MUMBAI (Thomson Financial) - Standard & Poor s Ratings Services said most Asia-Pacific sovereigns will face some challenges from the first-round effects of a US recession, while the likely second-round impacts could prolong or exacerbate the pressure.
In a report that examines the likely implications for the economies and credit fundamentals of governments in the region, it said domestic demand and intra-regional trade are expected to substantially counter the direct effects of falling US import demand. S&P, however, added that the Asia-Pacific economies will also have to contend with the risks posed by elevated energy and food prices, tight global liquidity, and the increasingly discussed possibility of European economies succumbing to the slowing growth momentum.
The unfolding global economic and financial conditions leave limited scope, if any, for rating upgrades in the region in the year ahead, the ratings agency said. It added that most regional sovereigns should weather the storm without negative rating action due to fairly robust endogenous growth prospects for the region as a whole, fiscal or monetary policy capacity to mitigate the impact, and solid donor support for the least developed sovereigns.
It also said the greatest risk stems not from the recession itself but from possible policy missteps by government when faced with the fallout of a US or possibly a global slowdown. TFN.newsdesk@thomson.com aka/man COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Monday, January 28, 2008
UK s Darling to launch consultation on tougher banking supervision - report
LONDON (Thomson Financial) - UK Chancellor of the Exchequer Alistair Darling will on Wednesday launch a three-month consultation on increasing banking supervision in an attempt to avoid another Northern Rock-style crisis, the Financial Times reported.
Darling wants to give the Financial Services Authority more powers to scrutinise the liquidity of financial institutions and to put the Bank of England s role in safeguarding financial stability "on a statutory footing", the paper said.
The FT cited Treasury officials, however, as saying that it is important not to overreact by attempting to legislate for every eventuality, echoing comments made by Darling last week. jessica.mortimer@thomson.com jkm/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Darling wants to give the Financial Services Authority more powers to scrutinise the liquidity of financial institutions and to put the Bank of England s role in safeguarding financial stability "on a statutory footing", the paper said.
The FT cited Treasury officials, however, as saying that it is important not to overreact by attempting to legislate for every eventuality, echoing comments made by Darling last week. jessica.mortimer@thomson.com jkm/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Suharto s legacy: Indonesians remember economic stability alongside brutality
JAKARTA (Thomson Financial) - The death of former president Suharto has left Indonesians with a mixed legacy.
For much of his 32-year rule, alongside horrifying brutality and corruption, many Indonesians remember a period of economic stability and growth -- a record many say his four successors have failed to match.
"Indonesia enjoyed growth of 6-8 percent and single-digit inflation during Suharto. That is his plus side," said Juniman, an economist at Bank Internasional Indonesia (BII).
Suharto had a clear economic plan, said Juniman and "that is what we have not seen again in his successors."
Stability was a key priority for many of Indonesian s more than 200 million citizens, and many didn t care what it cost, said Winang Budoyo, an economist at Bank Lippo.
"He was good at keeping sufficient supplies of basic needs and their prices were stable," he said.
Suharto is most remembered in the international community for his human rights record.
"Suharto has gotten away with murder -- another dictator who s lived out of his life in luxury and escaped justice," said Brad Adams, Asia director at Human Rights Watch.
"But many of Suharto s cronies are still around, so the Indonesian government should take the chance to put his many partners in human rights abuse on trial," he said.
Arbi Sanit, a political analyst from University of Indonesia, said Suharto s death will unfortunately make it difficult for any efforts to seek justice from him or his allies or to retrieve assets lost to corruption.
"You can take his cronies to court on separate cases but they will just point at him (Suharto) as the mastermind, one thing which is hard to prove," he said.
Efforts to bring Suharto to justice have so far floundered, largely due to the difficulty of collecting evidence that he directly gave orders.
The government is seeking 1.4 billion dollars worth of damages and returned assets, allegedly accrued through a charitable foundation that Suharto chaired while in power, in a civil lawsuit which is still outstanding.
Calling in IMF
Suharto died Sunday, aged 86, of multiple organ failure, after a three-week stint in hospital.
The former president rose to power in 1967 after he played a key role in destroying the Indonesian Communist Party.
But by 1998, he was forced out of power as Indonesia s second president after an economic crisis led to student riots and violence.
At the end of his term, Suharto had to invite the International Monetary Fund (IMF) to help rescue the economy.
Since then, Indonesia has had four presidents -- B.J. Habibie, Abdurrahman Wahid, Megawati Sukarnoputri and current President Susilo Bambang Yudhoyono.
As the country puts the Suharto era behind it, analysts question whether Indonesia can find a leader who can deliver prosperity to the people and attract foreign investment to develop the economy.
Indonesian gross domestic product (GDP) fell 13 percent in 1998, the year that Suharto stepped down.
The government is expecting the economy grew 6.3 percent in 2007, and is forecasting that will accelerate to 6.4-6.7 percent this year.
Song Seng Wun, an economist at CIMB-GK in Singapore, said one big difference between Suharto and his successors is that "his administration was able to provide certain predictability and consistency."
"In him, you got somebody who could put things together and the country s macro-economy plans had a more definite platform," he said.
Since Suharto s dictatorial reign, Indonesian s political environment has changed with the central government forced to cede more power to regional governments on many issues.
Analysts broadly agree there is little difference between the Suharto s economic team and that of his successors in policy terms.
"But the point is at the top. Suharto had more absolute power," said Song.
Bank Lippo s Budoyo said there are many other factors behind the slow growth in the post-Suharto age, including the regional financial crises back in 1997-1998.
Still, "as far as policy making is concerned, the very top level must be strong and decisive," he said.
Foreign investment accounted for more than 30 percent of Indonesian GDP under Suharto, but shrank to about 24 percent in the third quarter of last year.
The tradeoff for Indonesians is increased freedom for the media, more democracy, and a decentralization of power, which has allowed regional governments the power to manage their budgets, and in many cases issue licences for doing business.
Song said that shift in power has created some uncertainty, which hinders economic activity.
"The idea is right but the country is not ready. The country probably still needs a person with a strong rule," he said.
aloysius.bhui@thomson.com
MMMM
For much of his 32-year rule, alongside horrifying brutality and corruption, many Indonesians remember a period of economic stability and growth -- a record many say his four successors have failed to match.
"Indonesia enjoyed growth of 6-8 percent and single-digit inflation during Suharto. That is his plus side," said Juniman, an economist at Bank Internasional Indonesia (BII).
Suharto had a clear economic plan, said Juniman and "that is what we have not seen again in his successors."
Stability was a key priority for many of Indonesian s more than 200 million citizens, and many didn t care what it cost, said Winang Budoyo, an economist at Bank Lippo.
"He was good at keeping sufficient supplies of basic needs and their prices were stable," he said.
Suharto is most remembered in the international community for his human rights record.
"Suharto has gotten away with murder -- another dictator who s lived out of his life in luxury and escaped justice," said Brad Adams, Asia director at Human Rights Watch.
"But many of Suharto s cronies are still around, so the Indonesian government should take the chance to put his many partners in human rights abuse on trial," he said.
Arbi Sanit, a political analyst from University of Indonesia, said Suharto s death will unfortunately make it difficult for any efforts to seek justice from him or his allies or to retrieve assets lost to corruption.
"You can take his cronies to court on separate cases but they will just point at him (Suharto) as the mastermind, one thing which is hard to prove," he said.
Efforts to bring Suharto to justice have so far floundered, largely due to the difficulty of collecting evidence that he directly gave orders.
The government is seeking 1.4 billion dollars worth of damages and returned assets, allegedly accrued through a charitable foundation that Suharto chaired while in power, in a civil lawsuit which is still outstanding.
Calling in IMF
Suharto died Sunday, aged 86, of multiple organ failure, after a three-week stint in hospital.
The former president rose to power in 1967 after he played a key role in destroying the Indonesian Communist Party.
But by 1998, he was forced out of power as Indonesia s second president after an economic crisis led to student riots and violence.
At the end of his term, Suharto had to invite the International Monetary Fund (IMF) to help rescue the economy.
Since then, Indonesia has had four presidents -- B.J. Habibie, Abdurrahman Wahid, Megawati Sukarnoputri and current President Susilo Bambang Yudhoyono.
As the country puts the Suharto era behind it, analysts question whether Indonesia can find a leader who can deliver prosperity to the people and attract foreign investment to develop the economy.
Indonesian gross domestic product (GDP) fell 13 percent in 1998, the year that Suharto stepped down.
The government is expecting the economy grew 6.3 percent in 2007, and is forecasting that will accelerate to 6.4-6.7 percent this year.
Song Seng Wun, an economist at CIMB-GK in Singapore, said one big difference between Suharto and his successors is that "his administration was able to provide certain predictability and consistency."
"In him, you got somebody who could put things together and the country s macro-economy plans had a more definite platform," he said.
Since Suharto s dictatorial reign, Indonesian s political environment has changed with the central government forced to cede more power to regional governments on many issues.
Analysts broadly agree there is little difference between the Suharto s economic team and that of his successors in policy terms.
"But the point is at the top. Suharto had more absolute power," said Song.
