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China's Premier Attacks Call For Yuan Appreciation

Monday, Chinese Premier Wen Jiabao said some countries' call for yuan appreciation is unfair while they are practicing protectionism against China. He added that such actions are aimed at containing China's development.

Wen was speaking at the 12th China-EU summit in the east China city of Nanjing. He noted that maintaining a stable yuan during the global financial crisis would not only benefit China's economic development, but also be conducive to the world economic recovery.

He reiterated that China will keep the yuan basically stable. Friday, the Political Bureau of the Communist Party of China Central Committee said the government will continue its proactive fiscal policy and moderately easy monetary policy next year, hinting that there will not be any early exit.

"We will continue to improve the yuan exchange rate," Wen said. "We will maintain the stability of the renminbi at a reasonable and balanced level," he added.

Prime Minister of Sweden Fredrik Reinfeldt, who is the President of the European Council, the President of the European Commission José Manuel Barroso and European Central Bank President Jean-Claude Trichet represented the European Union in the meetings with top-ranking Chinese officials.

Sunday, Jean-Claude Juncker, Luxembourg's prime minister, who chairs the Eurogroup, a lobby of Eurozone finance ministers, said, "I can't say I am more optimistic than I was before I came here" on yuan acceleration.

"Europeans encouraged Beijing to take a more flexible policy," Trichet said on Sunday. The yuan exchange rate is a matter of concern between China and the European Union.

On November 26, the European Union Chamber of Commerce in China said China's industrial overcapacity is wreaking far-reaching damage on the global economy and an exchange rate adjustment could be part of the solution to fight against overcapacity. During mid November, International Monetary Fund Managing Director Dominique Strauss-Kahn said China should allow its currency to rise further.

Monday, Chinese Premier Wen Jiabao said some countries' call for yuan appreciation is unfair while they are practicing protectionism against China. He added that such actions are aimed at containing China's development. (Market News Provided by RTTNews)
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Eurozone Inflation Returns To Positive Territory

Eurozone consumer prices rose 0.6% year-on-year in November, recovering from a 0.1% decline in the previous month, preliminary data from Eurostat showed on Monday. Economists were looking for an increase of 0.5%. Final CPI data is due on December 16.

Inflation in the 16-nation bloc was in the negative territory since June. Meanwhile, the European Central Bank aims to keep inflation rates below, but close to 2% over the medium term.

Economists' reaction:

ING's Martin van Vliet noted that energy-price base effects have pushed Eurozone inflation back above zero in November and will push it up further in the near term, but inflation prospects for the region remain subdued. According to the economist, this will allow the ECB to tread cautious in unwinding its emergency stimulus measures.

"But we continue to expect inflation to stay comfortably below the ECB's medium-term target," the economist said. "Indeed, the amount of slack in the economy should keep core inflation on a downward trend for some time to come, mitigating some of the upward pressure from energy prices. The strong euro will also help temper price increases."

"The continued benign inflation outlook means that while the ECB may be on the verge of scaling back some of it emergency liquidity operations, official rate increases remain a distant prospect."

UniCredit's Marco Valli thinks the bias is for a downward revision of today's figure.

"It is very likely that almost all the acceleration came from energy, due to higher prices of oil products vs. October and an unfavorable base effect," the economist noted. "Food inflation likely was off the October low but remained deeply in negative territory, while core inflation should have eased further."

"Most likely, inflation will keep rising in December, approaching the 1% area."

BNP Paribas's Clemente De Lucia expects the ECB to set its 2011 inflation forecast well below 2% when the Governing Council meets on Thursday.

"Going forwards, headline inflation should continue to increase, driven up by less favourable energy related base effects and by the projected increase in commodity prices. On the contrary, core inflation is likely to continue to moderate."

"Given the ongoing bounce in activity, it is likely that the ECB will revise upwards its growth forecasts for 2009 and 2010 with respect to September's projections," the economist said. BNP Paribas do not expect the central bank to make any major changes to its 2009 and 2010 inflation forecasts.

"Under these conditions, the ECB is not expected to raise the refi rate from an historical low of 1% until H2 2011."

(Market News Provided by RTTNews)
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UK Consumer Confidence Wanes In November: GfK NOP

British consumer confidence eased moderately in November, a report from the market research firm GfK NOP showed on Monday.

The consumer confidence index stood at minus 17 compared to minus 13 in the previous month. This is the first decline in the index since January. A year ago, the index stood at minus 35. The annual moving average improved and is now minus 27, the GfK NOP said.

"Given that the government's best chance - indeed probably their only chance - of retaining power in next May's general election is to contest it on the back of several months of economic improvement, this month's consumer confidence figures will come as a real blow," said Nick Moon, Managing Director of GfK NOP Social Research. "After a fairly steady rise throughout 2009, the index is 20 percentage points above where it was at the start of the year, but this month is the first time the index has fallen for over a year."

Four of the five components of the consumer confidence index experienced a marked downturn. The index measuring personal finance situation over the last 12 months fell to minus 14 in November from minus 12 in the preceding month, while the index for the next 12 months fell to 5 from 6. The index assessing the climate for major purchases plunged seven points to minus 19. All the three indexes are at levels higher than a year ago.

Respondents expectations on the general economic situation over last 12 months dropped six points to minus 59, while the index measuring the general economic situation over the next 12 months held steady at 3. Both index readings are better than those for the same month last year.

However, the 'now is a good time to save' measure shed four points to minus 10. The reading is 14 points lower than in November 2008.

The UK Consumer Confidence Survey is conducted by GfK NOP among a sample of 2000 individuals aged 16 and more on behalf of the European Commission. The interviews for the latest survey was carried out between November 6 and 15.

Meanwhile, house prices in the United Kingdom were up 0.2% on month in November, property website Hometrack reported on Monday. On an annual basis, home prices declined 2.9% after the 4.2% contraction in the previous month.

Sellers are now acquiring an average of 93.2% of their asking price, the data showed, up from 92.9% in October. Prices in London were up 0.4% on month, followed by a 0.3% increase in southwest England.

British consumer confidence eased moderately in November, a report from the market research firm GfK NOP showed on Monday. (Market News Provided by RTTNews)
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India's Economic Growth Accelerates

The Indian economy recorded its biggest growth in 18 months in the three months to September led by a stronger manufacturing sector and stimulative measures taken by the government, signaling a possible interest rate hike in future.

The economy expanded more than expected in the September quarter, by 7.9% from a year ago, larger than the 6.1% growth reported in the previous quarter, a report released by the Central Statistical Organization showed Monday. Consensus forecast was for a 6.3% increase.

Westpac economists said the growth acceleration is the first since 2007 and clearly shows a waning impact from global recession. Montek Singh Ahluwalia, Deputy Chairman of Planning Commission, said today that there could be an upward revision in the 6.5% GDP growth projection for this fiscal year ending March 2010.

The manufacturing sector showed a robust performance with 9.2% growth, following an increase of 3.4% in the prior quarter. The mining sector rose 9.5%, up from 7.9% in the previous quarter. Trade, transport and communication services climbed 8.5%, faster than the annual 8.1% growth in the previous three months. However, construction grew at a slower pace of 6.5% compared to 7.1% in the previous quarter. Agriculture, forestry and fishing moved up only 0.9% versus 2.4% in the previous quarter.

During April to September, the economy expanded 7% compared to 7.8% recorded during same period of last year.

In a report released on November 19, the Paris-based Organization for Economic Cooperation and Development said the ongoing recovery in India will be only modestly hampered by poor monsoon rainfall in the near term. The think-tank estimated economic growth to reach over 7% in 2010 and 7.6% in 2011. Inflation has been rising since mid-2009 and is expected to remain high over the projection period.

In its latest monetary policy review, the Reserve Bank of India policy makers led by governor Duvvuri Subbarao had maintained its key interest rates for a second rate-setting session. However, the bank hiked the statutory liquidity ratio to 25% from 24% and started exiting liquidity support measures.

The central bank maintained its economic growth forecast for the year ending March 31, 2010, at 6% with an upward bias, while hiked the inflation outlook, also with an upward bias, to 6.5% from 5%. The bank said the Indian economy, which slowed down in the second half of 2008-09 due to the global financial crisis, has begun to stabilize despite falling exports and poor monsoon.

During the same period, neighbouring China also reported a strong performance. The GDP rose 8.9% annually in the third quarter, faster than the 7.9% increase in the previous quarter.

The Indian economy recorded its biggest growth in 18 months in the three months to September led by a stronger manufacturing sector and stimulative measures taken by the government, signaling a possible interest rate hike in future. (Market News Provided by RTTNews)
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U.A.E. Central Bank Announces Emergency Assistance For Banks

Sunday, the Central Bank of the United Arab Emirates said it will provide emergency assistance for all foreign and local banks operating in its seven states after the Dubai debt issue shocked global markets last week.

The Abu Dhabi-based central bank said banks can avail a special additional liquidity facility linked to their current accounts at the central bank at a rate of 50 basis points above the three- month local benchmark interest rate. Further, the central bank said it "stands behind" local and foreign banks.

On November 25, the Dubai World, the emirate's investment company with liabilities of $59 billion, sought a delay of six months to repay its debt. Its subsidiary Nakheel, the developer of palm-islands, has a $3.5 billion Islamic bond maturing on December 14. Dubai World had asked for a delay on maturities until at least May 30, 2010. If creditors grant the request, it will result in a technical default on debt.

The International Monetary Fund welcomed the central bank's decision, while adding that it is continuing to monitor the situation. "We look forward to further clarification by the authorities towards a cooperative mechanism to address the issues between these debtors and their creditors," the Washington-based lender added.

On Monday, Nakheel asked for all three of its listed Sukuk's or listed Islamic bonds to be suspended until it is in a position to fully inform the market. U.A.E's interbank offered rates EIBOR increased to 1.94125 percent on Monday's fixing from 1.91875 percent in the previous fixing on November 25.

The Dubai World debt issue has transformed into a matter of nationwide concern, when the total debt of the country is taken into account. Dubai, a Middle East financial hub, has a total debt of $80 billion, of which the Dubai World's contribution is the highest.

The central bank's announcement is expected to improve investor confidence, which weakened after the Dubai government announced restructuring of the Dubai World. Danske Bank chief analyst Lars Christensen suspects that market participants are still likely to be nervous about the situation in Dubai, despite extended credit facilities. "Gulf markets are likely to be put under further pressure," the analyst said, "and significant spillover into other EMEA markets should also be expected."

