Great Britain out of recession faster in 4th Qtr

UK growth revised up its economy in the fourth quarter of 2009, after revelations that the services sector rose at a rate five times higher than originally estimated.
The statistics office said Friday that gross domestic product grew 0.3 percent in the last three months of last year, up from the initial estimate of a 0.1 percent expansion.
The review also exceeded the 0.2 percent rise expected by analysts polled by Reuters.

However, the figure leaves the annual GDP contracted by 3.3 percent, down somewhat higher than originally estimated by a downward revision from the previous figures.
This means that the British economy has accumulated a 6.2 percent contraction during the recession, it was from the second quarter of 2008 until the third from 2009 inclusive. The figure is higher than the 6.0 percent initially estimated, and converts the current into the deepest recession in more than 50 years.

The central bank would not be impressed by the figure upward in the fourth quarter because it had already anticipated a revision upwards in a report in February.
The Finance Ministry said after the data that the economic recovery still faced risks.

"While it is good to see an upward revision, the latest data in the European Union and elsewhere have indicated that there are risks and uncertainties about the recovery, and no room for complacency," said a Treasury spokesman.
"Remove the support that has helped us reach this point would put the recovery at risk," he said.

In the same vein, the Finance Minister Alistair Darling said that despite the positive data of the fourth quarter, the economy faces a period of uncertainty.

"We are overcoming the recession. We're getting closer to recovery, but it is absolutely essential that we maintain support for the economy," said Darling.

The upward revision was mainly due to strong December figures, particularly in the service sector, where growth in the fourth quarter was revised to 0.5 percent from 0.1 percent, the report showed.

"In the sense that growth was supported by government spending and inventories, there is reason for concern for the future. But we feel that the fiscal and monetary stimulus will help repair the economy," said Amit Kara, an analyst at UBS .

BMW Group sales rose in September for the first time this year

The German auto group BMW sold more cars in September than the same month in 2008, so was able to increase sales for the first time this year.
BMW reported that in September around the world sold 122,354 units of BMW, Mini and Rolls-Royce, 0.7 percent more than the same month last year.The BMW brand delivery in September fell 1.2 percent to 97,545 units, while Mini support increased by 9.5 percent to 24,759 vehicles.
However, the BMW Group sales fell in the first nine months of the year by 15.7 percent to 939,554 vehicles.
The head of Sales and Marketing Group, Ian Robertson, predicted an increase of deliveries in each of the last three months of the year, provided there are no short-term setbacks.
In late October, BMW will expand its model range with the new X1 and 5 Gran Turismo series.
Robertson predicted a sales decline of between 10 and 15 percent for the whole year 2009 compared to 2008, when it sold 1.2 million vehicles.

Australia's central bank raises rates, anticipates further tightening

Australia's central bank raised its key interest rate by 25 basis points to 3.25 percent and anticipate further monetary tightening, saying that now that the greatest danger to the economy is over, it is safe to remove the monetary stimulus.
The Australian dollar rose the most in 14 months as investors were quick to discount at least one more rate increase around Christmas, with a rise in official borrowing costs above the 4 percent within a year.
Asian markets also moved to discount expectations of further monetary tightening on the part of central banks.
The decision by the Reserve Bank of Australia (NGA) makes this organism is the first of the central banks of the Group of 20 countries in raising rates as it eases the global financial crisis. The initiative of the USA was a surprise to many analysts.
However, the markets had been full of speculation about a move of the entity, given the strength of recent economic data.
"The USA had become known that was coming to raise rates from their lows a little extraordinary, and now he has done," said Rory Robertson, interest rate strategist at Macquarie.

"It will be a gradual move from an emergency rate of 3.0 percent to 4 percent, still expanding," he added.It was the first increase of the USA since March 2008, but only removes a small part of the incentive of 425 basis points applied when the global credit crisis was at its worst.