Bank Lippo s Budoyo said there are many other factors behind the slow growth in the post-Suharto age, including the regional financial crises back in 1997-1998.
Still, "as far as policy making is concerned, the very top level must be strong and decisive," he said.
Foreign investment accounted for more than 30 percent of Indonesian GDP under Suharto, but shrank to about 24 percent in the third quarter of last year.
The tradeoff for Indonesians is increased freedom for the media, more democracy, and a decentralization of power, which has allowed regional governments the power to manage their budgets, and in many cases issue licences for doing business.
Song said that shift in power has created some uncertainty, which hinders economic activity.
"The idea is right but the country is not ready. The country probably still needs a person with a strong rule," he said.
aloysius.bhui@thomson.com
MMMM
Renault sees Brazil car market growing 10 pct in 2008 vs 30 pct in 2007
PARIS (Thomson Financial) - Growth in Brazil s car market will slow to 10 pct this year from 30 pct in 2007, Renault s top manager for the country, Jerome Stoll, said in an interview with the daily Le Parisien.He said last year s growth was spurred in part by favourable economic conditions in Brazil, including a good trade balance, lower interest rates and more consumer loans.Stoll also said the car market in Argentina, which has been gaining strongly, may be less stable this year. tfn.paris@thomson.com mjs/hjp COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
China GDP growth seen slowing to 8.8 pct this yr - China GDP growth seen slowing to 8.8 pct this yr - Barclays Capital
HONG KONG (XFN-ASIA) - Barclays Capital said it expects China s gross domestic product (GDP) growth to decelerate significantly to 8.8 pct this year from 11.4 pct achieved in 2007.
The UK house said the slowdown will be driven by a combination of external and domestic factors, including a weakening of global demand and tightening monetary and credit environment.
Administrative measures taken by Chinese authorities to curb growth and moderate inflation would also contribute to the slowdown, it said.
"Policymakers will maintain their anti-inflation stance through mid-year, but in the second half, with inflationary pressures easing and the slowdown apparent, we expect authorities to switch to a pro-growth strategy," it said.
Barclays said it believes Beijing will lift recently implemented price controls, ease liquidity conditions and cut lending and deposit rates in two 27-basis point rate cuts.
it said it expects the yuan to appreciate by about 7 pct this year.
jun.concepcion@xfn.com
MMMM
The UK house said the slowdown will be driven by a combination of external and domestic factors, including a weakening of global demand and tightening monetary and credit environment.
Administrative measures taken by Chinese authorities to curb growth and moderate inflation would also contribute to the slowdown, it said.
"Policymakers will maintain their anti-inflation stance through mid-year, but in the second half, with inflationary pressures easing and the slowdown apparent, we expect authorities to switch to a pro-growth strategy," it said.
Barclays said it believes Beijing will lift recently implemented price controls, ease liquidity conditions and cut lending and deposit rates in two 27-basis point rate cuts.
it said it expects the yuan to appreciate by about 7 pct this year.
jun.concepcion@xfn.com
MMMM
OUTLOOK Highlights of US economic data to be released this week
WASHINGTON (Thomson Financial) - The following is a synopsis of US economic indicators to be released this week, with forecasts provided by Thomson s IFR Markets. The upcoming week is heavy with data, including a number of high profile indicators such as GDP and employment. Economists will be watching these closely, particularly in light of growing fears about a recession and recent actions taken by the Federal Reserve, White House and Congress to protect the economy. MONDAY JANUARY 28 The week will begin with the release of December new home sales, which are expected to total 645,000, slightly below the number of homes sold in November.
"Given the current environment of falling home prices, tight credit conditions and growing recession fears, buyers will likely remain apprehensive about purchasing," said economists from Lehman Brothers.
In the evening, President Bush will make his State of the Union address, which is likely to include talk of his recent compromise with Congress on a fiscal stimulus plan. TUESDAY JANUARY 29 Tuesday will begin with the release of durable good orders, which are expected to have increased by 1.6 pct in December following a 0.1 pct increase in the previous month. Durable good orders excluding transportation are expected to have been unchanged in the month of December following a 0.7 pct decline in November. "Outside of aircraft and a bounce in defense orders, December was probably a very weak month, with broad-based declines," said Patrick Newport of Global Insight. Also on Tuesday is the release of the Conference Board s January estimate of consumer confidence, which is expected to decrease to a level of 87.5 from 88.6 in December.
"I think it will be affected by the sharp drop in equity markets we saw in the first half of the month," said Sal Guatieri of BMO Capital Markets. WEDNESDAY JANUARY 30 US GDP for the fourth quarter is expected to have grown at an annual rate of 1.2 pct following a healthy 4.9 pct growth rate in the previous month. GDP core PCE price index for the quarter is expected to have been 2.6 pct, compared to 2.0 in the previous month.
"We anticipate that after a very strong first two months of consumption during the quarter, that the weak holiday sales took the wind out of the sails of what was looking like an above trend three months of output," said Joseph Brusuelas from IDEAglobal.
Economists from Northern Trust said "positive contributions from consumer spending, non-residential fixed investment, and exports are expected to be partly offset by a large drop in residential investment expenditures." Jay Bryson of Wachovia said that while GDP is "kind of backward looking" it still provides some sense of whether the economy is gaining momentum.
Also on Wednesday, the FOMC will announce any rate decision that they ve made during their two day meeting. Many economists are predicting a 0.50 percentage point cut to the federal funds rate, even after Tuesday s unexpected 0.75 pct point cut.
"The Fed is trying to shore up confidence right now," Bryson said. Harm Bandholz from Unicredit said, "so far the Fed hasn t disappointed the market and we don t think it will do it this time." Bandholz noted that there is a "slight probability" of the Fed making a 0.75 pct point cut, but such a large cut "would be the wrong signal in light of the looming fiscal stimulus bill." THURSDAY JANUARY 31 The number of individuals filing first time claims for unemployment in the week ending January 26 is expected to increase to 318,000 from 301,000 in the previous week. The number of people who continue to receive unemployment insurance in the week ending January 19 is expected to increase to 2.675 mln from 2.672 mln in the previous week.
Jobless claims have recently been on a downward trend, "sending signals that are contrary to the message from all other labor market reports," according to economists from Northern Trust. Personal income is expected to increase 0.4 pct in December, the same rate of increase as in the previous month. Personal consumption for the month is expected to have increased 0.1 pct following a 1.1 pct increase in November.
"The slowdown in consumer confidence is starting to hit the consumer," Guatieri said about the expected dip in personal consumption. The core PCE price index is expected to have contracted by 2.2 pct between December 2006 and December 2007, the same year over year contraction as in November.
Guatieri said the PCE growth rate will still be a "little bit above the Fed s presumed comfort zone," which in normal circumstances "might get the Fed s inflation antennae up." However, in the current situation, the Fed is "much more worried about" downward risks to growth, Gautieri said. FRIDAY FEBRUARY 1 Non-farm payrolls for January are expected to increase 58,000 after a meager 18,000 increase in December. Meanwhile, unemployment for January is expected to dip down to 4.9 pct following a surprising 5.0 pct in December.
Bandholz said that payroll and unemployment will improve slightly in January because December s report pointed to a "too gloomy picture of the market," noting in particular the Fed s positive tone on the labor market in its most recent Beige Book.
However, Sal Gautieri of BMO Capital Markets said he still expects "a very modest rebound," one that "would indicate that the trend in labor markets is weakening."
The ISM manufacturing survey is expected to drop yet again in January to 47.0 from 47.7 in December. Last month was the first time since January 2007 that the ISM fell below the 50 threshold, which generally suggests contraction in the economy.
Economists from Credit Suisse say further deterioration "is suggested by declines in regional surveys from the Philadelphia, New York, and Richmond Federal Reserve Banks."
Bandholz said the "pretty gloomy outlook" for ISM is largely due to problems in the housing sector as well as in the automobile industry. The University of Michigan consumer sentiment survey is expected to drop to 79.0 in January from 80.5 in the previous month. tessa.moran@thomson.com tlm/wash/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
"Given the current environment of falling home prices, tight credit conditions and growing recession fears, buyers will likely remain apprehensive about purchasing," said economists from Lehman Brothers.
In the evening, President Bush will make his State of the Union address, which is likely to include talk of his recent compromise with Congress on a fiscal stimulus plan. TUESDAY JANUARY 29 Tuesday will begin with the release of durable good orders, which are expected to have increased by 1.6 pct in December following a 0.1 pct increase in the previous month. Durable good orders excluding transportation are expected to have been unchanged in the month of December following a 0.7 pct decline in November. "Outside of aircraft and a bounce in defense orders, December was probably a very weak month, with broad-based declines," said Patrick Newport of Global Insight. Also on Tuesday is the release of the Conference Board s January estimate of consumer confidence, which is expected to decrease to a level of 87.5 from 88.6 in December.
"I think it will be affected by the sharp drop in equity markets we saw in the first half of the month," said Sal Guatieri of BMO Capital Markets. WEDNESDAY JANUARY 30 US GDP for the fourth quarter is expected to have grown at an annual rate of 1.2 pct following a healthy 4.9 pct growth rate in the previous month. GDP core PCE price index for the quarter is expected to have been 2.6 pct, compared to 2.0 in the previous month.
