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Japan February Monetary Base +11.3% On Year

2012-03-02T09:05:00.001+02:00

The monetary base in Japan was up 11.3 percent on year in February, the Bank of Japan said on Friday, standing at 112.44 trillion yen.

That follows the 15.0 percent annual expansion in January.

Banknotes in circulation were up 2.2 percent on year, while coins in circulation added 0.1 percent on year. Current account balances spiked an annual 52.8 percent, including a 51.9 percent surge in reserve account balances.

The adjusted monetary base plummeted 23.6 percent on year to 115.170 trillion yen.

Japan Unemployment Rate 4.6% In January

2012-03-02T09:00:00.007+02:00

The unemployment rate in Japan came in at a seasonally adjusted 4.6 percent in January, the Ministry of Internal Affairs and Communications said on Friday.

The missed forecasts for a 4.5 percent rate, which matched the revised reading from December.

The number of employed persons in January was 62.11 million, a decrease of 480 thousand or 0.8 percent on year.

The job-to-applicant ratio was 0.73, beating forecasts for 0.72 after coming in at 0.71 in the previous month. The participation rate was 58.6 percent.

Japan Core CPI Falls 0.1% On Year In January

2012-03-02T09:00:00.005+02:00

Core inflation in Japan eased 0.1 percent on year in January, the Ministry of Internal Affairs and Communications said on Friday - unchanged from the previous month and beating forecasts for a decline of 0.2 percent.

Overall inflation was up 0.1 percent on year versus forecasts for a contraction of 0.1 percent after shedding 0.2 percent in December.

On a monthly basis, core CPI was down 0.2 percent and overall inflation was up 0.2 percent.

Among the individual components, prices for fuel were up 4.7 percent on year, while transportation was up 1.3 percent, food was up 1.0 percent, clothing was up 0.7 percent and education was up 0.2 percent.

Recreation prices fell 4.1 percent on year, while furniture was down 2.9 percent, medical care was down 1.1 percent and housing was down 0.3 percent.

On a monthly basis, furniture prices were up 3.4 percent, while food was up 1.8 percent, transportation was up 0.3 percent and education was up 0.1 percent.

Clothing prices dropped 5.9 percent, while recreation was down 1.1 percent and fuel and housing each eased 0.1 percent.

CPI in the Tokyo region, considered to be a leading indicator for the national trend, was down 0.2 percent on year in February - matching forecasts and holding steady following the revised January reading.

Core CPI in Tokyo was down 0.3 percent, beating forecasts for -0.4 percent - which would have been unchanged from the previous month.

On a monthly basis, Tokyo overall CPI was flat, while core CPI was up 0.1 percent.

Among individual components, fuel costs surged 7.3 percent on year, while education was up 0.7 percent, clothing was up 0.3 percent and transportation was up 0.2 percent.

Furniture prices plunged 5.4 percent on year, while recreation was down 3.1 percent, housing was down 0.8 percent and medical care was down 0.7 percent.

By month, clothing prices climbed 1.7 percent, while recreation was up 0.9 percent.

Furniture prices were down 1.0 percent, while transportation was down 0.7 percent and food eased 0.2 percent. Housing, fuel and education all were flat.

Also on Friday:

• The average household spending in Japan was down 2.3 percent on year in January, the Ministry of Internal Affairs and Communications said, standing at 283,118 yen. That was well shy of forecasts for a contraction of 0.9 percent following the 0.5 percent increase in December.

The average of monthly income per household was 430,485 yen, up 2.4 percent, while the average of consumption expenditures fell 2.8 percent to 309,483 yen.

• The unemployment rate in Japan came in at a seasonally adjusted 4.6 percent in January, the Ministry of Internal Affairs and Communications said. The missed forecasts for a 4.5 percent rate, which matched the revised reading from December.

The number of employed persons in January was 62.11 million, a decrease of 480 thousand or 0.8 percent on year. The job-to-applicant ratio was 0.73, beating forecasts for 0.72 after coming in at 0.71 in the previous month. The participation rate was 58.6 percent.

• The monetary base in Japan was up 11.3 percent on year in February, the Bank of Japan said, standing at 112.44 trillion yen. That follows the 15.0 percent annual expansion in January.

The adjusted monetary base plummeted 23.6 percent on year to 115.170 trillion yen.

• Upon the release of the data, the Japanese yen showed little changes against major rivals, trading near 81.15 against the U.S. dollar, 108.04 versus the euro, 89.60 against the franc and 129.47 versus the pound.

Eurozone Leaders To Decide On Firewall By End-March: Van Rompuy

2012-03-02T09:00:00.002+02:00

Eurozone leaders will likely decide on the adequacy of the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) by the end of March, European Council President Herman Van Rompuy said Thursday.

Following the fist session of the European Council, he said "Eurozone leaders will reassess the adequacy of the overall ceiling of the EFSF/ ESM firewall by the end of the month." They have also agreed to accelerate the payments of the pending capital for the ESM, he added.

EU heads of state or government on Thursday re-elected Van Rompuy as President of the European Council for a second term of two and a half years. His term will run till November 30, 2014 from June 1, 2012.

He was also designated as president of the Euro Summit for the same term of office.

Van Rompuy lauded the decisive legislative actions taken by Greek authorities over the past ten days. "Eurozone leaders support the efforts undertaken by Greece to strengthen the country's institutional capacity," he said.

Downside Risks To Global Growth Outlook Remain, IMF Warns

2012-03-02T08:59:00.004+02:00

Risks to global economic growth remained "squarely to the downside," the International Monetary Fund warned in a note to Group of Twenty finance ministers during their meeting in Mexico City over the weekend.

In the report prepared by IMF's Research Department and published only on Thursday, the Fund said, however, the recent policies and financial market developments have lowered the probability of a sharp global slowdown.

The report urged euro area to build on recent measures and act decisively on multiple fronts to achieve a successful resolution to the crisis. The Fund also demanded policymakers to quickly implement the agreed "fiscal compact".

It observed that the European Central Bank's 3 year long term refinancing operation has improved market sentiment, relieving pressures on euro area banks and sovereigns.

The Washington-based lender urged the European authorities to increase the available capacity of the European firewall by around $500 billion to adequate levels. It pointed out that this could be achieved through enlarging the European Stability Mechanism (ESM) or running the existing European Financial Stability Facility alongside the ESM.

According to the report, the key risk remains that policies do not shift Europe toward a "good equilibrium" and fail to break adverse feedback loops between real, fiscal, and financial sectors. This risk must be urgently addressed, it said.

The IMF urged the ECB to make monetary policy highly accommodative, by lowering the target policy rate, for which room exists, and through further unconventional measures. The Fund said the ECB should "continue to provide liquidity and stay fully engaged in securities purchases to help improve the prospects for financial stability."

The Fund expects the Federal Reserve, Bank of England, and Bank of Japan to stand ready to expand unconventional support, if downside risks materialize.

The IMF noted that there is an urgent need to set out a credible path for fiscal consolidation in advanced economies, over the medium term. Meanwhile, emerging economies should give priority to ensure a soft landing as domestic growth slows amid a deteriorating external environment and volatile capital flows, the report said.

European Economics Preview: Eurozone Producer Price Data Due

2012-03-02T08:59:00.001+02:00

Producer prices from Eurozone and retail sales from Germany are the major statistical reports due on Friday, headlining a light day for the European economic news.

Germany's retail sales are due from the Federal Statistical Office at 2.00 am ET. Retail sales growth is seen at 0.5 percent month-on-month compared to 0.1 percent rise in December.

In the meantime, Statistics Finland is slated to publish fourth quarter GDP figures. The economy is forecast to grow 0.1 percent sequentially after rising 0.9 percent in the third quarter.

Norway's retail sales data is due at 4.00 am ET. Retail sales are expected to grow 0.3 percent month-on-month in January, offsetting December's 0.3 percent drop.

At 4.30 am ET, the U.K. CIPS/Markit construction Purchasing Managers' survey results are due. The index is forecast to fall marginally to 51.3 in February from 51.4 in January.

At 5.00 am ET, Eurostat is scheduled to issue Eurozone producer prices for January. Economists forecast producer price inflation to slow to 3.6 percent annually from 4.3 percent in December.

Italy's 2011 annual GDP data is also due at the same time. GDP growth is seen at 0.3 percent.

On Thursday, Eurozone finance ministers authorized the first payments to Greece under its second, EUR 130 billion bailout package.

Today, the European Council will meet in Brussels. The EU heads of state or government will focus on economic policy and review the economic situation in Europe. In the margins of the European Council, the "fiscal compact" will be signed.

S. Africa's Ruling ANC Expels Controversial Youth Leader

2012-03-01T09:02:00.007+02:00

South Africa's ruling African National Congress (ANC) party has expelled its controversial youth leader Julius Malema on Wednesday after an internal disciplinary committee found him guilty of fomenting divisions and bringing the party into disrepute.

"In respect of the present disciplinary hearing, Comrade Julius Malema is expelled from the ANC," the party's internal disciplinary committee said in a statement late on Wednesday.

The ANC youth leader was accused of "sowing divisions" in the party and bringing it to disrepute by calling for the overthrow of Botswana President Ian Khama, and describing Botswana as a security threat to Africa and a "puppet" of the United States.

Malema now has 14 days to appeal the disciplinary committee's ruling. His youth league is yet to comment on the expulsion. Nevertheless, Malema had said in the past that he would appeal against his possible expulsion from the ANC.

Malema was suspended from the ANC for five years by the disciplinary committee in November after finding him guilty of three charges, including criticizing party leader and South African President Jacob Zuma. Although Zuma and Malema were close allies earlier, the ANC youth leader has now become a fierce critic of Zuma.

Malema's repeated calls for the Zimbabwe-style nationalization of mines and white-owned land may have offended ANC leaders and the business community, but have increased his support among South Africa's impoverished black communities.

Many in South Africa believed Malema would be a major threat to Zuma in his quest for a second presidential term if the youth leader maintained his party membership after the disciplinary committee hearing.

Malema, 30, has been a controversial but influential political figure ever since he became the President of the ANC Youth League in April 2008. He had earlier thrown a BBC journalist out of a press conference after calling him "a bloody agent" and said a woman who accused Zuma of raping her had a "nice time." Further, he had once called senior Communist Party official Jeremy Cronin a "white messiah," and described Opposition leader Helen Zille as both a "racist" and "colonialist."

The ANC youth leader was also taken to court last year for leading a group of college students in Johannesburg in singing the apartheid-era protest song "Shoot the boere, they are rapists." Although Boere means framers in Afrikaans, it is mostly used to describe the South African descendants of early Dutch settlers, who accuse Malema of inciting violence against whites.

Subsequently a court found Malema guilty of hate speech for singing the apartheid-era protest song. The judge also restrained the ANC, its Youth League or anyone in South Africa from singing the song in the future, stating that the lyrics of the song are now derogatory and poses a threat to race relations in South Africa.

India's Dec FDI Dips By 33%

2012-03-01T09:02:00.004+02:00

Foreign direct investment or FDI in India during December 2011 declined by 33 percent to $1.35 billion or Rs.7,124 crore from the $2.01 billion or Rs.9,094 crore in December 2010, the PTI reported.

During April-December FDI increased by 51 percent to $24.18 billion from the $16.03 billion in the corresponding period last year, mainly due to higher FDI inflows during the April-June quarter.

The cumulative figure has also surpassed $19.43 billion which came in the fiscal year 2011, an official said.

In April, May and June, the country received FDI worth $3.12 billion, $4.66 billion and $5.65 billion, respectively.

Analysts expects the current fiscal year's FDI to cross $30 billion, which will have a positive impact on rupee in the foreign exchange market. An economist said, "Despite decline in December 2011, FDI will cross $30 billion...but government should take steps to boost investors confidence."

The rupee had fallen 15 percent last year due to the FII selling pressure in the stock market and rising trade deficit. The trend has reversed since the start of this year.

During the 9-month period, services sector received large inflows of $4.57 billion, followed by pharmaceuticals $3.19 billion, telecom $1.98 billion, construction $1.60 billion, power $ 1.44 billion and metallurgical industries $1.49 billion.

