US - Sales of existing houses fall
Sales of previously owned US homes dropped more than forecast in February, sending prices to the lowest level since 2002 and indicating the market is struggling to recover. Purchases decreased 9.6% to a 4.88m annual rate, less than the 5.13m median forecast. The median price fell 5.2% y-o-y. Distressed properties accounted for 39% of sales, and the share of all cash transactions was 33%. Sales fell in all regions in February, led by a 12% drop in the Midwest and a 10% decrease in the South. The median price decreased to USD156,100 last month from USD164,600 in February 2010. The number of previously owned homes on the market rose 3.5% to 3.49m from January. (Bloomberg)
Japan - Quake rebuilding may take five years, according to World Bank
The World Bank says it may take five years for Japan to rebuild after this month’s 9.0-magnitude earthquake and tsunami, which killed at least 8,450 and destroyed thousands of buildings. Taking history as a guide, the World Bank says GDP growth will be negatively affected through mid-2011, after which growth should pick up in subsequent quarters as reconstruction efforts, which could last five years, accelerate. The World Bank cited private estimates for the damage wrought that range from USD122bn to USD235bn. (Bloomberg)
Indonesia - Central bank ?isn't worried' about March to May inflation
Indonesia’s central bank said it isn’t concerned about inflation in March, April and May as pressure on prices eases, signaling it has the scope to extend a pause in raising interest rates. The central bank “isn’t worried” and prices in March may fall because of the harvest season, without further elaboration. Consumer-price growth in February slowed to 6.84% compared with 7.02% in January, allowing Bank Indonesia to avoid raising rates this month even as neighbours from Thailand to India tightened policy to fight inflation. (Bloomberg)
Thailand - Economy has momentum, according to Prime Minister
Thailand’s economy shows ample signs of growth and has fiscal room to counter uncertainties, Prime Minister Abhisit Vejjajiva said following Japan’s earthquake and a rise in global oil prices. He said that export and revenue collection data from January and February suggest there is plenty of momentum for future growth, and that low public debt means the government has “flexibility” to adopt fiscal measures if uncertainties arise.Abhisit has pledged to increase the minimum wage by 25% over two years and intends to boost civil service pay. (Bloomberg)
US - Treasuries advance on Japan's radiation concern, Libyan turmoil
Treasuries gained, with the 10-year note yield touching the lowest level this year, as Japan’s nuclear crisis and Libyan political turmoil encouraged demand for the safety of U.S. government debt. Yields on two-year notes dropped for a fifth week in the longest stretch of decreases since August as a surge in the yen following Japan’s earthquake led Group of Seven nations to intervene in currency markets. The Federal Reserve said the US recovery is gaining strength before a report next week forecast to show the economy expanded faster than earlier estimated.(Bloomberg)
Tuesday, March 22, 2011
Friday, March 18, 2011
Economy Highlights:
US - Index of leading economic indicators rises 0.8%
The index of US leading indicators rose in February, the eighth consecutive gain and a sign supporting the Federal Reserve’s statement that the recovery has gained traction. The Conference Board’s gauge of the outlook for the next three to six months increased 0.8% after rising 0.1% in January, the New York-based group said. (Bloomberg)
US - Manufacturing strengthens, bolstering expansion
Production at US factories increased for a sixth month in February, indicating manufacturing will keep stoking the economy and underscoring the Federal Reserve’s view of a stronger expansion. The 0.4% rise in manufacturing output, which makes up 75% of all industrial production, followed a 0.9% January gain that was three times as large as initially estimated, Fed figures showed. (Bloomberg)
India - Braces for inflation risks from oil after rate increase
India faces pressure to step up its battle against price gains even after the steepest interest-rate increases among Asia’s major economies, as oil costs rise and consumer demand strengthens. The Reserve Bank of India raised its inflation forecast for the second time since late January as it lifted the benchmark repurchase rate by a quarter-point to 6.75%, the eighth move in a year. (Bloomberg)
Japan - Injects more funds to calm post-quake chaos
Japan pumped more funds into its shaky financial system after stocks fell and the yen surged to a record high, which Tokyo blamed on currency speculators following a huge earthquake. The central bank injected another JPY6trn (USD76bn), increasing to JPY34trn the total amount of funds added to money markets since Monday to soothe jitters after last week's devastating quake and tsunami. (Business Times)
Singapore - Export growth slowed as electronics, drug sales ease
