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European Central Bank President Jean- Claude Trichet said the bank must set interest rates with the sole goal of maintaining price stability, rebuffing calls from the French and Italian governments for it to take growth into account.

“It's crucial that the Governing Council sets the appropriate monetary policy stance on the basis of no other considerations than the delivery of price stability in the medium term,'' Trichet said at a conference in Vienna today. The bank's current policy stance “will contribute to achieving our objective,'' he said.

The ECB has held its key rate at a six-year high of 4 percent to contain inflation, which accelerated to 3.6 percent last month, the fastest pace in 16 years. That's helped drive the euro to a record against the dollar, threatening to deepen Europe's economic slowdown and leading to calls from some governments for the ECB to take more account of growth.

French Finance Minister Christine Lagarde said yesterday that the gap between the ECB's benchmark rate and that of the U.S. Federal Reserve is a “bit too big'' and that a “more flexible'' ECB could help narrow the difference. The Fed's main rate is now at 2.25 percent.

Berlusconi Wades In

Italian Prime Minister-elect Silvio Berlusconi said April 16 that the ECB should consider more than just targeting low inflation when setting monetary policy payday loans in 1 hour credit report. “The ECB must have broader functions, with a majority deciding, to go beyond controlling inflation,'' he said.

Trichet repeated that he's concerned about the euro's gains, which are undermining the outlook for European exports. “There have been at times sharp fluctuations between major floating currencies and we're concerned about their possible implications for economic and financial stability,'' he said.

Still, speaking at the same conference as Trichet, ECB council member Klaus Liebscher said the bank has to “closely monitor'' all developments and act preemptively if necessary to prevent surging oil and food prices from feeding into wages.

Economists at Deutsche Bank AG, HSBC Securities and JPMorgan Chase & Co. last week bet accelerating inflation will force the ECB to keep interest rates at 4 percent for longer than previously anticipated. The economists said the bank will start cutting interest rates in the final quarter of this year, having previously anticipated a reduction by the end of the third quarter.

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Thailand's economy grew at the fastest pace in seven quarters, exceeding economists' estimates, as exports of rice, automobiles and computer chips climbed.

Southeast Asia's second-biggest economy expanded 5.7 percent in the fourth quarter, accelerating from a revised 4.8 percent in the third quarter, the government said today in Bangkok. That was more than the median estimate of a 5.3 percent gain in a Bloomberg News survey of 12 economists.

Overseas shipments grew 24 percent, almost double the pace of the third quarter, even as the baht's rise to a decade-high made exports more expensive. The end of military rule this month may boost consumer confidence after newly elected Prime Minister Samak Sundaravej's government promised to boost budget spending and revive investment.

“The export performance looks phenomenal,'' said Ramya Suryanarayanan, an economist at DBS Bank Ltd. in Singapore, who expects Thailand's economy to expand 5.6 percent this year. “Worries about a strengthening Thai baht hurting exports are overdone. Growth is going to be pretty strong this year supported by pick-up in investment, consumption and exports.''

Exports, which account for about 60 percent of the economy, grew 24 percent in the fourth quarter, from 12.6 percent in the third quarter, according to central bank data. Exports totaled a record $14.6 billion in November as demand from China and eastern Europe offset waning orders from the U.S. and Japan.

U.S. Risk

Gross domestic product expanded 1.8 percent in the fourth quarter from the previous three months, when it grew 1.5 percent, seasonally adjusted. That was higher than the 1.3 percent median estimate of economists surveyed by Bloomberg.

The baht onshore held at 32.29 per dollar as of 10:50 a.m. in Bangkok, the highest since August 1997, according to data compiled by Bloomberg. The SET Index rose as much as 1.3 percent to 837.59, extending its gain over the past year to 22 percent.

The export boost may not last if the U.S., the biggest buyer of Thailand's exports, slips into a recession.

Goldman Sachs Group Inc. on Jan. 14 cut its 2008 forecast for Thailand's expansion to 4 percent from an earlier estimate of 4.5 percent due to the possibility of a U.S. recession.

That compares with the Bank of Thailand's prediction of as much as 6 percent growth.

“We expect the U.S. economy will fall into a mild recession,'' said Aksarapak Wongcharoen, an economist at Tisco Securities in Bangkok. “The negative impact of a U.S. and global slowdown on the Thai economy will be seen through weak exports beginning in the second quarter of this year.''

Consumer Spending

The U.S. bought 12.6 percent of Thailand's exports in 2007, followed by Japan's 11.9 percent and China's 9.7 percent.

Consumer spending rose 1.6 percent from a year earlier in the fourth quarter, slowing from 1.8 percent in the previous three months, today's report showed payday loans creditscore.

