ACCRA (Reuters) - The International Monetary Fund has approved final disbursement of $178.74 million under its current three-year pact with Ghana, but warned steps needed to be taken to fend off risks to macroeconomic stability.
The currency of the world's second largest cocoa producer has been under pressure this year, declining more than 17 percent since January on persistent demand for dollars by local firms hungry for imports to fuel the growing economy.
'A rapid depreciation of the cedi is fuelling inflation and reserve cover has fallen below comfortable levels,' the Fund's deputy managing director Naoyuki Shinohara said in a statement on Friday.
'Furthermore, spending overruns at the end of 2011, large public wage increases and re-emergence of energy subsidies have created the need for corrective actions to achieve fiscal targets,' it said.
The latest tranche is part of the IMF's Extended Credit Facility with Ghana, which was launched in July 2009 and gave the country access to a total $581.3 million funding.
The country will hold presidential and parliamentary elections in December and many fear the government's earlier efforts to stabilise the economy may be jeopardised by election-year demands, especially for public sector wage increases.
The Fund called on the authorities to step up fiscal reforms, prioritising tax administration and public financial management. It also noted that Bank of Ghana's monetary policy has so far been slow in addressing the cedi depreciation and associated inflation risks.
Year-on-year inflation rose for a third time to 9.4 percent in June but remains within the government's single digit target.
'Loose conditions have now been tightened and will need to remain tight to preserve the credibility of the inflation-targeting regime,' the statement said.
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Saturday, July 14, 2012
Friday, July 13, 2012
Romney demands Obama apology over Bain attacks
WASHINGTON (Reuters) - Republican presidential candidate Mitt Romney struck back on Friday against attacks over his business record that are pulling him further away from his campaign message that the White House is mishandling the economy.
In a blitz of television interviews, Romney demanded an apology from President Barack Obama for his campaign's assertion that the Republican may have committed a felony by misrepresenting his position at private equity firm Bain Capital.
'It's ridiculous,' Romney told Fox News in response to the charge. 'And of course it's beneath the dignity of the presidency and of his campaign.'
The Republican challenger has appeared flatfooted in beating back Democrats' accusations that he was involved in firing workers and outsourcing U.S. jobs to foreign countries while at Bain Capital.
Romney has slipped in opinion polls ahead of the November 6 election and his campaign added two Washington veterans to its media relations team on Friday after criticism from fellow Republicans for communications missteps.
Romney was booed by a mostly black audience at the NAACP annual convention this week and earlier gave out mixed messages about whether a key part of Obama's healthcare law does or does not create a new tax.
What drew Romney's ire on Friday was a charge from Obama deputy campaign manager Stephanie Cutter that he might have committed a felony by giving wrong information to the Securities and Exchange Commission about how long he spent at Bain.
Romney told ABC News that Obama 'needs to rein in these people who are running out of control.'
'He (Obama) sure as heck ought to say that he's sorry for the kinds of attacks that are coming from his team,' Romney said.
Romney was put on the spot by a Boston Globe newspaper report citing federal documents as showing he was listed as Bain CEO and sole shareholder in the three years to 2002, a time when he says he no longer ran the company.
The timing matters because Obama's campaign has accused him of being responsible for the firing of workers and bankruptcies at Bain-owned companies during those years.
White House spokesman Josh Earnest, traveling with Obama in Virginia, declined comment on Romney's demand for an apology.
MORE DISTRACTION
It was the latest issue to distract Romney from his focus on Obama's failure to reduce unemployment, running at 8.2 percent. He has struggled for the right messages on healthcare and immigration as the experienced Obama campaign based in Chicago maneuvers the news agenda better. Romney however has overtaken his rival in fundraising.
Two national polls this week showed Obama opening up a wider gap over his opponent. A Reuters/Ipsos survey had the former Massachusetts governor trailing the incumbent by 6 points, although other polls have them in a closer race.
Polls in swing states show negative portrayals of Romney as an out-of-touch rich man are working in Obama's favor.
Romney's campaign is considering announcing its choice for vice presidential running mate soon so as to win back some of the campaign momentum from the other team.