Singapore’s export growth slowed more than economists expected in February as electronics shipments fell after the Lunar New Year holidays curbed demand from China for manufactured parts. Non-oil domestic exports climbed 7.8% from a year earlier, after a revised 20.7% gain in January, the island’s trade promotion agency said in a statement. The median forecast of 11 economists surveyed by Bloomberg News was for an increase of 10.5%. (Bloomberg)
The index of US leading indicators rose in February, the eighth consecutive gain and a sign supporting the Federal Reserve’s statement that the recovery has gained traction. The Conference Board’s gauge of the outlook for the next three to six months increased 0.8% after rising 0.1% in January, the New York-based group said. (Bloomberg)
US - Manufacturing strengthens, bolstering expansion
Production at US factories increased for a sixth month in February, indicating manufacturing will keep stoking the economy and underscoring the Federal Reserve’s view of a stronger expansion. The 0.4% rise in manufacturing output, which makes up 75% of all industrial production, followed a 0.9% January gain that was three times as large as initially estimated, Fed figures showed. (Bloomberg)
India - Braces for inflation risks from oil after rate increase
India faces pressure to step up its battle against price gains even after the steepest interest-rate increases among Asia’s major economies, as oil costs rise and consumer demand strengthens. The Reserve Bank of India raised its inflation forecast for the second time since late January as it lifted the benchmark repurchase rate by a quarter-point to 6.75%, the eighth move in a year. (Bloomberg)
Japan - Injects more funds to calm post-quake chaos
Japan pumped more funds into its shaky financial system after stocks fell and the yen surged to a record high, which Tokyo blamed on currency speculators following a huge earthquake. The central bank injected another JPY6trn (USD76bn), increasing to JPY34trn the total amount of funds added to money markets since Monday to soothe jitters after last week's devastating quake and tsunami. (Business Times)
Singapore - Export growth slowed as electronics, drug sales ease
Singapore’s export growth slowed more than economists expected in February as electronics shipments fell after the Lunar New Year holidays curbed demand from China for manufactured parts. Non-oil domestic exports climbed 7.8% from a year earlier, after a revised 20.7% gain in January, the island’s trade promotion agency said in a statement. The median forecast of 11 economists surveyed by Bloomberg News was for an increase of 10.5%. (Bloomberg)
Thursday, March 17, 2011
Economy Highlights
US - Producer prices rise more than forecast, led by food, oil
Wholesale costs in the US rose more than forecast in February, led by food prices at a more than three-decade high and a surge in energy. The producer-price index climbed 1.6% from the prior month, the most since June 2009, Labor Department figures showed. The median projection in a Bloomberg News survey was for a 0.7% gain. The so-called core measure, which excludes volatile food and energy costs increased 0.2, matching forecasts. (Bloomberg)
UK - Jobless claims unexpectedly fall most in eight months
UK unemployment claims unexpectedly fell in February by the most in eight months, adding to signs that the economy may be recovering from the impact of the winter freeze. Jobless benefit claims dropped 10,200 from January to 1.45 million, the lowest since Feb 2009, the Office for National Statistics said. Economists forecast an increase of 1,300, according to the median of 24 predictions in a Bloomberg News survey. Unemployment based on International Labour Organization methods rose by 27,000 in the three months through January to 2.53 million, the highest since 1994. (Bloomberg)
EU - February inflation quickens, adding pressure on ECB
European inflation accelerated to the fastest in more than two years in February, increasing pressure on the European Central Bank to raise interest rates. Inflation in the 17-nation euro region quickened to 2.4% from 2.3% in January, the European Union’s statistics office in Luxembourg said, confirming a 1 March estimate. That’s the fastest since Oct 2008 and exceeded the ECB’s 2% limit for a third month. Labor costs rose 1.6% in the fourth quarter from a year ago, after increasing 0.9% in the third quarter, a separate report showed. (Bloomberg)
EU - Stocks slump the most in four months on nuclear concern
European stocks slumped the most in four months as concern grew that a Japanese nuclear power plant damaged by last week’s earthquake will leak radiation. Carmakers and chemical shares led losses on the Stoxx Europe 600 Index as all 19 industry groups lost at least 1.5%. Utilities E.ON AG and RWE AG sank more than 2%, while renewable-energy companies rallied as Germany said it will halt its seven oldest nuclear reactors as part of a safety review. BHP Billiton Ltd. led a selloff in basic-resource shares as metal prices retreated. The Stoxx 600 tumbled 2.3% to 266.32 at the 4:30p.m close in London, sliding below its 200-day moving average for the first time since August. The VStoxx Index, which measures the cost of protecting against declines in the Euro Stoxx 50 Index, climbed 16% to 31.01, the largest gain since November. (Bloomberg)
Japan - Quake rebuilding may revive laggard northeast
