A television station in Hong Kong claims to have received leaked documents from Chinese officials indicating that China’s inflation for the year ending in December slowed from 5.1 percent in November to 4.6 percent. The station also reported that China’s Gross Domestic Product (GDP) grew by 10.3 percent for the year.
Source: BBC News
The US Commerce Department announced today that the US Gross Domestic Product (GDP) fell to an annualized rate of 2.4 percent in the second quarter, compared to 3.7 percent in the first quarter. The result is the latest in mounting evidence suggesting that the US economy is slowing.
Encouraging data from the European bank stress tests, and a growing demand for euros from Asian central banks, has helped push the euro to an eleven-week high against the dollar. This, combined with mounting evidence that the US economy is slowing, has investors turning to the European currency, and by 7:30 am EDT, the euro was up 0.6 percent to $1.3075, just shy of a high of $1.3091, its strongest since May 10. Traders said stop-loss orders were triggered above $1.3050, accelerating the currency’s gains, with options barriers seen at $1.3100.
“Data in the euro zone for now is pretty resilient and at the margins that argues for euro/dollar to edge higher, though people are pretty cautious at these levels,” said Tom Levinson, currency strategist at ING.
Source: Reuters
Canada’s Gross Domestic Product (GDP) rose 0.6 percent in January to mark five straight, monthly increases. Most sectors realized an increase, with manufacturing and construction jumping 1.3 percent to lead the way.
Source: The Canadian Press
In a bid to restore confidence in its economy, and to outline how it intends to get its deficit back within three percent of GDP as required as part of its European Union membership, Greece has committed to delivering an economic plan to the EU by the end of January.
BBC News
Fears that Britain may be heading for its first sovereign debt crisis since the 1970s hit a new intensity after Pimco, the world’s biggest bond house, declared that it is starting to sell off its holdings of gilts. The move will be seen as a financial vote of no-confidence in the Government’s handling of the economy.
Paul McCulley, a managing director at Pimco, said:
We are currently cutting back in the US and UK because… supply and demand dynamics are likely to be negatively affected as borrowing rises and central bank buying declines.”
Uk Telegraph
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