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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