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Please read carefully the important disclosures at the end of this publication.
Alliance Research
Economics Brief
21 January 2009
Crude oil = US$38.74/barrel
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May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09
Malaysia – Government plans second stimulus package
The government will introduce a second series of measures after
implementing the RM7bn package announced in Nov, according to
the DPM. He declined to reveal the size or details of the additional
spending program, stating that “very soon, we will determine the
timing”. (Bloomberg)
Eurozone – EU focuses on boosting lending
European finance officials are focused on reviving the banking
system to boost lending. The EU Economic and Monetary Affairs
Commissioner stated “credit is not restored in many occasions for
many people and many companies – this is a matter of priority right
now”. (Bloomberg)
Eurozone – German investor confidence improved
The index rose to minus 31 in Jan from minus 45.2 in Dec, its third
successive rise, against market expectations of minus 43.1. This is
mainly due to the ECB cutting interest rates and the government
announcing a second spending package to battle the deepening
recession. (Bloomberg)
Japan – Recession may last 3 years
Hiroshi Yoshikawa, the head of the government committee that
charts the economic cycle stated “”we’d better get ready for a 3-
year recession”. He continued that the decline “will be very severe,
not only in terms of duration but also depth” and that it’s “too
optimistic” to expect a US recovery this year. (Bloomberg)
Japan – Government says economy is “worsening rapidly”
The government lowered its economic assessment for a fourth
month, capping off the longest stretch of downgrades since May
2001. It said the economy is “worsening rapidly” and shipments
abroa