On Friday, global stock markets were rattled by the news as investors worried about the possibility of another global financial system contagion. The Dubai debt default issue came at a time when the global economy was starting to feel slightly confident that it has passed the worst of the global financial crisis triggered by the U.S. sub-prime mortgage fallout.

A boom in construction sector has helped to create an image for Dubai as one of the comfortable place for investments. But the credit-crunch had its worst impact on the economy, forcing constructors to halt work and firing thousands of employees.

Following a four-day holiday weekend, Dubai stock markets opened on Monday. Markets in both Dubai and Abu Dhabi plunged at the start of the first trading session since the Dubai World news broke.

Sunday, the Central Bank of the United Arab Emirates said it will provide emergency assistance for all foreign and local banks operating in its seven states after the Dubai debt issue shocked global markets last week. (Market News Provided by RTTNews)
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European Economics Preview: Eurozone Consumer Prices Forecast To Rise

Eurozone consumer prices and mortgage approvals data from the United Kingdom are due on Monday, headlining a hectic day for European economic news.

At 2:45 am ET, the French statistical office INSEE is set to release producer price figures for October. The producer price index is expected to drop 7.3% year-on-year in October, slower than the 8.1% decline in the previous month. On a monthly basis, producer prices are forecast to grow 0.2%, rebounding from the 0.3% decrease last month.

Industrial production data is due from the Czech Statistical Office at 3:00 am ET. Year-on-year, industrial output is forecast to plunge 8% in October, after the 11.9% decline in the prior month.

Elsewhere, Hungary's Central Statistical Office is slated to release producer price figures for October. Economists expect the producer price index to fall 0.1% annually in contrast to the 3.4% growth in the previous month.

Third quarter's GDP results are due from the Polish statistical office at 3:00 am ET. The GDP is forecast to rise 1.6% year-on-year in the third quarter, compared to the 1.1% increase in the second quarter.

The current account balance for September is due from the Bank of Spain at 3:30 am ET. The current account balance had registered a deficit of EUR 3.19 billion in August.

At 4:00 am ET, the Statistics Norway is expected to issue retail sales figures for October. Sales are tipped to rise 1.9% annually, after the 2% increase last month. The statistical agency is also set to release C2 credit growth indicator data for October, with the credit growth rate seen at 5.3% year-on-year, slower than the 5.5% increase in the previous month.

In the meantime, producer price data for October is due from the Italian statistical office ISTAT. In September, producer prices had dropped 6.9% on a yearly basis and by 0.3% on a monthly basis.

The Statistics Iceland is expected to release October's trade data at 4:00 am ET. Lasy month, the trade balance logged a surplus of ISK 16.4 billion. Also, Czech money supply data for October is due from the central bank.

At 4:30 am ET, the Bank of England is scheduled to issue mortgage approvals statistics for October. Mortgage approvals are forecast to rise to 57,500 from 56,200. Net lending secured on dwelling is expected to increase GBP 0.9 billion, the same as last month. Meanwhile, net consumer credit is expected to fall GBP 0.2 billion, compared to September's GBP 0.3 billion decline. Final money supply data for October is also due from the central bank.

The U.K.'s Building Societies Association is also expected to release its mortgage approvals data for October at 4:30 am ET.

Elsewhere, consumer price data for November is due from the Statistical Service of the Republic Slovenia. Third quarter's GDP results are also due from the statistical office at the same time.

At 5:00 am ET, Eurozone flash HICP estimate is due from Eurostat. Economists expect the HICP to rise 0.5% year-on-year in November, rebounding from the 0.1% decrease in the previous month.

Consumer price figures are due from Italy at 5:00 am ET. Year-over-year, the consumer price index is tipped to rise 0.8% in November, faster than the 0.3% growth in the preceding month. Harmonized consumer prices are also expected to rise 0.8% on year.

Eurozone consumer prices and mortgage approvals data from the United Kingdom are due on Monday, headlining a hectic day for European economic news. (Market News Provided by RTTNews)
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BoJ Will Act Promptly And Decisively, Says Shirakawa

The Bank of Japan is prepared to act promptly and decisively if judged necessary to ensure the stability of financial markets, Governor Masaaki Shirakawa said Monday. He reiterated that the central bank will maintain the extremely accommodative financial environment and provide steady support for Japan's economy.

Speaking at a meeting with business leaders in Nagoya, Shirakawa said the central bank will do its utmost to overcome deflation both in terms of monetary easing and ensuring the stability of the financial markets. In coping with deflation, first the BoJ should improve the supply and demand balance of the economy and prevent a vicious circle between economic activity and prices, he said.

According to Shirakawa, the starting point of the current price decline was the rapid contraction of financial and economic activities since the autumn of last year. Consequently, the supply and demand balance deteriorated considerably. So as to deal with such a situation, he said, it is necessary to prepare an environment conducive to a sustainable expansion of final demand, such as business fixed investment and private consumption.

On November 27, Japanese Finance Minister Hirohisa Fujii said he would contact U.S. and European authorities to act on currencies if necessary. "I am nervously watching the foreign exchange market carefully", the minister told reporters. Fujii also hinted at the prospect of a statement from the Group of Seven nations.

The central bank chief added that the BoJ is paying due attention to the effects of the recent appreciation of the yen on business sentiment of the firms and to the effects of international financial developments since last week on the financial markets. "It would be important, above all, for a central bank to examine the economy without prejudgment."

The comments came ahead of his meeting with Prime Minister Yukio Hatoyama later this week. On November 20, the Hatoyama government had declared that the economy is in deflation, the first official announcement of deflation since mid-2006. Core consumer prices, which excludes fresh food from the price basket, dropped 2.2% in October from a year earlier.

Today, Shirakawa also shared the view of "mild" deflation in the second largest economy. According to the BoJ's forecast in October, the CPI excluding fresh food, would fall 1.5% in fiscal 2009 and would drop 0.8% in fiscal 2010 and a 0.4% decline in fiscal 2011. Chief Cabinet Secretary Hirofumi Hirano reportedly said Shirakawa and Hatoyama will discuss the measures to support the economy, including quantitative easing.

In October, BoJ policymakers decided to stop outright purchases of commercial papers and corporate bonds at the end of 2009 as the central bank's assessment showed a marked improvement in conditions. Earlier this month, the Organisation for Economic Co-operation and Development warned against lingering deflation in the economy and said an increase in the central bank's bond purchases would help in battling deflation.

Shirakawa noted that the pace of improvement in Japan's economy is likely to remain moderate until around the middle of fiscal 2010, as pressures for adjusting employment and wages are likely to remain. He said word 'moderate improvement,' is used to also convey cautious judgments that, while the economy has gotten out of a deteriorating phase, the level of economic activity remains low and the pace of future recovery will not likely to be smooth. Further, he sees a possibility that the momentum for Japan's economic recovery will temporarily slow at around the spring of 2010.

The Bank of Japan is prepared to act promptly and decisively if judged necessary to ensure the stability of financial markets, Governor Masaaki Shirakawa said Monday. (Market News Provided by RTTNews)
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Australian Inflation Gauge Climbs In November Raising Likelihood Of Rate Hike

An unofficial monthly inflation gauge for Australia increased at a faster pace in November, a report from the Melbourne Institute and TD Securities showed on Monday. The acceleration was mainly due to higher prices of motoring, fruits & vegetables, and household supplies.

Prices, measured on the inflation gauge rose 2.1% year-on-year in November, falling within the Reserve Bank of Australia's target range of 2% to 3%. This follows a 1.2% increase in the inflation gauge in October. Compared to the previous month, prices rose by 0.3%, following a 0.3% fall in October.

TD Securities Senior Strategist Annette Beacher indicated that price decline has apparently bottomed out and was now on its way back up, increasing the likelihood of more interest rate hikes. In its latest monetary policy meeting, the central bank raised the benchmark interest rate by 25 basis points to 3.50%, and indicated further rate hikes in the near future. That was the second hike in a row.

Beacher suggested that a cash rate of 3.50% was too accommodative for "an economy clearly outperforming global peers". The RBA Board convenes for its next monetary policy meeting on December 1, and is widely expected to raise the overnight cash rate by a further 25 basis points to 3.75%.

According to Westpac economists, the monthly increase in the inflation gauge was the strongest since July, while the annual rate was the highest since April. Westpac senior economist Anthony Thompson noted that the detail of the November inflation gauge demonstrated broader price pressures than in the prior two months.

Latest official data showed that consumer prices increased 1.3% year-on-year in the third quarter, slower than the 1.5% rise in the previous quarter. Underlying inflation, which excludes housing and financial & insurance services, grew 1.2%. On a quarterly basis, consumer prices were up 1% in the third quarter, faster than the 0.5% rise in the preceding quarter.

In other news, the Australian Bureau of Statistics reported that the value of inventories in Australia increased 0.8% sequentially in the third quarter to A$134.91 billion. Analysts had expected the value of inventories to fall 1% on quarter after the 3.4% decline in the previous three months. In addition, company profits were down 2.1% compared to the second quarter.

Earlier in the day, the central bank reported that total credit provided to the private sector by financial intermediaries was flat on month in October, following the 0.1% decline in September. Over the year to October, total credit rose by 1.1%. Housing credit increased 0.7% in October, the data showed, following an increase of 0.7% in September.

Also on Monday, the Housing Industry Association reported that new home sales in Australia fell for the second straight month following a first time buyer surge in August. Sales of new homes were down 6% month-on-month in October, after the 4.5% decrease in the previous month.

"Sales activity from investors and upgrade owner occupiers has not chimed in to offset weakening first home buyer-related activity," said Harley Dale, Chief Economist at HIA, commenting on the data. "A decent and sustainable new home building recovery needs strong momentum from private sector trade-up buyers and investors and we seem to be falling short on that score as we near the end of 2009."

The Australian dollar edged higher on Monday morning in Asia as traders inclined to riskier-assets on hopes that the central bank will increase its benchmark interest rates tomorrow for a third consecutive month.

