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1 hr 57 mins ago

Geithner welcomes Japan steps

Treasury Sec’y Timothy Geithner said Japan’s commitment to rely less on exports and more on domestic consumption would boost the global economy, according to a senior Treasury official. Geithner spoke in Tokyo with Japanese Finance Minister Hirohisa Fujii as part of a regional tour to prod China and other Asian countries to reduce their trade surpluses and bring the global economy into better balance.

Fitch warns U.K., Japan on debt

The risk of a downgrade to the U.K.’s sovereign credit rating is highest among top-rated economies due to a soaring budget deficit, Fitch said. Meanwhile, Fitch warned Japan to stick to its $490 bil borrowing target for next year or risk a downgrade to its AA-minus rating. The Int’l Monetary Fund expects Japan’s debt to hit 227% of GDP, the highest by far in the G-7.

German economy rebounding

Europe’s top economy likely grew 0.8%-1% (not annualized) in Q3 on gains in consumption, exports and investment, a senior German official told Reuters. Economists expect Fri.’s report to show a 0.8% rise after Q2′s 0.3% gain. The official added that ’09 growth may best gov’t forecasts for a 5% drop.

Industrial output unexpectedly fell 1.5% in France in Sept. and dived 5.3% in Italy, gov’t data showed, pointing to a weak recovery in the 16-member euro zone. German investor confidence fell 4.9 points in Nov. to 51.1, a 4-month low, due to worries that rising unemployment will dampen consumption, the ZEW think tank said. “The financial market experts surveyed do not expect … a strong boost to growth over the next year,” said ZEW head Wolfgang Franz. “Rather, the economic recovery will proceed in small steps.” U.K. home prices, retail sales up

A net 34% of surveyors reported price gains in the 3 months to Oct., the best since Dec. ’06, when prices were rising at a double-digit pace, according to a survey by the Royal Institution of Chartered Surveyors. Meanwhile, retail sales rose 3.8% in Oct. vs. a year ago, the highest since April, another industry group said, raising hopes that consumers will be able to power an economic recovery.