Thailand's economy is expected to grow between 4.5 percent and 5.5 percent this year, compared with 4.8 percent in 2007, as recovering local demand and government spending offset slowing exports, Ampon Kittiampon, secretary general of the National Economic and Social Development Board, the government's economic advisory agency, told reporters today.

The government has pledged to continue the policies of Thaksin Shinawatra, who oversaw the fastest economic growth in a decade in 2003, before being ousted as prime minister in a 2006 coup. Restrictions on foreign capital entering Thailand will be lifted to boost the economy, Prime Minister Samak said on Feb. 8.

“They are turning the page on the political front, and that should help support domestic demand, including both consumer and investment spending,'' David Cohen, economist at Action Economics in Singapore, said in an interview with Bloomberg Television.

Confidence Rising

Consumer confidence rose for a third straight month in January amid optimism the new government would spend more.

Total investment in the fourth quarter rose 4 percent, accelerating from a 2.6 percent gain in the previous quarter, today's report showed.

Manufacturing gained 8.1 percent following a 5.7 percent expansion in the previous three months. Private construction contracted 8.5 percent from growth of 0.7 percent a year earlier.

Government spending increased 16 percent, compared with the third quarter's 9.5 percent pace.

Interest Rates Outlook

The Bank of Thailand lowered its benchmark interest rate five times last year in the longest string of rate cuts since May 2000. It reviews borrowing costs this week.

The Bank of Thailand will probably keep its benchmark interest rate unchanged on Feb. 27 as inflation accelerates, according to 9 of 15 economists surveyed by Bloomberg News. Six predicted a quarter percentage point cut to 3 percent.

Consumer prices rose 4.3 percent from a year earlier in January, the fastest inflation in 18 months, as fuel and food costs increased.

The government has signaled it may pressure the central bank to lower interest rates. Prime Minister Samak said on Feb. 18 the government will use monetary policy to support economic growth.

“They are favorable to cutting the interest rate,'' said Andrew Freris, chief economist for Asia Pacific at BNP Paribas in Hong Kong. “They have substantial problems on their hands. One is to maintain the impetus of growing business confidence and consumer confidence.''

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U.K. retail sales rose at the slowest pace since March 2006 and house prices declined for the first quarter in seven years, adding to the case for the Bank of England to cut interest rates again.

Revenue at stores open at least 12 months increased 0.3 percent from a year earlier in December, the British Retail Consortium said in London today. Home values fell 0.8 percent in the fourth quarter, the first drop since 2000, according the HBOS Plc, the country’s biggest mortgage lender.

Signs of slower economic growth prompted the Bank of England to reduce the benchmark interest rate from a six-year high last month after borrowing costs rose because of the collapse of the U.S. subprime-mortgage market. Retailer Next Plc says business is already slowing, and HBOS said today the Bank of England will need to cut rates twice more this year.

“It’s now incumbent on the bank to act quickly to ensure that the pain to consumers is kept to a minimum,” Kevin Hawkins, director general of the BRC, said in a Bloomberg Television interview. Past rate increases “are still working through. The pain will get sharper for everyone.”

Retail sales in the 13 countries sharing the euro fell 0.5 percent in November, the second month of declines, data from the European Union’s statistics agency showed today.

House Prices

HBOS said today house prices rose 1.3 percent in December from November, snapping three months of declines. That was the worst stretch since 1995. The pound rose as high as $1.9828 today and traded at $1.9753 as of 11:55 a.m. in London.

Some analysts said the house-price increase masked a wider property market slowdown. Merrill Lynch & Co. economist Nick Bate said “we would not read much into any month’s data” and Nick Parsons, head of market strategy at NAB Capital in London, said “I simply do not believe the numbers.”

The December gain also contrasts with other reports. Prices fell 0.5 percent last month, Nationwide Building Society said Dec. 28, and mortgage approvals fell to a three-year low in November, according to Bank of England data.

“There isn’t as much activity this time of year, we can see these ups and downs in the monthly changes as the year ends,” said Martin Ellis, chief economist at HBOS, in an interview no fax payday loans payday loan online. “It’s reinforcing our view that we’re heading for a more subdued market.”

Credit Conditions

Tighter credit conditions may discourage homebuyers and household spending. U.K. banks plan to make fewer loans to consumers and companies in the first quarter, according to the central bank’s quarterly survey on credit conditions, published last week.

Higher mortgage rates and gasoline prices will also leave consumers with less money to spend. Banks increased the cost of home loans fixed for two years in November, Bank of England data show. Gasoline prices stayed close to November’s record of $7.82 a gallon last month, according to AA Motoring Trust Trading Ltd.