Former Secretary of State Condoleezza Rice's name surfaced briefly as a possible vice presidential pick but faded quickly as an aide said on Friday she was still not interested in the position.
Analysts said members of Romney's team might have floated the Rice speculation as a way to change the subject from the candidate's wealth and business history.
'I think this is a clever diversion by the Romney folks after what has clearly been an off week for them,' Republican strategist Ford O'Connell said.
The Obama campaign has orchestrated an intense focus on Romney's wealth, demanding he release many years of tax returns to explain whether he helped build his fortune through offshore bank accounts that avoided taxes.
'He continues to try and find some way to attack me other than to talk about policy. And it's time to talk about what it will take to get America working again,' Romney said.
Obama himself launched an attack on Friday, saying Romney should clarify whether he worked for Bain longer than previously described.
'Ultimately Mr. Romney, I think, is going to have to answer those questions, because if he aspires to being president one of the things you learn is, you are ultimately responsible for the conduct of your operations,' he told ABC television affiliate WJLA.
(Additional reporting by Patricia Zengerle; Editing by Alistair Bell and Lisa Shumaker)
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In a blitz of television interviews, Romney demanded an apology from President Barack Obama for his campaign's assertion that the Republican may have committed a felony by misrepresenting his position at private equity firm Bain Capital.
'It's ridiculous,' Romney told Fox News in response to the charge. 'And of course it's beneath the dignity of the presidency and of his campaign.'
The Republican challenger has appeared flatfooted in beating back Democrats' accusations that he was involved in firing workers and outsourcing U.S. jobs to foreign countries while at Bain Capital.
Romney has slipped in opinion polls ahead of the November 6 election and his campaign added two Washington veterans to its media relations team on Friday after criticism from fellow Republicans for communications missteps.
Romney was booed by a mostly black audience at the NAACP annual convention this week and earlier gave out mixed messages about whether a key part of Obama's healthcare law does or does not create a new tax.
What drew Romney's ire on Friday was a charge from Obama deputy campaign manager Stephanie Cutter that he might have committed a felony by giving wrong information to the Securities and Exchange Commission about how long he spent at Bain.
Romney told ABC News that Obama 'needs to rein in these people who are running out of control.'
'He (Obama) sure as heck ought to say that he's sorry for the kinds of attacks that are coming from his team,' Romney said.
Romney was put on the spot by a Boston Globe newspaper report citing federal documents as showing he was listed as Bain CEO and sole shareholder in the three years to 2002, a time when he says he no longer ran the company.
The timing matters because Obama's campaign has accused him of being responsible for the firing of workers and bankruptcies at Bain-owned companies during those years.
White House spokesman Josh Earnest, traveling with Obama in Virginia, declined comment on Romney's demand for an apology.
MORE DISTRACTION
It was the latest issue to distract Romney from his focus on Obama's failure to reduce unemployment, running at 8.2 percent. He has struggled for the right messages on healthcare and immigration as the experienced Obama campaign based in Chicago maneuvers the news agenda better. Romney however has overtaken his rival in fundraising.
Two national polls this week showed Obama opening up a wider gap over his opponent. A Reuters/Ipsos survey had the former Massachusetts governor trailing the incumbent by 6 points, although other polls have them in a closer race.
Polls in swing states show negative portrayals of Romney as an out-of-touch rich man are working in Obama's favor.
Romney's campaign is considering announcing its choice for vice presidential running mate soon so as to win back some of the campaign momentum from the other team.
Former Secretary of State Condoleezza Rice's name surfaced briefly as a possible vice presidential pick but faded quickly as an aide said on Friday she was still not interested in the position.
Analysts said members of Romney's team might have floated the Rice speculation as a way to change the subject from the candidate's wealth and business history.
'I think this is a clever diversion by the Romney folks after what has clearly been an off week for them,' Republican strategist Ford O'Connell said.
The Obama campaign has orchestrated an intense focus on Romney's wealth, demanding he release many years of tax returns to explain whether he helped build his fortune through offshore bank accounts that avoided taxes.
