Michael Buchanan News
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China’s weakest growth in three years may pressure Premier Wen Jiabao to further ease the government’s crackdown on a property industry that accounts for more than a quarter of final demand.
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Goldman Sachs Group Inc. economists lowered their forecast for Chinese economic growth after data showed a slowdown in April, joining banks including JPMorgan Chase & Co. and UBS AG in paring outlooks.
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Taiwan’s dollar will climb 4.8 percent against the U.S. currency in a year as the central bank allows appreciation, while gains in other Asian currencies are less assured, according to Goldman Sachs Group Inc.
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China’s home prices fell in a record number of cities last month and car dealers posted inventory levels that foreshadowed deeper price cuts, adding to signs of slowing growth in the world’s second-largest economy.
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Japan is likely to see a rebound in the second half of this year after a blow that will be determined by the magnitude of electricity disruptions caused by the earthquake and tsunami, a survey of economists showed.
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Goldman Sachs Group Inc. and Nomura Holdings Inc. say yuan forwards are the best way to make money in Asia’s foreign-exchange market in 2011.
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China pared the nation’s economic growth target to 7.5 percent from an 8 percent goal in place since 2005, a signal that leaders are determined to cut reliance on exports and capital spending in favor of consumption.
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China’s economic growth will withstand a slowdown in the nation’s property market because households borrowed less to purchase their homes than in developed nations, according to Goldman Sachs Group Inc.
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Federal Reserve Chairman Ben S. Bernanke said the economy is barely expanding at a sustainable pace and that it’s possible the Fed may expand bond purchases beyond the $600 billion announced last month to spur growth.
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Buying Asian currencies is a “more risky” investment after they strengthened above or close to levels seen before the global financial crisis, according to Goldman Sachs Group Inc.
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