Wednesday, July 8, 2009

Quick Notes & Articles for the Day - July 8

Global Recession is Ending - IMF - The global economy is beginning to pull out of recession but the recovery is expected to be sluggish, according to the latest economic update from the International Monetary Fund (IMF) released Wednesday. The IMF raised its forecast for growth in 2010 to a 2.5% rate, which is higher than the 1.9% growth rate forecast in April. There is much less concern about systemic failure in the financial system. A gradual recovery in the U.S. seems on track, the IMF said. Japan is stabilizing after a dismal first quarter. Growth in the euro-area is expected to strengthen more slowly than elsewhere. Inflation pressures remain low, the agency said. Risks for sustained deflation are small.

Loan Growth in China Rises - New loans surged to 1.53 trillion Chinese yuan ($223.9 billion) in June, a dramatic increase from 664.5 billion yuan in May, the People's Bank of China reported on its Web site on Wednesday. This brings aggregate new lending in 2009 to 7.37 trillion yuan, up 201% year-over-year from the first half of 2008.

Gold, Oil Fall - Gold fell Wednesday morning to $916 which is the lowest level in two months as other commodities dropped as well reducing the metal's "hedge" against inflation. A stronger dollar, increased gasoline inventories, and predicted stagnate demand sent oil prices down for a sixth straight day to below $62 a barrel.

GE Works on "Smart Grid" Technology - General Electric said it reached a strategic agreement for an undisclosed price with privately held smart grid technology firm Tendril. Tendril and GE plan to "develop an integrated and interoperable system that will enhance GE's demand responsive appliances capability to communicate over metering and broadband networks," the companies said.


We Have 248 Million Reasons to Expect Recovery - By William Pesek - Bloomberg - "What in the world are Indonesians thinking? It’s hard not to wonder when the nation’s consumer- confidence index in June rose to its highest in more than four years. As the global economy reels, folks in Asia’s third-most- populous nation are brimming with optimism and poised to increase spending..." "As odd as it sounds, Milton Friedman, were he still alive, would probably find more to like in Indonesia than in America."

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