"We anticipate that after a very strong first two months of consumption during the quarter, that the weak holiday sales took the wind out of the sails of what was looking like an above trend three months of output," said Joseph Brusuelas from IDEAglobal.
Economists from Northern Trust said "positive contributions from consumer spending, non-residential fixed investment, and exports are expected to be partly offset by a large drop in residential investment expenditures." Jay Bryson of Wachovia said that while GDP is "kind of backward looking" it still provides some sense of whether the economy is gaining momentum.
Also on Wednesday, the FOMC will announce any rate decision that they ve made during their two day meeting. Many economists are predicting a 0.50 percentage point cut to the federal funds rate, even after Tuesday s unexpected 0.75 pct point cut.
"The Fed is trying to shore up confidence right now," Bryson said. Harm Bandholz from Unicredit said, "so far the Fed hasn t disappointed the market and we don t think it will do it this time." Bandholz noted that there is a "slight probability" of the Fed making a 0.75 pct point cut, but such a large cut "would be the wrong signal in light of the looming fiscal stimulus bill." THURSDAY JANUARY 31 The number of individuals filing first time claims for unemployment in the week ending January 26 is expected to increase to 318,000 from 301,000 in the previous week. The number of people who continue to receive unemployment insurance in the week ending January 19 is expected to increase to 2.675 mln from 2.672 mln in the previous week.
Jobless claims have recently been on a downward trend, "sending signals that are contrary to the message from all other labor market reports," according to economists from Northern Trust. Personal income is expected to increase 0.4 pct in December, the same rate of increase as in the previous month. Personal consumption for the month is expected to have increased 0.1 pct following a 1.1 pct increase in November.
"The slowdown in consumer confidence is starting to hit the consumer," Guatieri said about the expected dip in personal consumption. The core PCE price index is expected to have contracted by 2.2 pct between December 2006 and December 2007, the same year over year contraction as in November.
Guatieri said the PCE growth rate will still be a "little bit above the Fed s presumed comfort zone," which in normal circumstances "might get the Fed s inflation antennae up." However, in the current situation, the Fed is "much more worried about" downward risks to growth, Gautieri said. FRIDAY FEBRUARY 1 Non-farm payrolls for January are expected to increase 58,000 after a meager 18,000 increase in December. Meanwhile, unemployment for January is expected to dip down to 4.9 pct following a surprising 5.0 pct in December.
Bandholz said that payroll and unemployment will improve slightly in January because December s report pointed to a "too gloomy picture of the market," noting in particular the Fed s positive tone on the labor market in its most recent Beige Book.
However, Sal Gautieri of BMO Capital Markets said he still expects "a very modest rebound," one that "would indicate that the trend in labor markets is weakening."
The ISM manufacturing survey is expected to drop yet again in January to 47.0 from 47.7 in December. Last month was the first time since January 2007 that the ISM fell below the 50 threshold, which generally suggests contraction in the economy.
Economists from Credit Suisse say further deterioration "is suggested by declines in regional surveys from the Philadelphia, New York, and Richmond Federal Reserve Banks."
Bandholz said the "pretty gloomy outlook" for ISM is largely due to problems in the housing sector as well as in the automobile industry. The University of Michigan consumer sentiment survey is expected to drop to 79.0 in January from 80.5 in the previous month. tessa.moran@thomson.com tlm/wash/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
OUTLOOK Economic indicators to be released in the coming week
WASHINGTON (Thomson Financial) - Here are the major US economic indicators to be released in the coming week with revised forecasts provided by Thomson IFR Markets.
Forecast Previous MONDAY JANUARY 28 US New home sales, Dec annual rate (thousands) 645 647 TUESDAY JANUARY 29 US Durable goods orders, Dec monthly change (pct) 1.6 0.1 US Durable goods orders, ex-transportation, Dec monthly change (pct) 0.0 -0.7 Consumer confidence, Jan monthly level (index) 87.5 88.6 WEDNESDAY JANUARY 30 US GDP, Q4 advance annual rate (pct) 1.2 4.9 US GDP core PCE price index, Q4 advance annual rate (pct) 2.6 2.0 US Federal Reserve rate announcement THURSDAY JANUARY 31 US Employment cost index, Q4 quarterly change (pct) 0.8 0.8 US Initial unemployment claims, 1/26 weekly level (thousands) 318 301 US Continuing unemployment claims, 1/19 weekly level (mln) 2.675 2.672 US Personal income, Dec monthly change (pct) 0.4 0.4 US Personal consumption, Dec monthly change (pct) 0.1 1.1 US Core PCE price index, Dec year/year change (pct) 2.2 2.2 NAPM Chicago survey, Jan monthly level (index) 52.0 56.6 FRIDAY FEBRUARY 1 US Nonfarm payrolls, Jan monthly change (thousands) 58 18 US Unemployment rate, Jan monthly level (pct) 4.9 5.0 US Average hourly earnings, Jan monthly change (pct) 0.3 0.4 US Construction spending, Dec monthly change (pct) -0.5 0.1 ISM manufacturing survey, Jan monthly level (index) 47.0 47.7 U. of Michigan consumer sentiment, Jan final monthly level (index) 79.0 80.5 tessa.moran@thomson.com tlm/wash/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Forecast Previous MONDAY JANUARY 28 US New home sales, Dec annual rate (thousands) 645 647 TUESDAY JANUARY 29 US Durable goods orders, Dec monthly change (pct) 1.6 0.1 US Durable goods orders, ex-transportation, Dec monthly change (pct) 0.0 -0.7 Consumer confidence, Jan monthly level (index) 87.5 88.6 WEDNESDAY JANUARY 30 US GDP, Q4 advance annual rate (pct) 1.2 4.9 US GDP core PCE price index, Q4 advance annual rate (pct) 2.6 2.0 US Federal Reserve rate announcement THURSDAY JANUARY 31 US Employment cost index, Q4 quarterly change (pct) 0.8 0.8 US Initial unemployment claims, 1/26 weekly level (thousands) 318 301 US Continuing unemployment claims, 1/19 weekly level (mln) 2.675 2.672 US Personal income, Dec monthly change (pct) 0.4 0.4 US Personal consumption, Dec monthly change (pct) 0.1 1.1 US Core PCE price index, Dec year/year change (pct) 2.2 2.2 NAPM Chicago survey, Jan monthly level (index) 52.0 56.6 FRIDAY FEBRUARY 1 US Nonfarm payrolls, Jan monthly change (thousands) 58 18 US Unemployment rate, Jan monthly level (pct) 4.9 5.0 US Average hourly earnings, Jan monthly change (pct) 0.3 0.4 US Construction spending, Dec monthly change (pct) -0.5 0.1 ISM manufacturing survey, Jan monthly level (index) 47.0 47.7 U. of Michigan consumer sentiment, Jan final monthly level (index) 79.0 80.5 tessa.moran@thomson.com tlm/wash/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
OUTLOOK Euro zone data spotlight on sentiment, inflation in week to come
LONDON (Thomson Financial) - A series of sentiment readings will take the spotlight in the euro zone this week, with markets alert to any signs of profound weakness that could shift the European Central Bank away from its unstintingly hawkish monetary stance.
A series of European Commission confidence surveys, as well as PMI activity readings on the manufacturing sector, will give some indication of how well the euro zone s economy is holding up against the headwinds of a strong euro, flagging US growth, and financial market turmoil.
However, pricing data are likely to illustrate the ECB s dilemma, with the headline rate of euro zone inflation expected to stay well above the central bank s target rate. Figures on euro zone money supply growth should give a further indication of inflationary pressures the ECB is trying to stamp out.
MONDAY, JAN 28
- The M3 measure of euro zone money supply growth is expected to remain steady in December. Economists say growth will be fuelled by market turbulence, because money market instruments become more attractive in times of uncertainty.
December s growth is seen at 12.2 pct, just off November s 12.3 pct increase. Money growth in the three months to December is seen at 12.2 pct in annual terms, up from 11.9 pct in the three months to November.
"Overall M3 is likely to have been buoyed by turbulence in financial markets in December, keeping the annual growth rate well into double digits," said Credit Suisse analysts.
"That strength may keep the European Central Bank s tone from moderating much in its February meeting," they added. The ECB, which considers money supply growth to be a potential inflation risk, is understood to be too concerned about inflation to cut interest rates any time soon.
- Private sector loans in the euro zone are expected to grow 11.0 pct in December, the same rate as in November.
TUESDAY, JAN 29
- France s consumer confidence index is expected to stay weak in January, with economists penciling in a reading of -30 compared with -29 in December.
"We expect households to remain relatively glum in the first month of the new year as they worry over President Sarkozy s commitment to his job and the reform process," said analysts at Moody s Economy.com.
- The Italian business confidence index is expected to moderate a touch to 91.0 in January, from 91.8 in December.
- The euro zone s current account surplus in November is seen narrowing to a seasonally-adjusted 0.4 bln eur, from 1.3 bln in October.