An unofficial monthly inflation gauge for Australia increased at a faster pace in November, a report from the Melbourne Institute and TD Securities showed on Monday. The acceleration was mainly due to higher prices of motoring, fruits & vegetables, and household supplies. (Market News Provided by RTTNews)
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New Zealand Dwelling Permits Surge In October

The number of new dwellings authorized in New Zealand climbed a seasonally adjusted 12% month-on-month in October, following the 5.5% increase in September, Statistics New Zealand reported on Monday. Excluding apartments, the seasonally adjusted number of new dwellings approved grew 11%, faster than the 3.5% rise in the previous month.

The number of dwelling permits issued increased in 12 of the 16 regions in New Zealand, with the largest increases reported in Auckland, Otago, and Taranaki.

The statistical agency also said that the value of residential building consents was NZ$481 million in October, up 9.5% from the previous year, while the value of consents issued for all buildings was NZ$810 million, a 2.8% increased compared to October 2008.

The number of new dwellings authorized in New Zealand climbed a seasonally adjusted 12% month-on-month in October, following the 5.5% increase in September, Statistics New Zealand reported on Monday. Excluding apartments, the seasonally adjusted number of new dwellings approved grew 11%, faster than the 3.5% rise in the previous month. (Market News Provided by RTTNews)
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UAE Central Bank Offers Extra Liquidity To Banks

Sunday, the Abu Dhabi-based Central Bank of the United Arab Emirates said it will provide foreign and local banks with extra liquidity. Banks can avail a special additional liquidity facility linked to their current accounts at the central bank at a rate of 50 basis points above the three- month local benchmark interest rate. Further, the central bank said it "stands behind" local and foreign banks.

The International Monetary Fund welcomed the decision. The IMF said, "We welcome today's announcement by the Central Bank of the UAE making available to banks a special additional liquidity facility." "We look forward to further clarification by the authorities towards a cooperative mechanism to address the issues between these debtors and their creditors," the lender added.

On November 26, the Dubai government had decided to restructure Dubai World after the company shocked creditors by requesting a standstill on all financing to it and its subsidiary Nakheel, the "palm island" developer. Dubai World had asked for a delay on maturities until at least May 30, 2010.

Sunday, the Abu Dhabi-based Central Bank of the United Arab Emirates said it will provide foreign and local banks with extra liquidity. (Market News Provided by RTTNews)
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Japan November Manufacturing PMI Falls To Four-Month Low - Nomura/JMMA

Sunday, Markit Economics announced that the Nomura/JMMA Japan Manufacturing Purchasing Managers' Index stood at a seasonally adjusted 52.3 in November, down from 54.3 in the previous month. A reading above 50 indicates expansion, while one below 50 suggests contraction. This marks a four-month low in the index.

Manufacturing output increased for the sixth straight month in November, albeit at a slower pace. This was largely attributed to a slower increase in new orders, while backlogs of work declined at their fastest pace in three months.

Job shedding in the manufacturing sector eased to its weakest since August last year, with the majority of firms attributing reduced employment levels to an uncertain outlook for demand.

Average input costs faced by Japanese manufacturers fell for the twelfth straight month, while output prices were slashed at their most marked rate in nearly eight years. Respondents blamed increased competition for the fall in selling prices.

Sunday, Markit Economics announced that the Nomura/JMMA Japan Manufacturing Purchasing Managers' Index stood at a seasonally adjusted 52.3 in November, down from 54.3 in the previous month. A reading above 50 indicates expansion, while one below 50 suggests contraction. This marks a four-month low in the index. (Market News Provided by RTTNews)
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Japan Industrial Production +0.5 Percent On Month

Industrial output in Japan was up 0.5 percent on month in October, the Ministry of Economy, Trade and Industry said in a preliminary report on Monday, posting a seasonally adjusted index score of 89.9 and rising for the eighth consecutive month.

That was sharply lower than analyst expectations for a 2.5 percent increase following the 2.1 percent gain in September.

On an annual basis, output fell 15.1 percent after the 18.4 percent contraction in the previous month.

Industries that contributed to the increase included general machinery, fabricated metals, information and communication electronics equipment. Commodities that were up included metal oxide semiconductor ICs, semiconductor products machinery and parts and accessories of steam turbines.

According to the Survey of Production Forecast in Manufacturing, production is expected to increase 3.3 percent in November and to increase 1.0 percent in December. Industries tipped to rise in November include transport equipment and general machinery. Industries called higher in December include electrical machinery, iron and steel and general machinery.

Shipments in October were up 1.3 percent from the previous month, up for the eighth consecutive month. It showed a decrease of 13.0 percent from the previous year. Industries that gained included transport equipment, information and communication electronics equipment and general machinery.

Inventories in October fell 1.5 percent on month, contracting for the second consecutive month. It showed a decrease of 14.4 percent from the previous year. Industries that declined included general machinery, iron and steel and transport equipment.

The Inventory-Shipment Ratio was flat on month in October. It showed an increase of 3.0 percent from the previous year.

(Market News Provided by RTTNews)
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Bank Woes Far From Over?

Markets retreated in the past week despite the fairly encouraging economic readings, as the Dubai and Greek debt crises spread panic among the markets. Credit spreads widened in reaction to the developments due to fears that some of the big Western banks may have money involved. Downside risks to equities are now to the upside, as major banks may have to record big loan losses again even after they have attained a state of stabilization following the 2008 credit crisis.

The confidence vested on the embattled banks following the rescue packages announced by governments is at stake now. The Dubai crisis is a stark reminder of lurking fears over the health of the financial system. Danske Bank is of the view that bank earnings may disappoint in 2010, with the conjecture based on its expectations that there will be more Dubai-like cases in 2010. The firm is 'underweight' on banks, as it believes that investment returns will not reach 2009 levels, while loan losses will continue to rise in 2010 and perhaps also in 2011.

Domestically, positive tidings sprang forth from the housing and consumer sectors. Consumer confidence readings came in better than expected and home sales showed increases, while the rate of decline in house prices are slowing down. Continuing the string of positive readings, personal spending data for October was better than expected. Jobs data was encouraging, with the weekly jobless claims declining in the recent reporting week.

Meanwhile, data released from across the Atlantic in the past week showed that the growth is gaining traction in Europe. German Ifo survey showed strong improvement in the economic expectations index, pointing to a continued improvement in German industrial production. Barring the French manufacturing PMIs, most other PMI readings were better than expected.

Japan released strong export data that suggests that global trade is improving, while at the same time, Japanese unemployment rate fell for the third straight month. In reaction to the data, Japanese yen strengthened, rising to sub-85 levels briefly on Friday before weakening thereafter.

U.S. housing reports continue to be promising. The National Association of Realtors reported that existing home sales rose to a seasonally adjusted annual rate of 6.1 million units in October, up 10% from the previous month and marking their highest level since February 2007. The bulk of the increase was in single-family home sales. Home inventories, as measured by the months of supply fell to 7 months from 8 months in September. The median sales price of an existing home declined 7.1% year-over-year and fell 1.6% month-over-month to $173,100.

Meanwhile, the Commerce Department said new home sales totaled 430,000 in October compared to an upwardly revised reading of 405,000 in September. Geographically, only South showed gains. Inventories as measured in months of supply fell to 6.7 from the previous month's 7.4, with the October reading marking the lowest level since December 2006. The median price of a new home rose 0.71% month-over-month to $212,000.

The S&P/Case-Shiller survey showed that house prices declined at a slower year-over-year rate of 9.36% in September, although the decline was still steeper than the 9.10% decline expected by economists. On a monthly basis, house prices rose 0.33%, marking the fifth straight month of growth. Nine of the twenty cities showed monthly gains.

Consumer confidence recovered slowly from depressed levels. The Conference Board's survey revealed that its consumer confidence rose to 49.7 in November from 48.7 in October. Economists had estimated a decline by the index to 47.3. While the expectations index rose 1.5 points, the present situation index edged down 0.1 points. Consumers' assessment on the job market was still pessimistic, with the respondents saying that jobs were plentiful falling to its lowest level since February 1983, while those who said jobs were hard to get to rose to its highest level since May 1983.

The Reuters/ University of Michigan's consumer sentiment survey showed that the consumer sentiment index for November declined by a little than analysts expected. The index, although was revised up from the mid-month reading by four-tenths of a percentage point, declined to 67.4 from 70.6 in October.

At the same time, the Bureau of Economic Analysis released its revised third quarter GDP report, showing downwardly revised growth of 2.8%. Excluding government spending, all major components of GDP were revised unfavorably. Personal spending and fixed investment growth were revised lower and the drag from inventory depletion was now more severe than initially estimated. Additionally, net trade was revised to be a bigger drag on growth.

The minutes of the FOMC meeting released in the previous week indicated that there has not been much change in the economic outlook since September. The minutes showed that the committee members believed that the recovery will continue and will gradually strengthen over time. At the same time, the members are of the view that the unemployment rate will remain quite elevated and the level of inflation will remain below rates consistent with the Fed's objectives over longer term.

The unfolding week's economic calendar is pretty busy, with a few key first-tier reports such as the Labor Department's monthly non-farm payroll report for November, the weekly jobless claims report and the results of the ISM's manufacturing and services survey for November due to be released during the week. Traders may also closely watch speeches by Fed officials and President Barack Obama, while also keeping an eye on the results of the Treasury auctions of 30-year bonds (due at 9 AM ET on Thursday), 3-year notes (due at 11 AM ET on Thursday) and 10-year notes (due at 11 AM ET on Thursday).

The ISM-Chicago's manufacturing index for November, the Commerce Department's construction spending report for October, the National Association of Realtors' pending home sales index for October, the factory goods orders report for October and the revised third quarter productivity & costs report may also be on the radar of traders. Additionally, the Beige Book is likely to be scanned to find out anecdotal evidence of how the economic recovery is panning out in different federal districts.

After the strong rise in October, the ISM's manufacturing index isn't expected to advance significantly. The employment index's outsized gains in October are unsustainable and therefore, it is likely to retreat from the previous month's level. The regional surveys released thus far, namely the New York Fed's and the Philadelphia Fed's survey does not offer much hope for a substantial increase in the manufacturing index of the national survey.

However, the non-manufacturing index of the ISM survey could see an improvement following October's mild retreat, which positioned the index barely in the expansion zone. Improvement in industrial activity and underlying retail sales trend and the housing market should lead to greater demand for services.

The decline of the weekly jobless claims below the 500,000 level for the first time since October 2008 bode well for the monthly non-farm payroll employment. The job losses should continue to ease, in line with the recent trend. Meanwhile, the unemployment rate is expected to tick up slightly.