'He continues to try and find some way to attack me other than to talk about policy. And it's time to talk about what it will take to get America working again,' Romney said.
Obama himself launched an attack on Friday, saying Romney should clarify whether he worked for Bain longer than previously described.
'Ultimately Mr. Romney, I think, is going to have to answer those questions, because if he aspires to being president one of the things you learn is, you are ultimately responsible for the conduct of your operations,' he told ABC television affiliate WJLA.
(Additional reporting by Patricia Zengerle; Editing by Alistair Bell and Lisa Shumaker)
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TSX rises as commodities rally on China data
TORONTO (Reuters) - Canada's main stock index rose in early trade on Friday, led higher by mining and energy shares, as risk sentiment improved after data from China showed the world's No. 2 economy slowed in the second quarter but avoided a dramatic slowdown.
The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 53.58 points, or 0.5 percent, at 11,479.05, shortly after the open.
(Reporting by Jon Cook; Editing by James Dalgleish)
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The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 53.58 points, or 0.5 percent, at 11,479.05, shortly after the open.
(Reporting by Jon Cook; Editing by James Dalgleish)
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Copper hits 1-wk high after China GDP data
LONDON (Reuters) - Copper rose on Friday after briefly hitting a one-week high as data showed China's economy grew at its slowest rate in three years in the second quarter, but maintained a pace that is not expected to undermine fragile global growth.
China's economy grew 7.6 percent in the April-June quarter from a year earlier. The number was in line with market forecasts, however, giving investors some relief even as it left full-year growth on course for its softest showing since 1999.
The world's top copper consumer also released June reports for fixed asset investment and retail sales, both of which slightly exceeded forecasts.
For a column on China data click:
Three-month copper on the London Metal Exchange rose to $7,666.75 per tonne, its highest since July 6. It was later trading up 1.22 percent at $7,646.50 per tonne by 0906 GMT, on track for a slight 0.6 percent gain for the week.
'I don't think anybody has taken this data positively. Most of the negative risk was already priced, we knew China is slowing down so there is no surprise and (besides) it was better than feared,' said Commerzbank analyst Eugen Weinberg.
Looking forward, he said: 'I think we will bottom out. The future is bright for China. OK Europe is a disaster and U.S. growth has slowed (but) its in the price and central banks (will likely) try counter the trend with more liquidity.'
European Central Bank policymakers held out the possibility on Thursday of taking further measures to boost the flagging euro zone economy after a cut in their deposit rate to zero showed no sign of jolting banks into lending out more money.
Copper came under pressure earlier in the week, however, after minutes from the U.S. Federal Reserve meeting showed the health of the world's biggest economy might need to weaken further before the central bank will launch a new quantitative easing program.
INVESTORS SEEN CAUTIOUS
Overall investors were still expected to stay cautious, even if many market participants expected Beijing would continue introducing more measures to maintain growth, which should help support copper prices.
'I think China should be able to hit 8 percent GDP growth this year although the economy should continue to be weak in the second half of the year,' said Orient Futures derivatives department director Andy Du. Beijing's official full-year target for economic growth is 7.5 percent.
Europe remained a drag on metals markets, however.
Moody's surprised investors earlier by downgrading Italy's government bond rating by two notches to Baa2 and warned it could cut it further, piling on pressure just hours before the euro zone third-largest economy launches its latest bond sale.
Euro zone market strains eased somewhat after Spain unveiled more austerity steps and euro zone finance ministers agreed to grant Madrid the first batch of bailout funds for its troubled banks by the end of July, but pressures could rise after Moody's downgrade.
In other metals traded, soldering metal tin rose 0.95 percent to $18,675 a tonne, while zinc, used in galvanizing rose 1.42 percent to $1,869.25 a tonne.
Zinc producer Nyrstar said late on Thursday it was looking into a A$350 million redevelopment of its Australian Port Pirie smelter into a metals recovery facility to extend its processing capabilities.
