Asia

Bank Of Japan Boosts Loan Programmes. Japan's central bank, Bank of Japan, has expanded two key lending programmes to try to boost economic growth. It has doubled the size of one facility to 7 trillion yen ($68bn) and said banks can now borrow twice as much money at low rates as previously under the second programme. The central bank also extended the expiry of both schemes by one year. The central bank maintained its pledge to expand the monetary base by 60 trillion to 70 trillion yen per year. (BBC)

China’s Jan FDI Rises 16.1% On-Year. China drew US$10.76bil in foreign direct investment (FDI) in January, up 16.1% from a year earlier, the Commerce Ministry said on Tuesday, a sign that confidence in the world's second-largest economy remains firm even as growth cools. The majority of the new investment, some US$6.33bil, went into China's services sector, while investment in manufacturing fell 21.7%, the ministry said. Ministry spokesman Shen Danyang told a media briefing that China's economic reforms, especially in the services sector, helped boost confidence of foreign investors. FDI inflows into China in 2013 rose to a record US$117.6bil. (Reuters)

China Removes $8bn From Money Markets To Control Lending. China's central bank has removed nearly $8bn from the money markets in a bid to control the amount of credit in the country's financial system. According to reports, the People's Bank of China (PBOC) did so by issuing 14-day forward bond repurchase agreements, also known as forward repos. It is the first time since June the PBOC has used forward repos, and comes after China released unusually strong economic data earlier this year. (BBC)

North America

Homebuilder Confidence In U.S. Slumped In February On Weather. Confidence among U.S. homebuilders plunged in February by the most on record as bad weather limited prospective buyer traffic and depressed sales. The National Association of Home Builders/Wells Fargo sentiment gauge slumped to 46 this month from 56 in January, figures from the Washington-based group showed today. Readings less than 50 mean more respondents reported poor market conditions than good. The measure was weaker than the most pessimistic projection in a Bloomberg survey of economists. (Bloomberg)

U.S. Cross-Border Outflow Of Capital Hits Highest Since 2009. A measure of capital flowing in and out of the U.S. showed the biggest net selling since February 2009 as the Federal Reserve prepared to scale back its bond buying, according to Treasury Department data released today. Investors sold a net $15.4 billion of long-term agency debt in December, the biggest monthly drop in those securities since September 2010 amid selling in Caribbean banking centers often used by hedge funds, the figures showed. They also sold U.S. stocks and corporate bonds, while China and Japan reduced holdings of Treasuries in the month the Fed decided to trim monthly asset purchases to $75 billion from $85 billion. (Bloomberg)

Canada Consumer Sentiment Ends 4-Week Slide On Employment. Canada’s consumer sentiment rebounded from a four-week slump after January job gains bolstered optimism and the nation’s currency pared losses. The Bloomberg Nanos Canadian Confidence Index rose to 57.1 in the week ending Feb. 14 from a previous reading of 56.0, which was the lowest since May. Sentiment improved in every region except the prairies. (Bloomberg)

Europe

UK Inflation Falls To 1.9% In January. The UK's inflation rate, as measured by the consumer prices index, fell to 1.9% in January. The rate fell below the Bank of England's 2% target for the first time in more than four years. The fall is likely to underline the Bank of England's message that there is no rush to raise interest rates. Inflation as measured by the Retail Prices Index rose to 2.8% from 2.7% in December, the Office for National Statistics (ONS) said. (BBC)

European Car Sales Rise 5.5% In January, ACEA Says. EU car sales rose last month, lifted by demand in former crisis nations such as Greece and Ireland. The Association of European Carmakers (ACEA) said sales jumped 5.5%, to 935,640 vehicles, from January 2013. It was the fifth consecutive month of growth, which have been supported by big discounting by manufacturers. Sales in Greece rose 15.4%, Portugal jumped 31.8%, and Ireland was 32.8% better, supporting other data pointing to economic recovery in the countries. All the major EU markets posted growth, with the UK and Spain up 7.6%, Germany up 7.2%, Italy up 3.2%, and France edging ahead 0.5%. (BBC)

Currencies

Dollar Rises Against Yen After BOJ Move. The U.S. dollar climbed higher against the yen Tuesday after Japan’s central bank expanded its lending support to the country’s financial institutions, but failed to hang onto all those gains. The U.S. dollar climbed to ¥102.39 — but traded as high as ¥102.76 — from around ¥101.98 just before the bank released its statement. The euro also climbed against the yen, buying ¥140.85 from around ¥139.50. The ICE dollar index , which tracks the U.S. unit against six other currencies, edged down on the day at 80.017 from 80.03. Elsewhere in the market, the British pound was at $1.6683, down from $1.6790. The euro rose to $1.3758 from $1.3710. The Australian dollar pulled back against the greenback following the minutes, trading at 90.26 U.S. cents compared with 90.71 U.S. cents before the minutes were released. (Market Watch)