During the period, India received highest FDI from Mauritius ($8.24 billion), Singapore ($3.99 billion), Japan ($2.68 billion), UK ($2.57 billion), Germany ($1.39 billion), Netherlands ($1.07 billion) and Cyprus ($1.02 billion), the official added.

French Q4 Unemployment Rate Rises

2012-03-01T09:02:00.001+02:00

The ILO unemployment rate in metropolitan France rose to 9.4 percent in the fourth quarter from 9.3 percent in the prior quarter, the statistical office Insee showed Thursday. The expected rate was 9.6 percent.

The number of unemployed totaled 2.7 million. The employment rate of the population was stable at 63.8 percent in the fourth quarter.

At the same time, the under employment rate held steady at 5.3 percent.

Gold Ticks Up In Asian Trading

2012-03-01T09:01:00.005+02:00

The price of gold was ticking higher in Asian trading Thursday after falling heavily in the previous session.

Gold for April delivery, the most actively traded contract, added $6.40 to $1,717.70 an ounce. Yesterday, gold suffered its biggest one-day loss in over six months, shedding over 4%. Gold prices dropped sharply with the dollar gaining strength after the U.S. Federal Reserve Chairman Ben Bernanke warned of lingering weakness in the jobs market, while downplaying the unexpected economic growth in the final quarter of 2011.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up from 1,284.61 tons to 1,293.68 tons, its highest level in 3-months.

Indian Exports Rise 10.1% In January

2012-03-01T09:01:00.002+02:00

India's merchandise exports increased from last year in January, data released by the Ministry of Commerce and Industry showed Thursday.

The value of exports increased 10.1 percent on an annual basis to $25.347 billion in January. Imports advanced 20.25 percent year-on-year to $40.108 billion during the month. Oil imports climbed 26.78 percent annually, while non-oil imports advanced 17.56 percent.

The trade balance for the month was a deficit of $14.761 billion, wider than the $10.332 billion deficit recorded a year earlier.

In the April 2011 to January 2012 period, the value of shipments advanced 23.47 percent from the same period a year earlier. In the 10-month period ending January, total arrivals increased 29.4 percent from last year. The trade balance was a deficit of $148.668 billion during the period, up from last year's $105.896 billion deficit.

Swiss Q4 GDP Rises Unexpectedly

2012-03-01T09:00:00.002+02:00

The Swiss economy expanded unexpectedly in the fourth quarter, data released by the State Secretariat for Economic Affairs (SECO) showed Thursday.

The gross domestic product rose 0.1 percent quarter-on-quarter during the fourth quarter against economists' expectations for a 0.1 percent contraction.

Positive contribution to growth came from gross fixed investments, private consumption as well as trade balance for goods, SECO said. Annually, GDP rose 1.3 percent, faster than the expected 1.1 percent growth.

Crude Edges Up In Asian Session

2012-02-29T09:10:00.005+02:00

The price of crude oil was edging up in Asian session Wednesday after a mixed inventories report from the American Petroleum Institute.

Light Sweet Crude Oil (WTI) futures for April delivery, edged up $0.42 to $106.97 a barrel. Yesterday, oil slipped back to weekly low on demand concerns after some downbeat economic data from the U.S. showed declines in orders for durable goods and home prices.
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Tuesday after the market hours, the API said crude oil inventories rose 521,000 barrels, while gasoline stocks eased 916,000 barrels in the weekended February 24.

Today during trading hours the EIA will come with its report on U.S. crude oil inventories. Analysts expect crude oil inventories to gain 1.1 million barrels and gasoline stocks to ease 425,000 barrels last week.

Gold Steady Near 3-month High

2012-02-29T09:10:00.002+02:00

The price of gold was steady in Asian trading Wednesday ahead of the refinancing operation by the European Central Bank.

Gold for April delivery, the most actively traded contract, edged up $1.70 to $1,790.10 an ounce. Yesterday, gold gained nearly 1 percent to settle at a three-month high as the dollar declined after some mixed U.S. economic data.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,284.61 tons.

South Africa Private Credit Growth Accelerates

2012-02-29T09:09:00.002+02:00

South Africa's private sector growth accelerated more than expected by economists in January, data from the South African Reserve Bank revealed Wednesday.

Claims on South Africa's domestic private sector grew 7.33 percent year-on-year in January, following December's 6.21 percent increase. Economists had forecast a 7.06 percent rise.

Total loans and advances increased 7.26 percent during the month compared to 7.39 percent rise in December.

The M3, or broad money supply, increased 6.58 percent on an annual basis in January, after rising 8.27 percent in December. Economists were looking for a 8.55 percent increase.

At the same time, the intermediate money supply, also known as M2, rose 6.61 percent during the month, slower than the previous month's 7.17 percent expansion. The growth in the M1, or narrow money, accelerated to 10.1 percent from 9.75 percent.

European Economics Preview: ECB Second LTRO Results In Focus

2012-02-29T09:09:00.000+02:00

Results of the European Central Bank's second three-year loan offering is set to dominate the scene on Wednesday.

At 2.00 am ET, the Federal Statistical Office is slated to issue German import prices for January. Import price annual inflation is forecast to slow to 3 percent from 3.9 percent in December.

French consumer spending is due at 2.45 am ET. Economists expect spending to grow 0.2 percent month-on-month in January, following a 0.7 percent drop in December.

At 3.00 am ET, the Swiss KoF leading index is due. The indicator is seen at -0.1 in February compared to -0.17 in January. In the meantime, Spain's flash inflation and Turkey's trade balance are due.

Statistics Sweden is scheduled to release the fourth quarter GDP data at 3.30 am ET. The economy is expected to fall 0.7 percent sequentially, after rising 1.6 percent in the prior quarter.

The Federal Labor agency is set to issue February unemployment figures. The number of German unemployed is forecast to drop by 5,000 compared to 34,000 decline in January. The jobless rate is seen unchanged at 6.7 percent.

The Bank of England is slated to issue mortgage approvals for January at 4.30 am ET. In the meantime, M4 money supply figures are also due.

At 5.00 am ET, Eurostat is set to publish final January inflation data. According to flash estimate, euro area inflation held steady at 2.7 percent.

The ECB's long term refinancing operation (LTRO) results are due at 5.15 am ET. The three-year loans for banks are expected to improve liquidity and reduce cost. The EUR 489.19 billion funds at 1 percent interest allotted in late December, helped cash-strapped lenders to refinance maturing bonds.
The German government plans to raise EUR 4 billion from the issue of bonds maturing on January 2022. The auction results are due at 5.30 am ET.

India's GDP Growth Slows More Than Expected

2012-02-29T09:08:00.002+02:00

India's economic growth eased more than expected during three months ended December, data from the Ministry of Statistics and Programme Implementation showed Wednesday.

Gross domestic product advanced 6.1 percent from a year ago, slower than the September quarter's 6.9 percent expansion and the expected growth of 6.3 percent.

Farm output logged an annual growth of 2.7 percent, down from 11 percent increase showed during the same period of last year. The manufacturing sector registered only 0.4 percent growth, while mining output dropped 3.1 percent.

Construction output advanced 7.2 percent in the December quarter compared to 8.7 percent rise last year.

Gold Hovers Near 3-month High

2012-02-28T14:35:00.001+02:00

The price of gold was steady near its 3-month high Tuesday morning as risk appetite improved ahead of an expected injection of cheap money from the European Central Bank.

Gold for April delivery, the most actively traded contract, edged up $2.20 to $1,777.10 an ounce. Yesterday, gold ended flat near its 3-month high on a stronger dollar.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,284.61 tons.

This morning, the U.S. dollar was lingering near its 2-month low versus the euro and ticking lower against sterling. The buck was trading around its 3-month low against the Swiss franc, while easing from its 7-month high versus the yen.

In economic news, German consumer confidence is set to record a modest improvement in March as income expectations continued to grow, a survey by market research group GfK revealed. Following a value of 5.9 points in February 2012, the overall indicator is forecasting a value of 6.0 points for March, GfK said. This was in line with economists expectations.

Meanwhile, euro zone economic confidence rose more than expected to 94.4 in February from 93.4 in January, survey results from the European Commission showed. Economists were expecting the index to climb to 94.

The prices of silver and platinum were trading flat in morning deals.

From the U.S., the Commerce Department will release its durable goods orders report, which gives the value of orders placed for goods designed to last for more than 3 years, at 8:30 a.m. ET. Economists expect a 0.7 percent drop in durable goods orders for January following a 3 percent increase in December.

At 9 a.m. ET, the S&P/Case-Shiller home price index is due to be released. Economists expect a seasonally adjusted 0.4 percent month-over-month drop in the 20-city composite house price index for December.

Later during the session, the Conference Board is scheduled to release its consumer confidence report for February. The report, which is based on a survey of 5,000 U.S. households, is expected to show that the consumer confidence index rose to 64 in February from 61.1 in January.

Cyprus Output Price Inflation Accelerates

2012-02-28T14:34:00.007+02:00

Cyprus producer price inflation increased in January, after slowing in the previous month, data from the Statistical Service of the Republic of Cyprus showed Tuesday.

Producer prices advanced 8 percent annually, after rising 6.5 percent in December. Month-on-month, prices increased 1.4 percent.

India's Jan Eight Core Sector Growth Slips

2012-02-28T14:34:00.005+02:00

India's eight core industries growth having a combined weight of 37.90 percent in the Index of Industrial Production (IIP) slowed to 0.5 percent in January, compared to 6.4 percent in January last year, mainly due to slackening output of crude oil, steel, natural gas and petroleum refinery products.

During December 2011, the core sectors recorded a growth of 3.1 percent, compared to 6.3 percent in the same period previous year.

During April-January this fiscal, the growth declined to 4.1 percent from the 5.7 per cent in the corresponding period of 2010-11, due to deceleration in investment.

As per the data released by the Commerce and Industry Ministry, crude oil production in January showed a negative growth of two percent, compared to a positive growth of 10.8 percent in the same month last year, while natural gas production was negative at 8.9 percent, compared to a negative growth of 6.3 percent year-on-year.

In January, petroleum refinery output had a negative growth of 4.6 percent, compared to a positive growth of 8.7 percent last January, whereas steel production witnessed a negative growth of 2.9 percent, compared to a positive growth of 8.7 percent. On the other hand, coal output was 7.5 percent, compared to a negative growth of 1.3 percent year-on-year.

Fertilizers output growth also declined to four percent from the 5.9 per cent in January last year, while cement witnessed a robust growth of 10.6 percent, compared to 1.8 percent and electricity output slipped to 2.4 percent from the 9.7 percent in January 2011.

Crude Extends Losses On Profit Taking

2012-02-28T14:34:00.002+02:00

The price of crude oil was ticking lower for a second session Tuesday morning amid profit taking, after last week's rally on concerns over supply from Iran.

Light Sweet Crude Oil (WTI) futures for April delivery, were down $0.41 to $108.15 a barrel. Yesterday, oil closed lower, mostly on a strong dollar and profit taking, despite lingering supply concerns from the Middle East over Iran's stand-off with the west on its nuclear program.

Traders will look to the Commerce Department's report on durable goods orders, which gives the value of orders placed for goods designed to last for more than 3 years, due out at 8:30 a.m. ET. Economists expect a 0.7 percent drop in durable goods orders for January following a 3 percent increase in December.

Today after the market hours, the API will release its U.S. crude oil inventories data for the weekended February 24. Analysts expect crude oil inventories to gain 1.1 million barrels and gasoline stocks to add 250,000 barrels last week.

Irish Retail Sales, Residential Property Prices Fall In January

2012-02-28T14:33:00.001+02:00

Ireland's retail sales decreased in January, after rising in the previous month, data released by the Central Statistics Office showed Tuesday.

Retail sales volume declined a seasonally adjusted 3.7 percent on a monthly basis in January, reversing the 2.5 percent increase recorded in December.

Year-on-year, the volume of sales edged down 0.8 percent in January, after gaining 3.1 percent in the previous month.

In value terms, seasonally adjusted sales dropped 3.7 percent month-on-month in January, following December's 2.7 percent rise. Annually, retail sales dropped 0.3 percent during the month, reversing the previous month's 3.3 percent increase.

