India's economy grew faster than economists estimated last quarter

India's economy grew faster than economists estimated last quarter, adding to evidence of a strengthening of domestic demand is fueled inflation by placing strains on the nation's transportation and energy systems. Gross domestic product rose 8.9 percent in the three months to September last year, matching the revised rate of growth in the previous quarter, the Central Statistical Organization said in a statement today in New Delhi. That was more than the median estimate of 8.2 percent, from 30 economists surveyed. infrastructure improvements will be critical to sustaining India's rate of expansion, the Indian Prime Minister Manmohan Singh, said this month that inflation is running almost double what the government considers "ideal." The Reserve Bank of India may be necessary to resume interest...

Read more »

Ireland Gets $113 Billion Aid

European governments "to 85 billion euros (113 billion) rescue package to Ireland to quell the market turmoil threatening the euro as stocks, bonds and the currency fell. Ireland 10-year bonds fell after an early advance, Spanish bonds fell the most since the launch of the euro and European stocks sank 1.4 percent. The euro weakened against 15 of its top 16 partners and the cost of insuring the debt of Spain and Portugal in the event of default soared to records. "The idea that a rescue package for Ireland would set up a firewall and stop the fear of contagion is clearly discredited," said Preston Keat, research director at Eurasia Group, a political consultancy in London. "Portugal and Spain now face market pressures." Six months after the Greek rescue exposed flaws in the makeup of the...

Read more »

Gold swung between gains and losses and the speculation

Gold swung between gains and losses and the speculation that Europe's problems of debt can be extended beyond Ireland boosted demand for shelter, while the concern that China may take more measures to cool price inflation slowed commodity. Gold for immediate delivery advanced 0.3 percent to $ 1,370.43 an ounce and fell into the same amount of $ 1,361.90 before trading little changed at $ 1,368.05 at 5:23 pm in Seoul. Prices are set for a monthly gain of sessions. The February contract for delivery also was little changed at $ 1,369.20 in the Comex in New York. There is no "speculation Spain and Portugal could be the next to ask for help,...

Read more »

Islamic bonds fell in November

Islamic bonds fell in November, breaking a five-month rally, as the crisis of Europe's concern extend debt reduced demand for higher-yielding assets in emerging markets. Average yields of sukuk rose 19 basis points, or 0.19 percentage point in November to 5.04 percent, the highest level in two months, according to HSBC / NASDAQ U.S. Dollar Dubai sukuk index. Yields had fallen 194 basis points from 31 May until late October. The extra yield investors demand to hold emerging market debt-Islamic rather than U.S. Treasuries rose 22 basis points in the month to 267, according to JPMorgan Chase & Co. 's EMBI index. "The sukuk market does not...

Read more »

China distances itself from North Korea.

North Korea sent a top aide to Kim Jong Il to Beijing the same day it was leaked U.S. diplomatic offices show that China is increasingly willing to consider the unification of Korea under the control of the South. Choe Thae Bok, chairman of North Korea's Supreme People's Assembly, left for Beijing today for talks with Chinese leaders, the state-run Central News Agency of Korea reported. Choe met with China's President Hu Jintao in China's capital October 2 Kimon accompanied a trip to the city in May, according to KCNA. Choe visit comes after China proposed on 28 November that the negotiators of the two Koreas, Japan, Russia and USA meet in Beijing next month to ease tensions after an artillery attack on 23 November North Korea on an island in South Korea, which killed four people. A U.S....

Read more »

The Bank of Thailand may refrain from raising its policy rate

The Bank of Thailand may refrain from raising its policy rate, while maintaining unchanged borrowing costs for a second straight game as the risks to increase the nation's economic recovery. The central bank will leave its benchmark rate by one-day bond repurchase to 1.75 percent, according to 12 of 17 economists surveyed . The rest expect an increase of a quarter percentage point. The decision is due at 2:30 am in the morning from Bangkok. Thailand and neighboring Malaysia have paused after raising rates earlier this year, choosing to support growth and rising currency export earnings threaten Asia. Higher borrowing costs would attract capital...

Read more »

Rubber game for a monthly gain session & rose as a weakening of the yen

Rubber game for a monthly gain session, rose as a weakening of the yen and limited supply in Thailand, the largest exporter, improving the appeal of raw materials used to manufacture tires and gloves. Rubber May delivery on the Commodity Exchange in Tokyo rose to 2.6 percent at 366.4 yen per kilogram ($ 4,353 per metric ton) before settling at 360.2 yen. The most active contract, 30 years reaching a high of 383 yen on Nov. 11, surged by 10.2 percent this month, the biggest gain since December. The dollar headed for its first monthly gain since April against the yen on speculation U.S. economic recovery is accelerating and the tension on the Korean peninsula escalates. Wet weather in southern Thailand continues to cut supply, raise prices, according to the Rubber Research Institute of Thailand....

Read more »

Europe and U.S. Stock index futures fell

Europe and U.S. Stock index futures fell as investors awaited economic reports that may provide further evidence of the health of the global economy. Asian stocks retreated. BHP Billiton Ltd. and Rio Tinto Group fell in Sydney. Hochtief AG may be active after Actividades de Construccion y Servicios SA won approval from Germany's financial regulator for its 2.7 billion euros ($ 3.5 billion) bid for German construction company. ThyssenKrupp AG may move after saying it returned to profit in the fiscal year to September. Futures on the Euro Stoxx 50 fell 0.4 percent to 2,665 at 7:40 am in London. The FTSE 100 index futures fell 0.1 percent. The...

Read more »

China Stocks Drop Since June on Rates

China's stocks fell, sending the benchmark index to its first monthly decline since June, as speculation that the government will increase interest rates and debt crises can spread threatened European economic outlook. Industrial & Commercial Bank of China Ltd. losses for lenders pace after China Academy of Social Sciences economist said the government needs to increase borrowing costs by another 200 basis points. Kweichow Moutai and Harbin Pharmaceutical Group Co. led declines for consumer goods and stocks of drugs after industry groups exceeded the benchmarks of this month and the government reduced the prices of medicine to control...

Read more »

Nikkei 225, the majority of depressions in seven weeks of concern about China's growth

Japan's Nikkei 225 Stock Average fell over seven weeks on concerns that China do more to curb inflation and as banks and steel fell as analysts cut ratings on investment. TDK Corp., a manufacturer of electronic products that received more than 30 percent of its sales in China fell by 3.6 percent. Nippon Steel Corp. and JFE Holdings Inc., Japan's two steel makers, fell at least 2.6 percent after Mizuho Securities Co. cut its recommendation on the shares. Mitsubishi UFJ Financial Group Inc., the largest bank by market value, fell 2.2 percent after a rating cut by Credit Suisse Group AG. "Fears that China will raise interest rates are rising," said Hideyuki Ishiguro, assistant director of investment strategy department at Okasan Securities Co. in Tokyo. "People are worried about China's growth...

Read more »