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Eurozone economic recovery gains traction on back of improved GDP

The eurozone’s recovery gained a little traction in the final quarter of 2013, with the currency bloc’s economy expanding by 0.3 per cent on the back of stronger-than-expected growth in the region’s two largest economies. Eurostat, the commission’s statistics bureau, on Friday published figures showing growth had edged up from 0.1 per cent in the third quarter by slightly more than the 0.2 per cent expected by economists. The figures will boost hopes that economic conditions in the bloc are steadily improving after the region became engulfed by a sovereign debt and banking crisis. The Eurostat figures were published hours after it emerged that Germany, the bloc’s economic powerhouse, had expanded 0.4 per cent, beating forecasts of 0.3 per cent growth. The German data, published by the Federal Statistics Office, were up from 0.3 per cent in the previous quarter and ahead of its preliminary estimate published last month […]

Posted On : Published By : Tom Whipple
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Iran’s Economy Begins to Improve With New President, Nuclear Accord

Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration’s economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say. Shiraz, the heartland of Iran’s Persian identity, has been particularly hard-hit by sanctions. Its once-plentiful international tourists, who came to visit the nearby archaeological ruins of Persepolis and tombs of Iran’s most famous poets Hafez and Saadi, have dwindled to a trickle. Many Iranians are optimistic things will gradually improve. At his animal-feed factory here on the outskirts of […]

Posted On : Published By : Tom Whipple
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Iran's Economy Begins to Improve With New President, Nuclear Accord

Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration’s economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say. Shiraz, the heartland of Iran’s Persian identity, has been particularly hard-hit by sanctions. Its once-plentiful international tourists, who came to visit the nearby archaeological ruins of Persepolis and tombs of Iran’s most famous poets Hafez and Saadi, have dwindled to a trickle. Many Iranians are optimistic things will gradually improve. At his animal-feed factory here on the outskirts of […]

Posted On : Published By : Tom Whipple
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Ford says January China auto sales up 53 percent year-on-year

Ford Motor Co ( F.N ) and its Chinese joint ventures sold 94,466 vehicles in China in January, an increase of 53 pct from a year earlier, the U.S. automaker said on Wednesday. That compares with a 35 percent increase in December and a 47 percent jump in November. In 2013, Ford sold a total of 935,813 vehicles in China, up 49 percent from the previous year. Ford operates joint ventures in China with Chongqing Changan Automobile Co Ltd ( 000625.SZ ) and Jiangling Motors Corp ( 000550.SZ ). (Reporting By Shanghai newsroom and Norihiko Shirouzu; Editing by Kazunori Takada)

Posted On : Published By : Tom Whipple
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Strong China January trade data sparks cheers, doubts

China surprised markets with a thumping trade performance in January as import growth hit a six-month high, drawing some skepticism about the data but still allaying fears of a deepening economic malaise. Analysts who had expected the long Lunar New Year holiday to drag on January’s trade warned that the figures may be inflated by fake trade transactions, where traders forge deals to sneak cash into the country past capital controls. The value of China’s total exports climbed 10.6 percent in January from a year earlier, the Customs Administration said on Wednesday, more than five times market forecasts for a 2 percent rise. The value of imports also jumped 10 percent from a year ago as China bought record volumes of iron ore, crude oil and copper. That lifted import growth to its highest level since July, handily beating predictions for a 3 percent gain. The […]

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China land sales pull in record $672bn

Chinese land sales hit a record $672bn in 2013 following a lull the previous year, providing more evidence that the country’s property market is once again in full throttle. But although construction activity is likely to bolster the economy in 2014, there are signs that land sales could slow, weakening local governments’ ability to raise money. Land sales hit Rmb4.1tn, the Ministry of Land and Resources said, eclipsing the previous record of Rmb3.5tn in 2011. Land zoned for real estate use, which accounts for about one-quarter of zoned land sales, rose by nearly 27 per cent year-on-year. The land data follow earlier housing research that showed the value of new home prices accelerated to $1.1tn in […]

Posted On : Published By : Tom Whipple
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Limits to Growth–At our doorstep, but not recognized

FHow long can economic growth continue in a finite world? This is the question the 1972 book The Limits to Growth by Donella Meadows and others sought to answer. The computer models that the team of researchers produced strongly suggested that the world economy would collapse sometime in the first half of the 21st century. I have been researching what the real situation is with respect to resource limits since 2005. The conclusion I am reaching is that the team of 1972 researchers were indeed correct. In fact, the promised collapse is practically right around the corner, beginning in the next year or two. In fact, many aspects of the collapse appear already to be taking place, such as the 2008-2009 Great Recession and the collapse of the economies of smaller countries such as Greece and […]

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China export growth seen slowing, loans surging in January

China’s export and import growth likely cooled in January, a Reuters poll showed, underlining a broader slowdown in the world’s second-largest economy, though the Lunar New Year holiday effect may overstate the soft momentum. Weakness in China’s imports could be bad news for the rest of the world, particularly for major commodity exporters such as Australia. HSBC estimates China will overtake the United States to become the world’s biggest importer this year. Bank loans in China are expected to see a typical seasonal surge in January as banks get fresh lending quotas at this time every year, underlining relatively stable credit demand from the real economy. Many economists expect a soft slowdown in China’s economy in 2014 as policymakers try to embrace slower but better-quality growth to cut reliance on investment and pursue sustainable development. "Given the stable economic situation last year and increasing expectations over […]

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US employment growth disappoints in January

The US economy added just 113,000 jobs in January, as the unemployment rate edged down to 6.6 per cent – dashing hopes of a steady acceleration in the recovery and posing a challenge to Janet Yellen in her first weeks as Federal Reserve chair. After job creation slumped in December, economists were very keen to assess whether that dip was an anomaly or a reflection of a deeper slowdown in the strength of the US economy . With payroll formation in January rebounding only slightly, and well below economists’ expectations of 180,000 new positions, fresh concerns are likely to mount about the US economy entering a new rough patch. But last month’s figures may also be a poor guide, in that bad weather across big portions of the country could have distorted the data . US equity futures were firmer, the dollar weakened and Treasury bond prices rose after […]

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Turnabout on Global Outlook Darkens Investor Mood

A series of sudden, unfavorable events has in just a matter of weeks changed bright optimism about the pace of growth in the global economy this year to a deepening sense of doubt. The warning signs are plentiful: Tumbling stock prices around the world, disappointing economic reports in the U.S. and China, hasty interest-rate increases in major developing countries including Turkey, India and South Africa, and whispers of disappointment in corporate earnings conference calls. They are combining to send a signal that the global economy might not be on the strong footing it appeared to be at the start of 2014. Another closely watched indicator will arrive Friday, when the Labor Department releases its estimate of U.S. job growth in January. Still, that report, like other recent U.S. releases, could offer murky guidance due to quirks related to bad winter weather, only adding to uncertainty about the outlook. Investors […]

Posted On : Published By : Tom Whipple