Monday

The results of the Institute of Supply Management-Chicago's business survey for November are scheduled to be released at 9:45 AM ET. Economists expect the business barometer index based on the survey to come in at 53.

In October, the business barometer index rebounded into expansionary territory, rising to 54.2 compared to 46.1 in September. The production index climbed 16.7 points to 63.9, marking the biggest gain in 13 months. Meanwhile, the new orders index surged up 15.1 points to 61.4, its highest reading since June 2007. The backlog orders index, although rising 5.2 points, still remained in contraction zone at 41.9.

At the same time, the inventories index continued to contract for the 12th straight month and came in at 32.2 for October. Meanwhile, the employment index remained little changed at 38.3. The prices paid index fell to 48.6 in October from the month-ago's 51.3.

Tuesday

Individual automakers are scheduled to release their monthly U.S. sales results for the month on Tuesday. The data will reveal the unit sales of domestically produced cars and light duty trucks, including sports utility vehicles and mini-vans, during the month.

The results of the manufacturing survey of the Institute for Supply Management, which are based on data compiled from purchasing and supply executives nationwide, are due out at 10 AM ET. Economists expect the index to show a reading of 54.8 for November.

The manufacturing index rose to 55.7 in October from 52.6 in September, while economists had forecast a more modest 0.4-point increase to 53. The October reading represented its highest level since April 2006. Notwithstanding the improvement in the headline number, the new orders index fell by more than 2 points to 58.5 and the order backlogs index remained flat at 53.5. On the other hand, the production index rose to its highest level since July 2004, coming in at 63.3. Meanwhile, the employment index rose 7 points to 53.1, the first time the index was above the '50' cut-off mark since July 2008.

The Commerce Department's construction spending report to be released at 10 AM ET is expected to show a 0.4% decline in spending for October.

The September report revealed a 0.8% month-over-month increase in construction spending. The increase was unexpected, as economists had expected a 0.2% decrease for the month. Public construction spending rose 1.5% and private construction spending increased by a more modest 0.5%. In the private category, a 2.4% climb in spending on single-family construction offset the 4.1% decline in multi-family housing construction and a 1.8% drag from private non-residential construction spending.

Data on Pending Home Sales, which is a leading indicator of housing market activity released by the National Association of Realtors, is due out at 10 AM ET. A pending sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale. The index is expected to edge down 0.5% in October.

In September, the pending home sales index rose 6.1% month-over-month, with the optimism reflecting home buyers scramble to take advantage of the $8,000 first time homebuyers credit before it expires by November 30th. Economists had expected a 0.1% decrease for the month. Pending home sales rose by the most in the West, an area which witnessed a flurry of foreclosure activity, and the Midwest. The South also showed gains, while the Northeast showed a decline in pending home sales.

Philadelphia Federal Reserve Bank President Charles Plosser is scheduled to deliver a speech on the economic outlook to a seminar in Rochester at 12:20 PM ET.

Wednesday

The ADP National Employment report, which sheds light on non-farm private employment, is scheduled to be released at 8:15 AM ET. The report is usually released two days prior to the Labor Department's employment report. The private sector is expected to have lost 148,000 jobs in November.

The Energy Information Administration is scheduled to release its weekly petroleum inventory report at 10:30 AM ET.

Crude oil stockpiles rose by 1 million barrels to 337.8 million barrels in the week ended November 20th, with inventories remaining above the upper limit of the average range. Gasoline stockpiles moved up by 1 million and remained above the upper limit of the average range. However, distillate inventories fell by 0.5 million barrels, but they were above the upper boundary of the average range. Refinery capacity utilization averaged 80.1% over the four weeks ended November 20th compared to 80.4% in the previous week.

The Federal Reserve is due to release its Beige Book, which is a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, at 2 PM ET. The report is normally released about two weeks before the monetary policy meeting is held.

Thursday

Federal Reserve Chairman Bernanke is scheduled to appear for a chairmanship confirmation hearing before the Senate Banking Committee. Additionally, Obama is due to hold a jobs conference with leaders from the business, labor, finance and the nonprofit sectors.

The Labor Department is due to release its customary weekly jobless claims report for the week ended November 28th at 8:30 AM ET. Economists expect claims to have increased to 483,000 in the recent reporting week.

Initial jobless claims, a key measure of layoffs, dropped 35,000 last week to a level of 466,000. This was the first reading below 500,000 this early January. Continuing claims fell 190,000 to a level of 5.423 million, the 10th consecutive week of declines.

The U.S. Labor Department is also scheduled to release its final report on third quarter non-farm productivity and unit labor costs at 8:30 AM. The consensus estimates call for an 8.5% increase in non-farm productivity.

The preliminary report released in November showed that third quarter non-farm productivity rose 9.5% compared to the previous quarter. The consensus estimates had called for a more modest 6.5% increase. The agency noted that the productivity growth was the strongest since the third quarter of 2003, when it rose 9.7%.

Meanwhile, unit labor costs fell 5.2% sequentially, with hours declining 5%, while output rose 4%. On a year-over-year basis, productivity increased 4.3%.

The ISM is scheduled to release the results of its non-manufacturing survey at 10 AM. The non-manufacturing index is likely to show a reading of 51.5 for November.

The services sector survey for October showed that the services index eased to 50.6 in October compared to 50.9. Economists had expected the index to climb to 51.5. The business activity index rose slightly to 55.2, representing the highest level since October 2007. The employment index moved down 3.2 points to 41.1, boding ill for the non-farm payrolls report to be released on Friday. While the new orders index rose 1.4 points to 53.6, the backlog orders index climbed 2 points to 53.5. The price paid index rose 4.2 points to 53.

Friday

The Labor Department is scheduled to release its monthly non-farm payroll report at 8:30 AM. The report sheds light on the number of paid employees working part time or full time in the nation's business and government establishments, the number of hours worked in the non-farm sector, the basic hourly rate for major industries and the number of unemployed as a percentage of the labor force. Economists estimate that the U.S. economy lost 114,000 jobs in November and look for an unemployment rate of 10.2%.

In October, the U.S. economy lost 190,000 jobs, a slowdown from the 219,000 reduction in non-farm payrolls in September. September's job losses were originally estimated as 263,000. Economists had expected the economy to lose 175,000 jobs in October.

At the same time, the unemployment rate surged to 10.2% in October from 9.8% in September. The rate came in much higher than the 9.9% rate expected by economists. Average hourly earnings rose 0.27% to $18.72.

The Commerce Department is due to release its report on factory goods orders for October at 10 AM ET. Orders for manufactured goods are likely to have increased 0.1% in the month.

Durable Goods Orders, which make up the bulk of factory goods orders, showed a 0.6% month-over-month decline for October. Orders, excluding transportation, fell by 1.3%. Notwithstanding 1.5% increase in transportation orders, total orders remained weak due to soft demand for machineries and electronic products. Shipments edged down 0.2%, while inventories remained unchanged. Non-defense capital goods orders, excluding aircrafts, fell 2.9%, reversing the 2.6% increase in the previous month.

Plosser is also due to deliver opening remarks at conference on Policy Lessons from the Economic and Financial Crisis in Philadelphia at 10 AM ET. Also scheduled to make a public appearance on the day will be St. Louis Federal Reserve Bank President James Bullard, who is due to speak at a Philadelphia Fed conference in Philadelphia at 1:15 PM ET.

(Market News Provided by RTTNews)
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Australia New Home Sales Fall For Second Straight Month - HIA

New home sales in Australia fell for the second straight month following a first time buyer surge in August, the Housing Industry Association reported on Monday.

Sales of new homes were down 6% month-on-month in October, after the 4.5% decrease in the previous month.

"Sales activity from investors and upgrade owner occupiers has not chimed in to offset weakening first home buyer-related activity," said Harley Dale, Chief Economist at HIA.

"A decent and sustainable new home building recovery needs strong momentum from private sector trade-up buyers and investors and we seem to be falling short on that score as we near the end of 2009."

In October, the number of sales of detached houses fell by 6.9% on month, following the 4.3% decrease in the preceding month, while the number of apartment sales increased 2.4%.

New home sales in Australia fell for the second straight month following a first time buyer surge in August, the Housing Industry Association reported on Monday. (Market News Provided by RTTNews)
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BoE's Posen: British Economy "Bottomed Out"

Friday, Bank of England policy maker Adam Posen told a regional newspaper Lincolnshire Echo that the British economy has "bottomed out". "There is still a lot of work to do and the country still has a lot of spare capacity but we are starting to see decent growth," he said.

"We think there is greater confidence than there was 12 months ago and interest rates have come down," he said.

The Office for National Statistics on November 25 revised the economic contraction for the third quarter to 0.3% from 0.4%. The economy contracted for the sixth straight time in the third quarter of 2009.

Friday, Bank of England policy maker Adam Posen told a regional newspaper Lincolnshire Echo that the British economy has "bottomed out". (Market News Provided by RTTNews)
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Japan Industrial Output Due On Monday

Japan is scheduled to release preliminary October numbers for industrial production on Monday, setting the pace for a busy day in Asia-Pacific economic news. Also due from Japan are October numbers for housing starts.

Industrial production is forecast to add 2.5 percent on month following the 2.1 percent increase in September. On an annual basis, output is expected to fall 13.4 percent after the 18.9 percent plunge in the previous month. Housing starts are predicted to drop 33.5 percent on year to 705,000 yen after falling an annual 37 percent to 699,000 in September. Finally, Bank of Japan Governor Masaaki Shirakawa is scheduled to speak at a business meeting in Nagoya City.

Australia will provide October figures for private sector credit, which is tipped to add 0.2 percent on month and 1.6 percent on year after easing 0.2 percent and gaining 1.7 percent on year in September. Australia also will release its monthly inflation gauge and Q3 data for business indicators.

South Korea will release October numbers for industrial output, leading index and service industry output. Industrial production is tipped to gain 5.8 percent on year after climbing an annual 11 percent in September. The leading index was up 10.1 percent in September, while service industry output added an annual 4.2 percent in the previous month.

