Draghi be seen by Sarkozy as head of the Central Bank of Next

April 24, 2011, 4: 30 pm EDT by Helene Fouquet

April 24 (Bloomberg)--French President Nicolas Sarkozy sees Bank of Italy Governor Mario Draghi the leading candidate to succeed to the head of the European Central Bank, a person familiar with the issue, said Jean-Claude Trichet.

Status of the Draghi as the only candidate among the four largest nations of euro - France, Germany, Italy and Spain - made him the choice more viable, said of the person. Support of Sarkozy would follow signals from German officials that Italian is their favorite banker, adding impetus to its campaign.The French leader may make public opinions from 26 April at a conference jointly in Rome with Italian Prime Minister Silvio Berlusconi, an aide to Sarkozy told journalists. The decision maker key, German Chancellor Angela Merkel, has not yet on the edge of his hand. With a deadline of late June to make the appointment, career of Draghi and the fate of the ECB are taken in his political calculation.As the Portugal grows imminent rescue cost assist States euro since 250 billion euros ($361 billion), Angela Merkel, who has difficulty in rallying support them to bail out at home, may face domestic critics for choose a European South of a country with a legacy of inflation and debt.Draghi has emerged as a favorite since Axel Weber the Germany withdrew from the race in February. Now, the German Finance Minister Wolfgang Sch?uble sees him as the candidate to be appointed next Chief of the ECB, persons close to him say. Trichet eight-year term ends October 31, Vice-Minister of Foreign Affairs German Werner Hoyer, who manages European Affairs, said in an interview in April 15 that Draghi would make a "very good" President BCE and meet the goal of the Germany of a stable euro.Draghi, 63, an economist trained at the Massachusetts Institute of Technology, worked at the World Bank and Goldman Sachs Group Inc.. He is also President of the Council of financial stability, which was created by the Group of 20 nations in 2009 to oversee the development of standards to strengthen the global regulation.

-Publishers: James Hertling, Andrew Barden

To contact the reporters on this story: Helene Fouquet in Paris at the hfouquet1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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The Korea of the South Central Bank increased its Inflation forecasts

April 12, 2011, 9: 25 am EDT by Seonjin Cha and Eunkyung Seo

(Updates with comment from the the Economist fourth paragraph).

April 13 (Bloomberg) - inflation in the South Korea is probably accelerate forecasts more previously while economic growth remains consistent with expectations, the Bank of Korea said.Consumer prices may rise 3.9% in 2011, faster than the previous estimate of 3.5%, the Central Bank of the forecast in a statement in Seoul today. Gross domestic product expected to expand by 4.5 per cent this year and 4.8 per cent in 2012, after only a 6.2% gain in 2010, he said. The Bank predicted growth of 4.7% for next year December.Acceleration of inflation driven by economic growth and rising oil and food prices may prompt the Central Bank might increase interest rates three times this year, according to Barclays Plc Bank of Korea Governor Kim Choong Soo said yesterday take monetary policy action "neither too slow nor too fast" after that maintain the unchanged reference rate.Increased inflation forecasts "is a warmongering signal that strengthens our call for the rate increases, more this year," said Dariusz Kowalczyk, an economist based in Hong Kong to Credit Agricole CIB. He said that he predicted at least two increases of interest rates over this year and a strengthening in the WINS at 1,050 to the dollar at the end of the year.Won reached 0.1% to 1,092.85 per dollar as of 9: 18 pm in Seoul, according to data compiled by Bloomberg, while the stock index ABN won 0.1%.Central Bank of oil pricesThe also found the economy increased by 1.5% in the first quarter and expanded by 4.1% a year earlier. Economic growth was boosted by exports. Shipments overseas jumped 30.3% at record rate 48.6 billion in March, according to a report by the Government on April 1. consumer inflation in the fourth largest economy in Asia will accelerate 4.5 percent this year, the Monetary Fund International scheduled this week. It provides that economic growth should slow to 4.2% year next 4.5 percent this year.The threat of further increases in oil prices has become a "key downside risk" for global growth, according to the IMF. Oil will increase by 36% in 2011 to $107.16 per barrel, based on the average prices of Brent r. UK, Dubai and West Texas Intermediate crude, the IMF said. January forecast was for oil at US $89.50 per barrel this year.Inflation CeilingThe Bank Korea itself the projects of the price of oil to be $ 105 per barrel this year, from its previous estimate of $87. For may delivery fell $3.67 to $106.25 a barrel on the New York Mercantile Exchange yesterday, the lowest settlement since 30 March higher oil and food prices pushed consumption above 4 per cent increase the Central Bank ceiling each month since the beginning of the year crude oil, which prompted the Bank to increase rates by a quarter of a percentage point each in January and March. Consumer prices rose by 4.7% from a year earlier in March, the largest increase since October 2008.Governor Kim said high inflation will likely persist in the coming months and that basic excluding oil prices and food can acquire more rapidly than the consumer price at the end of this year. "We are determined to normalize interest rates," Kim said yesterday after maintaining the rate of the target to 3%. " "We will be move forward nor too slowly, or too fast and in a way forward - looking as we are overcoming a crisis.". The Central Bank began to increase the redemption rate of seven days in reference to a record minimum 2% the last July.Jobless RateThe Korean Central Bank to raise its rate target by 25 basis points in mayJuly and September, Wai Ho Leong, a regional economist based in Singapore in Barclays Plc, said yesterday in a report.The Bank has now also provides that the unemployment rate will decrease to 3.4% the year next 3.6% this year. Excess of accounts of the nation should be reduced to 11 billion in 2011 from $ 28.2 billion year last due to the high prices of oil.Unemployment rate of the Korea in the South remained at a maximum of one year in March as an economic recovery encouraged people to find work.The unemployment rate was at 4 percent, unchanged since February, statistics Korea in Gwacheon said today, citing seasonally adjusted figures.

-Editors: Ken McCallum, Brendan Murray

To contact the reporter on this story: Eunkyung Seo in Seoul to eseo3@bloomberg.net Seonjin Cha in Seoul at the scha2@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst in ppanckhurst@bloomberg.net Chitra Somayaji in the csomayaji@bloomberg.net

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