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China's economy grew 7.6 percent in the April-June quarter from a year earlier. The number was in line with market forecasts, however, giving investors some relief even as it left full-year growth on course for its softest showing since 1999.
The world's top copper consumer also released June reports for fixed asset investment and retail sales, both of which slightly exceeded forecasts.
For a column on China data click:
Three-month copper on the London Metal Exchange rose to $7,666.75 per tonne, its highest since July 6. It was later trading up 1.22 percent at $7,646.50 per tonne by 0906 GMT, on track for a slight 0.6 percent gain for the week.
'I don't think anybody has taken this data positively. Most of the negative risk was already priced, we knew China is slowing down so there is no surprise and (besides) it was better than feared,' said Commerzbank analyst Eugen Weinberg.
Looking forward, he said: 'I think we will bottom out. The future is bright for China. OK Europe is a disaster and U.S. growth has slowed (but) its in the price and central banks (will likely) try counter the trend with more liquidity.'
European Central Bank policymakers held out the possibility on Thursday of taking further measures to boost the flagging euro zone economy after a cut in their deposit rate to zero showed no sign of jolting banks into lending out more money.
Copper came under pressure earlier in the week, however, after minutes from the U.S. Federal Reserve meeting showed the health of the world's biggest economy might need to weaken further before the central bank will launch a new quantitative easing program.
INVESTORS SEEN CAUTIOUS
Overall investors were still expected to stay cautious, even if many market participants expected Beijing would continue introducing more measures to maintain growth, which should help support copper prices.
'I think China should be able to hit 8 percent GDP growth this year although the economy should continue to be weak in the second half of the year,' said Orient Futures derivatives department director Andy Du. Beijing's official full-year target for economic growth is 7.5 percent.
Europe remained a drag on metals markets, however.
Moody's surprised investors earlier by downgrading Italy's government bond rating by two notches to Baa2 and warned it could cut it further, piling on pressure just hours before the euro zone third-largest economy launches its latest bond sale.
Euro zone market strains eased somewhat after Spain unveiled more austerity steps and euro zone finance ministers agreed to grant Madrid the first batch of bailout funds for its troubled banks by the end of July, but pressures could rise after Moody's downgrade.
In other metals traded, soldering metal tin rose 0.95 percent to $18,675 a tonne, while zinc, used in galvanizing rose 1.42 percent to $1,869.25 a tonne.
Zinc producer Nyrstar said late on Thursday it was looking into a A$350 million redevelopment of its Australian Port Pirie smelter into a metals recovery facility to extend its processing capabilities.
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Thursday, July 12, 2012
Brent slips below $101 as China GDP growth hits 3-yr low
SINGAPORE (Reuters) - Brent crude slipped below $101 a barrel on Friday as China grew at its slowest pace in three years, reinforcing fears that a global economic slowdown could hurt fuel demand.
China, the world's top energy consumer, grew at 7.6 percent in the second quarter from a year ago, its slowest pace since 2009, as it faces stiffening headwinds of economic uncertainty in its two biggest foreign markets -- the European Union and the United States.
Brent was down 37 cents at $100.70 a barrel by 0302 GMT. U.S. crude was at $85.87, down 21 cents.
'The market, at the moment, seems quite happy that the Chinese data weren't drastically lower,' said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.
'Weaker expectations have already been factored into the market,' he said, adding that investors will look ahead to more data out of the United States and Europe to take a pulse on global economic health.
China's refinery throughput fell for the third straight month in June as its economic growth slowed. The country was expected to account for nearly half the world's incremental oil demand, according to the International Energy Agency.
Analysts are hopeful that China's growth will pick up in the third quarter as Beijing further loosens monetary policy and fast-forwards infrastructure spending, boosting its demand for commodities.
OIL UP ON SUPPLY RISKS
Brent is set to post a third straight week of gains by the end of Friday after suffering in the second quarter its largest three-month loss since the 2008 financial crisis.
Oil rose after the euro zone debt resolution last month and as jitters over supply from Iran and the North Sea increased appetite among investors for riskier assets.
