Yu Song News
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China’s unprecedented run of better- than-forecast export growth has spurred deeper skepticism of the data at banks including Goldman Sachs Group Inc., casting doubt on the strength of the recovery.
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The European Central Bank would do “a lot, lot more” in terms of easing monetary policy if it mimicked the aggressiveness of foreign counterparts, says David Mackie, chief European economist at JPMorgan Chase & Co.
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Goldman Sachs Group Inc. joined banks lowering their forecasts for China’s growth as Premier Wen Jiabao ’s campaign to rein in inflation restrains the world’s fastest-growing major economy.
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China’s stocks listed in the U.S. retreated from a one-month high after the nation raised interest rates for the third time this year to tame inflation that has quickened to the fastest pace since 2008.
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A Chinese manufacturing index dropped to the lowest level since February 2009, bolstering the case for fiscal or monetary loosening to support the expansion of the world’s second-biggest economy.
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China’s unexpected surge in exports last month renewed concern from analysts at Goldman Sachs Group Inc., UBS AG and Australia & New Zealand Banking Group Ltd. that statistics from the nation can be unreliable.
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China may limit interest-rate increases for the rest of this year as Premier Wen Jiabao bets that a slowing economy will help tame inflation after five moves since mid-October.
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China’s customs administration said every dollar of trade is documented, defending the quality of export data that analysts at UBS AG and Australia & New Zealand Banking Group Ltd. said may fail to capture the true picture.
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China’s stocks fell to the lowest level in a week after a report showed producer prices declined the most since 2009 and companies from ZTE Corp. and Yunnan Copper Industry Co. estimated third-quarter losses.
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The benchmark index of Chinese equities in New York rebounded from the biggest drop in a month as signs of improved manufacturing sentiment stoked gains in air carriers and infrastructure stocks.
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