Global economic survey looks at confidence (or not), money habits, fears and attitudes

Source: BI-ME , Author: BI-ME staff

Posted: 28-01-2009

Recession? What recession?

The survey also explored some attitudes to the economy via a series of statements. Some people will always feel immune to the news and 28% of all respondents agree that 'I find the economy boring and don't pay much attention'.

This was most prevalent in Turkey (42%), Hong Kong (41%) and Malaysia (40%). However, the flipside is that seven in ten people (69%) obviously think the economy is worth paying attention to. Eighty-nine percent disagreed with the statement in the US, followed by Taiwan at 85% and the UK at 82%.

Note: This Synovate In:fact survey on the economy and prices was conducted in November 2008 across 18 markets and with over 11,500 respondents. Synovate asked respondents about their views on the economy in their country; whether they had cut spending; looked at changing spending habits; as well as attitudes to the current state of financial affairs.

The markets covered by the survey are Belgium, Brazil, Bulgaria, Canada, Denmark, France, Greece, Hong Kong, Malaysia, Mexico, the Netherlands, Romania, Russia, Serbia, Taiwan, Turkey, the UK and the US.

The top two fears for each market as a result of the economic situation were as follows:

Belgium Losing job – 22% Not being able to pay mortgage / rent – 20%
Brazil Losing job – 42% Not being able to buy food – 22%
Bulgaria Losing job – 39% Paying medical bills – 23%
Canada Losing money from investments – 23% Losing job – 20%
Denmark Nothing – 29% Losing job – 19%
France Losing job – 21% Not being able to pay mortgage / rent – 20%
Greece Losing job – 40% Not being able to pay mortgage / rent – 15% Paying medical bills – 15%
Hong Kong Losing job – 39% Giving up luxuries – 14%
Malaysia Losing job – 30% Nothing – 20%
Mexico Losing job – 31% Not being able to buy food – 30%
Netherlands Nothing – 37% Losing job – 16%
Romania Losing job – 32% Nothing – 25%
Russia Losing job – 55% Nothing – 12%
Serbia Losing job – 39% Not being able to buy food – 17%
Taiwan Losing job – 41% Losing money from investments – 16%
Turkey Losing job – 52% Not being able to buy food – 16%
UK Not being able to pay mortgage / rent – 22% Losing job – 17%
Nothing – 17%
US Losing job – 24% Not being able to pay mortgage / rent – 23%

Palm oil futures slide 2.6pc

MALAYSIAN crude palm oil futures slid 2.6 per cent today in light post-holiday trading after crude oil slumped and a cargo surveyor reported slower sales, fanning demand concerns.

But concerns that global supplies of vegetable oils may fall, as the Argentine soy crop suffers its worst drought since 1961, helped to curb some losses, with traders saying the impact could boost demand for palm oil.

“The market should be falling to RM1,700-RM1,750, trying to play catch up with crude, but the expectation of more demand coming in because there could potentially be less South American soyoil, has supported it,” a trader with a commodities brokerage said.

“I don’t think that is very plausible although the sentiment of stronger demand in coming months is there. Just look at the cargo surveyor data.”

Exports of Malaysian palm oil products for January 1-25 fell 29.2 per cent to 952,478 tonnes from 1,345,325 tonnes shipped between December 1 and 25, cargo surveyor Intertek Testing Services said today.

Another cargo surveyor, Societe Generale de Surveillance, reported declines of 24.1 per cent to 1,016,477 tonnes.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled down RM48 at RM1,782 a tonne.

Other traded contracts fell between RM34 and RM50. Overall volume dropped to 6,079 lots of 25 tonnes each from about 10,000 lots as many traders were still away for Lunar New Year following market closures on Monday and Tuesday. - Reuters

Asia rises on stronger stocks

Reuters
First Posted 13:34:00 01/28/2009

Filed Under: Economy and Business and Finance, World Financial Crisis, Foreign Exchange Markets, Emerging Markets Debt

SINGAPORE -- Most Asian currencies rose Wednesday as foreign investors flocked into the region's stock markets in anticipation of fresh steps by the Federal Reserve to stimulate the world's largest economy.

The South Korean won rose as far as 1,377.9 per dollar, up about 0.9 percent from Friday's domestic close, buoyed by a 5.0-percent jump in Seoul shares as foreigners snapped up local shares.

The Korean market was closed on Monday and Tuesday for Lunar New Year holiday.

The Malaysian ringgit rose as far as 3.6078 per dollar, up about 0.4 percent from Friday, as markets reopened on Wednesday.

"The ringgit follows equities, but I reckon it will be confined to tight ranges ahead of the FOMC tonight," said a trader in Kuala Lumpur.

Asian stocks rose almost 2.0 percent as of 0443 GMT, buoyed by gains on Wall Street on Tuesday on hopes that government efforts to stabilize the US economy will take hold.

The Fed concludes a two-day policy meeting later in the day and could unveil new, unconventional steps to boost lending and spur the ailing economy.

With the benchmark interest rate already near zero, the market will be scouring its statement for any clues on whether it will buy US government bonds, which could help check longer term borrowing rates.

Governments in Britain, Japan and Canada strung together lifelines to rescue their battered economies on Tuesday as the worldwide financial crisis claimed millions of jobs.

Trading activity was subdued as currency markets in China and Taiwan remained closed for holidays.

Elsewhere, the Singapore dollar gained about 0.4 percent to 1.4988 per US dollar.

"The Singapore dollar is rangy and tracking the euro," said a trader, who predicted the Singapore currency would move between 1.4950 and 1.5050 for the day.

The dollar dipped against the euro on Wednesday as investors awaited the outcome of the Fed meeting.

"Perhaps the market is looking for a return to normalcy in the financial conditions both globally and regionally," said Enrico Tanuwidjaja, currency strategist at OCBC Bank.

"But the strength of some regional currencies against the dollar is tentative, as corporate earnings remain critical episodes before the market sees a real turning point," he said.

The Indonesian rupiah bucked the general firmness in Asia, falling to 11,350 per dollar as some foreign banks bought the dollar to cover their short positions, traders said.