The United States ramped up pressure on Iran's ability to export oil on Thursday, identifying Tehran's main tanker firm and exposing dozens of its vessels as government-controlled entities. The measures aim at depriving Iran of oil revenue to pressure it to rein in its nuclear program, which Tehran maintains is solely for peaceful purposes.
Production upsets in the North Sea and a potential record-low export volume in August also supported Brent.
Britain's largest oilfield, Buzzard, suffered a glitch, causing its output to fall to as low as 50,000 barrels per day, or a quarter of its normal rate, earlier this week, traders said. It was unclear if production had returned to normal.
Forecasts of lower fuel demand growth in 2012-2013 due to a global slowdown capped oil prices.
The International Energy Agency said on Wednesday the global economic slowdown could put a lid on oil prices, but 'nasty supply surprises' could reignite a market rally.
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China, the world's top energy consumer, grew at 7.6 percent in the second quarter from a year ago, its slowest pace since 2009, as it faces stiffening headwinds of economic uncertainty in its two biggest foreign markets -- the European Union and the United States.
Brent was down 37 cents at $100.70 a barrel by 0302 GMT. U.S. crude was at $85.87, down 21 cents.
'The market, at the moment, seems quite happy that the Chinese data weren't drastically lower,' said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.
'Weaker expectations have already been factored into the market,' he said, adding that investors will look ahead to more data out of the United States and Europe to take a pulse on global economic health.
China's refinery throughput fell for the third straight month in June as its economic growth slowed. The country was expected to account for nearly half the world's incremental oil demand, according to the International Energy Agency.
Analysts are hopeful that China's growth will pick up in the third quarter as Beijing further loosens monetary policy and fast-forwards infrastructure spending, boosting its demand for commodities.
OIL UP ON SUPPLY RISKS
Brent is set to post a third straight week of gains by the end of Friday after suffering in the second quarter its largest three-month loss since the 2008 financial crisis.
Oil rose after the euro zone debt resolution last month and as jitters over supply from Iran and the North Sea increased appetite among investors for riskier assets.
The United States ramped up pressure on Iran's ability to export oil on Thursday, identifying Tehran's main tanker firm and exposing dozens of its vessels as government-controlled entities. The measures aim at depriving Iran of oil revenue to pressure it to rein in its nuclear program, which Tehran maintains is solely for peaceful purposes.
Production upsets in the North Sea and a potential record-low export volume in August also supported Brent.
Britain's largest oilfield, Buzzard, suffered a glitch, causing its output to fall to as low as 50,000 barrels per day, or a quarter of its normal rate, earlier this week, traders said. It was unclear if production had returned to normal.
Forecasts of lower fuel demand growth in 2012-2013 due to a global slowdown capped oil prices.
The International Energy Agency said on Wednesday the global economic slowdown could put a lid on oil prices, but 'nasty supply surprises' could reignite a market rally.
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Singapore's economy shrinks 1.1 percent in Q2
SINGAPORE (AP) - Singapore's economy shrank in the second quarter as a global slowdown undermined demand for the city-state's exports, the Trade and Industry Ministry said Friday.
Gross domestic product contracted at a seasonally-adjusted, annualized rate of 1.1 percent in the April to June period from the previous quarter, when it expanded 9.4 percent, the ministry said.
Manufacturing in the second quarter dropped 6 percent, reversing from 21 percent growth in the first quarter, while services grew just 0.4 percent and construction 0.3 percent, the ministry said.
Singapore relies on trade, finance and tourism to fuel one of the richest living standards in the world. The government expects the economy to grow as little as 1 percent this year, down from 4.9 percent growth last year.
The economy expanded 1.9 percent in the second quarter from the same period a year earlier, up slightly from 1.4 percent growth in the first quarter.
The GDP results released Friday were preliminary data mostly from April and May, the ministry said. The ministry is scheduled to release more comprehensive results about the second-quarter economy next month.
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Gross domestic product contracted at a seasonally-adjusted, annualized rate of 1.1 percent in the April to June period from the previous quarter, when it expanded 9.4 percent, the ministry said.
