Tuesday, February 14, 2017

Today's Headlines

  • China Credit Surging to Record Underscores PBOC Shift to Tighten. China added more credit last month than the equivalent of Swedish or Polish economic output, revving up growth and supporting prices but also fueling concerns about the sustainability of such a spree. Aggregate financing, the broadest measure of new credit, climbed to a record 3.74 trillion yuan ($545 billion) in January, exceeding the median estimate of 3 trillion yuan in a Bloomberg survey. New yuan loans rose to a one-year high of 2.03 trillion yuan, less than the 2.44 trillion yuan estimate.
  • China Factory Prices Surge Most Since 2011, Boosting Reflation. Producer price index rose 6.9 percent in January from a year earlier, compared with a median estimate of 6.5 percent in a Bloomberg survey and a 5.5 percent December gain. Consumer-price index climbed 2.5 percent, boosted by the week-long Lunar New Year holiday beginning in January this year, versus a 2.4 percent rise forecast by analysts. Producer prices for mining products surged 31 percent year-on-year while those for raw materials climbed 12.9 percent, the National Bureau of Statistics said Tuesday. 
  • Wholesale Inflation Soars as Economists Call End to India Easing. India’s wholesale inflation surged more than estimated to the highest since July 2014, supporting the central bank’s shift to a "neutral" monetary stance. Wholesale prices rose 5.25 percent in January from a year earlier, the Commerce Ministry said in a statement on Tuesday. That’s faster than the 4.35 percent median estimate in a Bloomberg survey of 25 economists..  
  • Europe Stocks Close at One-Year High; Carmakers Gain on Peugeot. (video) European stocks edged higher, completing the longest streak of increases since October, as gains in automakers offset a drop in construction and materials stocks. The Stoxx Europe 600 Index closed up less than 0.1 percent. Carmakers climbed 1.1 percent, with Peugeot SA among the biggest advancers after the firm’s owner was said to be exploring an acquisition of General Motors Co.’s European business. The FTSE 250 Index of U.K. midcaps rose 0.2 percent to its sixth consecutive record close.
  • OPEC Wins Plaudits for Oil Recovery, Yet Economy Lends a Hand. (video) OPEC may be getting all the credit for reviving the oil market, but it had a little help. While the Organization of Petroleum Exporting Countries did spur a 28 percent recovery late last year by announcing production cuts, supply isn’t the only factor buoying the market: demand repeatedly beat expectations in 2016, and is set to surprise again. Global oil consumption will surpass average growth rates for a third year in 2017 amid continued economic expansion in China and India, according to data from the International Energy Agency. With all the attention on OPEC, the role of demand in keeping crude prices above $50 a barrel has been overlooked, according to consultants Energy Aspects Ltd.
  • Investors' Economic Optimism Surges to Level Not Seen Since 2011. (video) Investors haven’t been this optimistic on the global economy since 2011, joining small businesses in taking a glass-half-full outlook as a new administration takes over in Washington. A full 23 percent of investors expect an outright “boom,” according to a survey released Tuesday by Bank of America Merrill Lynch, while the number predicting negligible growth over the next 12 months has fallen by more than half to 43 percent. The optimism comes amid forecasts global growth will pick up and as Donald Trump promises to cut taxes, boost fiscal spending and loosen regulations in moves that could boost corporate earnings.
Wall Street Journal:
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