Reconstruction from Japan’s record earthquake and ensuing tsunami may help revive a farming and manufacturing region that was already lagging behind the rest of the economy. Job prospects in Miyagi, where an estimated 10,000 people were killed, were worse than in most of the nation’s 47 prefectures in January. Neighboring Iwate had been hemorrhaging workers to Tokyo, while Fukushima was becoming increasingly dependent on its remaining factories even as Japanese manufacturers move abroad to emerging Asian markets. Prime Minister Naoto Kan’s government aims to compile a relief package as soon as next month, with the biggest opposition party calling for a JPY 5trn (USD62bn) effort, about USD5bn more than South Korea’s 1997 bailout package. (Bloomberg)
Wholesale costs in the US rose more than forecast in February, led by food prices at a more than three-decade high and a surge in energy. The producer-price index climbed 1.6% from the prior month, the most since June 2009, Labor Department figures showed. The median projection in a Bloomberg News survey was for a 0.7% gain. The so-called core measure, which excludes volatile food and energy costs increased 0.2, matching forecasts. (Bloomberg)
UK - Jobless claims unexpectedly fall most in eight months
UK unemployment claims unexpectedly fell in February by the most in eight months, adding to signs that the economy may be recovering from the impact of the winter freeze. Jobless benefit claims dropped 10,200 from January to 1.45 million, the lowest since Feb 2009, the Office for National Statistics said. Economists forecast an increase of 1,300, according to the median of 24 predictions in a Bloomberg News survey. Unemployment based on International Labour Organization methods rose by 27,000 in the three months through January to 2.53 million, the highest since 1994. (Bloomberg)
EU - February inflation quickens, adding pressure on ECB
European inflation accelerated to the fastest in more than two years in February, increasing pressure on the European Central Bank to raise interest rates. Inflation in the 17-nation euro region quickened to 2.4% from 2.3% in January, the European Union’s statistics office in Luxembourg said, confirming a 1 March estimate. That’s the fastest since Oct 2008 and exceeded the ECB’s 2% limit for a third month. Labor costs rose 1.6% in the fourth quarter from a year ago, after increasing 0.9% in the third quarter, a separate report showed. (Bloomberg)
EU - Stocks slump the most in four months on nuclear concern
European stocks slumped the most in four months as concern grew that a Japanese nuclear power plant damaged by last week’s earthquake will leak radiation. Carmakers and chemical shares led losses on the Stoxx Europe 600 Index as all 19 industry groups lost at least 1.5%. Utilities E.ON AG and RWE AG sank more than 2%, while renewable-energy companies rallied as Germany said it will halt its seven oldest nuclear reactors as part of a safety review. BHP Billiton Ltd. led a selloff in basic-resource shares as metal prices retreated. The Stoxx 600 tumbled 2.3% to 266.32 at the 4:30p.m close in London, sliding below its 200-day moving average for the first time since August. The VStoxx Index, which measures the cost of protecting against declines in the Euro Stoxx 50 Index, climbed 16% to 31.01, the largest gain since November. (Bloomberg)
Japan - Quake rebuilding may revive laggard northeast
Reconstruction from Japan’s record earthquake and ensuing tsunami may help revive a farming and manufacturing region that was already lagging behind the rest of the economy. Job prospects in Miyagi, where an estimated 10,000 people were killed, were worse than in most of the nation’s 47 prefectures in January. Neighboring Iwate had been hemorrhaging workers to Tokyo, while Fukushima was becoming increasingly dependent on its remaining factories even as Japanese manufacturers move abroad to emerging Asian markets. Prime Minister Naoto Kan’s government aims to compile a relief package as soon as next month, with the biggest opposition party calling for a JPY 5trn (USD62bn) effort, about USD5bn more than South Korea’s 1997 bailout package. (Bloomberg)
Thursday, March 10, 2011
Economy Highlights
US - Wholesale inventories increase 1.1%, sales climb 3.4%
Inventories at US wholesalers rose more than forecast in January as distributors tried to keep pace with sales that rose by the most since November 2009. The 1.1% increase in stockpiles followed a revised 1.3% gain in December that was bigger than initially estimated, the Commerce Department said. The median projection in a Bloomberg News survey was for a 0.9% rise. Sales jumped 3.4% in January, led by cars, computers and commodities. (Bloomberg)
UK - Trade gap narrows more than forecast on record exports
UK trade deficit narrowed more than economists forecast in January as exports surged to a record and imports of aircraft declined. The goods-trade gap shrank to GBP 7.06bn (USD 11.4bn) from a record GBP 9.69bn in December, the Office for National Statistics said. The deficit is the smallest in 11 months and compared with the GBP 8.5bn median forecast of 17 economists in a Bloomberg News survey. Exports rose 5.4% and imports fell 4%. (Bloomberg)
EU - German industrial output rose in January as construction surged