Thailand will announce October data for imports, exports, trade balance, current account, manufacturing production and manufacturing index. Imports are expected to fall 18.5 percent on year after the 18.2 percent annual contraction in September. Exports are seen down by 2.5 percent on year after the 8.3 percent annual fall in the previous month. The trade balance is expected to show a surplus of $1.602 billion after posting a $2.047 billion surplus a month earlier. The current account is forecast to reflect a surplus of $1.522 billion after the $1.258 billion surplus in September. Manufacturing production is called flat.

(Market News Provided by RTTNews)
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New Home Sales Jump 6.2% In October

New home sales increased by much more than expected in the month of October, according to a report released by the Commerce Department on Wednesday, with the report also showing an increase in sales compared to the same month a year ago.

The report showed that new home sales rose 6.2 percent to an annual rate of 430,000 in October from the revised September rate of 405,000. Economists had expected sales to edge up to 404,000 from the 402,000 originally reported for the previous month.

New home sales increased by much more than expected in the month of October, according to a report released by the Commerce Department on Wednesday, with the report also showing an increase in sales compared to the same month a year ago. (Market News Provided by RTTNews)
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Spanish Retail Sales Drop In October

Retail sales in Spain dropped 3.9% year-on-year in October, the Madrid based National Statistics Institute reported on Thursday. Economists had expected a 2.4% decrease. Adjusting for calendar effects, total retail sales slumped 2.7% compared with October 2008.

Excluding sales at service stations, the retail sales index dropped 3% annually. Sales at supermarkets were down 3.1%. Further, the statistical office said that employment in the retail sector decreased by 3.9% in October.

Region wise, sales were down across the Iberian nation excepting Castilla y Leon. The largest declines were witnessed in Castilla La Mancha and Valencia.

Retail sales in Spain dropped 3.9% year-on-year in October, the Madrid based National Statistics Institute reported on Thursday. Economists had expected a 2.4% decrease. Adjusting for calendar effects, total retail sales slumped 2.7% compared with October 2008. (Market News Provided by RTTNews)
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Eurozone Oct. M3 Money Supply Growth Slows More Than Expected

Thursday, the European Central Bank said Eurozone M3 money supply grew 0.3% year-on-year in October, much slower than the 1.8% increase seen in September. The expected growth rate was 0.8%. The three-month average of the annual growth rates of M3 over the period August to October decreased to 1.6%, from 2.5% recorded during July to September.

Regarding the main components of M3, the annual growth rate of M1 eased to 11.8% in October from 12.8% in September. The short-term deposits other than overnight deposits slipped 7.2% in October, larger than the 5.3% decline in the previous month. At the same time, marketable instruments decreased 11.6% in October versus 8.9% fall in September.

Thursday, the European Central Bank said Eurozone M3 money supply grew 0.3% year-on-year in October, much slower than the 1.8% increase seen in September. (Market News Provided by RTTNews)
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Hungary Aug.-Oct. Jobless Rate Rises

Thursday, the Hungarian Central Statistical Office announced that the jobless rate stood at 10.4% in the August to October period, up from 10.3% in the July to September period. Economists expected the jobless rate to be 10.5%. A year ago, the jobless rate was 7.7%.

The number of unemployed totaled 440 thousand persons in the August to October period, larger than the 436 thousand persons in the July to September period.

Meanwhile, the employment participation rate stood at 55%, up from 54.9% in the July to September period.

Thursday, the Hungarian Central Statistical Office announced that the jobless rate stood at 10.4% in the August to October period, up from 10.3% in the July to September period. Economists expected the jobless rate to be 10.5%. A year ago, the jobless rate was 7.7%. (Market News Provided by RTTNews)
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Slovenia Tourist Arrivals Decrease In October

Wednesday, the Statistical Office of the Republic of Slovenia announced that the total tourist arrivals decreased 2% year-on-year in October, compared to the 5% fall in the previous month.

The foreign tourists arrivals decreased 3% on an annual basis in October, while domestic tourists arrivals remained unchanged.

For the January to October period, tourist arrivals dropped 2% compared to the same period of the previous year.

Meanwhile, total overnight stays remained unchanged in October, compared to a 4% fall in the previous month. For the January to October period, overnight stays were down 1% over a year ago.

Wednesday, the Statistical Office of the Republic of Slovenia announced that the total tourist arrivals decreased 2% year-on-year in October, compared to the 5% fall in the previous month. (Market News Provided by RTTNews)
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Hong Kong October Trade Deficit Decreases

Hong Kong recorded a trade deficit of HK$19.2 billion in October, smaller than a HK$29.1 billion deficit in September, the latest report from the Census and Statistics Department showed Thursday.

Total exports fell 13.1% on a yearly basis in November to HK$240.7 billion, faster than a 8.6% fall in the previous month. Economists expected a 13% fall. Domestic exports fell 32.9%, while re-exports were down 12.5%. Imports dropped 10.7% to HK$259.9 billion, sharper than a 3.1% decline in the previous month. Economists expected a 9% decrease. Both imports and exports have fallen continuously since November last year.

In the first ten months of the year, exports fell 15.8% year-on-year, while imports declined 15.2%. The trade deficit stood at HK$169.2 billion, narrowing from a HK$181.5 billion deficit in the same period last year.

(Market News Provided by RTTNews)
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BOJ's Yamaguchi Urges Japanese Banks To Increase Capital

Bank of Japan Deputy Governor Hirohide Yamaguchi urged Japanese banks to speed up their efforts towards increasing their capital in order to make them less vulnerable to economic shocks.

Speaking at a financial forum in Tokyo on Wednesday, he said it was appropriate for commercial banks to try to increase their capital, adding that this could lead to better stability for the nation's financial system.

Furthermore, Yamaguchi said that the global economy was still fragile and that the economy and financial markets were only halfway through a recovery from the financial crisis.

Wednesday, Bank of Japan Deputy Governor Hirohide Yamaguchi urged Japanese banks to speed up their efforts towards increasing their capital in order to make them less vulnerable to economic shocks. (Market News Provided by RTTNews)
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Australian Mortgage Borrowers' Repayment Ability Improves: Moody's

Australian mortgage borrowers' ability to repay their mortgages continued to improve in recent months despite interest rates rising, a report by Moody's Investors Service said Thursday. This was reflected in a drop in the delinquencies rate, the firm said.

The prime mortgage mortgage delinquencies greater than 30 days decreased to 1.14% from a historical high of 1.63% in January. Non-conforming mortgage delinquencies greater than 30 days also dropped to 11.47% from a historical high, Moody's said.

"The overall rate reductions since September 2008 mean borrowers are still enjoying significantly lower repayments" Arthur Karabatsos a Moody's Vice President and Senior Analyst said in a statement. "Unemployment is still relatively low and is expected to peak at levels much lower than forecast at the start of the global credit crisis", he added.

(Market News Provided by RTTNews)
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German GfK Consumer Sentiment Weakens Unexpectedly

German consumer confidence for December deteriorated unexpectedly, a monthly survey from GfK Group showed Wednesday. The forward-looking consumer confidence index fell to 3.7 for December from 4 in the prior month. Economists were expecting the index to remain unchanged at 4.

The indicator measuring propensity to buy rose slightly by 0.2 points to 26.3 points in November. Meanwhile, income expectations fell 6.7 points to 6.2 points and economic expectations slipped around 8 points to 0.9 points. Compared with the same period the previous year, the economic climate is recording a marked increase of 31 points.

The GfK conducts its consumer climate MAXX survey each month on behalf of the EU Commission. The survey is based on nearly 2,000 consumer interviews.

German consumer confidence for December deteriorated unexpectedly, a monthly survey from GfK Group showed Wednesday. (Market News Provided by RTTNews)
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England And Wales House Prices Increase In October - Land Registry

House prices in England and Wales increased 0.6% on a monthly basis in October, a report from the Land Registry showed on Friday. The average house price amounted to GBP 159,546 in October.

On an annual basis, house prices dropped 3.4% in October. This was the sixth consecutive month in which the annual decline has eased.

Meanwhile, the monthly house prices for London and South East increased by 1.4% and 1.3%, respectively in October. House prices for West Midlands fell 0.6%.

In August, the number of properties sales in England and Wales increased 4% compared to the previous year.

House prices in England and Wales increased 0.6% on a monthly basis in October, a report from the Land Registry showed on Friday. The average house price amounted to GBP 159,546 in October. (Market News Provided by RTTNews)
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Slovak Producer Prices Decline Further In October

Friday, the Statistical Office of the Slovak Republic announced that the total producer price index or PPI dropped 8.2% year-on-year in October, compared to the 7.7% fall in the previous month.

On a monthly basis, the PPI dropped 0.1% in October, at the same pace as in the preceding month.

For the January to October period, producer prices decreased 7% compared to the same period of the previous year.

Producer prices for domestic market fell 5.8% on an annual basis in October, while producer prices for manufacturing dropped 6.2%. At the same time, mining and quarrying output prices were down 4.8%.

Friday, the Statistical Office of the Slovak Republic announced that the total producer price index or PPI dropped 8.2% year-on-year in October, compared to the 7.7% fall in the previous month. (Market News Provided by RTTNews)
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Lithuania's Export, Import Prices Fall In September

In a report released on Wednesday, Statistics Lithuania said that export prices dropped 1.1% month-on-month in September, after the 1.4% increase in the previous month.

This was mainly due to a fall in prices of manufactured products, the statistical office said. Prices of manufactured products decreased 1.4% on month in September. On the other hand, prices of agriculture, forestry & fishery products grew 2.6%.

At the same time, import prices fell 1.3% from the previous month, in contrast to the 2.2% growth in August. This was largely driven by a 6.4% decline in prices of mining & quarrying products.

On a yearly basis, export and import prices slumped 21.1% and 13.4%, respectively.

In a report released on Wednesday, Statistics Lithuania said that export prices dropped 1.1% month-on-month in September, after the 1.4% increase in the previous month. (Market News Provided by RTTNews)
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Iceland's Current Account Deficit Contracts In Q3

Iceland's current account balance logged a deficit of ISK 36 billion in the third quarter, nearly halving from the ISK 65.3 billion deficit in the previous quarter, the Sedlabanki reported on Thursday.

In the third quarter, the goods account showed a surplus of ISK 16 billion, while the services account was positive by ISK 20.8 billion. On the other hand, the income account registered a deficit of ISK 73 billion.

The central bank also said that the capital & financial account balance swung to a deficit of ISK 75.1 billion in the third quarter from a surplus of ISK 123.5 billion in the preceding quarter.

