reflection of the uneven and fragile economic recovery in many countries.
In a reversal from the unity of the past three crisis-era Group of 20 summits, the leaders left room to move at their own pace and adopt "differentiated and tailored" policies.
G20 put to test by uneven recovery
TORONTO, June 27 (Reuters) - Recession made the G20 the main forum for managing the world economy last year. Now, the recovery is putting to the test the new sense of common cause that united rich and developing countries.
Meeting in Canada at the weekend, leaders from the Group of 20 struggled to maintain the solidarity they showed during the worst of the downturn last year, when they pumped trillions of dollars into the economy to prevent an even deeper slump.
