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German Manufacturing Orders Drop in November





German manufacturing orders slipped in November, marking its first decline since July 2017 on the back of a drop in domestic and international demand.


The gauge was down 0.4 percent in November from October on a seasonally and working day adjusted basis. The October reading was revised upwards to a rise of 0.7 percent from 0.5 percent previously, according to data by the Federal Statistics Office.


The Economy Ministry, detailing the figures, said the decline in November was a result of fluctuations in large orders but adds that the trend remained strongly upwards.


A breakdown of the data showed domestic orders dropped 0.4 percent on the month and foreign orders by 0.5 percent.


According to ING economist Carsten Brzeski, the overall fall ”is rather of a technical nature than any sign of weakness.


Germany is facing robust domestic demand supported by record-high employment, rising real wages and low borrowing costs while its exporters are benefiting from a global economic recovery.


The Ifo economic institute forecasts the German economy to grow by 2.6 percent in 2018, pointing to a broad upswing that is generating employment and buoyant tax revenues.


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China Inflation Rises 1.8% On Year In December





Consumer prices in China were up 1.8 percent on year in December, the National Bureau of Statistics said on Wednesday.


That missed expectations for an increase of 1.9 percent but was up from 1.7 percent in November.


On a monthly basis, inflation gained 0.3 percent following the flat reading a month earlier.


The bureau also said that producer prices jumped an annual 4.9 percent, exceeding forecasts for a gain of 4.8 percent but down from 5.8 percent in the previous month.


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US Job Openings, Layoffs Drop in November





U.S. job openings dropped for the second consecutive month in November with declines in the manufacturing and real estate sectors, supporting economist forecasts that job growth will slow this year.


The monthly Job Openings and Labor Turnover Survey, or JOLTS, by the Labor Department, also showed that layoffs fell to a six-month low, however, showing sustained labor market strength.


Job openings, a measure of labor demand, fell by 46,000 to a seasonally adjusted 5.88 million, the lowest level since May. The job openings rate was 3.8 percent, a decline from October's 3.9 percent.


The JOLTS report revealed that layoffs fell 7,000 to 1.67 million in November. That was the lowest level since May and marked five consecutive months of drops.


Industries including manufacturing, business services and transportation and warehousing had fewer openings than in October, while available positions rose in construction and retail, the JOLTS report showed.


Hiring declined 104,000 to 5.49 million in November, and the hiring rate fell to 3.7 percent from 3.8 percent. Economists expect job growth this year to slow to well below the 2017 monthly average of 170,000 as the labor market reaches full employment.


The jobless rate is at a 17-year low of 4.1 percent and economists expect it to decline to 3.5 percent by the end of this year. Non-farm payrolls increased 148,000 in December.


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VENEZUELA: Country And China Review Projects To Increase Oil Production





Representatives of the Venezuelan oil company PDVSA and the China National Petroleum Corporation (CNPC) reviewed the scope of their Petrosinovensa joint venture and other joint projects aiming at accelerating oil production.


The meeting was held at the PDVSA facilities in Caracas, where the Oil Minister and PDVSA's chairman Manuel Quevedo hosted Jia Yong, president of CNPC America and representative of CNPC for Latin America.


"China and Venezuela are strategic allies to consolidate our nation as a power. We will continue advancing and working, and in the next meeting, which will occur after January 16, we will establish the advances of this very positive meeting," Quevedo said.


Venezuela and China are jointly carrying out several projects in the oil sector, such as the development of the joint ventures Petroleo Sinovensa, Petrozumano, Petrourica and Petrolera Sino Venezolana.


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Global Economy to Rise to 3.1% in 2018 - World Bank





The World Bank is expecting global economic expansion to increase to 3.1 percent this year following a much stronger-than-expected 2017, as the rebound in investment, manufacturing, and trade continues, while commodity-exporting developing economies benefit from firming commodity prices.


The world's economic output expanded three percent last year as more than half of economies accelerated, due to a rebound in investment, manufacturing activity and trade, bank economists said.


However, the World Bank warned that over the longer term, slowing potential growth—a measure of how fast an economy can expand when labor and capital are fully employed—puts at risk gains in improving living standards and reducing poverty around the world.


Expansion in advanced economies is expected to moderate slightly to 2.2 percent in 2018.


Growth in emerging market and developing economies as a whole is seen to strengthen to 4.5 percent this year, as activity in commodity exporters continues to recover.


The slowdown in potential growth is the result of years of weakening productivity growth, weak investment, and the aging of the global labor force. The deceleration is widespread, affecting economies that account for more than 65 percent of global GDP.