Iceland's current account balance logged a deficit of ISK 36 billion in the third quarter, nearly halving from the ISK 65.3 billion deficit in the previous quarter, the Sedlabanki reported on Thursday. (Market News Provided by RTTNews)
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S. Africa Oct. Producer Prices Decline At Slower Pace

Thursday, the Statistics South Africa announced that the producer price index or PPI for domestic output decreased 3.3% year-on-year in October, compared to the 3.7% decline in the previous month. Economists expected a decrease of 3.1%.

On a monthly basis, producer prices fell 0.1% in October, in contrast to a 0.1% growth expected by economists.

Meanwhile, producer prices for exported commodities fell 13.1% on an annual basis in October, after falling 11.2% in September. At the same time, import prices were down 10.2%, slower than the 16.2% decline in the preceding month.

Month-on-month, export prices climbed 0.8% in October, while import prices fell 0.5%.

Thursday, the Statistics South Africa announced that the producer price index or PPI for domestic output decreased 3.3% year-on-year in October, compared to the 3.7% decline in the previous month. Economists expected a decrease of 3.1%. (Market News Provided by RTTNews)
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Australia Q3 Capital Expenditure Falls Unexpectedly

New capital spending by private businesses in Australia decreased a seasonally adjusted 3.9% quarter-on-quarter to A$26.55 billion in the third quarter, after rising a revised 2.1% in the second quarter, the Australian Bureau of Statistics reported on Thursday. Economists had expected capital expenditure to rise 1%.

Capital spending on buildings & structures dropped 4.8% sequentially in the third quarter, while spending on equipment, plant & machinery slid 2.9%.

On a yearly basis, total new capital expenditure declined a seasonally adjusted 1.3%. Expenditure on equipment, plant & machinery slumped 8.1%, while spending on buildings & structures grew 6.5%.

New capital spending by private businesses in Australia decreased a seasonally adjusted 3.9% quarter-on-quarter to A$26.55 billion in the third quarter, after rising a revised 2.1% in the second quarter, the Australian Bureau of Statistics reported on Thursday. Economists had expected capital expenditure to rise 1%. (Market News Provided by RTTNews)
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China Imposes Rules On Foreign Currency Conversion To Yuan

Wednesday, China's State Administration of Foreign Exchange issued new rules on individuals' transfers of foreign currency into yuan.

According to the new rules, a foreigner or overseas institution is not allowed to send foreign currencies to five or more Chinese individuals to convert it into the yuan on a single day or on consecutive days. Meanwhile, Bloomberg news service reported that Hong Kong residents are not allowed to buy more than 20,000 yuan a day.

The currency regulator said new rules are designed to promote a standardized foreign exchange environment and to resist irregular capital flows, in the wake of speculation about currency appreciation and rising asset prices.

Wednesday, China's State Administration of Foreign Exchange or SAFE has issued new rules on individuals' transfers of foreign currency into yuan. (Market News Provided by RTTNews)
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Japanese Consumer Prices Continue To Fall In October

Japan's general consumer prices dropped 2.5% year-on-year in October, after a 2.2% fall in prices in each of the previous three months, the Ministry of Internal Affairs and Communication said Friday.

Core consumer prices, which excludes fresh food, dropped 2.2% in October from a year earlier, but slower than a 2.3% fall in the previous month. Economists expected a 2.4% decline. This is the eighth consecutive month that consumer prices have fallen.

Month-on-month, overall consumer prices dropped 0.4%, and excluding fresh food, prices fell 0.1%.

Meanwhile, the CPI in Tokyo region for November, a good indicator of future movements of consumer prices, dropped 2.2% from a year earlier and fell 0.2% from October. The core CPI fell 1.9% on a yearly basis, but slower than a 2.3% decline anticipated by economists. Month-on-month, the core consumer prices were down 0.1%.

(Market News Provided by RTTNews)
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Philippines GDP Growth Slows In Q3

Philippines' gross domestic product expanded a seasonally adjusted 1% sequentially in the third quarter, slower than the downwardly revised 1.7% growth in the second quarter, the National Statistical Coordination Board reported on Thursday. Economists had expected a 1.3% increase.

The services sector grew 1.9% sequentially in the third quarter, building on the 1.2% increase in the preceding quarter. The agriculture, fishery & forestry sector climbed 0.9%, while the industrial sector contracted 0.5%, slackening economic growth.

On a yearly basis, gross domestic product gained 0.8% in the third quarter, the same rate of growth as in the previous quarter. Economists had expected a 1.9% rise.

Philippines' gross domestic product expanded a seasonally adjusted 1% sequentially in the third quarter, slower than the downwardly revised 1.7% growth in the second quarter, the National Statistical Coordination Board reported on Thursday. Economists had expected a 1.3% increase. (Market News Provided by RTTNews)
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Sweden Consumer Confidence Rises For Seventh Consecutive Month

Consumer confidence in Sweden rose further for the seventh consecutive month in November, the National Institute of Economic Research said Wednesday. The confidence index climbed to 11.4 from 7.5 in the previous month.

The survey showed that confidence in personal finances and the Swedish economy improved in November. Moreover, household pessimism concerning unemployment trend continued to decline.

Moreover, the business confidence indicator rose by four points in November, and was up for the eighth consecutive month. All the sub sectors made a positive contribution to the index, but situation in the business sector remained weaker than normal. Employment continued to fall, but firms indicated that they would cut fewer staff.

Meanwhile, the economic sentiment indicator, which includes the consumer and manufacturing confidence, rose to 98.8 in November from 94.9 in the previous month.

(Market News Provided by RTTNews)
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Canadian Employment Insurance Numbers Rise In September

The number of Canadians receiving regular Employment Insurance benefits rose by 7.1% in September, following two months of declines, according to data released by Statistics Canada Tuesday.

The largest increases in September occurred in Ontario, Alberta and British Columbia. The number of beneficiaries in September reached 818,000, up 63.5% from October 2008 when employment hit its peak.

During this period, the largest increases occurred in Ontario, British Columbia and Alberta. The number of beneficiaries had shown a sharp upward trend from October 2008 to June 2009, but has since leveled off.

The number of initial and renewal claims received in September fell 5.0% (-14,700) to 280,700. The number of EI claims received has been trending down since the most recent peak in May 2009. Declines in the number of claims received in September were observed in most provinces.

(Market News Provided by RTTNews)
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India's Food Price Index Rises Further

India's food price index increased 15.58% as on week ended in November 14, faster than the 14.55% growth in the preceding week, the Ministry of Commerce and Industry said on Thursday. The food price index was up 11.33% in the corresponding week of the previous year.

At the same time, the price index for primary articles rose 11.04%, compared to the 12.66% increase a year ago. Meanwhile, fuel price index dropped 1.51%, in contrast to a 6.81% growth recorded last year.

The wholesale price index or WPI rose 1.34% year-on-year in October, faster than the 0.5% growth in the previous month.

India's food price index increased 15.58% as on week ended in November 14, faster than the 14.55% growth in the preceding week, the Ministry of Commerce and Industry said on Thursday. The food price index was up 11.33% in the corresponding week of the previous year. (Market News Provided by RTTNews)
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Slovak Economic Sentiment Indicator Improves In November

Friday, the Statistical Office of the Slovak Republic said the economic sentiment indicator rose 2 percentage points to 79.4 in November from the previous month. However, year-on-year, the index decreased by 9 percentage points, and was also 21 percentage points lower than the long term average.

The monthly rise was affected by positive developments in the services, construction and industrial sectors. However, this was partly offset by a drop in the retail as also the consumer confidence index.

During the month, the industrial confidence indicator improved to minus 7.7 from from minus 9, while the construction confidence increased to minus 45 from minus 47.5. The service confidence indicator turned positive to show a reading of 2.3 in November compared to minus 1 in the previous month. However, the retail trade confidence decreased to minus 15 from minus 12.3. The consumer confidence indicator worsened to minus 33.2 from 30.3.

(Market News Provided by RTTNews)
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Japan's Unemployment Rate Falls Unexpectedly In October

Japan's unemployment rate stood at a seasonally adjusted 5.1% in October, down from 5.3% in the previous month, the Ministry of Internal Affairs & Communications reported on Friday. Economists had expected the unemployment rate to rise to 5.4%. The unemployment rate stood at 3.8% a year ago.

In October, the unemployment rate was at 5.3% among males and 4.8% among females. The total number of unemployed persons declined to 3.36 million from 3.52 million.

At the same time, the number of employed persons decreased to 62.44 million from 62.64 million in the prior month, while total labor force strength slid to 65.82 million from 66.19 million.

Japan's unemployment rate stood at a seasonally adjusted 5.1% in October, down from 5.3% in the previous month, the Ministry of Internal Affairs & Communications reported on Friday. Economists had expected the unemployment rate to rise to 5.4%. The unemployment rate stood at 3.8% a year ago. (Market News Provided by RTTNews)
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Darling To Lower This Year's GDP Estimate: BBC

British Chancellor Alistair Darling is expected to lower the economic forecast for this year in the pre-Budget report, BBC News reported Friday, citing Treasury sources.

Darling may say that the British economy contracted 4.75% this year, severe than the 3.5% shrinkage predicted in March's Budget. However, he is likely to stick to 2010 forecasts of growth between 1% and 1.5%, BBC said. The Chancellor is set to present the pre-Budget report on December 9.

The British economy contracted in the past six quarters, suffering the longest stretch of decline in gross domestic product in its history. Recent improvement in some leading indicators strengthens hopes that the economy may exit recession in the final quarter of the year.

British Chancellor Alistair Darling is expected to lower the economic forecast for this year in the pre-Budget report, BBC News reported Friday, citing Treasury sources. (Market News Provided by RTTNews)
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Iceland's Consumer Price Inflation Slows In November

Consumer prices in Iceland increased 8.6% year-on-year in November, slower than the 9.7% growth in the previous month, Statistics Iceland reported on Thursday. Consumer price inflation has been on a slowing trend since June, when the annual inflation rate stood at 12.2%. Excluding housing costs, consumer prices surged 12.5%.

On a monthly basis, consumer prices climbed 0.7% in November, slower than the 1.1% increase in the preceding month. Excluding housing costs, the consumer price index rose 1%.