Manufacturing in the second quarter dropped 6 percent, reversing from 21 percent growth in the first quarter, while services grew just 0.4 percent and construction 0.3 percent, the ministry said.
Singapore relies on trade, finance and tourism to fuel one of the richest living standards in the world. The government expects the economy to grow as little as 1 percent this year, down from 4.9 percent growth last year.
The economy expanded 1.9 percent in the second quarter from the same period a year earlier, up slightly from 1.4 percent growth in the first quarter.
The GDP results released Friday were preliminary data mostly from April and May, the ministry said. The ministry is scheduled to release more comprehensive results about the second-quarter economy next month.
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A look at economic developments around the globe
A look at economic developments and activity in major stock markets around the world Thursday:
___
MADRID - The Spanish government's latest round of austerity measures failed to reassure investors and markets as the country's borrowing costs started to rise again.
___
LONDON - Global stock markets declined on fears growth may slow in China and after U.S. Federal Reserve minutes indicated the central bank may not move as quickly as hoped to stimulate the country's economy.
Britain's FTSE 100 closed down just shy of 1 percent. France's CAC-40 shed 0.7 percent, while Germany's DAX fell 0.53 percent.
___
TOKYO - In Asia, Japan's Nikkei 225 index fell 1.5 percent, while Hong Kong's Hang Seng dropped 2 percent.
South Korea's Kospi slid by 2.2 percent. China's Shanghai Composite gained 0.5 percent.
___
FRANKFURT, Germany - Banks have drastically cut the amount of money they hold overnight at the European Central Bank after it cut the interest rate on those deposits to zero.
___
DUBLIN, Ireland - Ireland is making good progress in its attempts to wean itself off its international bailout and start paying its own way, according to the country's debt inspectors.
___
LISBON, Portugal - Portuguese doctors are staging a 48-hour strike to protest austerity measures they say are weakening the country's publicly funded health service.
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SYDNEY - Australia's unemployment rate hit 5.2 percent in June, up a tenth of a percentage point from the month before.
___
MANILA, Philippines - The Asian Development Bank cut growth forecast for developing Asia, citing Europe's worsening financial crisis, sluggish recovery in the U.S. and slower growth in China and India.
___
SEOUL, South Korea - South Korea's central bank unexpectedly lowered its key interest rate, in an attempt to guard Asia's fourth-largest economy from Europe's persistent debt woes and slowing growth in China.
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___
MADRID - The Spanish government's latest round of austerity measures failed to reassure investors and markets as the country's borrowing costs started to rise again.
___
LONDON - Global stock markets declined on fears growth may slow in China and after U.S. Federal Reserve minutes indicated the central bank may not move as quickly as hoped to stimulate the country's economy.
Britain's FTSE 100 closed down just shy of 1 percent. France's CAC-40 shed 0.7 percent, while Germany's DAX fell 0.53 percent.
___
TOKYO - In Asia, Japan's Nikkei 225 index fell 1.5 percent, while Hong Kong's Hang Seng dropped 2 percent.
South Korea's Kospi slid by 2.2 percent. China's Shanghai Composite gained 0.5 percent.
___
FRANKFURT, Germany - Banks have drastically cut the amount of money they hold overnight at the European Central Bank after it cut the interest rate on those deposits to zero.
___
DUBLIN, Ireland - Ireland is making good progress in its attempts to wean itself off its international bailout and start paying its own way, according to the country's debt inspectors.
___
LISBON, Portugal - Portuguese doctors are staging a 48-hour strike to protest austerity measures they say are weakening the country's publicly funded health service.
___
SYDNEY - Australia's unemployment rate hit 5.2 percent in June, up a tenth of a percentage point from the month before.
___
MANILA, Philippines - The Asian Development Bank cut growth forecast for developing Asia, citing Europe's worsening financial crisis, sluggish recovery in the U.S. and slower growth in China and India.
___
SEOUL, South Korea - South Korea's central bank unexpectedly lowered its key interest rate, in an attempt to guard Asia's fourth-largest economy from Europe's persistent debt woes and slowing growth in China.
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