Separately, the agency said Ireland's residential property pries decreased 1.9 percent month-on-month in January, faster than the previous month's 1.7 percent fall. House prices dropped 1.8 percent sequentially, while prices of apartments fell 4.3 percent during the month.

Year-on-year, overall residential property prices declined at a faster rate of 17.4 percent in January than the previous month's 16.7 percent fall.

Crude Holds Above $106 In Asian Session

2012-02-23T09:38:00.006+02:00

The price of crude oil was steady above $106 in Asian trading even after data from the API revealed jump in U.S. crude oil inventories last week.

Light Sweet Crude Oil (WTI) futures for April delivery, edged down $0.01 to $106.27 a barrel. Yesterday, oil ended flat amid some weak economic data from the euro zone and China, a strengthening dollar and continued supply concerns from Iran in the middle east.

Wednesday after the market hours, the API said crude oil inventories increased by 3.55 million barrels and gasoline stocks were up by 314,000 barrels in the week ended February 17.

Today during trading hours, the EIA will release its report on U.S. crude oil inventories for the week ended February 17.

Australian PM Calls Labor Party Leadership Vote

2012-02-23T09:38:00.004+02:00

Australian Prime Minister Julia Gillard announced Thursday that a vote would be held in Capital Canberra on Monday for the leadership of the ruling Labor Party to settle a tussle between her and her predecessor Kevin Rudd.

"For far too long, we have been squabbling within the Labor Party, which has obscured the government's achievements and what we are doing to build a stronger and fairer Australia. We need a leadership ballot to settle this question once and for all," Gillard told reporters in Adelaide.

"In recent days, I believe that this has moved to a distraction from governing itself. That's not good enough. Australians are rightly sick of this, and they want it brought to an end," she noted. "I believe it is in the interests of the Labor Party that it be determined once and for all."

Stating that she expected Rudd "be a candidate in this ballot" involving Labor members of the Parliament, Gillard expressed confidence that she would emerge as the winner in both the leadership vote as well as the next election scheduled for 2013.

Gillard said she would "go to the back bench" and "renounce any further ambition for the Labor leadership" if she loses in Monday's ballot. She also urged Rudd to declare a similar commitment to avoid future leadership tussles in the Labor Party.

Gillard's reaction came a day after Kevin Rudd announced his resignation as Foreign Minister while on a visit to the United States, saying he believed he no longer had the support of the Prime Minister.

"I therefore believe the only honorable course of action is for me to resign," Rudd said at a press conference held in Washington DC early on Wednesday. Without disclosing whether he intended to challenge Gillard when he returns to Australia by the end of the week, Rudd insisted that he would not be involved in a "stealth attack on a sitting Prime Minister elected by the people."

Rudd, who became the Foreign Minister after being toppled from premiership by Gillard in June 2010 in an internal party coup before the general election held later that year, said: "We all know that what happened then was wrong and it must never happen again."

Nevertheless, he said he would take a decision about his future course of action only after consulting his family members and community. The decision would be taken before the Parliament convened next week, he added.

Rudd is expected back in Australia on Friday. Before his departure from Washington DC, he told reporters that he was "pleased and encouraged by the support" he received from several party members after his resignation.

"They regard me as the best prospect to lead the Australian Labor Party successfully to the next elections, to save the Australian Labor Party at those elections, and to save the country from the ravages of an (Opposition leader Tony) Abbott government," he said. "This question of the future of the leadership of our party and our country is not about personality. it's about trust and it's also about policy and vision."

Although Australian media has been speculating in recent months about an alleged move by party's senior ranks to replace Gillard with her predecessor, Rudd had earlier downplayed those reports stating that he was satisfied with the post of Foreign Minister.

The developments come as the popularity rating of Gillard was near record low, mostly due to her plans for imposing new carbon and mining taxes as well her policies to deal with the issue of large number of asylum seekers arriving on Australian shores by boat from Indonesia.

Despite the setbacks, Gillard had insisted earlier that she would be the one to lead her party into the next general election due in 2013, stressing that Australians would "increasingly see the achievements of the government's agenda."

Gold Extends Gains In Asian Trading

2012-02-23T09:38:00.001+02:00

The price of gold was extending gains in Asian trading Thursday amid a weak U.S dollar.

Gold for April delivery, the most actively traded contract, added $5.30 to $1,776.60 an ounce. Yesterday, gold ended at a fresh 3-month high as investors sought the precious metal as a safe haven amid euro zone concerns and some weak economic data from China..

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged ta 1,281.59 tons.

Singapore Inflation Falls To 8-Month Low In January

2012-02-23T09:37:00.009+02:00

Singapore's annual inflation fell to an eight-month low in January, mainly due to lower contribution from private road transport costs, official data showed Thursday.

Consumer price inflation came in at 4.8 percent in January, down from 5.5 percent in December, a joint release from the Ministry of Trade and Industry and the Monetary Authority of Singapore showed. Inflation was in line with economists' forecast. The latest figure was the lowest since May 2011, when consumer prices rose 4.5 percent.

Within the overall consumer price index (CPI), housing cost logged the biggest annual growth of 9.5 percent, while communication charges dipped 0.5 percent. Transport and recreation cost climbed 3.5 percent each. Food prices rose 3.8 percent and the prices of clothing and footwear increased 1.2 percent.

Core annual inflation picked up to 3.5 percent from 2.6 percent in December. The increase largely reflected the uptick in food prices during the Chinese New Year and low base in January 2011 due to the removal of radio and television license fees.

On a monthly basis, consumer prices moved up 0.9 percent in January, after remaining unchanged in the previous month. The Core CPI also rose 0.9 percent on a monthly basis.

Inflation is likely to be elevated and volatile over the coming few months, the government said. The continued rise in housing rentals is expected to add imputed rentals on owner-occupied accommodation in the near term. Moreover, private road transport cost is likely to remain high on average in view of the tight Certificate of Entitlement supply.

Core inflation is forecast to remain around 3 percent in the next few months. In the whole of 2012, inflation is seen between 2.5 percent and 3.5 percent, while core inflation is forecast in the range of 1.5-2 percent.

In October, the Monetary Authority of Singapore loosened its policy stance amid weak growth outlook and expectations for a moderation in core inflation, by lowering the slope of the policy band, in turn allowing the Singapore dollar to appreciate at a slower pace.

Estonia Jan. Output Price Inflation Rises Modestly

2012-02-23T09:37:00.006+02:00

Estonia's producer price inflation quickened slightly in January, data released by Statistics Estonia showed Thursday.

The producer price index increased 3.1 percent on an annual basis in January, slightly faster than the 3 percent growth seen in December.

Prices in the mining sector grew 0.8 percent year-on-year, while manufacturing prices rose 2.9 percent during the month. There was a 6.4 percent annual growth in output prices of energy products.

Month-on-month, overall output prices moved up 0.7 percent in January, the agency said.

At the same time, the export price index decreased 0.2 percent on an monthly basis in January, while year-on-year it advanced 7.3 percent. The import price index moved up 1.2 percent month-on-month, taking the annual growth to 5.2 percent.

Australia Not To See U.S.-Style Housing Market Fall: RBA's Elli

2012-02-23T09:37:00.004+02:00

Australia's housing market did not go down the same road as the United States, Luci Elli, Head of the Financial Stability Department of Reserve Bank of Australia said Thursday.

There were many factors that underpinned Australia's housing market, she noted. The nation has strong lending standards and low-doc loans are also a small niche. Most mortgage lending in Australia are prudentially regulated.

According to Elli, another important mainstay against a US-style outcome is that many Australian households actually pay their mortgages down, often quite quickly.

"I am pleased to say that I do not currently see signs of widespread lax lending practices here in Australia," she added. She urged lenders to refrain from easing lending standards the way they did in the U.S.

Elsewhere, the Australian Bureau of Statistics said average weekly earnings in private and public sectors grew by seasonally adjusted 4.3 percent in November quarter from a year ago. The increase was weaker than the 4.7 percent rise forecast by economists. Quarter-on-quarter, the growth came in at 0.5 percent.

Philippines Ex-President Pleads Not Guilty To Electoral Fraud

2012-02-23T09:37:00.002+02:00

Former Philippines President Gloria Macapagal Arroyo Thursday pleaded not guilty to charges of electoral fraud pressed against her in connection with the 2007 elections.

Arroyo, currently under detention at a military hospital where she is undergoing treatment for a rare spinal condition, was escorted to a court in capital Manila under heavy security to enter her plea.

Her husband, Miguel "Mike" Arroyo, was quoted as telling reporters outside the court room that she "feels the case is an injustice." He, however, did not elaborate.

Arroyo, 64, was arrested from the St. Luke's Medical Center in Taguig City, Metro Manila, by the National Capital Region Police in November 2011 after she moved the Philippine Supreme Court seeking permission to leave the country for treatment of a rare bone disease.

A former university professor, Arroyo was detained after a court issued a warrant for her arrest on charges of manipulating the results of the 2007 senat elections to get the ruling party candidates elected.

Arroyo, who survived four coup attempts and four impeachment bids since assuming power in 2001, was unable to run for the Presidency for a third term in 2010, but won a seat in the Parliament in the May, 2011 elections.

She had been under investigation since August 2011 for suspected fraud and corruption during her decade-long rule. Electoral sabotage is a non-bailable offense in the Philippines punishable by life imprisonment.

Gold Recovers In Asian Session

2012-02-21T09:44:00.003+02:00

The price of gold moved up to a weekly high in Asian trading Tuesday after euro zone finance ministers gave a green signal to a second rescue package for Greece.

Gold for April delivery, the most actively traded contract, gained $18.60 to $1,744.50 an ounce. Last week, gold ended flat on some upbeat U.S. economic data amid lingering concerns over Greece's sovereign debt crisis.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,281.28 tons.

Finnish Jobless Rate Drops In January

2012-02-21T09:44:00.000+02:00

Finland's unemployment rate decreased from last year in January, data released by Statistics Finland showed Tuesday.

The unemployment rate dropped to 7.8 percent in January from 8.2 percent a year earlier. The unemployment rate among young people, aged between 15 and 24, increased by 13 percentage points from last year to 20.4 percent in January.

The number of jobless persons decreased to 203,000 in January from 215,000 in the same month last year.

The employment rate, meanwhile, edged up to 66.9 percent during the month from 66.8 percent last year. The number of employed persons remained almost unchanged at 2.41 million in January. The activity rate in the Finnish labor force was 64.2 percent, down from 64.8 percent recorded in January 2011.

South Africa's Leading Index Falls In December

2012-02-21T09:43:00.002+02:00

South Africa's leading index decreased 0.4 percent month-on-month in December, data from the central bank showed Tuesday.

Decreases were recorded in four of the ten components of the index, outweighing the increases recorded in the remaining six.

The 12-month percentage change in the composite leading business cycle indicator was positive at 0.2 percent. The indicator now stood at 132.1 compared to

The major negative contributors to the index were the twelve-month percentage change in job advertisement space and the composite leading business cycle indicator of South Africa's major trading-partner countries.

The largest positive contribution came from the number of residential building plans approved, followed by the twelve-month percentage change in the number of passenger vehicles sold.
The composite coincident business cycle indicator increased 1.1 percent on a monthly basis in November, while the lagging index remained unchanged at previous month's level.

Crude Advances Near $105 In Asian Session

2012-02-21T09:42:00.004+02:00

The price of crude oil was extending gains in Asian session Tuesday as risk appetite improved after euro zone finance ministers gave a green signal to a second rescue package for Greece.

Light Sweet Crude Oil (WTI) futures for March delivery, gained $1.69 to $104.93 a barrel. Last week, oil ended at a nine-month high, on some upbeat U.S. economic data and the possibility of a resolution to the Greek sovereign debt problem.

Swiss Trade Surplus Falls Unexpectedly In January

2012-02-21T09:42:00.002+02:00

Switzerland's trade surplus declined unexpectedly in January due to a fall in exports, the Federal Customs Administration said Tuesday.

The surplus fell to CHF 1.553 billion in January from CHF 2 billion in December. Economists were expecting the surplus to rise to CHF 2.5 billion.

