Switzerland’s leading KOF economic growth barometer rose to its highest since December 2007 in February, beating analysts’ expectations and confirming views that the economy was on track for a solid recovery.
The barometer increased to 1.87 points in February, the KOF Swiss Economic Institute said, more than the 1.80 reading forecast by analysts ECONCH. January’s reading was revised up to 1.81 from 1.77.
The barometer surged last year, though the monthly increases have slowed recently, indicating that the recovery would likely continue at a slower pace. Switzerland emerged from the worst recession in decades over the summer and several recent indicators have pointed to further recovery, though economists expect joblessness to peak later
this year.
Reuters
Britain emerged from recession at a faster pace than previously estimated in the fourth quarter, providing a boost for Prime Minister Gordon Brown as he prepares for a general election within weeks.
Gross domestic product rose 0.3 percent from the third quarter, compared with a previous calculation of 0.1 percent growth, the Office for National Statistics said today in London. The median forecast in a Bloomberg News survey of 27 economists was for a 0.2 percent increase.
Bloomberg
A bipartisan group of 15 U.S. senators on Thursday insisted China’s currency practices are effectively a subsidy and urged Commerce Secretary Gary Locke to consider action against Chinese imports.
“There can be no doubt that China’s policy of large-scale intervention in the exchange markets and the significant undervaluation of its currency acts as a subsidy to Chinese exports,” the senators said in a letter that increased pressure on President Barack Obama to deal with the currency concern.
U.S. lawmakers and manufacturers have complained for years that China undervalues its currency by as much as 40 percent to give its companies an unfair trade advantage.
Beijing bristles at the suggestion it is “manipulating” its currency, known as the renminbi or yuan. It is likely to react strongly to any U.S. action based on that conclusion.
Reuters
The euro rallied and emerging-market stocks recovered from the worst three-day slide in a year on speculation Greece will get European help to tackle its budget deficit. U.S. stock-index futures advanced.
The euro strengthened 0.6 percent against the dollar at 10:23 a.m. in London, snapping four days of declines, and ended a three-day drop against the yen. The MSCI Emerging Markets Index added 0.9 percent after falling 6.1 percent in the past three sessions. Futures on the Standard & Poor’s 500 Index increased 0.8 percent. Greece’s ASE Index rose 3.4 percent, rebounding from four days of losses.
European Union leaders will discuss Greece’s plans to reduce the region’s biggest deficit when they meet Feb. 11, and European Central Bank President Jean-Claude Trichet’s decision to leave a meeting of policy makers in Sydney one day early fanned speculation that officials will agree on aid. European Commission President Jose Barroso said investors would be wrong to bet against the euro.
Bloomberg
