May 20th, 2008

KRW: MoFE clarified that they wont carry out direct measures to curb short-term FX, the swaps firmed aggressively
TWD: First day of new administration, stocks 2.5% lower, spot at low of 30.46
MYR: 2nd FM Nor said economic fundamentals remain strong s mkts shouldn't be too concerned with Mahatir resigning from UMNO
- Mahatir said wont return to party until Abdullah has resigned


Thailand
Massive selling drove spot lower => offshore curve to come off
Chief Economist of BoT assured that "policy bias wont stifle growth"; April CPI t at a multi-year high
Any attempt to raise would be met with resistance, as govt still projecting 6% growth
Should play it safe and keep rates at 3.25%
Suspected CB intervention pushing THB higher; CB potentially trying to curb inflation via exchange rate

Singapore

South Africa
Mboweni's speech on Thursday
Next week GDP expecting low consumption growth, but even if slightly lower CPI, electricity tariff hike will boost price pressure
Expecting 50bp in June, aother 50 in August which would jack up rate to 12.5% in just 3 months
Luthuli House - home of Congress
Eskom CEO said main reason for 53% request was cost of raw materials, mainly cost of coal
Government has pledged about 60bn ZAR in assistance
FM Manuel defended inflation targeting as econ mgmt tool; and govt still wants 3-6% range
- "country with low savings, low reserves needs measured inflation"
- Union leaders suggesting food riots similar to other countries unless ANC scaps 14% VAT on essential food items
- would be difficult to use tax measures to deal with impact of higher food costs

15.03.2007Fitch Downgrades Iceland to A+ / AA+ Outlook Stable
On March 15, 2007 Fitch Ratings downgraded Iceland’s foreign and local currency Issuer Default ratings (IDRs) to A+ and AA+ from AA- (AA minus) and AAA respectively. The Outlook on both ratings is Stable. The Short-term foreign currency rating is also downgraded to F1 from F1+ and the Country Ceiling is lowered to AA- from AA.

http://www.xak.com/main/newsshow.asp?id=85219

Iceland's credit ratings were cut for the second time in less than two years by Standard & Poor's because the global credit crunch may cause its economy to shrink faster than anticipated. The country's long-term foreign-currency debt rating was lowered one step to A, five levels below the highest investment- grade rating, from A+, S&P said in a statement from London today. The ratings carry a negative outlook,
meaning they are more likely to be cut again than left unchanged or increased.