Economy Headline Animator

Wednesday, February 23, 2011

Economy Highligts

US - Home prices in 20 cities fall 2.4% from year earlier

Residential real-estate prices dropped in the 12 months to December by the most in a year, a sign the US housing market is struggling even as the rest of the economy recovers. The S&P/Case-Shiller index of home values in 20 cities fell 2.4%, the biggest year-over-year decrease since December 2009, the group said today in New York. The median forecast of economists surveyed by Bloomberg News projected a 2.3% decrease.(Bloomberg)


US - Confidence increases to three-year high

Confidence among US consumers rose in February to a three-year high exceeding forecasts as more Americans predicted the economy and their incomes will grow. The Conference Board’s sentiment index increased to 70.4, the highest level since February 2008, from 64.8 the prior month, according to figures today from the New York-based private research group. Another report showed home values dropped by the most in a year.(Bloomberg)


EU - Merkel says EU weighing extension of Greek aid program

German Chancellor Angela Merkel signaled that European Union leaders may be ready to renegotiate the terms of Greece’s bailout as part of a broader package to shore up confidence in the euro. The comments by Merkel, the leader of Europe’s biggest economy, are the first indication the EU may respond to calls to ease bailout conditions for indebted countries.(Bloomberg)


Japan - Moody's ignored as local investors snap up bonds

Japanese investors ignored another warning by a ratings company about the nation’s ballooning debt, buying bonds and sending yields back toward the level before the nation’s credit ranking was cut just a month ago. Government bond futures climbed the most in two months even after Moody’s Investors Service cut its outlook on the country’s credit rating, while costs increased to insure Japanese bonds against default. The divergence in market moves highlights a gap in perceptions between locals, who own about 95% of outstanding government notes, and overseas investors.(Bloomberg)


China - Wages undermine bond investors as inflation accelerates

China, the biggest brake on global inflation for two decades, is embracing wage increases that threaten to erode retailers’ margins and demand for bonds. Premier Wen Jiabao convenes the annual National People’s Congress March 5, where delegates will approve a five-year plan designed to elevate the role of domestic demand. Part of that strategy is endorsing higher pay, with all 31 Chinese provinces and regions likely to boost their minimum wages in 2011 for the second consecutive year, according to Credit Suisse Group AG.(Bloomberg)

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