Exports logged a monthly fall of 3.4 percent in January, partially offsetting December's 6.4 percent expansion. At the same time, month-on-month growth in imports slowed to 3.6 percent from 8.4 percent.
Elsewhere, the Federation of Swiss Watch Industry FH showed that watch exports continued to grow steadily in January. It grew 15.5 percent from a year ago to CHF 1.3 billion. Exports to major markets namely, Hong Kong, China and the United States picked up, while Singapore posted a notable decline.

Taiwan Jan. Export Orders Fall More Than Expected

2012-02-20T11:48:00.006+02:00

Taiwan's export orders decreased at a markedly faster pace than economists expected in January, data released by the Ministry of Economic Affairs showed Monday.

Export orders declined 8.63 percent on an annual basis in January, sharply faster than the 5.9 percent decreased economists forecast. In December, export orders decreased 0.72 percent annually.

Month-on-month, export orders fell by a seasonally adjusted 13.28 percent during the month, the agency said.

BRIC Countries Remain Susceptible To Potential Global Crisis: Maplecroft

2012-02-20T11:48:00.004+02:00

World's emerging economies Brazil, Russia, India and China continue to remain susceptible to potential global troubles, a survey by risk consultancy Maplecroft showed Monday.

The firm said that the capacity of the BRIC countries to withstand shocks from global risks has not improved over the course of the last four years, despite recording strong economic performance.

Poor governance and societal resilience, combined with systemic corruption, have limited the BRIC nations' ability to adapt and counter potential shocks from pandemics, terrorism, conflict, resource security, economic contagion and the impacts of climate change, the survey showed.

Lack of efficient governance and poor societal resilience have undermined the investment potential of Brazil, Russia and the Asian economies of China and India, which are central to the fortunes of the global economy due to their increased economic strength and integration with individual economies.

India, Russia and China are identified to have been more susceptible to global risks, while Brazil performs markedly better, due, in part, to its strong democratic governance and regime stability.

In India and Russia, the political process is undermined by an inability to tackle corruption. In China, security issues exist due to localized protests and unrest relating to a lack of political freedom and social gains, though an upheaval on a national scale remains unlikely, the survey revealed.

Hong Kong's Jan. Annual Inflation Exceeds Forecast Hong Kong's Jan. Annual Inflation Exceeds Forecast Hong Kong's Jan. Annual Inflation Exceeds Forecast Hong Kong's Jan. Annual Inflation Exceeds Forecast

2012-02-20T11:48:00.002+02:00

Hong Kong's annual inflation rose more than expected in January, the Census and Statistics Department said Monday.

The composite consumer price index climbed 6.1 percent in January from a year ago, faster than December's 5.7 percent growth and 5.8 percent rise forecast by economists.

Netting out the effects of all government's one-off relief measures, the year-on-year rate of increase in the composite CPI in January was 6.7 percent, also larger than the 6.4 percent growth logged in December.

A Government spokesman said the increase in annual rate after holding stable for four straight months was mainly attributable to the difference in the timing of the Lunar New Year, which fell in late January this year but in early February last year.

Taiwan's Current Account Surplus Highest Since Q1 2009

2012-02-20T11:47:00.003+02:00

Taiwan's current account surplus increased in the fourth quarter of 2011, to reach its highest level since the first quarter of 2009, data from the central bank showed Monday.

The current account surplus amounted to $12.1 billion in the fourth quarter compared to $10.19 billion in the third quarter. This was the second highest quarterly figure on record with an increase of $2.65 billion, or 28.1 percent, over the same period last year.

In the current account, goods trade surplus widened by $3.29 billion to $8.94 billion when compared to the same period of the previous year.

The services account exhibited a surplus of $1.31 billion, the second highest quarterly record ever registered. The income account posted a surplus of $2.41 billion, declining by $0.24 billion from the same period last year, mainly attributable to lower income from investment in foreign asset.

Current transfer deficit narrowed slightly by $0.02 billion from the same period last year to reach $0.57 billion. In sum, shrinking surpluses in the services and income accounts were offset by a wider goods trade surplus and a narrower current transfer deficit, the central bank said.

Italy Dec. Industrial Orders Fall Less Than Expected

2012-02-20T11:47:00.001+02:00

Italy's industrial new orders decreased less than economists expected in December, data released by statistical office Istat showed Monday.

New orders received by Italian industries deceased 4.3 percent on an annual basis in December, slower than the 5.6 percent fall economists forecast.

Month-on-month, new orders increased a seasonally adjusted 5.5 percent in December, while economists were looking for a 0.6 percent growth. New orders in the domestic market rose 5.8 percent month-on-month, while turnover in the non-domestic market advanced 5.1 percent.

In the three-months ended December, industrial orders decreased on average 3.9 percent from the previous three months.

At the same time, turnover in the industrial sector rose a calendar adjusted 5.6 percent in December. Month-on-month, turnover rose a seasonally adjusted 3.4 percent during the month.

US Imposes Sanctions On Iran's Intelligence Agency

2012-02-17T09:04:00.002+02:00

On Thursday, the United States Government imposed three separate sanctions against Iran's primary intelligence agency, the Ministry of Intelligence and Security (MOIS).

MOIS was designated for its involvement in committing serious human rights abuses against the Iranian people, as well as its support to terrorist groups, including al-Qaeda, Hizbollah and Hamas.

Under a separate executive order, it was also designated for its support to the Syrian regime in brutally repressing the Syrian people. The US Government imposed visa and financial sanctions on the MOIS for its commission of serious human rights abuses in Iran.

Today's action exposes the activities of the MOIS, and allows the United States to identify and sanction individuals, companies and other entities that support or act on behalf of the MOIS, US State Department Spokesperson Victoria Nuland said in a statement.

"We encourage all of our partners to take similar actions in response to the MOIS involvement in illicit conduct," she added.

Japan Dec. Wages Revised Up To Show 0.1% Growth

2012-02-17T09:03:00.007+02:00

Japan's labor cash earnings increased 0.1 percent year-on-year in December to JPY 551,618, revised up from the preliminary estimate of 0.2 percent decline, data from the Ministry of Health, Labor and Welfare showed Friday. Meanwhile, average base wages fell 0.3 percent from last year to JPY 244,241 during the month. Overtime pay increased 1.7 percent annually.

Special cash earnings increased 0.4 percent compared to December 2010, while contractual wages edged down 0.1 percent.

Chinese Jan. Total Social Financing Falls

2012-02-17T09:03:00.004+02:00

China's total social financing fell to CNY 955.9 billion in January, the People's Bank of China said Friday. It fell sharply from CNY 800.1 billion from a year earlier.

It is an indicator used to measure the supply of credit in the economy.

The gauge comprises bank lending, commercial paper, bonds and stocks and other instruments.

UK House Price Sentiment Falls Sharply In February

2012-02-17T09:03:00.001+02:00

An indicator of expectations of residential property prices in the United Kingdom deteriorated for the twentieth consecutive month in February, data from a survey by Knight Frank and Markit Economics showed Friday.

The house price sentiment index dropped to 43.1 in February from 43.2 in January. An index reading below 50 indicates decline, while one above suggests growth. The majority of those who own homes expect prices to fall over next 12 months, while mortgage borrowers expect prices to rise, data showed.

The expectations component of the index, which measures what households think will happen to the value of their property over the next year, rose slightly above the 50 no-change mark during the month, indicating that average prices will remain broadly flat.

"The outlook among households for property prices over the next 12 months varies on a regional basis, emphasising the multi-speed housing market," Gráinne Gilmore, head of UK residential research at Knight Frank, said. "Yet the overall outlook is muted, reflecting the economic travails of the UK and the Eurozone which are sapping confidence in many parts of the UK."

European Economics Preview: German PPI, U.K. Retail Sales Data Due

2012-02-17T09:02:00.002+02:00

Producer prices from Germany and retail sales from the U.K. are the major statistical reports due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, the Federal Statistical Office is scheduled to issue German producer prices for January. Economists forecast producer price annual inflation to slow to 3.2 percent from 4 percent in December.

Eurozone current account figures for December are due at 4.00 am ET. The account showed a surplus of EUR 1 billion in November.

At 4.30 am ET, the Office for National Statistics is slated to publish U.K. retail sales for January. Retail sales volume, including auto fuel, is likely to drop 0.3 percent month-on-month in January, following December's 0.6 percent rise. Annual growth in sales is seen at 0.5 percent, down sharply from 2.6 percent a month ago.

Greece HICP inflation figures are due at 5.00 am ET. EU harmonized inflation is forecast to rise slightly to 2.3 percent in January from 2.2 percent a month ago.

In the meantime, Eurostat is set to release Eurozone construction output for December. Output increased 0.8 percent month-on-month in November.

Poland's industrial output and producer prices are due at 8.00 am ET. Industrial output is forecast to drop 5.3 percent month-on-month in January after falling 4.9 percent in December. Producer price annual inflation is seen easing to 8 percent in January from 8.1 percent in the prior month.

Moody's Says May Downgrade 17 Banks, Security Firms

2012-02-16T09:01:00.003+02:00

Moody's Investors Service has warned 17 banks and security firms with global capital markets operations of a possible downgrade, citing their weaker longer term profitability and growth prospects.

Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions.

These difficulties, together with inherent vulnerabilities such as confidence-sensitivity, interconnectedness, and opacity of risk, have diminished the longer term profitability and growth prospects of these firms, Moody's said.

The firms affected by the rating review included Bank of America Corp. Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Royal Bank of Canada.

U.K. Consumer Sentiment Rises To 5-Month High

2012-02-16T09:01:00.000+02:00

Confidence among British consumers climbed in January to its highest level in five months, a survey by Nationwide Building Society showed Thursday.

The confidence measure rose to 47 from 38 in the previous month. Economists expected the score to fall to 40. A gauge of consumers' outlook for the economy jumped by 14 points to 64.

The spending index, which reflects consumers' propensity to buy big ticket items, edged up to 78 from 77.

Renewed hope that the U.K. will avoid a double-dip recession may support sentiment, especially since the downward trend in inflation is set to continue through 2012, according to Nationwide's chief economist Robert Gardner.

Squeeze on consumers' purchasing power eased as inflation fell to a 14-month low of 3.6 percent in January from 4.2 percent in December.

The improvement in confidence may prove to be little more than a temporary bounce, Gardner pointed out. The economy contracted 0.2 percent quarter-on-quarter in the December quarter and the unemployment rate hit a 16-year high.

A survey by GfK NOP last month revealed that British consumer confidence climbed to its highest level in seven months in January.

The Confederation of British Industry said this week that the U.K. economy will avoid a technical recession and growth will gain momentum in the second half of 2012.

Meanwhile, the central bank last week decided to infuse an additional GBP 50 billion to the system, taking the total size of its asset purchase to GBP 325 billion. This was intended to support the economy, which continues to face headwinds from recent global developments and weak growth prospects at home.

Releasing the Inflation report on Wednesday, Bank of England policymakers said inflation is likely to undershoot the 2 percent target in two years, though the slowdown may not be as fast as estimated earlier. The central bank expects the recovery path to be slow and uncertain.

Moody's May Cut Morgan Stanley, UBS, Credit Suisse Ratings By Three Grades

2012-02-16T09:00:00.005+02:00

Moody's Investors Service on Wednesday said the ratings of U.S. financial services firm Morgan Stanley (MS) as well as Swiss banking giants UBS AG (UBS) and Credit Suisse Group AG (CS) may be lowered by three notches.

The ratings agency said it would review 17 banks and securities firms with global capital markets operations, as it believes these firms face challenges not fully captured in their current ratings.
In a statement, the agency noted that capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions.

"These difficulties, together with inherent vulnerabilities ... have diminished the longer term profitability and growth prospects of these firms," Moody's added.

These inherent vulnerabilities include confidence-sensitivity, interconnectedness, and opacity of risk.
The ratings agency placed under review the long-term ratings and standalone credit assessments of five U.S. financial institutions.

These include Bank of America Corp. (BAC), Citigroup (C ), Goldman Sachs (GS), JPMorgan Chase (JPM) and Morgan Stanley, along with Canada's Royal Bank of Canada. Except for Morgan Stanley, short-term ratings were affirmed on all other four banks.