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China Exports Rise More Than Forecast





China's exports grew at a faster-than-expected pace in December, data from the General Administration of Customs showed Friday.


In dollar terms, exports advanced 10.9 percent year-over-year in December, just above the 10.8 percent rise economists had forecast.


Imports increased 4.9 percent in December from a year ago, much slower than the expected growth of 15.1 percent.


The trade surplus totaled $54.69 billion in December versus the expected surplus of $37.0 billion.


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U.S. Producer Prices Drop, Unemployment Claims Rise





U.S. producer prices dropped for the first time in almost 1-½ years in December amid falling costs for services, which could weigh on expectations that inflation will pick up this year.


Separate data showed that initial claims for jobless benefits rose for the fourth consecutive week to over a three-month peak. Winter and snow in parts of the United States likely kept some workers at home, which accounts for the previous week's rise in unemployment claims.


The U.S. Federal Reserve is projecting three rate hikes for 2018. It raised rates three times in 2017.


According to the Labor Department, its producer price index for final demand dropped 0.1 percent in December. It was the first decline in the PPI since August 2016 and followed two consecutive monthly growth of 0.4 percent.


The PPI increased 2.6 percent from the same period in 2016, after accelerating 3.1 percent in November.


A key gauge of underlying producer price pressures, excluding food, energy and trade services, climbed 0.1 percent in December. The so-called core PPI rose 0.4 percent in November. It increased 2.3 percent in the 12 months through December after rising 2.4 percent in November.


In the separate report, the Labor Department said initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 261,000 for the week ended Jan. 6, the highest level since late September.


Claims have risen since mid-December, though the data tend to be volatile during year-end holidays.


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New Zealand Food Prices Fall For Fourth Month





New Zealand's food prices declined for the fourth straight month in December, figures from Statistics New Zealand showed Monday.


Food prices dropped 0.8 percent month-over-month in December, faster than the 0.4 percent fall in November.


Grocery food and seasonally cheaper fruit and vegetables were the main factors in the dip in food costs.


After four successive monthly rises, butter prices dropped 4.9 percent.


On a yearly basis, food prices grew at a stable rate of 2.3 percent in December.


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Asian Stocks Rise on Upbeat Economic Growth Outlook





Asian stocks started 2018 on a strong foot and are on track for a new record peak amid optimism in global growth.


Equity markets from Sydney to Hong Kong gained. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday after the S&P 500 index ended on Friday at an all-time peak.


Japanese shares were advancing even after appreciation in the yen the past week, with Softbank Group benefiting from speculation of a listing for its mobile unit.


Developments in the global economy have been lifting morale in the early part of this year while equities are building on the impressive gains from 2017.


Retail sales fuelled optimism in the American economy and JPMorgan Chase & Co. signaled that the recent tax reduction law will raise profits. A pick up in U.S. core inflation offered another indication that the recovery is gathering pace nine years following the global recession.


Money managers will evaluate progress in corporate America this week with more earnings releases, while results are scheduled across the world from companies in a range of sectors. Growth data from China will also be in focus this week, as well as ongoing negotiations to form a coalition government in Germany.


Meanwhile, the dollar remains weak, pulled down by strong gains in the euro.


The common currency remained near a three-year peak on wagers that central bank stimulus will be pared back further in Europe as its economy mends.


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BRAZIL: Ibovespa Rises To New Record On Expiring Stock Options





Ibovespa, the benchmark stock index in Brazil, rose 0.51% to 79,752.37 points Monday - a new record settlement - influenced by expiring stock options and data suggesting that the economic recovery in the country gained strength in November. The United States market holiday limited the local trading volume.


Analysts said that the Ibovespa might be pricing a conviction of the former Brazilian President Luiz In?cio Lula da Silva in a trial scheduled for January 24. A court defeat could bar Lula from running for President in October.


"The holiday in the United States removes liquidity from the stock market, but investors are expecting January 24 much more than anything else, and apparently the stakes continue to be at Lula's conviction," said the chief economist of Home Broker Modalmais, Alvaro Bandeira. In the short term, analysts expect Ibovespa to follow a bullish trend. The index remained at record levels even after Brazil's rating downgrade by S&P last week.


For Bandeira, the inflow of foreign investment has offset bad news and helped to sustain Ibovespa's good momentum. However, Rico Investimentos analyst Roberto Indech noted that this week brings some data in Brazil and abroad that may weigh on the stocks.


Meanwhile, the locally traded U.S. dollar turned positive in the final stretch of the trading day. The greenback's performance was influenced by the holiday of Martin Luther King in the United States, which reflected in lower trading volume. As a result, the locally traded currency closed slightly higher (+0.09%), at R$ 3,210.


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