John Lewis Partnership Plc, owner of the largest U.K. department-store chain, said today it expects the business climate to be “challenging” this year. Next, Britain’s third- largest clothing retailer, said Jan. 3 that U.K. same-store sales won’t rise in 2008 and Jessops Plc, a camera retailer, said revenue fell 21 percent in the seven weeks ended Jan. 6.

Sales of clothing and footwear declined for a third month in December while revenue from food, drink and cosmetics increased, today’s BRC report showed. The lobby group, which represents 80 percent of U.K. retailers, conducted the survey from Nov. 25 to Dec. 29.

Scope to Wait

While 10 of the 50 economists surveyed by Bloomberg News forecast an interest-rate cut as soon as this week, the Bank of England has scope to wait.

Growth in U.K. service industries from banks to airlines unexpectedly accelerated last month. In November, retail sales rose the most in three months as stores lowered prices, the statistics office reported Dec. 21. Inflation was slower than economists predicted that month and unemployment fell to the lowest since 1975.

Bank of England policy makers predict economic expansion of about 2 percent this year following 3 percent growth in 2007. They will make their next interest-rate decision on Jan. 10 after all nine of them voted to reduce borrowing costs last month to 5.5 percent. It was the first unanimous decision for a cut since the aftermath of the Sept. 11 attacks in 2001.
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Czech energy group CEZ will take out a one-year loan to finance the acquisition of a 7% stake in Hungarian oil and gas company MOL. According to Spokesperson Eva Novakova, CEZ is currently looking into financing requirements to determine the size of the loan, Czech commercial bank Ceska Sporitelna said in its daily report.

As reported earlier, CEZ and MOL have agreed to form a strategic alliance and build several power plants in cooperation with each other. The agreement specifies the terms on which CEZ is to acquire a 7% stake in MOL.

According to the latest news, CEZ is expected to finance the transaction with a loan extended by three commercial banks: ING Groep NV, Intesa Sanpaolo SpA and Ceskoslovenska Obchodni Banka no teletrak payday loans. –>. The interest on the one-year loan is Euribor+17bp, which is currently 4.8%.

The announcement is good news for investors as CEZ’s debt rate is very low compared with the industry average, thus the company may optimize its capital structure with a new loan. The size of the loan is not expected to exceed EUR 560 million.
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From 2005 to 2006, Wells Fargo increased its total number of small business loans of $100,000 or less by 27 percent in Alaska, according to the latest Community Reinvestment Act data. Wells Fargo was the top small-business lender in Alaska, with 5,753 loans of $100,000 or less for a total of more than $151 million in 2006, a 20.6 percent increase in dollar volume over 2005. Wells Fargo is the top lender to small businesses in Alaska’s low- and moderate-income neighborhoods, with 620 loans of less than $100,000 for a total of $17.3 million, a 12 percent increase in dollar volume over 2005.

The national small-business lending market totaled $126 billion in 2006, with Wells Fargo holding steady as America’s top small-business lender for the fifth consecutive year http://easy-quick-payday-loans.com. With an 18 percent year-over-year increase in its 2006 lending, Wells Fargo extended $21 billion to small-business owners nationwide in loans of less than $100,000, according to the 2006 CRA data.

Body shop colors itself green

Driven Auto Body, 5011 Spenard Road, said it has received a Green Star Award. Green Star is a nonprofit organization that encourages businesses to practice waste reduction, energy conservation and pollution prevention. The body shop uses water-borne paints, which reduce toxins in comparison to other paints, and dries the paint using an air flow system rather than baking, which saves on energy. The painter is also exposed to fewer toxins. The shop has also instituted a recycling program that results in significant reduction of waste going to the city landfill. Driven Auto Body is owned by Kevin Stalder.

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New research has suggested that people don’t understand the value of a one per cent difference in mortgage rates.

According to Nationwide Building Society, a one per cent difference in rates on a five-year fixed rate mortgage could be worth over ?4,000.

But when presented with the details of two five-year mortgage deals, 28 per cent of respondents said they thought the difference on a ?120,000 mortgage with an interest rate at 5.6 per cent compared to 6.6 per cent would be between ?500 and ?2,000.

A total of 23 per cent had no idea at all while 25 per cent were able to identify the correct difference.

When it comes to mortgages, men have the edge over women - 33 per cent of men answered correctly compared to 18 per cent of women.

Older age groups also did better, 31 per cent of 55 to 64-year-olds guessed correctly while 16 per cent of 18 to 24-year-olds were right.

Matthew Carter, Nationwide Building Society’s divisional director for mortgages, said: “People’s lives are busier than ever in the run up to the festive season and, as a result, they may be less inclined to shop around for the best deal.

“The temptation may be to take a slightly higher rate as an easier, less hassle option freecreditscore. But, as our research shows, most people don’t understand the impact that just a one per cent difference can make, meaning they could be wasting thousands of pounds.”

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