Prices of clothing & footwear rose 3.4%, and that of petrol & diesel oil grew 3.5%. On the other hand, airfares for international flights slumped 14.5%.

Consumer prices in Iceland increased 8.6% year-on-year in November, slower than the 9.7% growth in the previous month, Statistics Iceland reported on Thursday. Consumer price inflation has been on a slowing trend since June, when the annual inflation rate stood at 12.2%. Excluding housing costs, consumer prices surged 12.5%. (Market News Provided by RTTNews)
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Brazilian Banks Adequately Capitalized: Moody's

Moody's Investors Service in a report Wednesday said Brazilian banks were adequately capitalized, and based on its analysis noted that the rated banks maintained consistently adequate capital indicators even under the firm's worse-than-expected scenario.

The report also found that Brazilian banks had virtually no exposure to toxic or structured securities, and only modest positions in equity markets, and thus the firm did not see the need to stress test their security portfolios.

Moody's pointed out that the well regulated banking system was characterized by high levels of reserves. Moreover, in light of recent of uncertainties, the banks raised their reserves for loan losses, mainly in response to deteriorating credit conditions for consumers and corporate borrowers. As a result of the banks' adequate loss-absorbing capacity, Moody's said it took only limited action of the Brazilian banks' ratings.

(Market News Provided by RTTNews)
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Bulgaria Sept. Gross Foreign Debt Decreases

Tuesday, the Bulgarian National Bank said in a report that the gross foreign debt stood at EUR 36.56 billion in September, down from EUR 36.97 billion recorded a year ago. The decrease was mainly due to decline in Banks' liabilities.

The external debt, which was equal to 109.2% of GDP at the end of September, the central bank said.

Meanwhile, the general government's external debt amounted to EUR 2.77 billion in September, which was 8.3% of GDP.

In the January to September period, gross external debt service was EUR 5.142 million versus EUR 5.14 billion for the same period of the previous year.

Tuesday, the Bulgarian National Bank said in a report that the gross foreign debt stood at EUR 36.56 billion in September, down from EUR 36.97 billion recorded a year ago. The decrease was mainly due to decline in Banks' liabilities. (Market News Provided by RTTNews)
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New Zealand's Trade Deficit Shrinks In October

New Zealand's trade deficit stood at NZ$487 million in October compared to the NZ$563 million deficit in the previous month, Statistics New Zealand reported on Friday. The trade deficit was roughly in line with expectations for a NZ$480 million deficit.

Exports dropped 22.4% annually to NZ$3 billion in October. The fall in exports was widespread with milk powder, butter & cheese, crude oil, and casein & caseinates being the most significant contributors, the statistical agency said.

At the same time, imports plummeted 28.3% to NZ$3.5 billion. Petroleum & products and mechanical machinery & equipment were the most significant contributors to the decline in imports.

New Zealand's trade deficit stood at NZ$487 million in October compared to the NZ$563 million deficit in the previous month, Statistics New Zealand reported on Friday. The trade deficit was roughly in line with expectations for a NZ$480 million deficit. (Market News Provided by RTTNews)
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Norway NAV Jobless Rate Stable In November

Norway's jobless rate stood at 2.6% in November, same as in the previous month, the Labor and Welfare Organization said on Thursday. The jobless rate came in line with economists' expectations.

The number of unemployed totaled 67,400 persons in November, which was increased by 22,200 persons compared to the previous year.

The jobless rate for construction industries was 4.5% in November, while manufacturing unemployment stood at 4.1%. The jobless rate for travel and transportation was 3.7%.

Tor Saglie, Labor and Welfare Director said,"The supply of new workers has been reduced in recent months. However, we see that many unemployed people are now using a longer time to get back to work. "

Norway's jobless rate stood at 2.6% in November, same as in the previous month, the Labor and Welfare Organization said on Thursday. The jobless rate came in line with economists' expectations. (Market News Provided by RTTNews)
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Philippine Imports Continue To Fall In September

Total imports value in the Philippines dropped 25% year-on-year to $3.67 billion in September, after the 28.3% decline in the previous month, the National Statistics Office reported on Wednesday. On a monthly basis, imports grew 1.5% in September, rebounding from the 10.2% decline in the preceding month.

Imports of electronic products, which accounted for over 36% of the aggregate import bill, slid 22.1% annually in September, faster than the 21.1% fall in August. Month-on-month, electronic product imports climbed 2.2%.

Meanwhile, exports slumped 18.2% from the previous year to $3.64 billion, while the trade balance logged a deficit of $34 million, smaller than the $445 million deficit recorded a year ago.

Total imports value in the Philippines dropped 25% year-on-year to $3.67 billion in September, after the 28.3% decline in the previous month, the National Statistics Office reported on Wednesday. On a monthly basis, imports grew 1.5% in September, rebounding from the 10.2% decline in the preceding month. (Market News Provided by RTTNews)
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Lithuania Consumer Confidence Falls For Second Straight Month

Consumer confidence in Lithuania dropped to minus 51 in November from minus 47 in the previous month, Statistics Lithuania reported on Friday. This marks the lowest level in the indicator since March, when the index also stood at minus 51.

In November, the index measuring household financial situation in the next 12 months slid to minus 33 from minus 30, while the index assessing the country's economic situation in the next 12 months fell to minus 44 from minus 39. Also, the index on probability of savings in the next one year dropped to minus 54 from minus 52.

Meanwhile, the gauge measuring the number of unemployed in the next 12 months increased to 73 from 69.

Consumer confidence in Lithuania dropped to minus 51 in November from minus 47 in the previous month, Statistics Lithuania reported on Friday. This marks the lowest level in the indicator since March, when the index also stood at minus 51. (Market News Provided by RTTNews)
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Singapore October Industrial Production Rises On Year

Industrial production in Singapore grew 3.6% year-on-year in October, rebounding from the upwardly revised 6.3% decrease in the previous month, the Economic Development Board reported on Thursday. Economists had expected industrial output to rise 7.5%. Excluding the biomedical manufacturing sector, output climbed 4.3%.

On a monthly basis, industrial output slumped a seasonally adjusted 6.7% in October, slower than the upwardly revised 8.7% decrease in the preceding month. The decline came as a surprise, with economists' expecting a 1.6% increase in output. Excluding the biomedical sector, output rose 1.4%.

In the first ten months of the year, industrial production contracted by 5.1% compared to the corresponding period of the previous year.

Industrial production in Singapore grew 3.6% year-on-year in October, rebounding from the upwardly revised 6.3% decrease in the previous month, the Economic Development Board reported on Thursday. Economists had expected industrial output to rise 7.5%. Excluding the biomedical manufacturing sector, output climbed 4.3%. (Market News Provided by RTTNews)
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Singapore Q3 Services Sector Receipts Rise On Quarter

Thursday, a report by the Singapore Department of Statistics said the overall business receipts of the services sector, which excludes wholesale and retail trade, as also hotels and restaurants, rose 0.7% sequentially in the third quarter. This comes after a 1.3% fall in the second quarter.

Year-on-year, the receipts of the services sectors, dropped 4.4% in the third quarter, at the same pace as in the second quarter.

On a quarterly basis, professional, scientific, technical and administrative services showed the biggest increase in receipts of 5%, followed by a 2.1% rise each in transport and storage and in health and social work. However, the biggest drop of 4.3% was in information and communication.

On a yearly basis, the biggest contributor to the fall in receipts was transport and storage, which showed 18.9% decrease. At the same time, health and social work showed the fastest rise of 4.6%.

(Market News Provided by RTTNews)
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Taiwan Q3 GDP Drops At Slower Pace

Taiwan's gross domestic product or GDP decreased 1.29% year-on-year in the third quarter, the Directorate General of Budget, Accounting and Statistics said on Thursday.

The GDP was down 6.85% annually in the second quarter, revised from a 7.54% decrease estimated initially. The first quarter GDP was revised up to 9.06% from a decline of 10.13%.

Taiwan's GDP has been falling since the third quarter of 2008 and the economy fell into a recession in the fourth quarter.

The real GDP is expected to increase 6.89% in the fourth quarter but it will contract 2.53% for 2009 as a whole, the statistical office said.

The economy is then forecast to grow by 4.39% in 2010 and nation's trade sector is expected to come in a much better shape.

Taiwan's gross domestic product or GDP decreased 1.29% year-on-year in the third quarter, the Directorate General of Budget, Accounting and Statistics said on Thursday. (Market News Provided by RTTNews)
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ECB's Weber Urges Germany To Push Deficit Down To Target

The German government should concentrate its efforts on bringing down its fiscal deficit in line with E.U. regulations by 2012, European Central Bank Governing Council member and Bundesbank President Axel Weber commented on Thursday.

In a speech delivered at a covered bond association conference, Weber reasoned that fiscal policy must start towards the consolidation path once the economic recovery is anchored, and urged the German govenment to meet the ECB's deficit criteria of 3% by 2012.

He also added that he foresees the ECB being pressurized by governments in the next few years owing to high debt levels, but affirmed that the ECB Council's primary goal of price stability will be "plausibly defended."

The German government should concentrate its efforts on bringing down its fiscal deficit in line with E.U. regulations by 2012, European Central Bank Governing Council member and Bundesbank President Axel Weber commented on Thursday. (Market News Provided by RTTNews)
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Macau August-October Unemployment Rate Falls

Macau's unemployment rate stood at 3.5% in the August to October period, down from 3.7% in the preceding three month period, the Statistics and Census Service reported on Friday. A year ago, an unemployment rate of 3.1% was recorded for the same period.

In the August to October period, the total number of unemployed persons decreased by about 1,000 to 11,000, while the number of employed persons decreased by about 1,000 to 315,000. At the same time, the labor force participation rate slid to 71.7% from 72%, while the underemployment rate eased to 1.9% from 2%.

Analyzed by industry, the unemployment situation improved in hotels, restaurants & similar activities and wholesale & retail trade, the statistical office said.

Macau's unemployment rate stood at 3.5% in the August to October period, down from 3.7% in the preceding three month period, the Statistics and Census Service reported on Friday. A year ago, an unemployment rate of 3.1% was recorded for the same period. (Market News Provided by RTTNews)
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Japanese Household Spending Rises Further In October

Real household spending in Japan grew 1.6% year-on-year in October following the 1% increase in the previous month, the Ministry of Internal Affairs and Communications reported on Friday. Economists had expected real household spending to rise 0.7%. Household spending excluding that on housing, purchase of vehicles, money gifts and remittance climbed 0.7%.

