Friday, 19 July 2013

CIMB Global Economic News - 19 July 2013

US jobless claims dipped 24,000 in the 13 Jul week to 334,000 from a revised 358,000 in the earlier week. This was lower than consensus of 344,000. (Bloomberg) US leading indicators made no change on a mom basis in Jun from a revised 0.2% in May, underperforming consensus of 0.3%. (Bloomberg) 

The eurozone current account surplus narrowed to €19.6bn in May from €23.8bn in Apr. Over the 12 months to May, the current account showed a surplus of €189.5bn, compared with a surplus of €53.3bn a year earlier. (AFP) The European Central Bank altered its collateral rules for refinancing banks and said it’s looking at ways to boost lending to small- and medium-sized enterprises.
  • The Frankfurt-based ECB will reduce the risk premium, or haircut, applicable to asset-backed securities (ABS) to 10% from 16%. 
  • It’ll also lower the quality threshold for six ABS classes that are subject to loan-level reporting requirements to two A- ratings from two AAA ratings. 
  • At the same time, the central bank will tighten rules for retained covered bonds so the total effect on eligible collateral will be ―overall neutral,‖ it said. (Bloomberg)

New home prices climbed in 69 of 70 cities in China, matching the data in May. Prices rose by an average of 6.12% yoy, a pickup from 5.32% in May. (Bloomberg, WSJ) Japan’s department store sales rose 7.2% yoy in Jun (2.6% in May), a second straight month of increase, with robust sales attributed to a sharp rise in demand for luxury items such as jewelry and watches as well as clothing and sundry goods. (NHK World) 

Sovereign ratings in Asia-Pacific will remain largely stable despite China's slowdown, continuing global headwinds and the volatility in global capital markets, Moody's Investors Service says.
  • "As before, support for the Asia-Pacific growth outlook is coming from the moderate pace of recovery in the US and the sturdy economic and fiscal fundamentals of most countries in the region. At the same time, the ongoing recession in the euro area still represents a prominent constraint," Moody’s said in its Asia Pacific 2013 Sovereign Mid-Year Update. (Bernama)

Indonesia’s government estimates that claimed that the distribution of the Direct Government Assistance (BLSM) has reached 78.7%, covering 12.3m out of a targeted 15.5m households. (Tempo)

Thai Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong has informed executives of Moody’s Investors Service of Thailand’s policy to have a balanced budget by the year 2017 while promising that public debt will be kept at 50% of GDP or below. (Thai Financial Post)

Source: CIMB Daybreak - 19 July 2013

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