Industrial production in Germany, Europe’s largest economy, rose in January as construction activity rebounded from its winter hiatus. Output increased 1.8% from December, when it slipped a revised 0.6%, the Economy Ministry in Berlin said. Economists had forecast a 1.7% gain, the median of 35 estimates in a Bloomberg News survey showed. In the year, production rose 12.5% when adjusted for working days. (Bloomberg)
Singapore - Inflation to hit 4% in 2011
Singapore’s inflation could hit 4% this year, the highest level since 2008 and at the upper end of an official forecast range of 3%-4%, according to the central bank’s quarterly survey of economic forecasts. The Monetary Authority of Singapore (MAS) said the median estimate of 20 private sector economists also showed inflation could hit 5.4% in the first quarter. Singapore’s annual inflation spiked up to 5.5% in January, far higher than analysts’ expectation. (Financial Daily)
Asia - Steps up inflation fight as Thailand, Vietnam raise rates
Asian central banks stepped up their battle against inflation as Thailand and Vietnam raised interest rates, seeking to defuse price pressures before the global jump in oil costs reverberates through the region. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 2.5%, it said. Vietnam lifted borrowing costs, South Korea is forecast to do so and Malaysia may ask lenders to set aside more money as reserves on Mar 11. A jump in crude oil costs in excess of 20% in the past three weeks is escalating the danger of inflation in the region that’s led the global economic rebound. (Bloomberg)
Inventories at US wholesalers rose more than forecast in January as distributors tried to keep pace with sales that rose by the most since November 2009. The 1.1% increase in stockpiles followed a revised 1.3% gain in December that was bigger than initially estimated, the Commerce Department said. The median projection in a Bloomberg News survey was for a 0.9% rise. Sales jumped 3.4% in January, led by cars, computers and commodities. (Bloomberg)
UK - Trade gap narrows more than forecast on record exports
UK trade deficit narrowed more than economists forecast in January as exports surged to a record and imports of aircraft declined. The goods-trade gap shrank to GBP 7.06bn (USD 11.4bn) from a record GBP 9.69bn in December, the Office for National Statistics said. The deficit is the smallest in 11 months and compared with the GBP 8.5bn median forecast of 17 economists in a Bloomberg News survey. Exports rose 5.4% and imports fell 4%. (Bloomberg)
EU - German industrial output rose in January as construction surged
Industrial production in Germany, Europe’s largest economy, rose in January as construction activity rebounded from its winter hiatus. Output increased 1.8% from December, when it slipped a revised 0.6%, the Economy Ministry in Berlin said. Economists had forecast a 1.7% gain, the median of 35 estimates in a Bloomberg News survey showed. In the year, production rose 12.5% when adjusted for working days. (Bloomberg)
Singapore - Inflation to hit 4% in 2011
Singapore’s inflation could hit 4% this year, the highest level since 2008 and at the upper end of an official forecast range of 3%-4%, according to the central bank’s quarterly survey of economic forecasts. The Monetary Authority of Singapore (MAS) said the median estimate of 20 private sector economists also showed inflation could hit 5.4% in the first quarter. Singapore’s annual inflation spiked up to 5.5% in January, far higher than analysts’ expectation. (Financial Daily)
Asia - Steps up inflation fight as Thailand, Vietnam raise rates
Asian central banks stepped up their battle against inflation as Thailand and Vietnam raised interest rates, seeking to defuse price pressures before the global jump in oil costs reverberates through the region. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 2.5%, it said. Vietnam lifted borrowing costs, South Korea is forecast to do so and Malaysia may ask lenders to set aside more money as reserves on Mar 11. A jump in crude oil costs in excess of 20% in the past three weeks is escalating the danger of inflation in the region that’s led the global economic rebound. (Bloomberg)
Thursday, March 3, 2011
Economy Highlights
US - Manufacturing expands by most since 2004
Manufacturing in the US grew in February at the fastest pace in almost seven years, driven by gains in orders, employment and exports that signal factories will continue to propel the expansion. The Institute for Supply Management’s factory index increased to 61.4, exceeding the median forecast of economists surveyed by Bloomberg News and the highest level since May 2004. Readings greater than 50 signal growth. Compared with similar measures released in Europe and Asia, the data put the US at the forefront of the global manufacturing rebound. (Bloomberg)
US - Fed says labor market strengthened on manufacturing, retail
The Federal Reserve said the labor market improved throughout the country early this year, driven by increasing retail sales and “solid growth” in manufacturing. “Labor market conditions continued to strengthen modestly, with all Districts reporting some degree of improvement,” the Fed said. Its last survey, released 12 Jan, said the job market was “firming somewhat.” Overall, the economy “continued to expand at a modest to moderate pace,” the central bank said. (Bloomberg)