Household spending on medical care surged 11.4% annually in October, while spending on transportation & communication rose 4.7%. On the other hand, household spending on education declined 4.6%.

Spending among workers' households increased 0.6% from the previous year, the same rate of growth as in the preceding month. In nominal terms, total household spending dropped 1.3%.

Real household spending in Japan grew 1.6% year-on-year in October following the 1% increase in the previous month, the Ministry of Internal Affairs and Communications reported on Friday. Economists had expected real household spending to rise 0.7%. Household spending excluding that on housing, purchase of vehicles, money gifts and remittance climbed 0.7%. (Market News Provided by RTTNews)
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Hungarian Central Bank Revises Down Inflation Forecast

The annual average inflation rate is expected to stand at 4.2% this year, compared to 6.1% in the previous year, the National Bank of Hungary said in its quarterly inflation report on Wednesday. The central bank had projected a 4.5% inflation rate in its previous report.

Looking ahead, the bank sees an inflation rate of 3.9% for 2010 in November's report, instead of 4.1% in August, and 1.9% in 2011, revised down from 2.1%.

Meanwhile, the central bank retained its earlier prediction for full-year GDP to contract 6.7% this year, but sees the GDP growth rate at minus 0.6% next year, better than August's minus 0.9% forecast. The bank retained its GDP expectations for 3.4% growth in 2011.

The annual average inflation rate is expected to stand at 4.2% this year, compared to 6.1% in the previous year, the National Bank of Hungary said in its quarterly inflation report on Wednesday. The central bank had projected a 4.5% inflation rate in its previous report. (Market News Provided by RTTNews)
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ECB's Trichet: Avoided Deflation, Banks Must Focus On Balance Sheets

The European Central Bank has avoided the materialization of deflationary risks thanks to its solid anchoring of inflation expectations, the bank's President Jean-Claude Trichet said.

"We can tell our 330 million fellow citizens: you can have confidence, we will deliver price stability," he promised in an interview with Dutch newspaper Financieele Dagblad.

Trichet said European banks should reinforce their balance sheets by issuing stocks, by putting their profits into reserves instead of paying dividends and remunerations. "The financial sector must understand that it has to respect values that are acceptable by the society at large," he said. The central banker said sustainability of public finances in the medium term will reinforce confidence of households and corporate business. The recovery can only succeed if confidence improve.

The European Central Bank has avoided the materialization of deflationary risks thanks to its solid anchoring of inflation expectations, the bank's President Jean-Claude Trichet said. (Market News Provided by RTTNews)
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Eurozone Economic Sentiment Strengthens Further

Eurozone economic sentiment rose to 88.8 in November from 86.1 in October, a monthly survey conducted by European Commission showed Friday. The index stood above the expected level of 88, but remained significantly below its long-term average.

Sentiment in industry rose 2 points to minus 19, which was the main contributor to the overall improvement. Consumer confidence rose slightly to minus 17 from minus 18 in October. Both industrial and consumer sentiment indicators matched economists' expectations. At the same time, confidence in construction climbed 3 points to minus 26 and that in retail improved 4 points to minus 11. Services confidence stood at minus 4, up from minus 7 in the prior month.

Elsewhere, the business climate indicator for the euro area improved in November to minus 1.56 from a revised reading of minus 1.79 in October. Economists were expecting the index to rise to minus 1.65 in November.

Eurozone economic sentiment rose to 88.8 in November from 86.1 in October, a monthly survey conducted by European Commission showed Friday. (Market News Provided by RTTNews)
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Japanese October Retail Sales Drop Less Than Expected

Retail sales in Japan dropped 0.9% year-on-year to JPY 10.83 trillion in October, slower than the 1.3% decline in the preceding month, the Ministry of Economy, Trade & Industry reported on Friday. Economists had expected sales to drop 1.6%. This marks the fourteenth straight month in which retail sales have fallen on an annual basis.

Sales in large-scale retail stores declined 7.2% annually to JPY 1.56 trillion in October, faster than the 5.6% fall in the previous month. Economists were looking for a 5.8% decrease.

At the same time, wholesale sales plummeted 24.4% to JPY 30.17 trillion, after the 27.1% slump in the prior month. Wholesale sales have now recorded double-digit falls for 12 successive months.

Retail sales in Japan dropped 0.9% year-on-year to JPY 10.83 trillion in October, slower than the 1.3% decline in the preceding month, the Ministry of Economy, Trade & Industry reported on Friday. Economists had expected sales to drop 1.6%. This marks the fourteenth straight month in which retail sales have fallen on an annual basis. (Market News Provided by RTTNews)
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Finland's Consumer Confidence Drops In November

Finland's consumer confidence index decreased in November, ending the improvement in confidence that began in spring, the Statistics Finland said Friday.

The consumer confidence index stood at 10.9 in November, down from 12.3 in the previous month, but was better than the reading seen in November last year and only slightly lower than the long-term average.

In November, consumers became more cautious about their own as well as Finland's economic situation in the next 12 months, and their views about their own and the general employment situation remained weak. However, consumers' view about saving possibilities improved and they considered it a good time to raise a loan and buy durable goods.

During the month, the index measuring consumers' own economic situation in 12 months dropped to 7.4 from 9, while the corresponding index on Finland's economic situation decreased to 18.2 from 21.4. Further, the gauge measuring Finland's unemployment situation worsened to minus 29.8 from minus 24.1. However, the index on households' saving possibilities rose to 47.8 from 43.

(Market News Provided by RTTNews)
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UK Should Reform Bank Regulation To Protect Debt Demand: BoE

Bank of England Governor Mervyn King told the House of Lords Economic Affairs Committee on Tuesday that bank regulations should be reformed so as to remove the implicit guarantee provided to big banks that undertake risky assets, else demand for gilts would be hit. King said, "It would be a serious mistake for us to rely on the rest of the world solving this problem." "In the end, if we don't solve this problem people who buy gilts around the world will say the UK is a bit of a risk."

US has a big advantage here as they can afford to let too-important-to-fail go on because their banking sector is less than one times GDP.

Bank of England Governor Mervyn King told the House of Lords Economic Affairs Committee on Tuesday that bank regulations should be reformed so as to remove the implicit guarantee provided to big banks that undertake risky assets, else demand for gilts would be hit. (Market News Provided by RTTNews)
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BoA Meets On Dec 15 To Consider New SEZ Proposals

The Indian government said it would continue to approve proposals for setting up new special economic zones or SEZs, pending changes in guidelines to starting them, say media reports.

The Board of Approval or BoA of the SEZs is slated to meet on December 15 to consider fresh proposals for setting up these tax-free enclaves, besides other requests, a government official said.

The 19-member, inter-ministerial BoA, is chaired ex-officio by the Commerce Secretary, presently, Rahul Khullar.

The government is yet to finalize new SEZ norms, for which it has invited comments from the public on site-identification, land-acquisition, development plans, role of state governments and physical infrastructure.

The draft guideline stipulates that cultivable land should be considered, only if no other category of land was available in the required extent. The first preference should be given to acquiring waste and barren land, followed by single-crop land and double-crop land necessary to meet the contingency. requirements, it said.

(Market News Provided by RTTNews)
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Chinese Communist Party Pledges To Maintain Policy Stance Next Year

Friday, the Political Bureau of the Communist Party of China Central Committee said the government will continue its proactive fiscal policy and moderately easy monetary policy next year, hinting that there will not be any early exit.

The decision was taken in a meeting of the 25-member Politburo, chaired by President Hu Jintao, China's official Xinhua news agency reported.

According to the report, the ruling party decided to take more efforts to improve the quality and efficiency of economic growth, to promote the transformation of the economic development pattern and structural adjustments, according to a statement released after the meeting.

During next year's economic work, the government would improve policies to spur consumption and ensure investment grow at a reasonable pace, the report said.

Friday, the Political Bureau of the Communist Party of China Central Committee said the government will continue its proactive fiscal policy and moderately easy monetary policy next year, hinting that there will not be any early exit. (Market News Provided by RTTNews)
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Hong Kong Oct. New Mortgage Loans Drown Down Falls - HKMA

Wednesday, the Hong Kong Monetary Authority said in a report that the new mortgage loans drown down decreased 9.5% month-on-month in October, in contrast to a 17% increase in the previous month.

The value of new mortgage loans drown down amounted to HK$21.1 billion in October, down from HK$23.3 billion in September.

The new loans approved fell 13.1% to HK$29 billion, after falling 2.5% in September. Approvals for primary market transactions declined 34.5% in October, while approvals for secondary market transactions fell 12.7%. Refinancing loans approvals were down 0.6%. At the same time, the number of new applications dropped to 16,461 from 19,519 in September.

Meanwhile, the outstanding value of mortgage loans increased by 0.9% to HK$631.6 billion in October.

"Both the mortgage delinquency ratio and the rescheduled loan ratio fell slightly to 0.04% and 0.10% respectively in October." the HKMA said.

Wednesday, the Hong Kong Monetary Authority said in a report that the new mortgage loans drown down decreased 9.5% month-on-month in October, in contrast to a 17% increase in the previous month. (Market News Provided by RTTNews)
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German Import Prices Decline At Slower Pace In October

Germany's import price index dropped 8.1% year-on-year in October, slower than the 11.4% fall in the previous month, the Federal Statistical Office said on Friday. Import prices in September was revised from 11% decline reported initially. Economists expected a decrease of 7.4%. A year ago, import prices were up 1.8%.

On a monthly basis, import prices rose 0.5% in October, after falling 0.9% in September. Economists were looking for an increase of 0.4%.

The import price index, excluding crude oil and mineral oil products, dropped 7.9% on an annual basis in October and it remained unchanged compared to the preceding month.

Meanwhile, export price index decreased 2.6% year-on-year in October, compared to the 3.2% fall in the previous month. Month-on-month, export prices showed a flat reading in October, after falling 0.1% in September.

Germany's import price index dropped 8.1% year-on-year in October, slower than the 11.4% fall in the previous month, the Federal Statistical Office said on Friday. Import prices in September was revised from 11% decline reported initially. Economists expected a decrease of 7.4%. A year ago, import prices were up 1.8%. (Market News Provided by RTTNews)
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