- The US and Japanese economies are showing strong signs of recovery and the eurozone is also picking up speed but lags behind others.
- Said Brazil, India, Russia and particularly China showed stronger positive signals than a month ago.
- UK is on the course to experience a tentative pick-up in the economy over the next six months. (ET/AFP/Telegraph UK)
Bank of Japan Monetary Policy: The Japanese Yen gained 0.5 percent against the US Dollar to JPY 81.21 as BoJ kept its monetary policy on hold. The central bank kept uncollateralized overnight cal rates at around 0 to 0.1 percent. It stated that even though Japanese economy showed signs of growth, overseas economies have not accelerated on output. Rate of change in the Japanese CPI on a Y-o-Y basis remains at at around 0 percent. Facing deflation in the country, the central bank plans to stimulate the growth by pursuing monetary easing policy by launching a U.S Dollar lending arrangement facility of JPY 1 tn (USD 2bn). This arrangement consists of loans maturing in a years time based on 6-month US Dollar Libor whose deadline for applications is until 31st March, 2012. (Financial Times & Bank of Japan)
China’s exports for March increased by 8.9 percent while imports rose to 5.3 percent on a Y-o-Y basis, producing a trade surplus of USD 5.4 bn and a USD 670 m surplus on a Year-to-date basis. For the month of February, the country recorded a deficit of USD 31.5 bn. High quality global journalism requires investment. The government reported that data post adjustments for seasonal factors showed a growth of 9.8 percent in exports and imports increasing by 4.6 percent on a Y-o-Y basis. China’s exports slowed down as compared to last year when exports grew by 20.3 percent for the whole year. The slowdown is attributed to weaker demand from Europe, China’s largest trade partner, and from the US as well. (Financial Times)
IMF is poised to lower China’s current trade surplus forecast of approximately 7 per cent in its upcoming publication. (WSJ)
Sony Corp. – Co. warns of a JPY 250 bn net loss for FY 2011-12 after it had to revise estimates due to a discrepancy in the addition of US tax credits. The company has maintained its estimate of its pre-tax losses at JPY 115 bn. It also expects earnings of JPY 180 bn before tax from its operations and is scheduled to report its results on 10th May. (Financial Times)
Foxtel – Australia-based media company, which is partly owned by News Corp, was permitted by regulators to proceed takeover plans of rival firm Austar United Communications Ltd. in a deal valued at AUD 2 bn. The deal was approved by the Australian Competitor and Consumer Commission when Foxtel agreed to conditions that it would not purchase exclusive rights to movies for video-on-demand services or to negotiate deals for internet television from ESPN and CNN. (Financial Times)
Nissan Motors – Co. plans to expand operations at its plant in Sunderland, UK. The company plans to hire a total of 1025 workers to build its medium sized hatchback model. (Financial Times)
Categories: General News