AUTOREFRESH 
Difficult year ahead for China admits Premier Wen Jiabao
China faces a difficult year as it works to maintain economic growth and spur development, but it would not be bullied into boosting value of its currency says Premier Wen Jiabao.
China consumer inflation is major concern for year due to imported commodity prices – MOFCOM minister
Chinese Commerce Minister Chen Deming says rising inflation, imported via global commodity prices, is China’s major policy concern this year. The government has set a 3% inflation target for this year.
Meanwhile central bank chief Zhou Xiaochuan says February’s rise in inflation was in line with expectations.
China yuan is not necessarily undervalued if resource and labour costs raised to international level – CBanker Wu
Comment won’t inspire too much hope in those looking for early, meaningful, revaluation of the yuan.
- Recent loan curbs aimed to ensure even loans throughout the year, not serious tightening
- Can contain inflation and asset bubbles if M2 and yuan lending targets are achieved this year
China risking property bubble with prices rising 20% a month
Chnia is in the midst of such a vast property boom, with prices leaping 20% a month in some regions, that developments are taking on fairly tale dimensions.
Rogoff says China crisis may trigger regional slump
China’s economic growth will plunge to as low as 2% following the collapse of a “debt-fueled bubble” within 10 years, sparking a regional recession, according to Harvard Professor Rogoff. Maybe that’s why aussie got hit fairly hard earlier today. I think I’m only half joking.
China CPPCC spokesman says yuan adjustment should be gradual
Oh, I’m sure it’s going to be gradual.
- Yuan adjustment should not be “big fluctuation”
- Won’t make sudden yuan change, China will be “prudent”
China’s top leadership says to maintain appropriately loose monetary policy in 2010 – Xinhua
- To balance objectives of growth and managing inflation expectations.
China’s might masks doubts
The Chinese leadership remains anxious about the true strength of its economy and society.
Euro zone GDP and industrial production disappoint
Euro zone Q4 GDP has come in at +0.1% q/q, -2.1% y/y, below median forecasts of +0.3%, -1.9% respectively.
At same time euro zone December industrial production has come in at -1.7% m/m, -5.5% y/y, demonstrably weaker than median forecasts +0.2%, -1.5% respectively.
This poor data, combined with news China has raised reserve requirements, has sent EUR/USD sharply lower. We’re presently down at 1.3565.
Guess theyll be some 1.3550 barrier option interest.
China raises reserve requirements by 0.5%
EUR/USD , GBP/USD, USD/JPY lower as risk aversion heigthened. .
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