Goldman Sachs, JPMorgan, Citigroup Inc. and Germany's Deutsche Bank AG (DB) may be downgraded by two levels.

Barclays Plc (BARC.L, BCS), BNP Paribas SA (BNP.L, BNPQY.PK), Credit Agricole SA (ACA, CDA.L, CRARF.PK ), HSBC Holdings Plc (HBC, HSBA.L) also may be reduced by two levels. Bank of America and Societe Generale may be cut by one grade.

Early this week, Moody's downgraded the ratings on six Eurozone countries, including Italy, Spain, Malta, Portugal, Slovakia and Slovenia with a 'negative' outlook.

At that time, the agency mainly cited the uncertainty over the euro area's prospects for institutional reform of its fiscal and economic framework.

European Economics Preview: ECB Monthly Bulletin, French Debt Auction Due

2012-02-16T09:00:00.002+02:00

The European Central Bank's monthly bulletin is due today. In addition, France and Spain are set to enter the debt market to raise as much as EUR 14.3 billion.

At 2.00 am ET, the European Automobile Manufacturers' Association, or ACEA is scheduled to issue Europe's new car registration data for January. Registrations were down 6.4 percent in December.

At 3.00 am ET, the Czech Statistical Office is scheduled to issue consumer price figures for January. Annual inflation is forecast to rise to 3.2 percent from 2.4 percent in December. In the meantime, Turkey's consumer confidence and Spain's final GDP reports are due.

Half an hour later, Sweden's central bank is set to announce its interest rate decision. Riksbank is expected to cut its repo rate to 1.5 percent from 1.75 percent. At the same time, Sweden's inflation figures are also due. Annual inflation is forecast to remain at 2.3 percent in January.

The European Central Bank is slated to publish monthly bulletin at 4.00 am ET. Last week, the central bank maintained its record low 1.00 percent interest rate for the second month in a row.

In the meantime, Italy's trade and Norway's GDP figures are due. Mainland Norway is forecast to grow 0.5 percent sequentially in the fourth quarter after rising 1 percent in the third quarter.

The Spanish government plans to raise as much as EUR 4 billion in securities maturing in January and July 2015 and October 2019.

The French government plans to raise a maximum of EUR 8.5 billion in 2-year, 3-year and 5-year bonds. It will also auction index-linked bonds to raise EUR 1.8 billion. The results of the auction are due at 4.50 am ET.

Moody's on Monday downgraded the rating of Spain and five other Eurozone countries, citing the uncertainty over the euro area's prospects for institutional reform. Moreover, the agency lowered the outlook on the triple-A ratings of France to 'negative'.

Singapore Dec. Retail Sales Fall More Than Expected

2012-02-15T09:03:00.001+02:00

Singapore retail sales declined more than expected in December, largely due to a sharp contraction in automobile turnover, data from the Department of Statistics showed Wednesday.

Retail sales were down by a seasonally adjusted 2.4 percent month-on-month, steeper-than last month's 0.9 percent fall and an expected decrease of 0.6 percent.

However, excluding motor vehicle, sales logged a monthly growth of 1.3 percent. After seasonal adjustment, retail sales of motor vehicles decreased 14.7 percent in December over November.

On a yearly basis, growth in retail sales slowed to 4.2 percent from 6.2 percent. Economists had expected the annual rate to slow to 5.2 percent.

Australia Feb. Leading Employment Index Drops For First Time In 6 Months

2012-02-15T09:02:00.005+02:00

Australia's leading indicator of employment dropped for the first time in six months in February, data released by the Department of Education, Employment and Workplace Relations (DEEWR) said Wednesday.

The leading employment indicator declined by 0.056 point from the previous month in February, after rising 0.002 point in January. The index fell after rising in all of the past five months.

DEEWR said that weaknesses in three of the indicator's four components prevented the prospective turning point of September 2011 from being confirmed this month.

The leading indicator is designed to give advance warning of turning points in cyclical employment, which is measured as the deviation of the one-year trend in employment from the six-year trend.

European Economics Preview: Eurozone GDP Data Due

2012-02-15T09:02:00.003+02:00

Quarterly national accounts from Eurozone and other major member nations and Inflation Report from the Bank of England are the major reports due on Wednesday, headlining a hectic day for the European economic news.

At 1.30 am ET, the French statistical office Insee is scheduled to issue fourth quarter GDP data. Economists forecast the economy to shrink 0.2 percent sequentially.

Half an hour later, German GDP figures are due. The largest Eurozone economy is expected to contract 0.3 percent quarter-on-quarter after expanding 0.5 percent in the third quarter. Annually, the growth is seen slowing to 1.9 percent.

At 3.00 am ET, a slew of statistical reports are due. GDP figures from Hungary and the Czech Republic and inflation data from Spain are due. Czech GDP is expected to remain flat sequentially in the fourth quarter. Meanwhile, Hungary's economy is expected to grow 0.9 percent annually.

Italy's statistical office Istat is slated to publish quarterly national accounts at 4.00 am ET. The GDP is estimated to fall 0.6 percent in the fourth quarter after contracting 0.2 percent a quarter ago.
At 4.30 am ET, the Office for National Statistics is set to release U.K. labor market statistics for January. The claimant count rate is seen unchanged at 5 percent in January. The number of people claiming jobseekers' allowance is forecast to rise 3,000 in January.

Eurostat is set to issue Eurozone fourth quarter GDP data at 5.00 am ET. The 16-nation currency bloc is forecast to shrink 0.4 percent quarterly, following third quarter's 0.1 percent expansion.

The Bank of England is scheduled to issue Inflation Report at 5.30 am ET. The publication of the quarterly report will be followed by a press conference. The report will provide more understanding about inflation and output projections and its future course of action on quantitative easing.

The Portuguese government plans to raise between EUR 2.5 billion and EUR 3 billion from T-bill auction at 5.30 am ET.

BoJ Sees Moderate Increase In Exports, Investment

2012-02-15T09:02:00.001+02:00

Japan's exports will likely increase moderately going forward, while investment may pick up gradually due to reconstruction-related demand, the Bank of Japan said in its monthly report published Wednesday.
Exports and production are expected to remain more or less flat for the time being and increase moderately thereafter, mainly reflecting a pick-up in the pace of recovery in overseas economies, the central bank said.

Business fixed investment may continue a "moderate increasing trend," as firms try to restore and reconstruct disaster-stricken facilities. However, business investment will be affected by the slowdown in overseas economies for the time being, it said.

Housing investment and public investment are expected to increase gradually, due to reconstruction-related demand.

The central bank reiterated that Japan's economic activity will remain more or less flat for the time being and the economy will return to a moderate recovery path as growth in overseas economies picks up.
The Bank of Japan unexpectedly eased monetary policy on Tuesday by increasing the size of its asset purchase by JPY 10 trillion to JPY 30 trillion, after the economy contracted more than expected in the fourth quarter.

French Q4 GDP Rises Unexpectedly

2012-02-15T09:01:00.001+02:00

The French economy expanded unexpectedly in the fourth quarter compared to the previous quarter, data from the statistical office Insee showed Wednesday.

The gross domestic product rose 0.2 percent quarter-on-quarter in the fourth quarter against economists' expectation for a 0.2 percent decline. This followed a 0.3 percent growth in the third quarter.
Over the year, GDP increased 1.7 percent after 1.4 percent growth in 2010.

Investment growth accelerated to 0.9 percent from 0.2 percent. Households' consumption expenditure slightly decelerated by the end of the year with a growth of 0.2 percent following 0.3 percent in the third quarter.

Overall, total domestic demand, excluding inventory changes, drove GDP on for 0.3 percentage point of growth after 0.2 percentage point in the previous three-month period.
Exports grew 1.2 percent quarter-on-quarter, while imports dropped 1.2 percent. Hence, foreign trade balance contributed 0.7 percentage point to GDP growth.

Japanese Dec. Industrial Output Growth Revised Down

2012-02-14T08:53:00.004+02:00

Japanese industrial output grew 3.8 percent month-on-month in December, revised down from 4 percent growth estimated initially, final data from the Ministry of Economy, Trade and Industry showed Tuesday. On a yearly basis, output dipped 4.3 percent.

Meanwhile, monthly growth in shipment was revised up to 4.6 percent from 4.5 percent. Year-on-year, shipments dropped 3 percent

At the same time, the decline in inventory was confirmed at 2.9 percent. Compared to the previous year, inventory was up 3.4 percent. The inventory ratio dropped 3.7 percent on a monthly basis compared to the initial estimate of 3.6 percent drop.

The capacity utilization grew by 3.1 percent on a monthly basis in December, reversing a 2.9 percent drop in November.

Amended: BoJ Enhances Monetary Easing; Sets Near-Term Price Target

2012-02-14T08:53:00.002+02:00

Corrects the second paragraph. The total size of the asset purchase program is JPY 65 trillion.
The Bank of Japan unexpectedly eased monetary policy on Tuesday by increasing the size of its asset purchase by JPY 10 trillion to JPY 30 trillion, after the economy contracted more than expected in the fourth quarter. At the same time, the central bank set a near-term target of 1 percent for the annual increase in the consumer price index.

With the latest move, the total size of the asset purchase program reached JPY 65 trillion. The increase in the program is earmarked entirely for the purchase of Japanese government bonds. The credit facility was unchanged at JPY 35 trillion.

The bank said that the amount outstanding of the program will be increased by about JPY 22 trillion from the current level of around JPY 43 trillion by the end of 2012.

Meanwhile, the bank set a consumer price target of 1 percent for the "time being", while judging "the price stability goal in the medium to long term to be within a positive range of 2 percent or lower in terms of the year-on-year rate of change in the consumer price index."

The price stability goal will be reviewed once a year in principle, the policy board said.

The benchmark uncollateralized overnight call rate was, meanwhile, left unchanged at around 0-0.1 percent. The BoJ said it will continue pursuing the powerful easing until it judges that the 1 percent goal is in sight.

Th policy board judged that Japan's economic activity has been more or less flat, mainly due to the effects of a slowdown in overseas economies and the appreciation of the yen.

According to official data, the Japanese economy contracted more than expected by 0.6 percent quarter-on-quarter in the fourth quarter of 2011, just three months after the country exited recession triggered by March's deadly earthquake.

The central bank said that the outlook for Japan's economy continues to entail high uncertainty regarding the prospects and outcomes of the European debt problem, the supply and demand balance of electricity and the effects of the yen's appreciation.

The bank said that the policy move was intended to further support recent positive developments from the financial side, overcome deflation and to better ensure the economy's return to a moderate recovery path.

Recent data from the Ministry of Finance has confirmed that the government and the Bank of Japan conducted stealth intervention in the currency market during the December quarter of 2011 to contain yen gains.

On October 31, when the yen climbed to a post-war high against the dollar, the total value of foreign exchange intervention operations reached a record JPY 8.07 trillion. After this move, the government and the central bank intervened in the currency market continuously during the first four days of November.

US Condemns Bomb Attacks Targeting Israeli Diplomatic Vehicles

2012-02-14T08:53:00.000+02:00

The United States has strongly condemned the bombing of an Israeli diplomatic vehicle in India and the attempted attack on Israeli Embassy personnel in Georgia on Monday.

Secretary of State Hillary Clinton said in a statement that the scourge of terrorism was an affront to the entire international community and pledged U.S. government's readiness to assist with any investigation of these cowardly actions.

She reiterated that the United States placed a high priority on the safety and security of diplomatic personnel around the world.

The Indian security agencies reportedly have received a crucial clue about the assailant who blew up an Israeli Embassy vehicle in the capital New Delhi on Monday.

Tal Yehoshua Korene, the wife of an Israeli Defense attache, was on her way to pick up her children from school, when a bomb attached to her car exploded. In addition to Korene, three others, including the driver, were injured in the explosion.

Korene suffered serious spinal and liver injuries from shrapnel in the device. She underwent surgery in a New Delhi hospital, and is stable, the doctors said.

