Asia Day Ahead: Greenspan Says Decline in Home Prices May Spur Recession
By Tim Smith – Aug 1, 2010
The following are the top Asia stories for the day.
TOP STORIES/MOST READ ON BLOOMBERG
Greenspan Says Home-Price Drop May Spur New Recession (Update1)
Former Federal Reserve Chairman Alan Greenspan said the slowing economic recovery in the U.S. feels like a “quasi- recession” and the economy might contract again if home prices decline.
China’s Manufacturing Grows at Slowest Pace in 17 Months
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories.
U.A.E. to Suspend BlackBerry Services Citing Security (Update3)
Research In Motion Ltd.’s BlackBerry services will be suspended in the United Arab Emirates, the Middle East’s business hub, from October because of security concerns as the company faces similar restrictions in India.
Unemployment Probably Rose as Jobs Scarce: U.S. Economy Preview
Unemployment probably climbed in July, raising the risk American households will keep a lid on spending for the rest of the year, economists said before a government report this week.
MAIN ECONOMIC RELEASES: Figures are based on Bloomberg survey of economists:
South Korean Consumer Prices Seen Rising 2.6% in July Australian Manufacturing Index China HSBC Manufacturing PMI Australian TD Securities Inflation Australian New Home Sales Japan Wages Seen Rising 0.5%, Fourth Straight Increase Indonesian Inflation Seen Accelerating to 5.73% Indonesian Exports Seen Rising 35.4% From Year Earlier Thailand Inflation Seen Accelerating to 3.6% on Year Australian Commodity Price Index Hong Kong Retail Sales Seen Rising 20% in June Indian Exports
MAIN ANALYST UPGRADES/DOWNGRADES: *HTC Corp Cut to ‘Hold’ at Deutsche Bank *Patni Computer Systems Cut to ‘Hold’ at Noble Financial *AWB Cut to ‘Neutral’ at JPMorgan *Tanjong Raised to ‘Overweight’ at JPMorgan *Macquarie Group Raised to ‘Buy’ at UBS *Titan Industries Ltd Cut to ‘Hold’ at Antique Stk Brk
U.S. Stocks Drop, Paring Biggest S&P 500 Rally Since July 2009
U.S. stocks fell this week, trimming the biggest monthly rally for the Standard & Poor’s 500 Index in a year, after economic reports and earnings forecasts from technology companies disappointed investors.
Economy Gets Healthier as Company Yields Narrow to Treasuries
For all the concern about another recession, the outlook for America’s economy is looking brighter in the bond market, where investors are accepting the lowest yields since 2004 to lend companies money.
Dollar Touches Lowest Level in 2010 as Economic Growth Slows
The dollar touched a level below 86 yen for the first time this year and had a third straight monthly loss against Japan’s currency as a government report showed U.S. economic growth slowed in the second quarter.
European Stocks Post Weekly Drop as U.S. Growth Misses Forecast
European stocks declined this week as slower-than-forecast U.S. economic growth overshadowed a rally in banks after European Union stress tests eased concern that lenders may need to raise more capital.