Economic News

LONDON (Reuters) - Consumer confidence fell sharply in August after the Bank of England's surprise interest rate hike, a survey showed on Thursday. GfK NOP's monthly consumer confidence barometer fell to -8 in August from -4 in July, against forecasts of -5. That was the lowest since December 2005 when headlines were dominated by Chancellor of the Exchequer Gordon Brown being forced to halve his ...

LONDON (AFX) - The euro is in demand in early European trading as investors anticipate a clear indication from the European Central Bank that borrowing costs for the 12-nation single currency zone have further to rise this year. Though the central bank is expected to keep its key refi rate unchanged at 3.00 pct at today's rate-setting meeting, investors anticipate its president Jean-Claude Triche ...

BEIJING (XFN-ASIA) - China's banks posted double-digit rises in net profit in the first six months, although the impact of government curbs on lending is expected to start showing up in subsequent results, analysts said. "They did quite well in the first half, based on a really strong economy," Xinhua Far East Ratings managing director Ivan Chung said. China's biggest listed lenders, B ...

BANGKOK (XFN-ASIA) - High oil prices and interest rate hikes in the US, Japan and Europe pose risks for Asia's robust economies, a UN report said, calling for more regional cooperation to weather financial downturns. Economic fundamentals in the Asia-Pacific region have strengthened since the 1997 Asian financial crisis but the region faces risks. "High and rising oil prices are the main th ...

Sam Fleming, Daily Mail31 August 2006 BRITONS have returned to their free- spending ways, sparking speculation that the Bank of England will be forced into another rate hike before the end of the year. WE'RE BACK: Shoppers are starting to spend again WANT TO KNOW MORE? DATA: UK economic data TABLES: Best savings rates DEAL FINDER: Fixed mortgages REPORT: Where next for rates? POLL: What do you think will happen to interest rates this year? OTHER STORIES The UK's wors ...

Nick Goodway, Evening Standard31 August 2006 HOUSE prices bucked the surprise rise in interest rates sprung by the Bank of England at the start of this month, Britain's biggest building society revealed today. FOR SALE: The housing market is still going strong WANT TO KNOW MORE? DEAL FINDER: Mortgages ADVICE & TIPS: Buying a house DATA: UK economy BLOG: First time buyers taking 'very big risk' POLL: What will happen to house prices in 2006? OTHER STORIES Rate t ...

By Edmund Blair TEHRAN (Reuters) - If it comes to sanctions, Iran says it can take anything the U.N. Security Council might impose for its expected failure to meet Thursday's deadline to halt sensitive nuclear work. But analysts and diplomats say the Iranian economy, which is already struggling to create enough jobs despite surging oil revenues, would be vulnerable particularly to restrictions on gasoline imports, European financing and industrial components. But Iran may be betting it will n ...

Annual house price growth increased in August, with the market remaining "firm", the Nationwide has said. The building society's housing survey found that prices rose by 0.8% during the month, the same as in July, lifting the annual rate of growth to 6.6%. This was the fastest yearly growth rate since April 2005, and the average UK property now costs £167,721. The three-monthly trend showed prices rose 1.4% in the three months to August compared with the previous quarter. Strong demand  ...

HONG KONG (XFN-ASIA) - Share prices were higher in early trade, extending yesterday's rally as revised US second-quarter economic growth data showed the economy remains healthy but slowed enough to ward off further interest rate hikes, dealers said. They said strong gains on the Tokyo market also bolstered sentiment. At 10.20 am, the Hang Seng Index was up 94.95 points or 0.55 pct at 17,379.66,  ...

HONG KONG (XFN-ASIA) - Share prices opened higher, extending yesterday's rally as revised US second-quarter economic growth data showed the economy remains healthy but slow enough to ward off further interest rate hikes, dealers said. A rally on the Japanese market also provided support. The Hang Seng Index opened up 110.83 points or 0.64 pct at 17,395.54. (1 usd = 7.8 hkd) roby.lau@xfn.com r ...