Week of April 22, 2012 thru April 28, 2012
OTTAWA - (MNI) - Bank of Canada Governor Mark Carney Saturday said the financial firewalls set up for Europe are more than adequate, and are not as important as major European economies executing economic and financial reforms.
Carney was asked in a national radio interview Saturday morning about nations providing more than $400 billion to the International Monetary Fund, doubling its resources to fight against economic fallout stemming from Europe, while Canada refused to join in.
--Euro Area Should Reform Aggressively, Stay Ahead of Markets
--Where G20 Skimps on FX, Geithner Offers Pointed Comment on China
WASHINGTON (MNI) - U.S. Treasury Secretary Tim Geithner cautioned Saturday that despite recent improvement the global economic recovery remains fragile, with oil prices and Europe's recovery key risk factors.
He stressed the importance for Europe to aggressively implement reforms and "stay ahead of markets," if the recovery is to solidify, and said the U.S.
WASHINGTON (MNI) - Data make it clear that the global economy has stabilized, European Central Bank Executive Board member Joerg Asmussen said late Friday.
"The data show us a clear stabilization in the global economy since last year," he told an audience. "The U.S. is showing signs of a sustained recovery. The data releases have consistently surprised on the upside throughout the first quarter of this year."
U.S. unemployment is at a recent low, he noted.
"In the euro area, data confirm a stabilization of economic activity at low levels," he said. "So we continue to expect to have a very mild recession in 2012, and our economy will gradually recover in the course of the year."
Strong exports to the U.S.
--Suggests Canada Could Contibrute To IMF If Major Spillovers From EMU
WASHINGTON (MNI) - Canada Finance Minister Jim Flaherty Friday said Canada is "not alone" in pushing for the IMF to take sole responsibility for setting conditionality on any future loan programs for the Eurozone.
Flaherty also suggested Canada -- which along with the United States refused to join in the latest round of boosting IMF resources Friday -- could consider adding to the IMF's lending capacity if spillovers from the Eurozone crisis into non-EMU countries increase substantially.
"At the current juncture, we believe that the fund has adequate resources to deal with imminent needs," Flaherty said at a press briefing.
All figures year-over-year percent changes unless otherwise specified.
Date Time For Event Previous Local/GMT
23 Apr 1030/0230 Apr Flash Purchasing Manager's Index (HSBC) +48.1 24 Apr 1000/0200 Mar Conf Brd China Leading Index 227.2 24 Apr 1000/0200 Mar Conf Brd China Coincident Index 220.0 27 Apr 0935/0135 Apr MNI China Business Sentiment Survey +54.81 01 May 0900/0100 Apr Purchasing Manager's Index (CFLP) +53.1 02 May 1030/0230 Apr Purchasing Manager's Index (HSBC) +48.3 09 May 0930/0130 Apr CPI (% y/y, % ytd y/y) +3.6/+3.8 09 May 0930/0130 Apr PPI (% y/y, % ytd y/
--US Warmly Welcomes Increase in IMF Lending Resources
--But IMF Cannot Become Overexposed to Europe
WASHINGTON (MNI) - The United States warmly welcomed the Group of 20 decision to double the IMF's lending resources, as it shows solidarity with Europe, but actions by euro area governments will remain key to investor confidence and resolving the crisis, a senior U.S.
WASHINGTON (MNI) - The following was issued Friday by the U.S. Treasury Department:
Today, Secretary Tim Geithner chaired a meeting of finance ministers and representatives of key international financial institutions to advance work under the Deauville Partnership with Arab Countries in Transition, a unique forum launched last year in response to the historic changes in the Middle East and North Africa. Participation in the Partnership includes the five transitioning countries (Egypt, Jordan, Tunisia, Morocco, and Libya), G-8 countries, Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Turkey, and 10 international financial institutions (IFIs).
The Middle East and North Africa region is undergoing one of the most important transitions of our time.
--Meetings & Events of Interest to Subscribers
DATE GMT / EST EVENT
21-Apr 1200/0800 IMFC Governors Meeting begins
21-Apr 1330/0930 Press briefing by IMF Asia and Pacific Department Director Anoop Singh.
21-Apr -- Press briefing by IMFC Chair Tharman Shanmugaratnam and IMF Managing Director Christine Lagarde.
21-Apr -- IMF/WB Development Committee Press Briefing
23-Apr 1735/1345 Treasury Secretary Tim Geithner and other the other five Social Security trustees issue
WASHINGTON (MNI) - The European banking sector is as solid as banking sectors in other regions -- including the U.S. -- European Central Bank Governing Council member Christian Noyer said Friday, estimating there no need for more long-term refinancing operations.
During a joint press conference following the meeting of G20 finance ministers and central bankers, French Finance Minister Francois Baroin also argued against the IMF's pessimistic view about France.
In fact, the IMF's forecasts for France are "excessively pessimistic," Baroin said.
In its April World Economic Outlook, the IMF revised up its GDP growth forecast to 0.5% in 2012 and left it unchanged at 1.0% in 2013.
WASHINGTON (MNI) - The ongoing fiscal debate in the United States is not only a risk to its economy but could also derail the global recovery, IMF Managing Director Christine Lagarde said Friday.
"[The] United States faces this very difficult situation," Lagarde said during a seminar on 'A Narrow Path for the Global Economy' hosted by the IMF.
She said it could be a "very disturbing moment" when U.S. tax cuts expire and spending is cut-off automatically, all with the backdrop of the debt ceiling debate.
Christina Romer, the former chair of President Barack Obama's the Council of Economic added to Lagarde's comments, saying "that fiscal cliff is a very big problem" and that it would be "devastating to the U.S.