THURSDAY, JAN 31
- French producer price inflation is expected to edge down to 0.1 pct month-on-month in December, from 0.8 pct in November, while the annual rate is predicted to remain strong at 4.4 pct, up on the previous month s 4.2 pct.
BNP Paribas analysts say the recent rise in PPI "is entirely attributable to food and energy prices". They predict the annual rate will rise to 4.5 pct in December, "the highest since November 2000, though probably not yet the high point in the cycle".
- German labour data for January is expected to show unemployment still falling, although analysts warn that a deterioration is in the works as activity slows.
"While surveys of activity have continued to weaken, those covering employment intentions have yet to show much sign of deterioration ... while we do not view this as sustainable, the lags from surveys through to hard data imply that employment growth should hold up in the coming months," said BNP Paribas analysts.
"In the very near term, unemployment is likely to continue falling at a similar pace to that seen recently," they added.
The consensus view is for a drop in jobless numbers of 45,000, a smaller decline than December s -78,000 reading.
The employment rate is seen steady at 8.3 pct, a touch down on December s 8.4 pct, while the alternative ILO reading is seen at 7.8 pct, from 7.9 pct the previous month.
- Italian hourly wages in December are seen rising 0.3 pct from November s 0.2 pct, pushing the annual rise to 2.4 pct from 2.0 pct.
- The euro zone s flash estimate of HICP inflation is expected to come in at 3.1 pct, in line with December s reading and staying well above the ECB s target rate of around 2.0 pct.
"There are a number of factors that should affect inflation in January," said Credit Suisse analysts.
"The most significant downdraft should be from core inflation, which should drop on base effects from last year s rise in German VAT ... however, that should be more than offset by higher energy inflation - oil prices fell sharply last January - and a continued rise in processed food inflation," they said.
- The euro zone s unemployment rate is expected to moderate a touch to 7.1 pct in December from 7.2 pct in November.
- The European Commission s January confidence surveys are expected to show sentiment continuing to sour.
"Falling euro area sentiment suggests that the slowdown may be more broad based than we were expecting initially, with activity in the manufacturing and services sectors, as well as consumer spending, slowing," said Credit Suisse analysts.
"We expect the European Commission surveys to reflect such developments," they said, predicting particular weakness in the services reading.
The overall economic confidence reading is seen declining to 104.2 from 104.7 in December, reflecting declines in each of the components (industrial, services and consumer confidence).
Italian producer prices are expected to moderate slightly in December, with monthly growth of 0.2 pct from November s 0.9 pct rise, and the annual rate unchanged at 4.6 pct.
FRIDAY, FEB 1
PMI readings of activity in the manufacturing sector in January are expected to show further moderation, but should still be marginally expansionary.
Germany s reading is seen dipping to 53.1 from 53.6 in December, while France s reading is expected to moderate to 53.6 from 53.8. Italy is seen at 50.2, from 50.7.
The final euro zone PMI manufacturing reading is not expected to change from the first estimate of 52.6.
"Although exports to emerging markets remain strong, demand from the US and the UK is waning, whilst domestic demand is steady but not expanding," said economists at Moody s Economy.com.
ALSO DUE DURING THE WEEK
- German CPI inflation in January is expected to be negative on the month due to base effects after a tax increase last year.
"Having risen sharply at the end of 2007, German inflation should drop back in January as base effects from last years rise in VAT push down core inflation," said Credit Suisse analysts.
The monthly change is seen at -0.4 pct, reversing December s 0.5 pct rise, while the annual rate is seen at 2.5 pct, down from 2.8 pct.
Meanwhile, the German harmonised HICP inflation rate -- used for comparisons with the rest of the euro zone -- should also be -0.4 pct on the month, partly reversing December s 0.7 pct rise.
The annual German HICP measure is seen at 2.9 pct in January, down from 3.1 pct in December -- still well above the ECB s target for the euro zone of around 2.0 pct.
- German retail sales are expected to rebound in January, with monthly growth of 2.0 pct following December s -1.9 pct reading. The annual deterioration, though, is expected to worsen to -4.1 pct from -3.9 pct.
alex.brittain@thomson.com abr/kf1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
A series of European Commission confidence surveys, as well as PMI activity readings on the manufacturing sector, will give some indication of how well the euro zone s economy is holding up against the headwinds of a strong euro, flagging US growth, and financial market turmoil.
However, pricing data are likely to illustrate the ECB s dilemma, with the headline rate of euro zone inflation expected to stay well above the central bank s target rate. Figures on euro zone money supply growth should give a further indication of inflationary pressures the ECB is trying to stamp out.
MONDAY, JAN 28
- The M3 measure of euro zone money supply growth is expected to remain steady in December. Economists say growth will be fuelled by market turbulence, because money market instruments become more attractive in times of uncertainty.
December s growth is seen at 12.2 pct, just off November s 12.3 pct increase. Money growth in the three months to December is seen at 12.2 pct in annual terms, up from 11.9 pct in the three months to November.
"Overall M3 is likely to have been buoyed by turbulence in financial markets in December, keeping the annual growth rate well into double digits," said Credit Suisse analysts.
"That strength may keep the European Central Bank s tone from moderating much in its February meeting," they added. The ECB, which considers money supply growth to be a potential inflation risk, is understood to be too concerned about inflation to cut interest rates any time soon.
- Private sector loans in the euro zone are expected to grow 11.0 pct in December, the same rate as in November.
TUESDAY, JAN 29
- France s consumer confidence index is expected to stay weak in January, with economists penciling in a reading of -30 compared with -29 in December.
"We expect households to remain relatively glum in the first month of the new year as they worry over President Sarkozy s commitment to his job and the reform process," said analysts at Moody s Economy.com.
- The Italian business confidence index is expected to moderate a touch to 91.0 in January, from 91.8 in December.
- The euro zone s current account surplus in November is seen narrowing to a seasonally-adjusted 0.4 bln eur, from 1.3 bln in October.
THURSDAY, JAN 31
- French producer price inflation is expected to edge down to 0.1 pct month-on-month in December, from 0.8 pct in November, while the annual rate is predicted to remain strong at 4.4 pct, up on the previous month s 4.2 pct.
BNP Paribas analysts say the recent rise in PPI "is entirely attributable to food and energy prices". They predict the annual rate will rise to 4.5 pct in December, "the highest since November 2000, though probably not yet the high point in the cycle".
- German labour data for January is expected to show unemployment still falling, although analysts warn that a deterioration is in the works as activity slows.
"While surveys of activity have continued to weaken, those covering employment intentions have yet to show much sign of deterioration ... while we do not view this as sustainable, the lags from surveys through to hard data imply that employment growth should hold up in the coming months," said BNP Paribas analysts.
"In the very near term, unemployment is likely to continue falling at a similar pace to that seen recently," they added.
The consensus view is for a drop in jobless numbers of 45,000, a smaller decline than December s -78,000 reading.
The employment rate is seen steady at 8.3 pct, a touch down on December s 8.4 pct, while the alternative ILO reading is seen at 7.8 pct, from 7.9 pct the previous month.
- Italian hourly wages in December are seen rising 0.3 pct from November s 0.2 pct, pushing the annual rise to 2.4 pct from 2.0 pct.
- The euro zone s flash estimate of HICP inflation is expected to come in at 3.1 pct, in line with December s reading and staying well above the ECB s target rate of around 2.0 pct.
"There are a number of factors that should affect inflation in January," said Credit Suisse analysts.
"The most significant downdraft should be from core inflation, which should drop on base effects from last year s rise in German VAT ... however, that should be more than offset by higher energy inflation - oil prices fell sharply last January - and a continued rise in processed food inflation," they said.
- The euro zone s unemployment rate is expected to moderate a touch to 7.1 pct in December from 7.2 pct in November.
- The European Commission s January confidence surveys are expected to show sentiment continuing to sour.
"Falling euro area sentiment suggests that the slowdown may be more broad based than we were expecting initially, with activity in the manufacturing and services sectors, as well as consumer spending, slowing," said Credit Suisse analysts.
"We expect the European Commission surveys to reflect such developments," they said, predicting particular weakness in the services reading.
The overall economic confidence reading is seen declining to 104.2 from 104.7 in December, reflecting declines in each of the components (industrial, services and consumer confidence).
Italian producer prices are expected to moderate slightly in December, with monthly growth of 0.2 pct from November s 0.9 pct rise, and the annual rate unchanged at 4.6 pct.
FRIDAY, FEB 1
PMI readings of activity in the manufacturing sector in January are expected to show further moderation, but should still be marginally expansionary.
Germany s reading is seen dipping to 53.1 from 53.6 in December, while France s reading is expected to moderate to 53.6 from 53.8. Italy is seen at 50.2, from 50.7.
The final euro zone PMI manufacturing reading is not expected to change from the first estimate of 52.6.
"Although exports to emerging markets remain strong, demand from the US and the UK is waning, whilst domestic demand is steady but not expanding," said economists at Moody s Economy.com.
ALSO DUE DURING THE WEEK
- German CPI inflation in January is expected to be negative on the month due to base effects after a tax increase last year.
"Having risen sharply at the end of 2007, German inflation should drop back in January as base effects from last years rise in VAT push down core inflation," said Credit Suisse analysts.
