Key Global Economic Events for the week

China :

· In China, the August consumer price index (CPI) came in at 6.2% year-on-year compared to 6.5% last month, in line with a Bloomberg consensus analyst estimate of 6.2%. Investors are now expecting a halt to rate hikes as inflation begins to trend down.

· China's trade surplus narrowed: China's trade surplus narrowed in August on surging imports, a positive sign for the global economy as it indicates that Chinese demand remains strong. The surplus fell to $17.8 billion in August from $31.5 billion in July


India :

· Food inflation rose 9.55% y-o-y in the week ended Aug.27, edging down from the previous week’s 10.05%.

· India has now received 3% above-average monsoon rain between June 1 and Sep. 7, according to India’s Meteorological Department. Additionally, rains that usually subside by the first week of September are likely to continue for longer this year. The monsoon rains are expected to boost farm output and cool food prices

· Domestic car sales dip 10.08%, bike sales up 15.43% in Aug: Domestic passenger car sales declined by 10.08% to 144,516 units in August, 2011, from 160,713 units in the same month last year

· The rupee hit a 1 year low today on Monday (12th Sept) of 46.97 to the dollar. This is due to the dollar strength globally.


Ø The July Industrial Output (IIP) numbers will be announced today (12th September). A CNBC-TV18 poll threw up a forecast of 6.1%. Weakness in the Purchasing Managers Index (PMI) and auto sales may impact industrial output

Ø Inflation number for the month of August will come on September 14. CNBC Forecast is of 9.6%.

Ø The markets will be looking for decision from a crucial RBI policy meet on 16th September. The IIP numbers today and inflation numbers on 14th Sept will give an indication on the next step from RBI


Global :

· US government laid out a $450 billion stimulus plan to boost economic growth, including tax cuts, funds for infrastructure and support for mortgage financing. President Barack Obama proposed a $447 billion jobs package on Thursday to help boost the U.S. economy, challenging Congress to pass legislation made up largely of tax cuts for workers and businesses.

· Greece on Sunday slapped a new tax on real estate to plug a 2011 budget hole, please international lenders and secure a key new loan tranche as concerns mounted in Europe over its euro zone membership

· Greece Prime Minister George Papandreou, said in a speech late on Saturday he was determined to do whatever it takes to save Greece from bankruptcy and keep it in the euro.

· Late last week the rifts in European policymaking circles came out in the open when German economist resigned from the European Central Bank’s executive board following differences over the purchase of bonds from debt-laden countries.
· European Central Bank left interest rates unchanged and may lower its inflation and growth forecasts as the region’s debt crisis worsens. ECB officials meeting in Frankfurt today kept the benchmark rate at 1.5 percent.