EU - Europe producer-price inflation quickens more than forecast
European producer-price inflation accelerated more than economists forecast in January, as soaring energy costs added to the European Central Bank’s concerns that inflationary pressures are building. Factory-gate prices in the euro region jumped 6.1% from a year earlier, after increasing 5.3% in December, the European Union’s statistics office said. That’s the fastest since September 2008 and above the 5.7% gain forecast by economists, according to the median of 16 estimates in a Bloomberg survey. January prices rose 1.5% from December. (Bloomberg)
EU - Spanish registered unemployment rises, deepening EU divide
Spain’s registered unemployment advanced for a second month in February, deepening the divide between peripheral economies struggling to recover from the financial crisis and Germany’s booming labor market. The number of people registering for jobless benefits in Spain rose by 68,260, or 1.6%, from January to 4.3 million, the Labor Ministry in Madrid said. Spain’s unemployment rate remains at more than 20%, while the number of Germans out of work dropped to the least since 1992 last month. Spain’s economy emerged from an almost two-year recession in 2010 before contracting again in the third quarter as austerity measures undermined the recovery. (Bloomberg)
Australia - Economy expanded by 0.7% last quarter before floods
Australia’s economic growth accelerated in the final three months of last year, the eighth straight quarterly expansion, before floods and cyclones this year ravaged the nation’s northeast. Gross domestic product advanced 0.7% from the third quarter, when it rose a revised 0.1%, the Bureau of Statistics said. That matched the median forecast in a Bloomberg News survey of 25 economists. The report validates Reserve Bank of Australia Governor Glenn Stevens’s view that natural disasters in the state of Queensland this quarter will be only a temporary drag on growth. (Bloomberg)
Manufacturing in the US grew in February at the fastest pace in almost seven years, driven by gains in orders, employment and exports that signal factories will continue to propel the expansion. The Institute for Supply Management’s factory index increased to 61.4, exceeding the median forecast of economists surveyed by Bloomberg News and the highest level since May 2004. Readings greater than 50 signal growth. Compared with similar measures released in Europe and Asia, the data put the US at the forefront of the global manufacturing rebound. (Bloomberg)
US - Fed says labor market strengthened on manufacturing, retail
The Federal Reserve said the labor market improved throughout the country early this year, driven by increasing retail sales and “solid growth” in manufacturing. “Labor market conditions continued to strengthen modestly, with all Districts reporting some degree of improvement,” the Fed said. Its last survey, released 12 Jan, said the job market was “firming somewhat.” Overall, the economy “continued to expand at a modest to moderate pace,” the central bank said. (Bloomberg)
EU - Europe producer-price inflation quickens more than forecast
European producer-price inflation accelerated more than economists forecast in January, as soaring energy costs added to the European Central Bank’s concerns that inflationary pressures are building. Factory-gate prices in the euro region jumped 6.1% from a year earlier, after increasing 5.3% in December, the European Union’s statistics office said. That’s the fastest since September 2008 and above the 5.7% gain forecast by economists, according to the median of 16 estimates in a Bloomberg survey. January prices rose 1.5% from December. (Bloomberg)
EU - Spanish registered unemployment rises, deepening EU divide
Spain’s registered unemployment advanced for a second month in February, deepening the divide between peripheral economies struggling to recover from the financial crisis and Germany’s booming labor market. The number of people registering for jobless benefits in Spain rose by 68,260, or 1.6%, from January to 4.3 million, the Labor Ministry in Madrid said. Spain’s unemployment rate remains at more than 20%, while the number of Germans out of work dropped to the least since 1992 last month. Spain’s economy emerged from an almost two-year recession in 2010 before contracting again in the third quarter as austerity measures undermined the recovery. (Bloomberg)
Australia - Economy expanded by 0.7% last quarter before floods
Australia’s economic growth accelerated in the final three months of last year, the eighth straight quarterly expansion, before floods and cyclones this year ravaged the nation’s northeast. Gross domestic product advanced 0.7% from the third quarter, when it rose a revised 0.1%, the Bureau of Statistics said. That matched the median forecast in a Bloomberg News survey of 25 economists. The report validates Reserve Bank of Australia Governor Glenn Stevens’s view that natural disasters in the state of Queensland this quarter will be only a temporary drag on growth. (Bloomberg)
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