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adfdas on Sunday, January 10, 2010 10:05:35 AM
UPDATE: China's Strong December Trade Shows Economy On Rebound BEIJING (Dow Jones)--China's exports surged in December from a year ago, ending 13 months of declines. Despite the rebound in external demand, though, the country's annual trade surplus dropped as expected for the first time in six years as the global financial crisis hit home. The surprising rally in imports, up 56% last month, came as China's crude oil imports hit a record monthly high and its iron ore imports were the second highest on record, signaling strong domestic demand due to the government's stimulus package reviving the national
ugg outlet economy. The sharp improvement in China's trade last month--the top trading partner for many countries and the world's largest exporter--should give a lift to investor confidence that the world's third largest economy will continue to hold up demand as the rest of the global economy gets back on its feet. It also flags the chance that China's economy expanded at a double-digit, year-on-year growth rate in the fourth quarter of last year, from the 8.9% expansion made in the third quarter, and stoking the debate among Chinese policymakers about a timing for exit strategies from Beijing's expansionary policies. "Growth in exports is expected to be strong in the coming months due to steady improvement in external demand combined with low base effects. Continued recovery in China's industrial sector should support increased demand for energy and raw material imports," said Jing Ulrich, chairman of China equities and commodities at J.P. Morgan. Royal Bank of Canada Capital Markets senior strategist Brian Jackson said the yuan
ugg outlet may have an excuse to strengthen from the end of the current quarter as China's exports grow again. Critics say Chinese exporters enjoy an unfair advantage in global markets because the yuan is undervalued as it pretty much tracks the movements of the U.S. dollar. "Positive export growth will also likely increase the global pressure on Beijing to allow some currency appreciation, while also making it easier to justify such a move to domestic audiences," Jackson said. China's exports last
ugg outlet month surged 17.7% to $130.7 billion as imports grew to $112.3 billion, resulting in a trade surplus in the month of $18.43 billion, data issued Sunday by the General Administration of Customs showed. Economists polled by Dow Jones Newswires had expected exports to grow 5% and imports to increase 31% in December. China's exports last grew on a year-on-year basis in October 2008. For 2009, China's exports fell 16% to $1.202 trillion and imports slid 11.2% to $1.006 trillion, customs said. China's trade surplus last year just topped $196 billion, falling 34% for the year and recording its first annual drop since it fell 16% in 2003. Among categories of imports, China's crude oil imports hit a record 21.26 million metric tons in December, equivalent to 5.03 million barrels per day, the data showed, partly on a push by state-owned refiners to have enough fuel in reserve ahead of the Spring Festival holiday next month. For all of last year, crude oil imports rose 13.9% to 203.79 million tons, likely cementing China's place as the second-largest importer of crude oil after the U.S. in 2009, leapfrogging Japan whose oil demand
ugg outlet stagnated when its economy slid into recession. China's commodity imports trumped market expectations of a winter slowdown, underscoring an unabated hunger for key industrial products. China imported 62.16 million metric tons of iron ore in December, 80% more than a year earlier and the second highest volume on record, the data showed. The iron ore imports were up 22% from the month before. The rise underlined there was no let-up in the country's hunger for the steel making ingredient. For the full year of 2009, China imported 627.78 million tons of iron ore, up 41.6% on 2008, reinforcing China as the world's biggest importer of iron ore. The high import
ugg outlet store volume points to traders and steelmakers moving to stock up on the steelmaking ingredient, ahead of market expectations that annually-set benchmark prices are poised to rise some 20%. Copper imports also rose strongly last month, reaching 369,368 tons, a 27% increase over November and up 29% on year, bringing the increase for all of last year to a strong 62.7% or 4.29 million tons. For the year, China's trade with the European Union, its top trading partner, fell 14.5% to $364 billion as exports to the E.U. slumped 19.4% to $236 billion. China's trade with the U.S., its second largest trading partner, sank 10.6% to $298 billion as exports fell 12.5% to $221 billion. China's imports from Australia, a key source of iron ore and other raw materials, finished 2009 just 5.4% higher, but imports from Brazil fell 5.3%. "Under American law, the United States can withhold support on loan guarantees to Israel," George Mitchell said on U.S. television on Wednesday after being asked about the kind of
ugg outlet store pressure that could be brought to bear on Israel. Over the past two decades, Israel has received U.S. guarantees covering billions of dollars in loans, underwriting that has been instrumental in raising money overseas more cheaply. Although such guarantees have slipped in importance and Mitchell made clear in the U.S. public television interview that no sanctions against Israel were being considered, the remarks added more discord to Israeli relations with President Barack Obama's White House. In a statement late on Saturday "in reaction to media inquiries after Mitchell's interview," Prime Minister Benjamin Netanyahu's office blamed the Palestinians for a peacemaking impasse which the envoy, due back in the region later this month, has failed
ugg outlet to break. "Everyone knows that the Palestinian Authority refuses to renew peace talks, while Israel took significant steps to restart the process," the statement said. Israeli media seized on Mitchell's remarks as reminiscent of a low point in U.S.-Israeli relations -- President George Bush's withholding of $10 billion in guarantees in 1991 after Prime Minister Yitzhak Shamir refused to freeze settlement expansion. "Mitchell's threat," said the main headline of Israel's mass circulation Maariv newspaper, which described the envoy's comments as a "bombshell." SETTLEMENTS Obama and Netanyahu have clashed over the president's demand -- since softened -- that Israel halt all settlement activity on land captured in a 1967 war, in line with a 2003 U.S.-backed peace road map that calls
uggs outlet on Palestinians to rein in militants. Nabil Abu Rdeinah, a spokesman for Palestinian President Mahmoud Abbas, rejected Netanyahu's accusations Palestinians were to blame for a lack of progress toward a statehood deal. "Israel continues settlement building in violation of the road map," Abu Rdainah said. Under pressure from Obama, Netanyahu imposed a limited, 10-month moratorium on Nov 25 on housing starts in West Bank settlements, saying he hoped the move would help restart negotiations suspended for the past year. But he excluded East
ugg outlet store Jerusalem and nearby annexed areas of the West Bank, and Abbas has not budged from his demand for a complete settlement freeze before talks can resume. Asked about Mitchell's remarks, Israeli Finance Minister Yuval Steinitz called U.S. loan guarantees a "token of friendship" but said Israel had no plans to use those available for 2010 and 2011. In 2002, the United States provided a package of $9 billion in loan guarantees. The package includes a formula that deducts a dollar of guarantees for every dollar Israel spent on settlement building. As of December 15, Israel still had $3.148 billion of the guarantees available after
ugg outlet already issuing $4.1 billion in bonds backed by the United States and a $1.1 billion deduction for settlement building and concerns over the barrier Israel is building in the West Bank.