Japan Machinery Orders Unexpectedly Rise In March

5/15/2011

(RTTNews) - Core machinery orders in Japan posted a surprise rise in March, in spite of the devastating earthquake and tsunami on the 11th, the Cabinet Office said on Monday, climbing a seasonally adjusted 2.9 percent compared to the previous month.
That blew away analyst expectations for a decline of 10.0 percent following the 2.3 percent contraction in February.
As a result of the data, the Cabinet Office maintained its assessment of machinery orders, saying "Machinery orders are picking up, but there are weak spots in the non-manufacturing sector."
On an annual basis, machine orders also surprised to the upside by adding 6.8 percent versus forecasts for an 8.0 percent plunge following the 7.6 percent increase in the previous month.
For the first quarter of 2011, machinery orders were up 3.5 percent compared to the previous three months. For the fiscal year ended in March, machinery orders climbed 7.0 percent on year.
For the second quarter of 2011, core machinery orders are forecast to have jumped 10.0 percent compared to the previous quarter, based on the figures from the 280 manufacturers reflected in the data.
The total number of machinery orders, including those volatile ones for ships and from electric power companies, saw a decline of 15.8 percent on month in March and an increase of 11.5 percent on quarter in Q3. For the fiscal year, total machinery orders jumped an annual 20.0 percent.
Manufacturing orders saw a decline of 0.4 percent on month, while government orders fell 10.3 percent. Orders from overseas plunged 11.4 percent on month, while orders from agencies added 2.6 percent.
Also on Monday, the Bank of Japan said that an index measuring prices for corporate goods in Japan was up 0.9 percent in April compared to the previous month, standing at 105.6. That was well above analyst expectations for an increase of 0.4 percent following the 0.6 percent gain in March.
On an annual basis, corporate goods prices jumped 2.5 percent - again topping expectations for an increase of 2.1 percent after adding 2.0 percent in the previous month.
Export prices rose 2.2 percent on month but fell 3.0 percent on year, while import prices surged 5.5 percent on month and 9.1 percent on year.

Australia Now Motor Vehicle Sales Fall 3.5% In April

(RTTNews) - The sale of new motor vehicles in Australia declined a seasonally adjusted 3.5 percent in April compared to the previous month, the Australian Bureau of Statistics said on Monday, standing at 84,332. That follows a 3.4 percent rise in March.
By class, sales of passenger vehicles increased by 22 units (0.0 percent), while sports utility vehicles were down 9.6 percent and other vehicles lost 5.5 percent.
By region, the sales of new motor vehicles decreased in seven of the eight states and territories. New South Wales recorded the largest percentage decrease of 5.1 percent, followed by Victoria (3.5 percent) and Queensland (3.4 percent). Over the same period, the Northern Territory recorded the only increase (1.6 percent).
On an annual basis, new auto sales declined 8.4 percent after adding 1.9 percent in the previous month.

US ranks 17 as clean tech producer, China is No. 2

5/08/2011

 

AMSTERDAM: Denmark earns the biggest share of its national revenue from producing windmills and other clean technologies, the United States is rapidly expanding its clean-tech sector, but no country can match China's pace of growth, according to a new report obtained by The Associated Press.

China's production of green technologies has grown by a remarkable 77 per cent a year, according to the report, which was commissioned by the World Wildlife Fund for Nature and which will be unveiled on Monday at an industry conference in Amsterdam.

``The Chinese have made, on the political level, a conscious decision to capture this market and to develop this market aggressively,'' said Donald Pols, an economist with the WWF.

Denmark, a longtime leader in wind energy, derives 3.1 percent of its gross domestic product from renewable energy technology and energy efficiency, or about euro6.5 billion ($9.4 billion), the report said.

China is the largest producer in money terms, earning more than euro44 billion ($64 billion), or 1.4 percent of its gross domestic product.

The U.S. ranks 17 in the production of clean technologies with 0.3 percent of GDP, or euro31.5 billion ($45 billion), but those industries have been expanding at a rate of 28 percent per year since 2008.

``The U.S. is growing substantially, so it seems the policy of (President Barack) Obama is working,'' Pols said. But the U.S. cannot compare with China, he said.

``When you speak to the Chinese, climate change is not an ideological issue. It's just a fact of life. While we debate climate change and the transition to a low carbon economy, the debate is passed in China,'' Pols said. ``For them it's implementation. It's a growth sector, and they want to capture this sector.''

The report was prepared by Roland Berger Strategy Consultants, a global firm based in Germany. It gathered data on 38 countries from energy associations, bank and brokerage reports, investor presentations, the International Energy Agency and a score of other sources. It measured the earnings from producing renewables like biofuels , wind turbines and thermal equipment, and energy efficiency technology such as low-energy lighting and insulation.

``Clean technologies are really growing fast, but China is responsible for the majority of that growth,'' said Ward van den Berg, who compiled and analyzed the data for the consultancy firm.

Until recently, Chinese massive production of solar cells was aimed at the export market, but they are now making solar systems for the home market, as they have been doing for several years in wind energy, Van den Berg said.

Following Denmark and China, other countries in the top five clean-tech producers, in terms of percentage of GDP, are Germany, Brazil and Lithuania, the report said.

RBI may make it mandatory for foreign banks to adopt WOS route

NEW DELHI: The Reserve Bank is likely to make it mandatory for foreign banks in the country to operate as wholly-owned subsidiaries, in line with the international practice, so that the central bank can have better control over their working.

Initially, according to sources, the new banks and the existing ones with a few branches will be asked to convert into wholly-owned subsidiaries (WoS).

The larger banks, they said, could be given some more time to adhere to the guidelines that are likely to be announced by June-end.

At present, the foreign banks operate through their branches. Under the WOS model, the foreign banks will be required to set up a subsidiary under the Companies Act and operate as an Indian entity.

Sources said that in several countries, including the US and Singapore, it is mandatory for banks to operate as WOS.

In order to align Indian laws with the international best practices, the RBI had come out in January with the draft guidelines on the mode of operations for foreign banks in India.

At present, foreign banks like Citi, Standard Chartered and HSBC operate as branches, mainly in bigger cities, and do not have the freedom to expand like the banks incorporated in India.

In its discussion paper, the RBI has said that it expects large banks to convert them from branches to WOS and that the banks who adopt the subsidiary model would be given preferential treatment for opening of branches.

The RBI has further called for making it mandatory for foreign banks with more than 0.25 per cent share in the Indian banking industry to convert themselves from a branch into a WOS.

It points out that the government has clarified that a company with a foreign holding of over 50 per cent is a foreign company.

At present, there are 34 foreign banks operating in India , with five major banks, including StanChart, HSBC, Citibank and Deutsche, accounting for over 70 per cent of the the total asset size.

The discussion paper also said the WOS may be allowed to raise rupee resources through non-equity capital instruments.