The monthly change is seen at -0.4 pct, reversing December s 0.5 pct rise, while the annual rate is seen at 2.5 pct, down from 2.8 pct.
Meanwhile, the German harmonised HICP inflation rate -- used for comparisons with the rest of the euro zone -- should also be -0.4 pct on the month, partly reversing December s 0.7 pct rise.
The annual German HICP measure is seen at 2.9 pct in January, down from 3.1 pct in December -- still well above the ECB s target for the euro zone of around 2.0 pct.
- German retail sales are expected to rebound in January, with monthly growth of 2.0 pct following December s -1.9 pct reading. The annual deterioration, though, is expected to worsen to -4.1 pct from -3.9 pct.
alex.brittain@thomson.com abr/kf1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Malaysia s interest rate at appropriate level - central bank
KUALA LUMPUR (Thomson Financial) - Malaysia s interest rate is still at the appropriate level and supportive of growth despite rising inflation, central bank governor Zeti Akhtar Aziz said Monday.
The issue of rising prices will "perhaps not be addressed through the central bank s interest rate policy but through other measures, said Zeti.
"The Malaysian interest rate is still at the appropriate level. We brought our interest rate to this level to take into account that inflation was likely to increase. At the same time, we wanted to have the interest rate still supportive of the economy, said Zeti.
Bank Negara, the Malaysian central bank, has kept its overnight policy rate (OPR) at 3.5 percent since April 2006. The central bank will hold its first monetary policy meeting for 2008 tomorrow. It is widely expected to leave the OPR unchanged.
Malaysia s inflation rate has gradually crept up over the past few months as the global commodities boom has sent prices of food and energy soaring.
The inflation rate accelerated to 2.4 percent in December from 2.3 percent in November. The higher inflation rate was partly induced by disruptions in food supplies after severe flooding hit several states last month.
(1 US dollar = 3.24 ringgit)
johnkb.tan@thomson.com
MMMM
The issue of rising prices will "perhaps not be addressed through the central bank s interest rate policy but through other measures, said Zeti.
"The Malaysian interest rate is still at the appropriate level. We brought our interest rate to this level to take into account that inflation was likely to increase. At the same time, we wanted to have the interest rate still supportive of the economy, said Zeti.
Bank Negara, the Malaysian central bank, has kept its overnight policy rate (OPR) at 3.5 percent since April 2006. The central bank will hold its first monetary policy meeting for 2008 tomorrow. It is widely expected to leave the OPR unchanged.
Malaysia s inflation rate has gradually crept up over the past few months as the global commodities boom has sent prices of food and energy soaring.
The inflation rate accelerated to 2.4 percent in December from 2.3 percent in November. The higher inflation rate was partly induced by disruptions in food supplies after severe flooding hit several states last month.
(1 US dollar = 3.24 ringgit)
johnkb.tan@thomson.com
MMMM
Japan s Mitsubishi Motors December global output up 7.9 percent vs year earlier
TOKYO (Thomson Financial) - Japanese automaker Mitsubishi Motors Corp said Monday it produced 7.9 percent more vehicles in December against the previous year due to brisk demand outside Japan.
The December figure marks the tenth consecutive month that Mitsubishi s output has increased.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - up 10.3 percent at 79,279 units
Domestic car output - up 13.2 percent at 72,117 units
Domestic vehicle sales - down 1.3 percent at 16,210 units
Domestic car sales - up 47.9 percent at 7,088 units
Exports - up 47.7 percent at 57,022 units
Overseas output - up 3.4 percent at 39,369 units
Global production - up 7.9 percent at 118,648 units
Below is Mitsubishi Motors calendar 2007 output figures:
Domestic vehicle output - up 11.6 percent at 846,083 units
Domestic vehicle sales - down 13.9 percent at 226,915 units
Exports - up 40.9 percent at 572,312 units
Overseas output - up 2.0 percent at 565,892 units
Global production - up 7.5 percent at 1.412 million units
(1 US dollar = 106.27 yen)
yumiko.nishitani@thomson.com
MMMM
The December figure marks the tenth consecutive month that Mitsubishi s output has increased.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - up 10.3 percent at 79,279 units
Domestic car output - up 13.2 percent at 72,117 units
Domestic vehicle sales - down 1.3 percent at 16,210 units
Domestic car sales - up 47.9 percent at 7,088 units
Exports - up 47.7 percent at 57,022 units
Overseas output - up 3.4 percent at 39,369 units
Global production - up 7.9 percent at 118,648 units
Below is Mitsubishi Motors calendar 2007 output figures:
Domestic vehicle output - up 11.6 percent at 846,083 units
Domestic vehicle sales - down 13.9 percent at 226,915 units
Exports - up 40.9 percent at 572,312 units
Overseas output - up 2.0 percent at 565,892 units
Global production - up 7.5 percent at 1.412 million units
(1 US dollar = 106.27 yen)
yumiko.nishitani@thomson.com
MMMM
OUTLOOK Euro zone economic data forecasts for the week ahead
LONDON (Thomson Financial) - The following are consensus forecasts for euro zone economic indicators due in the week ahead.
The TFN consensus is the median of a range of forecasts gathered by Thomson Financial News from a broad sample of private sector economists.
Figures are for percentage change unless stated.
TFN CONSENSUS PREVIOUS PERIOD
MON JAN 28
Euro zone Dec M3 money supply
year-on-year +12.2 +12.3
3 mths year-on-year +12.2 +11.9
Euro zone Dec private sector loans +11.0 +11.0
TUES JAN 29
France Jan consumer confidence (index) -30 -29
Italy Jan business confidence (index) 91.0 91.8
Euro zone Nov current account 0.4 1.3
(sa, bln eur)
THURS JAN 31
France Dec PPI
month-on-month +0.1 +0.8
year-on-year +4.4 +4.2
Germany Jan unemployment
Rate +8.3 +8.4
ILO rate +7.8 +7.9
Change (000 s) -45 -78
Italy Dec hourly wages
month-on-month +0.3 +0.2
year-on-year +2.4 +2.0
Euro zone Jan flash HICP
year-on-year +3.1 +3.1
Euro zone Dec unemployment rate +7.1 +7.2
European Commission Jan survey (index)
Economic confidence 104.2 104.7
Industry confidence 1 2
Consumer confidence -10 -9
Services confidence 12 14
Euro zone Jan business climate (index) 0.88 0.92
Italy Dec PPI
month-on-month +0.2 +0.9
year-on-year +4.6 +4.6
FRI FEB 1
Germany Jan manufacturing PMI 53.1 53.6
France Jan manufacturing PMI 53.6 53.8
Italy Jan manufacturing PMI 50.2 50.7
Euro zone Jan final manufacturing PMI 52.6 52.6*
ALSO DUE DURING THE WEEK
Germany Jan CPI
month-on-month -0.4 +0.5
year-on-year +2.5 +2.8
Germany Jan HICP
month-on-month -0.4 +0.7
year-on-year +2.9 +3.1
Germany Dec retail sales
month-on-month +2.0 -1.9
year-on-year -4.1 -3.9
(* refers to provisional estimate) alex.brittain@thomson.com abr/slj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
The TFN consensus is the median of a range of forecasts gathered by Thomson Financial News from a broad sample of private sector economists.
Figures are for percentage change unless stated.
TFN CONSENSUS PREVIOUS PERIOD
MON JAN 28
Euro zone Dec M3 money supply
year-on-year +12.2 +12.3
3 mths year-on-year +12.2 +11.9
Euro zone Dec private sector loans +11.0 +11.0
TUES JAN 29
France Jan consumer confidence (index) -30 -29
Italy Jan business confidence (index) 91.0 91.8
Euro zone Nov current account 0.4 1.3
(sa, bln eur)
THURS JAN 31
France Dec PPI
month-on-month +0.1 +0.8
year-on-year +4.4 +4.2
Germany Jan unemployment
Rate +8.3 +8.4
ILO rate +7.8 +7.9
Change (000 s) -45 -78
Italy Dec hourly wages
month-on-month +0.3 +0.2
year-on-year +2.4 +2.0
Euro zone Jan flash HICP
year-on-year +3.1 +3.1
Euro zone Dec unemployment rate +7.1 +7.2
European Commission Jan survey (index)
Economic confidence 104.2 104.7
Industry confidence 1 2
Consumer confidence -10 -9
Services confidence 12 14
Euro zone Jan business climate (index) 0.88 0.92
Italy Dec PPI
month-on-month +0.2 +0.9
year-on-year +4.6 +4.6
FRI FEB 1
Germany Jan manufacturing PMI 53.1 53.6
France Jan manufacturing PMI 53.6 53.8
Italy Jan manufacturing PMI 50.2 50.7
Euro zone Jan final manufacturing PMI 52.6 52.6*
ALSO DUE DURING THE WEEK
Germany Jan CPI
month-on-month -0.4 +0.5
year-on-year +2.5 +2.8
Germany Jan HICP
month-on-month -0.4 +0.7
year-on-year +2.9 +3.1
Germany Dec retail sales
month-on-month +2.0 -1.9
year-on-year -4.1 -3.9
(* refers to provisional estimate) alex.brittain@thomson.com abr/slj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
OUTLOOK UK economic data scheduled this week
LONDON (Thomson Financial) - The following are consensus forecasts for UK economic indicators due in the coming week.