Indian authorities have initiated an investigation into the attack that took place some 300 meters from the official residence of Prime Minister Manmohan Singh. Also, a five-member Israeli team arrived in the Indian capital on Tuesday to investigate the attack.

The first open attack on an Israeli target in India coincided with an attempted bomb attack in Georgia. Police defused a bomb attached to the car of an Israeli diplomat before it could explode in the Georgian capital Tbilisi.

Israeli Prime Minister Benjamin Netanyahu blamed Iran for both the attacks, which he claimed was jointly executed by Iranian intelligence agencies and the Lebanese Shiite militant group Hezbollah. Iran rejected the accusation.

Indian Inflation Eases For Fourth Month

2012-02-14T08:52:00.001+02:00

India's annual inflation slowed for the fourth consecutive month in January, owing mainly by falling food prices, data released by the Ministry of Commerce and Industry showed Tuesday.

The wholesale price index increased 6.55 percent on an annual basis in January, slower than the 7.47 percent growth seen in December. Economists were looking for an inflation rate of 6.7 percent. Inflation slowed for the fourth month in a row.

Food prices dropped 0.52 percent annually during the month, reversing the 0.74 percent increase seen in December. Prices of primary articles increased at a slower pace of 2.25 percent year-on-year in January than the previous month's 3.07 percent rise.

Prices of non-food items rose 0.55 percent annually, following December's 1.48 percent growth. Fuel and power prices climbed 14.21 percent on an annual basis, after advancing 14.91 percent in the previous month.

The Reserve Bank of India in January slashed the cash reserve requirements for banks by 50 basis points to ease tight monetary liquidity conditions. The central bank, however, kept its policy rate unchanged for the second time in a row amid persistent inflationary pressures.

Scottish Private Sector Growth Quickens In January

2012-02-13T08:54:00.001+02:00

Scotland's private sector expanded at a slightly faster rate in January, underpinned by rise in service sector activity, data from a survey by the Bank of Scotland and Markit Economics showed Monday.

The seasonally adjusted purchasing managers' index (PMI) for the private sector, which measures activity in both the manufacturing sector and the service sector, rose to 51.4 in January from 51.2 in December. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline.
New business in the private sector increased solidly for the second month in a row, and the rate of growth accelerated modestly. Service providers registered stronger increase in new orders.

Employment is the Scottish private sector increased at a slightly faster rate during the month, reflecting the increase in new orders. Backlogs of work dropped slightly in January. Input price inflation eased to the weakest since September 2010. Service sector firms reduced their charges for the fourth time in five months.

Japan's Govt, BoJ Need To Work Hard To Combat Deflation, Furukawa Says

2012-02-13T08:53:00.003+02:00

Japan's government and the central bank should take further action to end years of deflation, Economy Minister Motohisa Furukawa reportedly said Monday.

Yesterday, he said the Bank of Japan has to communicate its inflation goal more clearly.

Data released on Monday showed that the economy contracted 0.6 percent sequentially during October to December period, following a revised 1.7 percent growth in the prior quarter.

Arab League Agrees To Back Syrian Opposition

2012-02-13T08:53:00.001+02:00

Further Ostracizing beleaguered President Bashar al-Assad in the Arab world, the Arab League on Sunday agreed to back the Syrian Opposition and decided to send a joint U.N.-Arab peacekeeping mission to the strife-torn country.

Arab Foreign Ministers who met at the League headquarters in the Egyptian capital Cairo also announced the end of its earlier mission to that Middle East country as it failed to end the raging violence there.

"How long will we stay as onlookers to what is happening to the brotherly Syrian people, and how much longer will we grant the Syrian regime one period after another so it can commit more massacres against its people?" Saudi Foreign Minister Saud Al-Faisal asked the conference.

"At our meeting today I call for decisive measures, after the failure of the half-solutions," he said, adding that "the Arab League should ... open all channels of communication with the Syrian Opposition and give all forms of support to it."

A resolution adopted at the Foreign Ministers' meet called for "opening communication channels with the Syrian Opposition and providing all forms of political and material support to it." The conference urged the Opposition parties to close their ranks and remain united.

All the six member-countries of the Gulf Cooperation Council (GCC) had expelled Syrian envoys from their respective countries in protest against the continued crackdowns on pro-democracy protesters in that country.

Meanwhile, media reports said Syria "categorically rejected" the Arab League resolution which, Syrian envoy to Cairo Yusuf Ahmed said, "reflected the hysteria of these governments."

The resolution is expected to put increased diplomatic pressure on the Russia-China axis which vetoed a U.N. resolution seeking to condemn the Assad regime for the brutal suppression of dissent.

According to a U.N. estimate, more than 5,000 people have been killed and thousands detained since a popular uprising against the Assad regime broke out in March last. However, rights organizations put the death toll at over 7,000.

Bashar al-Assad has been in power in Syria for the last 11 years since the death of his father Hafez al-Assad who ruled the Arab country for more than three decades.

European Economics Preview: German Wholesale Price Data Due

2012-02-13T08:52:00.000+02:00

Wholesale price data from Germany and producer prices from Switzerland are the reports due on Monday, headlining a light day for the European economic news. Further, the German government is set to raise EUR 4 billion from a Bubill auction.

Over the weekend, Greek lawmakers approved a highly unpopular package of austerity measures, paving the way for its international creditors to release EUR 130 billion in aid to the troubled euro member.
At 2.00 am ET, the Federal Statistical Office is scheduled to issue German wholesale price figures for January. Wholesale prices had increased 3 percent in December.

Swiss producer and import prices are due at 3.15 am ET. Producer and import prices are forecast to rise 0.2 percent month-on-month in January after rising 0.3 percent in December. On a yearly basis, it is expected to drop 2.2 percent.

At 4.00 am ET, the Czech central bank is scheduled to release current account figures. The account is expected to show a deficit of CZK 3.25 billion in December compared to a surplus of CZK 6.61 billion in November.

The German government is slated to conduct new 6-month Bubill auction at 5.00 am ET, with an aim to raise EUR 4 billion.

Poland's central bank is set to issue current account figures at 8.00 am ET. The current account deficit is seen at EUR 1.17 billion in December compared to EUR 1.034 billion shortfall in November.

India Dec. Industrial Output Growth Below Forecast

2012-02-10T09:00:00.001+02:00

India's industrial production increased at a slower than expected pace in December, data released by the Ministry of Commerce and Industry showed Friday.

Industrial production increased 1.8 percent on an annual basis in December, slower than the 2.6 percent growth economists forecast.

Output in the manufacturing industry rose 1.8 percent annually, while production of electricity climbed 9.1 percent during the month. Meanwhile, there was a 3.7 percent year-on-year decline in production in the mining sector.

Production of basic goods rose 4 percent from last year in December, while capital goods output fell 16.5 percent. There was a 2.8 percent annual fall in the production of intermediate goods during the month.
In the April-December period, industrial production grew 3.6 percent from the corresponding period a year earlier, the agency said.

Euro Crisis Spillovers To Asia So Far Mild, BoJ's Shirakawa Says

2012-02-10T08:59:00.003+02:00

Bank of Japan Governor Masaaki Shirakawa said that the spillovers from Europe to Asian economies have been mild so far, though they are not immune to the debt problem.

"So far, the spillovers from Europe to Asia have been mild," Shirakawa said in a speech at a function hosted by the Japan Securities Dealers Association on Thursday.

However, given the European financial institutions' visible presence in Asian financial businesses, careful attention should be paid to deleveraging by European financial institutions, he said.

He identified three potential channels of contagion, namely, trade links, financial market disturbances and deleveraging by European financial institutions.

The policymaker also warned that the longer the disturbance continues in European financial markets, the harder the hit to the balance sheets of European financial institutions, which causes European deleveraging in Asia. "If this spreads to disrupt trade finance, Asian economies heavily reliant on exports would surely suffer," he cautioned.

Estonian Economic Growth Eases Sharply In Q4

2012-02-10T08:59:00.001+02:00

The Estonian economy expanded at a significantly slower pace in the fourth quarter, preliminary data released by Statistics Estonia showed Friday.

The gross domestic product (GDP) grew 4 percent year-on-year in the fourth quarter, markedly slower than the 8.5 percent growth recorded in the third quarter.

Growth in exports of manufactured products slowed notably in the fourth quarter, primarily due to the decrease in the export of computers, electronic and optical products. The deceleration in GDP growth was also influenced by weakness in energy supply and real estate activities, the agency said.

Sequentially, GDP declined a seasonally and working-day adjusted 0.8 percent in the final three months of 2011, reversing the third quarter's 1 percent growth. In the whole of 2011, the economy expanded 7.5 percent from the previous year.

European Economics Preview: U.K. Producer Price Data Due

2012-02-10T08:58:00.001+02:00

Producer prices from the U.K. and industrial production from France are due on Friday, headlining a hectic day for the European economic news.

The Federal Statistical Office is scheduled to release German final consumer price figures at 2.00 am ET. According to preliminary estimate, EU harmonized inflation remained unchanged at 2.3 percent in January. The statistical office is expected to confirm the initial estimate.

At 2.45 am ET, the French statistical office Istat is set to publish industrial output data for December. Economists expect industrial output to fall 0.7 percent month-on-month in December after rising 1.1 percent in November. Manufacturing output is seen falling by 1 percent.

Danish inflation data is due from Statistics Denmark at 3.00 am ET. Annual inflation is forecast to rise to 2.6 percent in January from 2.5 percent in December. On a monthly basis, consumer prices are expected to grow 0.2 percent.

Switzerland's Federal Statistical Office is set to publish January consumer price figures at 3.15 am ET. Consumer prices are forecast to drop 0.8 percent annually compared to a 0.7 percent drop in December.

At 3.30 am ET, Sweden's industrial orders and production figures for December are due. After easing 1.9 percent in November, industrial output is expected to fall 1 percent in December.

Italy's industrial production and Norway's consumer and producer prices are due at 4.00 am ET. Italian industrial output is forecast to drop 0.5 percent on a monthly basis in December, following November's 0.3 percent rise.

The Office for National Statistics is set to issue U.K. producer price data at 4.30 am ET. Output price inflation is seen falling to 3.7 percent annually in January from 4.8 percent in December. At the same time, input price inflation is forecast to slow to 6.8 percent from 8.7 percent.

European Economics Preview: ECB, BoE Rate Decisions On Focus

2012-02-09T09:30:00.002+02:00

(RTTNews) - Outcome of the monetary policy meetings of the Bank of England and the European Central Bank are the major events that are set to dominate the scene on Thursday.

At 1.45 am ET, Swiss consumer sentiment is due. Consumer confidence is forecast to improve to -22 in January from -24 in the prior quarter.

Statistics Netherlands is set to issue January consumer prices at 3.30 am ET. Annual inflation is expected to rise to 2.6 percent from 2.4 percent in December.

The Office for National Statistics is scheduled to issue U.K. industrial output figures at 4.30 am ET. Industrial output is expected to grow 0.2 percent month-on-month in December, following a 0.7 percent drop in November.

In the meantime, external trade figures from U.K. are due. The visible trade deficit is seen at GBP 8.6 billion in December compared to GBP 8.64 billion in November.

The BoE is widely expected to lift the size of quantitative easing by GBP 50 billion to GBP 325 billion. The interest rate is seen unchanged at a record low of 0.50 percent. The announcement is due at 7.00 am ET.

The European Central Bank is set to announce its decision at 7.45 am ET. Economists widely expect policymakers to maintain the rate at 1.00 percent. ECB President Mario Draghi is set to hold a the regular post-decision press conference at 8.30 am ET.

Gold Advances In Asian Trading

2012-02-09T09:30:00.000+02:00

(RTTNews) - The price of gold advanced in Asian trading Thursday after China reported a surprise jump in its inflation.

China's annual inflation rate accelerated to 4.5 percent in January, beating economists estimates, as consumers spending increased during the Chinese Lunar New Year holiday season.

Gold for April delivery, the most actively traded contract, added $9.70 to $1,741.00 an ounce. Yesterday, gold ended lower as the dollar made marginal gains against a basket of six major currencies
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,277.13 tons.

