Download News Brief 02-06-17

BANK OF GHANA NEWS BRIEF
News Summaries from Foreign and Local Media
Friday, June 02, 2017
EU not looking to sanctions if US quits
climate deal: Canete
The European Union is not considering
imposing trade sanctions on the United States
if President Donald Trump quits a global pact
to fight climate change, EU Climate and
Energy Commissioner Miguel Arias Canete
has said. "That is not something we are
considering," Canete told Reuters when asked
whether the EU might slap trade or other
sanctions on Washington if Trump pulls out of
the landmark 2015 Paris Agreement
championed by his predecessor Barack
Obama. (www.reuters.com 01/06/17)
US economy grew at modest pace in April,
Fed survey shows
US economy expanded at a modest pace in
April and May with still tight labour market
and muted price increase pressures, the latest
survey result released by the Federal Reserve
shows. "Most of the 12 Federal Reserve
districts reported that their economies
continued to expand at a modest or moderate
pace from early April through late May," said
the Fed. (www.xhinuanet.com 01/06/17)
US companies added 253,000 jobs in May
Companies in May hired more workers than
anticipated by a wide margin to rebound from
a six-month low in the prior month, while a
tightening labour market should point to
increasing wage growth. US private employers
added 253,000 jobs in May, above economists'
expectations. A report by a payrolls processor
shows that economists surveyed by Reuters
had forecast the ADP National Employment
Report would show a gain of 185,000 jobs,
with estimates ranging from 155,000 to
240,000. (www.reuters.com 01/06/17)
CURRENCY
+USD/GBP
+USD/EUR
*GHS/USD
*GHS/GBP
*GHS/EUR
UK house prices fall for a third month
UK house prices declined for a third
consecutive month for the first time since
2009. Data from Nationwide Building Society
show that house prices dropped unexpectedly
by 0.2% month-on-month in May, following a
0.4% drop in April. Economists forecast prices
to rise 0.2 %. Providing further evidence that
the housing market is losing momentum, house
price growth slowed to 2.1% from 2.6% in the
previous month. (www.rttnews.com 01/06/17)
UK manufacturing activity expanded more
than forecast in May
The UK manufacturing sector almost
maintained its strong growth momentum on
production and new orders, survey results from
IHS Markit and the Chartered Institute of
Procurement & Supply show. The headline
factory Purchasing Managers' Index fell to
56.7 in May from April's three-year high of
57.3. (www.rttnews.com 01/06/17)
China factories hum in shadow of debt risk;
Moody's raises global outlook
China's industrial engine cranked up again in
May, reassuring investors worried about
slowing growth in the world's second-biggest
economy as it grappled with debt risks and
tried to shake off a stinging ratings downgrade
from
Moody's
Investors
Service.
(www.reuters.com 31/05/17)
Danish growth saved in first quarter by
inventory build-up
Denmark’s economic expansion was saved in
the first quarter of the year by a build-up in
inventories. Danish output expanded at a
quarterly rate of 0.6%, twice as fast as
estimated by. (www.bloomberg.com 31/05/17)
EXCHANGE RATES OF SELECTED CURRENCIES
BUYING
SELLING
1.2884
1.1213
4.2843
5.5255
4.8089
(1.2903)
(1.1242)
(4.2835)
(5.5326)
(4.8202)
1.2913
1.1234
4.2886
5.5323
4.8128
+SOURCE: BOG INTERNAL TRANSACTION RATES: 02/06/17 (Rates 01/06/17 in brackets)
* BOG INTERNAL TRANSACTION RATES: 02/06/17 (Rates for 01/06/17 in brackets)
Vol.: 22
No: 5
Date: 02/06/17
(1.2932)
(4.8240)
(4.2878)
(5.5394)
(4.8240)
India's GDP growth slowed to 6.1% in the
Jan-March quarter
India's economic growth rate slowed sharply
in the Jan.-March quarter to 6.1%, officials
have said. According to data released by
India's federal Central Statistics Office, the
Indian economy slowed down from 7% in the
previous quarter. (www.xhinuanet.com 01/06/17)
Brazil cuts rate 100 bps but expects smaller
cut in July
Brazil's central bank lowered its benchmark
Selic rate by another 100 basis points to
10.25% but said a more moderate rate cut
relative cut was likely appropriate at its next
policy decision in late July. The Central Bank
of Brazil has now cut its rate by 400 basis
points since embarking on an easing cycle in
Oct.2016 and by 350 basis points this year
alone. (www.centralbanks.info 31/05/17)
Hong Kong retail sales rose slightly in April
Hong Kong's retail sales increased for a
second straight month in April, though
marginally, preliminary figures from the
Census and Statistics Department show. The
value of retail sales edged up 0.1% year-overyear in April, much slower than a 3.0% rise in
March. (www.rttnews.com 01/06/17)
Taiwan consumer confidence fell in May
Taiwanese sentiment was gloomy over
inflation, investment and economic prospects
in May, according to the results of a monthly
survey. The consumer confidence index,
which is based on a survey by the Research
Center for Taiwan Economic Development,
dropped 0.09 points from April to 78.11 points
in May, ending three months of increases.
(www.xhinuanet.com 01/06/17)
Greece needs debt relief deal in June,
ECB's Coeure says
Europe must stop stalling and agree on debt
relief measures for Greece on June 15 to
revive the only eurozone economy still in
recession, European Central Bank board
member Benoit Coeure has said. Coeure, a key
ally of ECB President Mario Draghi, weighed
forcefully into the debate pitting Greece.
(www.reuters.com 31/05/17)
Oil prices under pressure from rising
OPEC supplies
Oil prices pared early gains despite US
industry data showing a big drop in crude
stocks last week, with investors sceptical that
OPEC-led cuts will be enough to rebalance an
oversupplied market. Brent crude oil eased by
3 cents to $50.73 a barrel by 1327 GMT, while
US light crude gained 14 cents to $48.46. The
two contracts hit session highs of $51.44 and
$49.07 respectively. (www.reuters.com 01/06/17)
Tokyo stocks rise in morning on US
optimism
Tokyo stocks rose, with the Nikkei breaching
the psychologically important 20,000 mark for
the first time since Dec. 2015, as solid US
manufacturing and jobs data lifted the market
mood. The 225-issue Nikkei Stock Average
gained 279.28 points, or 1.41%, to 20,139.31,
marking its highest intraday level since Aug.
2015. The broader Topix index of all First
Section issues on the Tokyo Stock Exchange
meanwhile added 19.87 points, or 1.25%, to
1,606.01. (www.xhinuanet.com 02/06/17)
South Africa factory sector unexpectedly
rebounded in May
South Africa's factory sector grew in May after
slumping in April. Survey data from the
Bureau of Economic Research show that the
seasonally
adjusted
Absa
Purchasing
Managers' Index rose to 51.5 in May from 44.7
in April. Economists had forecast a score of
46. A reading above 50 suggests growth in the
sector. (www.rttnews.com 01/06/17)
Nigeria's presidency and lawmakers in talks
over 2017 budget – government official
Nigeria's presidency and lawmakers are still in
talks over a record 7.44tr naira ($24.45bn)
budget for 2017, a government official has
said nearly three weeks after the spending
plans were passed by the Senate. The budget
aims to drag the OPEC member, which is
Africa's biggest economy, out of a recession
that was brought on by low global oil prices
that have slashed government revenues,
weakened the naira and caused chronic dollar
shortages. (www.af.reuters.com 01/06/17)
Courtesy the Communications Department, Bank of Ghana