The TFN consensus is the median of a range of forecasts gathered by Thomson Financial News from a broad sample of private sector economists.
Figures are percentage changes unless otherwise stated.
FORECAST PREVIOUS TUESDAY, JANUARY 29 CBI January distributive trades survey reported sales balance (pct) 0 +8 WEDNESDAY, JANUARY 30 Dec mortgage lending (bln stg) +7.6 +7.8 Dec mortgage approvals 80,000 83,000 Dec consumer credit (bln stg) +1.1 +1.1 THURSDAY, JANUARY 31 Nationwide Jan house prices month-on-month (pct) -0.3 -0.5 year-on-year (pct) +4.1 +4.8 GfK Jan consumer confidence index -15 -14 FRIDAY, FEBRUARY 1 Jan CIPS manufacturing PMI index 52.5 52.9
jessica.mortimer@thomson.com jkm/jlc COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
The TFN consensus is the median of a range of forecasts gathered by Thomson Financial News from a broad sample of private sector economists.
Figures are percentage changes unless otherwise stated.
FORECAST PREVIOUS TUESDAY, JANUARY 29 CBI January distributive trades survey reported sales balance (pct) 0 +8 WEDNESDAY, JANUARY 30 Dec mortgage lending (bln stg) +7.6 +7.8 Dec mortgage approvals 80,000 83,000 Dec consumer credit (bln stg) +1.1 +1.1 THURSDAY, JANUARY 31 Nationwide Jan house prices month-on-month (pct) -0.3 -0.5 year-on-year (pct) +4.1 +4.8 GfK Jan consumer confidence index -15 -14 FRIDAY, FEBRUARY 1 Jan CIPS manufacturing PMI index 52.5 52.9
jessica.mortimer@thomson.com jkm/jlc COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Japan s Nissan December global vehicle output up 15.5 percent
TOKYO (Thomson Financial) - Carmaker Nissan Motor Co said Monday its global output rose 15.5 percent to 274,661 vehicles in December from a year earlier, supported by higher production in Asia and the UK.
The rise in December marks the company s fifth straight monthly production increase.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - up 18.1 percent at 114,428 units
Domestic car output - up 23.8 percent at 96,568 units
Domestic vehicle sales - up 0.7 percent at 43,771 units
Domestic car sales - down 2.2 percent at 29,345 units
Exports - up 33.0 percent at 83,821 units
Overseas output - up 13.7 percent at 160,233 units
Global production - up 15.5 percent at 274,661 units
The following figures are for full-year 2007:
Domestic vehicle output - down 4.5 percent at 1.179 million units
Domestic vehicle sales - down 6.0 percent at 720,973 units
Exports - unchanged at 646,140 units
Overseas output - up 12.9 percent at 2.252 million units
Global production - up 6.2 percent at 3.431 million units
(1 US dollar = 106.29 yen)
yumiko.nishitani@thomson.com
ys/nt
MMMM
The rise in December marks the company s fifth straight monthly production increase.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - up 18.1 percent at 114,428 units
Domestic car output - up 23.8 percent at 96,568 units
Domestic vehicle sales - up 0.7 percent at 43,771 units
Domestic car sales - down 2.2 percent at 29,345 units
Exports - up 33.0 percent at 83,821 units
Overseas output - up 13.7 percent at 160,233 units
Global production - up 15.5 percent at 274,661 units
The following figures are for full-year 2007:
Domestic vehicle output - down 4.5 percent at 1.179 million units
Domestic vehicle sales - down 6.0 percent at 720,973 units
Exports - unchanged at 646,140 units
Overseas output - up 12.9 percent at 2.252 million units
Global production - up 6.2 percent at 3.431 million units
(1 US dollar = 106.29 yen)
yumiko.nishitani@thomson.com
ys/nt
MMMM
OUTLOOK UK data to reveal further weakening in housing market, consumer spending
LONDON (Thomson Financial) - UK data this week are expected to show a further deterioration in both the housing market and consumer spending, boosting the case for another quarter point interest rate from the Bank of England in February.
The week kicks off with the Confederation of British Industry s monthly survey on retail sales, followed by Bank of England lending data on Wednesday. Thursday will see the release of the closely-watched Nationwide house price survey and GfK s consumer confidence survey.
Finally, January s PMI index on manufacturing activity will be released on Friday.
TUESDAY, JANUARY 29
-The Confederation of British Industry s latest distributive sales survey is expected to give further evidence of waning consumer spending as consumers count the costs of spiraling petrol and food prices and rising utility bills.
The balance of retailers reporting a rise in sales is expected to drop to zero pct in January from +8 pct in December.
"It s possible that aggressive discounting means volumes sales wont be quite as weak, but this survey should continue to paint a picture of weakening spending," analysts at CSFB said.
WEDNESDAY, JANUARY 30
-Figures from the Bank of England data are expected to show a further deterioration in mortgage activity as the credit crunch takes its toll. Mortgage lending growth is forecast to drop to 7.6 bln stg in December from 7.8 bln in November, while mortgage approvals -- a key gauge of future demand -- fall to 80,000 from 83,000.
"We expect Bank of England mortgage approvals and lending data to provide yet further evidence that housing market activity is now being substantially undermined by both stretched affordability and tightening lending practices," said Howard Archer at Global Insight.
Unsecured lending, for example on credit cards, loans and overdrafts, is also set to stay subdued at 1.1 bln stg.
THURSDAY, JANUARY 31
-A key survey from the Nationwide is expected to show UK house prices fell for the third consecutive month in January.
House prices are forecast to have fallen by 0.3 pct after a 0.5 pct drop in December. This would take annual house price growth down to 4.1 pct from 4.8.
-The GfK s latest survey is set to show consumer confidence waning as the headline index drops to -15 in January from -14 in December.
"The index has fallen very sharply in recent months and while there are some grounds for expecting a bounce (December s interest rate cut, solid employment growth), the momentum is in the other direction and we doubt we have yet reached the low-point," analysts at RBS said.
FRIDAY, FEBRUARY 1
-The purchasing managers survey for manufacturing is expected to reveal a further slowdown in activity in the sector, with the headline index forecast to fall to 52.5 in January from 52.9 in December.
This, however, will still leave it above the 50 level which marks expansion.
"The December rate cut may have helped to alleviate some strains in the credit markets and sterling s ongoing slide will have boosted competitiveness, but the softening in global demand and the general deterioration in sentiment are likely to prove more powerful forces at this juncture," RBS analysts said. jessica.mortimer@thomson.com jkm/lam COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
The week kicks off with the Confederation of British Industry s monthly survey on retail sales, followed by Bank of England lending data on Wednesday. Thursday will see the release of the closely-watched Nationwide house price survey and GfK s consumer confidence survey.
Finally, January s PMI index on manufacturing activity will be released on Friday.
TUESDAY, JANUARY 29
-The Confederation of British Industry s latest distributive sales survey is expected to give further evidence of waning consumer spending as consumers count the costs of spiraling petrol and food prices and rising utility bills.
The balance of retailers reporting a rise in sales is expected to drop to zero pct in January from +8 pct in December.
"It s possible that aggressive discounting means volumes sales wont be quite as weak, but this survey should continue to paint a picture of weakening spending," analysts at CSFB said.
WEDNESDAY, JANUARY 30
-Figures from the Bank of England data are expected to show a further deterioration in mortgage activity as the credit crunch takes its toll. Mortgage lending growth is forecast to drop to 7.6 bln stg in December from 7.8 bln in November, while mortgage approvals -- a key gauge of future demand -- fall to 80,000 from 83,000.
"We expect Bank of England mortgage approvals and lending data to provide yet further evidence that housing market activity is now being substantially undermined by both stretched affordability and tightening lending practices," said Howard Archer at Global Insight.
Unsecured lending, for example on credit cards, loans and overdrafts, is also set to stay subdued at 1.1 bln stg.
THURSDAY, JANUARY 31
-A key survey from the Nationwide is expected to show UK house prices fell for the third consecutive month in January.
House prices are forecast to have fallen by 0.3 pct after a 0.5 pct drop in December. This would take annual house price growth down to 4.1 pct from 4.8.
-The GfK s latest survey is set to show consumer confidence waning as the headline index drops to -15 in January from -14 in December.
"The index has fallen very sharply in recent months and while there are some grounds for expecting a bounce (December s interest rate cut, solid employment growth), the momentum is in the other direction and we doubt we have yet reached the low-point," analysts at RBS said.
FRIDAY, FEBRUARY 1
-The purchasing managers survey for manufacturing is expected to reveal a further slowdown in activity in the sector, with the headline index forecast to fall to 52.5 in January from 52.9 in December.
This, however, will still leave it above the 50 level which marks expansion.