Swiss Jan. Consumer Sentiment Improves More Than Expected: SECO

2012-02-09T09:29:00.001+02:00

(RTTNews) - Switzerland's consumer confidence improved modestly in January, and surpassed economists' forecast, owing to improved expectations for the overall economic development, data from a survey by the State Secretariat for Economic Affairs (SECO) showed Thursday.

The consumer confidence index moved up to -19 points in January from -24 points in October, when the previous survey was conducted. Economists expected the a reading of -22.

Swiss households were less downbeat above the general economic development over the next twelve months, with the corresponding indicator rising to -29 points from -38 points in October. At the same time, the measure of consumers' views of their personal finances increased to 1 point in January from -3 points in October.

Meanwhile, the indicator of households unemployment expectations almost stagnated at 71 points. Consumers were slightly more optimistic about their future savings opportunities in January, with the relevant index rising to 22 points from 16 points in October.

Crude Edges Up In Asian Session

2012-02-09T09:28:00.001+02:00

The price of crude oil was extending gains for a third session in Asian trading Thursday amid demand growth hopes.

Light Sweet Crude Oil (WTI) futures for March delivery, were up $0.46 to $99.16 a barrel. Yesterday, oil ended higher after an EIA report showed U.S. crude stockpiles increased lesser than expected for the week ended February 03. Wednesday during trading hours the EIA revealed that U.S. crude oil inventories edged up by 300,000 barrels and gasoline stocks were up 1.60 million barrels in the weekended February 03. Analysts were expecting crude oil inventories to gain 2.40 million barrels and gasoline stocks to rise by 700,000 barrels last week.

European Economics Preview: German Trade, Debt Auction In Focus

2012-02-08T09:02:00.000+02:00

Foreign trade figures from Germany and unemployment data from Switzerland are the major European statistical data due on Wednesday. Further, Germany is set to auction its 5-year Federal Notes today, aiming to raise EUR 4 billion.

Switzerland's State Secretariat for Economic Affairs (SECO) is slated to publish the January unemployment figures at 1.45 am ET.

At 2 am ET, German trade data is due. The trade balance is forecast to post EUR 13.8 billion surplus in December. Exports are seen declining 1 percent from a month earlier, while a growth of 1 percent is forecast for imports.

Bank of France is scheduled to release the business sentiment survey results at 2.30 am ET. Economists expects the sentiment indicator to remain unchanged at 96.

Czech unemployment, Spain industrial production, Hungary foreign trade and Turkey industrial production are due at 3 am ET.

Interest rate decision from the Central Bank of Iceland is expected at around 4 am ET. Base rate announcement from the National Bank of Poland is also due later in the day.

Germany is set to hold an auction of its 0.75 percent 5-year Federal Notes or Bobls at 5.30 am ET. The country is aiming to raise EUR 4 billion from the sale of the debt due February 2017.

The previous tap on the line was on January 11, which was met with strong demand. The yield on the 5-year paper had declined to 0.90 percent and demand was 2.8 times the offer.

U.K. Permanent Placements Rise Modestly In January: REC/KPMG

2012-02-08T09:01:00.002+02:00

Permanent job placements in the United Kingdom increased for the first time in four months in January, data from a survey by KPMG and the Recruitment and Employment Confederation (REC) showed Wednesday.

Permanent placements increased modestly in January, marking the first job growth in four months. Salaries of permanent employees rose marginally, and the rate of growth was much slower than the long-run series average.

Meanwhile, recruitment of temporary/contract staff decreased slightly during the month, marking the second consecutive fall.

Overall new vacancies increased at the slowest pace in 27 months in January. Engineering and construction workers were the most sought-after, while demand for hotel and catering staff declined. At the same time, availability of candidates continued to rise in January, though at a slower pace.

"This month's Report on Jobs highlights that there are glimmers of hope for the UK jobs market with permanent placements increasing for the first time in four months," REC chief executive Kevin Green said. "This is the first positive indicator for some time that employers are looking to hire staff despite the ongoing weakness of the economy."

Japan Eco Watchers' Current Conditions Index Falls, Outlook Improves

2012-02-08T09:01:00.000+02:00

Japan's economy watchers' assessment of the current economic conditions weakened unexpectedly in January, while the outlook improved for the first time in seven months, a key survey revealed.

Eco Watchers' survey results released by the Cabinet Office on Wednesday showed that the current conditions index fell to 44.1 in January from 47 in December. Economists were looking for an increase to 47.4.

The outlook index, that reflects the assessment of future economic situation in Japan, jumped to 47.1 from December's 44.4. Economists had forecast a rise to 45.5.

China Jan. Bank Lending At CNY 800 Bln: Report

2012-02-08T09:00:00.001+02:00

Chinese banks extended new loans worth CNY 800 billion in January, China Securities Journal reported Wednesday.

The country's big four lenders issued CNY 320 billion in new loans during the month, according to data compiled by the newspaper.

The 'big four' included Industrial & Commercial Bank of China , China Construction Bank, Agricultural Bank of China and Bank of China.

Meanwhile, the People's Bank of China yesterday offered support for construction of affordable housing, amid rising fears that the government measures in place to curb property bubbles could prompt a slump in home prices, which could hurt the real economy.

The central bank also said it will ensure that the loan demands of first-time home buyers are met. However, it vowed to continue to implement "differentiated housing credit policy."

IronFX announces the launch of the new iTrader applications for iPhone and iPad

2012-02-07T09:45:00.001+02:00

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NZ Business Confidence Improves Modestly

2012-02-07T09:44:00.007+02:00

New Zealand's business confidence improved slightly in February, data from a survey by the Bank of New Zealand showed Tuesday.

The number of respondents expecting an improvement in in business conditions in the next twelve months increased modestly to 13 percent in February from 3.2 percent in the previous survey conducted in December. In the November survey, the balance of those expecting an improvement and those expecting a deterioration in the business environment was -2.2 percent.

The latest improvement in confidence was the second in a row, and was in line with generally improving indicators overseas.

However, entrepreneurs in the country remained worried about the delay in rebuilding Christchurch, the lack of consumer spending growth and the high New Zealand dollar, data showed.

European Economics Preview: German Industrial Output Data Due

2012-02-07T09:44:00.005+02:00

German industrial production is the only significant statistical data due from major economies in Europe on Tuesday. While focus remains on the ongoing talks regarding Greece bailout, the country is set to hold an auction of its short-term debt later today.

Statistics Finland is slated to release trend indicator of output for November. In the meantime, Finnish external trade figures are also due.

French trade figures are due at 2.45 am ET. The trade deficit is expected to widen to EUR 5.35 billion in December from EUR 4.4 billion in November.

At 3.00 am ET, trade balance and unemployment from Czech and industrial output from Hungary are due. The Czech jobless rate is seen rising to 9.1 percent in January from 8.6 percent in December.

Hungary's industrial output is expected to grow at a pace of 9.3 percent year-on-year in December, after increasing 3.6 percent in November.

Half an hour later, Statistics Netherlands is set to issue industrial production figures for December. Production is forecast to remain flat month-on-month.

Greek will auction 26-week T-bills at 5.10 am ET. The government plans to raise EUR 625 million from the issue. The settlement date is February 10.

The Federal Ministry of Economy and Technology is scheduled to issue German industrial output data for December at 6.00 am ET. Economists forecast production to remain flat on a monthly basis after falling 0.6 percent in November. Meanwhile, annual growth is forecast to accelerate to 4.3 percent from 3.6 percent.

Crude Lingers Near 2-month Low On Greek Worries

2012-02-07T09:44:00.003+02:00

The price of crude oil was little changed in Asian session Tuesday as traders concerned over demand situation and focus on developments in Greece.

Light Sweet Crude Oil (WTI) futures for March delivery, edged up $0.02 to $96.93 a barrel. Yesterday, oil ended at a 2-month low on a strong dollar and continued worries about the stalemate in Greece over its sovereign debt problems.

The American Petroleum Institute announces its weekly supply data later Tuesday while the Energy Department's Energy Information Administration reports its figures Wednesday. Analysts expect crude oil inventories to rise by 2.30 million barrels in the weekended February 03.

Finnish GDP Indicator Rises 0.7% In November

2012-02-07T09:44:00.001+02:00

An indicator of Finland's economic output increased from the previous month in November, data released by Statistics Finland showed Tuesday.

The indicator of national output rose 0.7 percent month-on-month in November, after adjusting to seasonal variations.

On an annual basis, the trend indicator of output went up a seasonally and working day adjusted 1.34 percent during the month, following October's 0.93 percent growth, which was revised down from 1.1 percent. In September, the indicator advanced 2.17 percent year-on-year.

Primary production is estimated to have contracted a working-day adjusted 1 percent year-on-year in November, while secondary production remained unchanged, the agency said.

IronFX complements its multilingual offering with the launch of German language website and support.

2012-02-06T15:55:00.001+02:00

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Finnish Car Sales Rise 3.4% In January

2012-02-06T09:21:00.003+02:00

Sales of new passenger cars in Finland increased from last year in January, data released by Statistics Finland showed Monday.

New passenger car sales increased 3.4 percent on an annual basis to 14,263 units in January. New diesel-driven passenger cars accounted for 41.3 percent of the total sales.

The most common new passenger car makes registered in January were Toyota, Volkswagen and Ford. The most common models were Nissan Qashqai, Toyota Avensis, Skoda Octavia, Toyota Yaris and Volkswagen Golf.

Overall, new vehicle registrations advanced 0.3 percent year-on-year to 20,289 during the month, the agency said.

Crude Slips Near $97 In Asian Session

2012-02-06T09:21:00.001+02:00

The price of crude oil edged down in Asian session Monday amid a steady U.S. dollar.
Light Sweet Crude Oil (WTI) futures for March delivery, eased $0.55 to $97.29 a barrel. Last week, oil ended losing nearly 2 percent impacted on demand concerns after U.S. oil stockpiles increased more than expected last week

European Economics Preview: German Factory Orders Data Due

2012-02-06T09:20:00.001+02:00

Industrial orders from Germany and Eurozone sentix investor confidence are the major reports due at the start of the week, headlining a light day for the European economic news.

The Czech statistical office is slated to release industrial and construction output figures at 3.00 am ET. After rising 5.4 percent in November, industrial production is forecast to grow 1.5 percent annually.
The Society of Motor Manufacturers and Traders is set to publish U.K. new car registrations data for January at 4.00 am ET. Registrations were down 3.7 percent in December.

Eurozone sentix investor confidence is due at 4.30 am ET. The confidence index had fallen to -21.1 in January from -24 in December.

At 6.00 am ET, Germany's Federal Ministry of Economy and Technology is scheduled to issue factory orders for December. Economists forecast industrial orders to grow 1 percent month-on-month after falling 4.8 percent in November. On a yearly basis, a 0.8 percent fall is expected.

At 9.00 am ET, French T-bill auction is due. The government aims to raise EUR 2.1 billion from 182-day T-bills and EUR 2.2 billion from 364-day bills. Also, it will issue EUR 4.2 billion 91-day bills.

China To Face Deeper Slowdown If Euro Crisis Intensifies: IMF

2012-02-06T09:19:00.001+02:00

China may see its economic growth rate falling by around 4 percentage points this year if debt crisis in Europe worsens, the International Monetary Fund (IMF) said in a report on Monday.
The Fund warned that the risks to China from Europe are both "large and tangible."
According to the report, the rate of growth in China's gross domestic product is expected to fall to 8.25 percent this year from 9.2 percent in 2011, gathering speed in the latter part of this year and rising to 8.75 percent in 2013.

Russia Jan. Service Sector Growth Quickens To 6-Month High

2012-02-03T09:23:00.001+02:00

Activity in the Russian service sector increased at the fastest pace in six months in January, data from a survey by Markit Economics and HSBC Bank showed Friday.

The seasonally adjusted purchasing managers' index (PMI) for the service sector advanced to 56.5 in January from 53.8 in December. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline. The rate of growth in January was the biggest in the past six months.

New business received by Russian service providers accelerated at the second-fastest pace in the post-crisis period. Meanwhile, backlogs of work depleted at fastest rate in three months, owing to increased production levels.

Employment in the service sector rose at the fastest pace since May 2011. Input price inflation eased to a fifteen-month low, while output price inflation remained relatively weak.