"The December rate cut may have helped to alleviate some strains in the credit markets and sterling s ongoing slide will have boosted competitiveness, but the softening in global demand and the general deterioration in sentiment are likely to prove more powerful forces at this juncture," RBS analysts said. jessica.mortimer@thomson.com jkm/lam COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Toyota Dec parent global vehicle output up 2.2 pct, group output up 2.2 pct
TOKYO (Thomson Financial) - Japanese automaker Toyota Motor Corp said Monday its parent global output in December rose 2.2 percent to 637,678 vehicles from a year earlier, helped by brisk demand outside Japan.
The December increase in output marks the 38th straight monthly rise for the parent company.
For the Toyota group including all its subsidiaries, worldwide output was also up 2.2 percent at 715,763 units in December.
The group figure includes output from Daihatsu Motor Co, a maker of small vehicles, and truck maker Hino Motors.
Toyota holds 51 percent of each of the companies.
The following figures for December are for parent Toyota Motor Corp only:
Domestic vehicle output - down 3.7 percent at 325,673 units
Domestic car output - down 4.2 percent at 297,219 units
Domestic vehicle sales - down 14.7 percent at 93,888 units
Domestic car sales - down 12.7 percent at 84,138 units
Exports - up 3.8 percent at 234,552 units
Overseas output - up 9.1 percent at 312,005 units
Global production - up 2.2 percent at 637,678 units
The following figures for December are for the entire Toyota group:
Domestic vehicle output - down 3.2 percent at 396,365 units
Domestic car output - down 4.7 percent at 347,289 units
Domestic vehicle sales - down 14.6 percent at 137,632 units
Domestic car sales - down 13.3 percent at 116,172 units
Exports - up 6.3 percent at 257,307 units
Overseas output - up 9.7 percent at 319,398 units
Global production - up 2.2 percent at 715,763 units
The following figures are for full-year 2007, for parent Toyota Motor Corp only:
Domestic vehicle output - up 0.8 percent at 4.226 million units
Domestic vehicle sales - down 6.2 percent at 1.587 million units
Exports - up 5.4 percent at 2.666 million units
Overseas output - up 10.5 percent at 4.309 million units
Global production - up 5.5 percent at 8.535 million units
The following figures are for full-year 2007, for the entire Toyota group:
Domestic vehicle output - up 0.7 percent at 5.120 million units
Domestic vehicle sales - down 4.5 percent at 2.262 million units
Exports - up 6.1 percent at 2.879 million units
Overseas output - up 11.3 percent at 4.378 million units
Global production - up 5.3 percent at 9.498 million units
(1 US dollar = 106.25 yen)
yumiko.nishitani@thomson.com
ys/nt
MMMM
The December increase in output marks the 38th straight monthly rise for the parent company.
For the Toyota group including all its subsidiaries, worldwide output was also up 2.2 percent at 715,763 units in December.
The group figure includes output from Daihatsu Motor Co, a maker of small vehicles, and truck maker Hino Motors.
Toyota holds 51 percent of each of the companies.
The following figures for December are for parent Toyota Motor Corp only:
Domestic vehicle output - down 3.7 percent at 325,673 units
Domestic car output - down 4.2 percent at 297,219 units
Domestic vehicle sales - down 14.7 percent at 93,888 units
Domestic car sales - down 12.7 percent at 84,138 units
Exports - up 3.8 percent at 234,552 units
Overseas output - up 9.1 percent at 312,005 units
Global production - up 2.2 percent at 637,678 units
The following figures for December are for the entire Toyota group:
Domestic vehicle output - down 3.2 percent at 396,365 units
Domestic car output - down 4.7 percent at 347,289 units
Domestic vehicle sales - down 14.6 percent at 137,632 units
Domestic car sales - down 13.3 percent at 116,172 units
Exports - up 6.3 percent at 257,307 units
Overseas output - up 9.7 percent at 319,398 units
Global production - up 2.2 percent at 715,763 units
The following figures are for full-year 2007, for parent Toyota Motor Corp only:
Domestic vehicle output - up 0.8 percent at 4.226 million units
Domestic vehicle sales - down 6.2 percent at 1.587 million units
Exports - up 5.4 percent at 2.666 million units
Overseas output - up 10.5 percent at 4.309 million units
Global production - up 5.5 percent at 8.535 million units
The following figures are for full-year 2007, for the entire Toyota group:
Domestic vehicle output - up 0.7 percent at 5.120 million units
Domestic vehicle sales - down 4.5 percent at 2.262 million units
Exports - up 6.1 percent at 2.879 million units
Overseas output - up 11.3 percent at 4.378 million units
Global production - up 5.3 percent at 9.498 million units
(1 US dollar = 106.25 yen)
yumiko.nishitani@thomson.com
ys/nt
MMMM
Japan s Honda December global output up 5.5 percent at 298,824 vehicles
TOKYO (Thomson Financial) - Japan s second-largest auto maker, Honda Motor Co Ltd, said Monday its global vehicle output in December rose 5.5 percent to 298,824 vehicles from a year earlier, led by brisk overseas output.
The increase in December was Honda s 29th straight monthly output rise.
Overseas output grew 13.3 percent to 189,091 units.
Output in Asia expanded 23.8 percent to 66,043 vehicles, while production in the North America firmed 0.9 percent to 94,977 and that in Europe surged 35.2 percent to 16,445.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - down 5.7 percent at 109,733 units
Domestic vehicle sales - down 11.1 percent at 56,156 units
Exports - up 3.5 percent at 62,921 units
Overseas output - up 13.3 percent at 189,091 units
Global production - up 5.5 percent at 298,824 units
Following are results for full-year 2007:
Domestic vehicle output - down 0.1 percent at 1.332 million units
Domestic vehicle sales - down 11.4 percent at 621,884 units
Exports - up 12.6 percent at 707,049 units
Overseas output - up 12.1 percent at 2.580 million units
Global production - up 7.7 percent at 3.912 million units
(1 US dollar = 106.66 yen)
yumiko.nishitani@thomson.com
ys/nt
MMMM
The increase in December was Honda s 29th straight monthly output rise.
Overseas output grew 13.3 percent to 189,091 units.
Output in Asia expanded 23.8 percent to 66,043 vehicles, while production in the North America firmed 0.9 percent to 94,977 and that in Europe surged 35.2 percent to 16,445.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - down 5.7 percent at 109,733 units
Domestic vehicle sales - down 11.1 percent at 56,156 units
Exports - up 3.5 percent at 62,921 units
Overseas output - up 13.3 percent at 189,091 units
Global production - up 5.5 percent at 298,824 units
Following are results for full-year 2007:
Domestic vehicle output - down 0.1 percent at 1.332 million units
Domestic vehicle sales - down 11.4 percent at 621,884 units
Exports - up 12.6 percent at 707,049 units
Overseas output - up 12.1 percent at 2.580 million units
Global production - up 7.7 percent at 3.912 million units
(1 US dollar = 106.66 yen)
yumiko.nishitani@thomson.com
ys/nt
MMMM
Indonesia December trade surplus expected to widen as import growth slows
JAKARTA (Thomson Financial) - Indonesia s trade surplus is expected to widen in December from November as exports bounce back while imports slow down, according to economists polled by Thomson Financial.
The Central Bureau of Statistics will release the trade data next Friday.
Five out of six economists polled by Thomson Financial expect the trade surplus to widen, with just one expecting it to narrow.
The economists expect Indonesian exports to come in at between 9.3 billion and 10.7 billion US dollars, with three economists expecting exports to be higher than in the previous month.
Two economists expect exports to shrink and one economist expects them to be unchanged.
Economists expect imports to come in a range of 6.1-7.85 billion dollars.
In November, Indonesian exports fell 4.3 percent month-on-month to 9.81 billion dollars, after hitting an all-time high of 10.25 billion dollars in October. Imports rose 20.5 percent to 7.54 billion dollars, resulting in a trade surplus of 2.27 billion dollars, compared to 3.99 billion dollars in October.
Citigroup economist Anton Gunawan said he expect exports to rise above 10 billion dollars, while imports fall slightly, causing the trade surplus to widen from its November level.
Gunawan said exports and imports of oil and gas would probably not change much, but exports of non-oil and gas were likely higher.
"We do not expect the Indonesian garment and footwear exports to main trading partners, especially to the US, to come down due to the rising risk of recession in the US," Gunawan said.
"Prices of several key primary commodities still show an increasing trend, but the increase is not as big as before," Gunawan said. Prices of rubber rose by 8.2 percent in December from November and prices of vegetable (palm) oil rose 6.23 percent. Prices of Indonesian oil rose a modest 0.8 percent.
"Exports were holding up pretty well. It was just a continuation from recent trends," said David Cohen, economist at Singapore-based Action Economics.
"Exports to the US from a lot of countries eased somewhat, including exports from Indonesia, but not in a dramatic fashion," Cohen said.
Cohen expects Indonesian exports rose to 10.5 billion US dollars in December, while imports remained little changed at 7.5 billion dollars, resulting in a trade surplus of 3.0 billion US dollars.
Mega Capital economist Felix Sindhunata, however, expects the trade surplus to narrow to 1.96 billion in December from 2.27 billion dollars in November. Sindhunata is forecasting that imports rose to 7.85 billion dollars, while exports remained unchanged from the previous month at 9.81 billion dollars.