At the same time, the composite output index, which measures performance of both the manufacturing and service industries, rose to 54.4 in January.

European Economics Preview: Eurozone Retail Sales Data Due

2012-02-03T09:22:00.002+02:00

Retail sales and Purchasing Managers' survey results from Eurozone are the major reports due on Friday, suggesting a light day for the European economic news.

At 3.00 am ET, the Czech Statistical Office is slated to release retail sales data. On a yearly basis, growth in sales is forecast to remain unchanged at 0.5 percent. In the meantime, Turkey's consumer and producer prices are due.

Final services PMI figure are due from France and Germany at 3.50 am and 3.55 am ET, respectively. Markit is set to issue final Eurozone composite PMI data at 4.00 am ET. The Eurozone composite PMI is seen at 50.4 and services PMI at 50.5 in January. Both readings are expected to match preliminary estimate.

Half an hour later, U.K. Markit/CIPS services PMI data is due. The indicator is seen falling to 53.3 in January from 54 in December.

At 5.00 am ET, Eurozone retail trade figures are due from Eurostat. Economists forecast retail sales to rise 0.3 percent month-on-month in December after falling 0.8 percent in November. On a yearly basis, retail sales are expected to fall 1.3 percent.

In the meantime, Italy's statistical office Istat is scheduled to issue preliminary consumer price data. EU harmonized inflation is expected to fall to 3.6 percent from 3.7 percent in December. Month-on-month, the index is forecast to drop 1.7 percent.

Nations Must Preserve Growth Amid Fiscal Adjustments: IMF's Shinohara

2012-02-03T09:22:00.000+02:00

International Monetary Fund Deputy Managing Director Naoyuki Shinohara on Friday said that countries across the globe should be careful that policies to address fiscal imbalances do not restrain economic growth.

"One of the most immediate global policy challenges is to address medium-term fiscal imbalances while being careful not to kill growth," he said citing a statement in IMF's latest edition of World Economic Outlook and Fiscal Monitor.

The immediate need for fiscal adjustments in many advanced economies must be complemented by credible medium-term deficit-reduction plans and by reforms that can stimulate growth, he said during a speech in Tokyo.

Shinohara added that a tax policy is an important instrument in this case.

U.S. Unemployment Claims Decrease as Gains in Productivity Cool

2012-02-03T09:21:00.001+02:00

Claims for U.S. jobless benefits fell last week and productivity cooled in the fourth quarter, signalling hiring may accelerate as companies reach the limits of how much efficiency they can wring from existing workforces. Applications (INJCJC) for unemployment insurance payments dropped by 12,000 to 367,000 in the week ended Jan. 28, according to Labor Department figures issued today in Washington. Worker output per hour increased at a 0.7 percent annual rate from October through December, down from a 1.9 percent gain in the prior three months, another report showed. After focusing on cutting costs during the recession, American businesses are taking on more staff as they gain confidence the recovery will be sustained. In prepared remarks to Congress today, Federal Reserve Chairman Ben S. Bernanke yesterday highlighted improvements in the job market and production, while cautioning the outlook remains “uncertain.”

Merkel Arrives In Beijing For Talks With Chinese Leaders

2012-02-02T08:56:00.000+02:00

German Chancellor Angela Merkel arrived in Beijing Thursday on a three-day official visit to China, during which she will have talks with President Hu Jintao, Prime Minister Wen Jiabao and top legislator Wu Bangguo.

She will address the Chinese Academy of Social Sciences later on Thursday, the official Xinhua news agency reported.

On Friday, Merkel will fly to Guangzhou, capital of south China's Guangdong province, where she will attend a forum for Chinese and German businessmen with Premier Wen. She will also visit the Chinese branch of Herrenknecht, a German company producing robotic tunnel-drilling machines.

Merkel had visited China four times in the past.

Japan Steps Up Yen Warning; Azumi Says Can't Overlook Speculative Moves

2012-02-02T08:54:00.002+02:00

Japan's Finance Minister Jun Azumi on Thursday stepped up his warning against excessive yen gains and said the government is ready to take decisive steps to weaken the currency.

He said that speculative moves are rising and this development can not be overlooked. The renewed strength of the yen once again is threatening the country's foreign trade and hampered the economy's prospects of recovery.

Japan posted its first annual trade deficit since 1980 with a shortfall of JPY 2.49 trillion in 2011, data from the Finance Ministry showed today. This largely reflected the fallout from Japan's worst earthquake on record in March. The yen's rise as well as debt troubles in Europe have also eroded the country's export gains.

The recent rally in the currency was caused by market expectations that the US Federal Reserve will keep interest rates at "exceptionally low levels" until 2014, Azumi told Parliament today.

Economists say that the Finance Minister's remarks may be indicative of another currency intervention from the authorities to contain the currency's strength after last year's record yen sales.

Bank of Japan Governor Masaaki Shirakawa reportedly said on Thursday that the appreciation of yen was mainly caused by the safe-haven capital inflows triggered by global economic uncertainty.

Appearing before the budget committee of the lower house today, he said investors now prefer relatively safer currencies as global economic concerns have heightened risk aversion.

Speaking to Business Leaders in Kagawa today, Bank of Japan Deputy Governor Hirohide Yamaguchi said that biggest risk to Japan's economic outlook is the ongoing European debt problem.

He said that cannot rule out the possibility that confidence in the government bond market might collapse at once triggered by some cue.

Yamaguchi called on the government to take up fiscal structural reforms both in terms of expenditure and revenue before the market confidence is lost.

European Economics Preview: Eurozone Producer Price Data Due

2012-02-02T08:54:00.000+02:00

Producer prices from Eurozone and Purchasing Managers' survey results from the U.K. are the major reports due on Thursday, headlining a light day for the European economic news. In addition, Spain and France are set to conduct debt auctions.

At 2.00 am ET, the Federal Customs Administration is slated to publish Swiss December trade data. The trade surplus is expected to fall to CHF 2.5 billion from CHF 2.95 billion in November.

U.K. CIPS/Markit construction Purchasing Managers' survey results are due at 4.30 am ET. The indicator is seen rising to 52.5 in January from 53.2 in December.

Spain is set to raise EUR 3.5 billion to EUR 4.5 billion through a bond auction at 4.30 am ET. The issue includes bonds maturing on January 2017, July 2015 and October 2016.

At 4.50 am ET, France is set to issue longer term bonds or OATs. The Agence France Tresor will auction bonds with 7, 8, 10 years maturity. The agency aims to raise between EUR 6.5 billion and EUR 8 billion.
At 5.00 am ET, Eurostat is scheduled to issue euro area producer price figures for December. Producer price inflation is forecast to slow to 4.3 percent in December from 5.3 percent in November. On a monthly basis, producer prices are expected to drop 0.1 percent.

The Czech National Bank is set to announce its interest rate decision at 7.00 am ET. The central bank is widely expected to retain the rate at 0.75 percent.

Facebook to raise $5bn in IPO

2012-02-02T08:52:00.001+02:00

Facebook launched the process for its highly anticipated coming-out, filing papers for its initial public offering, and revealing for the first time details of its business that it has, until now, guarded fiercely.
The offering will turn several key shareholders into billionaires, most notably Mark Zuckerberg, the company’s 27-year old chief executive and co-founder, whose 28.2 per cent stake in the company could make him worth more than $22.5bn, based on secondary market trading that values Facebook at $80bn.
The company said it would raise $5bn in the offering, a figure that is likely to rise before the actual public debut, making the social networking giant’s listing the largest in the internet industry since Google.

Greek Bondholders Are Said Set to Get GDP-Revival Sweetener in Debt Swap

2012-02-01T09:15:00.001+02:00

Bondholders negotiating a debt swap with Greece may get a sweetener tied to a revival in economic growth that would ease the impact of accepting a lower interest rate on the new bonds, people with knowledge of the talks said. In discussions late last week in Athens, creditors lowered their demands for an average coupon on the new 30-year securities they would receive to as little as 3.6 percent from 4.25 percent after European officials demanded they take steeper losses, people familiar with the matter said at the time. While the lower coupon would lead to an estimated loss of 70 percent or more for investors, adding a so-called gross domestic product warrant -- which would pay bondholders more if the Greek economy rebounds -- would trim the loss in net present value terms by an estimated 0.5 to 3 percentage points, said two people, who declined to be identified because the talks are confidential.

Israeli PM Leading In Likud Party Leadership Election

2012-02-01T08:55:00.001+02:00

Israeli Prime Minister Benjamin Netanyahu has taken a decisive lead in the election for the leadership of his ruling Right-wing Likud party, overcoming a strong challenge from his ultra-nationalist rival Moshe Feiglin, according to party officials.

After counting of about 76 percent of the votes polled was completed early on Wednesday, a Likud party spokesman announced that Netanyahu had secured about 74 percent of the votes counted so far. His rival Feiglin was trailing behind with only 26 percent.

Voters turnout was low, mainly due to the poor weather conditions across the country. Nevertheless, about half of Likud's 125,000 members voted to choose their leader. Final results are expected to be released later on Wednesday.

Earlier, Netanyahu had claimed victory in a speech delivered at the Tel Aviv fairgrounds on Monday night, saying: "I thank you all for the confidence and renewed support you have given me."
Netanyahu had defeated Feiglin by almost the same margin in the 2007 Likud leadership elections. He was later elected as the Israeli Prime Minister in 2009. But his subsequent decision to back the concept of an independent Palestinian State had angered hard-line Likud loyalists.

Ultra nationalists want West Bank to remain a part of the Jewish nation over religious and security reasons. In an effort to placate them, Netanyahu's government had announced new housing subsidies for those who move into Jewish settlements in the West Bank.

The move has threatened to derail ongoing international efforts aimed at reviving the currently stalled peace talks initiated by the U.S. between Israel and the Palestinians.

Palestinian and Israeli negotiators had resumed peace negotiations under the mediation of the United States in Washington on September 2, 2010. The talks, which came after a gap of nearly two years, ended in a deadlock after Israel's refusal to extend a construction freeze in the West Bank after its expiry on September 26, 2010.

Israel has since approved several plans to build new settler homes in the West Bank and East Jerusalem, ignoring strong objections from the international community. Palestinians are seeking an independent State with pre-1967 borders and East Jerusalem as its capital

Israel has already settled about 500,000 Jews in more than 100 settlements in the West Bank and East Jerusalem since the 1967 Six-Day War. However, Israel's annexation of the captured territories is not recognized by the international community, which considers building settlements in occupied land as illegal.

Dutch Factor Sector Contracts Slightly In January

2012-02-01T08:54:00.001+02:00

Activity in Netherlands' manufacturing sector decreased at a slower pace in January, data from a survey by NEVI and Markit Economics showed Wednesday.

The purchasing managers' index (PMI) for the manufacturing sector rose to 49 in January from 46.2 in December. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth. The latest reading was the highest in five months.

Production in Dutch factories increased in January, though at a marginal rate, after falling for three consecutive months. New orders received by manufactures decreased for the sixth successive month during the month. Employment in the sector decreased for the fourth consecutive month, though marginally.

Input prices increased for the first time in four months in January, mainly due to higher steel prices and a weaker exchange rate. In their attempts to protect margins, Dutch manufacturers raised their output charges to the highest level since July.

EU Nears Confrontation Over Greek Rescue

2012-01-31T09:32:00.001+02:00

European governments moved toward a confrontation over a second rescue package for Greece, just as a dimming fiscal outlook in Portugal opened a new front in the debt crisis. Euro leaders left a Brussels summit late yesterday with no accord over how to plug Greece’s widening budget hole and German Chancellor Angela Merkel voicing frustration with the Athens government’s failure to carry out an economic makeover. “Greece’s debt sustainability is especially bad,” Merkel told reporters. “You have to find a way through more action by the Greek government, more contributions by private creditors, for example, in order to close this gap.” Bargaining with Greece over a debt write-down and its economic management overshadowed efforts to point the way out of the financial crisis. EU chiefs agreed to speed the setup of a full-time 500 billion-euro ($654 billion) rescue fund and signed off on a German-inspired deficit-control treaty.