Bank Internasional Indonesia (BII) economist Juniman expects the December trade surplus to widen from the previous month, as imports fell faster than exports.
Juniman expects exports at 9.78 billion dollars and imports at 6.99 billion dollars.
"Exports edged down in December compared to November partly due to declining demand from some of Indonesia s trading partners, in particular the US," Juniman said.
"The slowdown of the US economy began to have an impact on Indonesia s exports in December," Juniman said. To offset lower demand from the US, the government must diversify its export markets, he said.
Gunawan disagreed, forecasting growth in imports for December.
"We expect the year-on-year import growth to pick up rather significantly in December, mainly due to the base effect and still high fuel prices," Gunawan said.
"Rising economic activities and real income led to a jump in both imports of raw materials and consumption goods," Gunawan said.
Growth of capital goods imports is expected to be relatively modest, especially due to the government s plan to prohibit the import of used heavy equipment. That may slow the growth of capital goods imports in the future, Gunawan said.
As for all of 2007, BII s Juniman expects Indonesian exports to grow by 12.1 percent to 112.84 billion dollars and imports to rise 22.1 percent to 74.56 billion dollars.
Juniman expects Indonesian exports to grow by 9.9 percent this year to 124.4 billion dollars, while imports grow at a slower 16 percent pace to 86.49 billion dollars.
The following are the economists forecasts for trade surplus, exports and imports in November:
Mega Capital - 1.96 billion dollars; 9.81 billion dollars; 7.85 billion dollars
Citigroup - 2.71 billion dollars; 10.06 billion dollars; 7.35 billion dollars
BII - 2.79 billion dollars; 9.78 billion dollars; 6.99 billion dollars
Action Economics - 3.0 billion dollars; 10.5 billion dollars; 7.5 billion dollars
Standard Chartered - 3.2 billion dollars; 9.3 billion dollars; 6.1 billion dollars
ING - 3.8 billion dollars; 10.7 billion dollars; 6.9 billion dollars
(1 US dollar = 9,343 rupiah)
roffie.kurniawan@thomson.com
MMMM
The Central Bureau of Statistics will release the trade data next Friday.
Five out of six economists polled by Thomson Financial expect the trade surplus to widen, with just one expecting it to narrow.
The economists expect Indonesian exports to come in at between 9.3 billion and 10.7 billion US dollars, with three economists expecting exports to be higher than in the previous month.
Two economists expect exports to shrink and one economist expects them to be unchanged.
Economists expect imports to come in a range of 6.1-7.85 billion dollars.
In November, Indonesian exports fell 4.3 percent month-on-month to 9.81 billion dollars, after hitting an all-time high of 10.25 billion dollars in October. Imports rose 20.5 percent to 7.54 billion dollars, resulting in a trade surplus of 2.27 billion dollars, compared to 3.99 billion dollars in October.
Citigroup economist Anton Gunawan said he expect exports to rise above 10 billion dollars, while imports fall slightly, causing the trade surplus to widen from its November level.
Gunawan said exports and imports of oil and gas would probably not change much, but exports of non-oil and gas were likely higher.
"We do not expect the Indonesian garment and footwear exports to main trading partners, especially to the US, to come down due to the rising risk of recession in the US," Gunawan said.
"Prices of several key primary commodities still show an increasing trend, but the increase is not as big as before," Gunawan said. Prices of rubber rose by 8.2 percent in December from November and prices of vegetable (palm) oil rose 6.23 percent. Prices of Indonesian oil rose a modest 0.8 percent.
"Exports were holding up pretty well. It was just a continuation from recent trends," said David Cohen, economist at Singapore-based Action Economics.
"Exports to the US from a lot of countries eased somewhat, including exports from Indonesia, but not in a dramatic fashion," Cohen said.
Cohen expects Indonesian exports rose to 10.5 billion US dollars in December, while imports remained little changed at 7.5 billion dollars, resulting in a trade surplus of 3.0 billion US dollars.
Mega Capital economist Felix Sindhunata, however, expects the trade surplus to narrow to 1.96 billion in December from 2.27 billion dollars in November. Sindhunata is forecasting that imports rose to 7.85 billion dollars, while exports remained unchanged from the previous month at 9.81 billion dollars.
Bank Internasional Indonesia (BII) economist Juniman expects the December trade surplus to widen from the previous month, as imports fell faster than exports.
Juniman expects exports at 9.78 billion dollars and imports at 6.99 billion dollars.
"Exports edged down in December compared to November partly due to declining demand from some of Indonesia s trading partners, in particular the US," Juniman said.
"The slowdown of the US economy began to have an impact on Indonesia s exports in December," Juniman said. To offset lower demand from the US, the government must diversify its export markets, he said.
Gunawan disagreed, forecasting growth in imports for December.
"We expect the year-on-year import growth to pick up rather significantly in December, mainly due to the base effect and still high fuel prices," Gunawan said.
"Rising economic activities and real income led to a jump in both imports of raw materials and consumption goods," Gunawan said.
Growth of capital goods imports is expected to be relatively modest, especially due to the government s plan to prohibit the import of used heavy equipment. That may slow the growth of capital goods imports in the future, Gunawan said.
As for all of 2007, BII s Juniman expects Indonesian exports to grow by 12.1 percent to 112.84 billion dollars and imports to rise 22.1 percent to 74.56 billion dollars.
Juniman expects Indonesian exports to grow by 9.9 percent this year to 124.4 billion dollars, while imports grow at a slower 16 percent pace to 86.49 billion dollars.
The following are the economists forecasts for trade surplus, exports and imports in November:
Mega Capital - 1.96 billion dollars; 9.81 billion dollars; 7.85 billion dollars
Citigroup - 2.71 billion dollars; 10.06 billion dollars; 7.35 billion dollars
BII - 2.79 billion dollars; 9.78 billion dollars; 6.99 billion dollars
Action Economics - 3.0 billion dollars; 10.5 billion dollars; 7.5 billion dollars
Standard Chartered - 3.2 billion dollars; 9.3 billion dollars; 6.1 billion dollars
ING - 3.8 billion dollars; 10.7 billion dollars; 6.9 billion dollars
(1 US dollar = 9,343 rupiah)
roffie.kurniawan@thomson.com
MMMM
Japan s Suzuki Motor December global vehicle output up 6.1 percent
TOKYO (Thomson Financial) - Japanese automaker Suzuki Motor Corp said Monday that its global production rose 6.1 percent to 210,419 vehicles in December from a year earlier, led by brisk output in India and Japan.
This was the 32nd consecutive monthly gain and the total was a record for the month of December.
Suzuki Motor makes minicars with an engine displacement of 660cc or less.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - up 6.1 percent at 107,947
Domestic vehicle sales - down 2.6 percent at 46,676
Exports - up 12.7 percent at 38,520
Overseas output - up 6.2 percent at 102,472
Global production - up 6.1 percent at 210,419
The company gave the following figures for 2007, with year-on-year percentage changes:
Domestic vehicle output - up 1.0 percent at 1.218 million
Domestic vehicle sales - down 2.7 percent at 676,246
Exports - up 10.1 percent at 406,838
Overseas output - up 21.4 percent at 1.378 million
Global production - up 10.8 percent at 2.596 million
(1 US dollar = 106.72 yen)
yumiko.nishitani@thomson.com
MMMM
This was the 32nd consecutive monthly gain and the total was a record for the month of December.
Suzuki Motor makes minicars with an engine displacement of 660cc or less.
The company gave the following figures for December, with year-on-year percentage changes:
Domestic vehicle output - up 6.1 percent at 107,947
Domestic vehicle sales - down 2.6 percent at 46,676
Exports - up 12.7 percent at 38,520
Overseas output - up 6.2 percent at 102,472
Global production - up 6.1 percent at 210,419
The company gave the following figures for 2007, with year-on-year percentage changes:
Domestic vehicle output - up 1.0 percent at 1.218 million
Domestic vehicle sales - down 2.7 percent at 676,246
Exports - up 10.1 percent at 406,838
Overseas output - up 21.4 percent at 1.378 million
Global production - up 10.8 percent at 2.596 million
(1 US dollar = 106.72 yen)
yumiko.nishitani@thomson.com
MMMM
China approves equity funds by Orient, Shenyin & Wanguo, Zheshang Sec - report
BEIJING (XFN-ASIA) - The China Securities Regulatory Commission has given its approval to three new domestic equity funds, which plan to raise a combined two bln usd, the Shanghai Business Review reported, citing a source.
The investment funds, run by Orient Securities Co, Shenyin & Wanguo Securities and Zheshang Securities, are the first such approvals in five months, the report added.
Last week, Agence France-Presse identified Shenyin & Wanguo as one of three companies winning approval for a new investment fund.
andrew.pasek-vanburen@xinhuafinance.com
MMMM
The investment funds, run by Orient Securities Co, Shenyin & Wanguo Securities and Zheshang Securities, are the first such approvals in five months, the report added.
Last week, Agence France-Presse identified Shenyin & Wanguo as one of three companies winning approval for a new investment fund.
andrew.pasek-vanburen@xinhuafinance.com
MMMM
Subscribe to:
Posts (Atom)