Asia: World Bank says region may need some capital controls . Asian economies may need to turn to capital controls as quantitative easing by the U.S. threatens to spur asset bubbles in the region's stock, currency and property markets, the World Bank said. Any curbs should be "targeted," temporary and tailored to address specific problems, Sri Mulyani Indrawati, a World Bank managing director, said in an interview. This could include countries tying up funds for as long as a year to help limit hot-money, she said. (Source: Bloomberg)
China: Dagong lowers U.S. credit rating on Fed monetary policy . China's Dagong Global Credit Rating Co. reduced its credit rating for the U.S. to A+ from AA, citing a deteriorating intent and ability to repay debt obligations after the Federal Reserve announced more monetary easing. The credit outlook for the U.S. is "negative", as the Fed's plan to buy government debt will erode the value of the dollar and "entirely encroaches" on the interests of creditors, analysts at Dagong, one of China's five official ratings companies, said in a statement. The U.S. is rated Aaa and AAA by Moody's Investors Service and Standard Poor's Corp., the highest credit ratings of the New York-based companies. (Source: Bloomberg)
Japan: Current account surplus widened in September as exports increased , indicating that demand from Asia has helped offset the impact of a yen near its highest level against the dollar since 1995. The gap expanded 24% YoY to JPY1.96tr (USD24b), the Ministry of Finance said in Tokyo. (Source: Bloomberg)
Australia: November consumer confidence falls to a five-month low after the central bank resumed raising interest rates, sending mortgage payments higher. The sentiment index fell 5.3% to 110.7 this month, according to a Westpac Banking Corp. and Melbourne Institute survey of 1,200 consumers conducted Nov. 1-7. (Source: Bloomberg)
China: October property price growth slows on government curbs
China’s property prices rose at a slower pace in October after the government raised interest rates and expanded measures to limit the risk of asset bubbles in the world’s fastest-growing major economy. Home prices in 70 cities climbed 8.6% from a year earlier. That’s slower than the 9.1% increase in September and the 8.9% median estimate in a survey of six economists. (Bloomberg)
Australia: Says deficit to worsen as currency surges
Australia’s budget deficits will be wider this year and next than the government predicted before an 21 Aug election as a rising exchange rate slows tax revenue from exporters, the Treasury said in a midyear review. The shortfall in the fiscal year ending 30 June will be AUD41.5 bn (USD42bn), compared with a July estimate of AUD40.7bn, a report released showed. The gap the following year was forecast to be AUD12.3bn, compared with a previous projection of AUD10.4bn. (Bloomberg)
UK: Factory production expands for a fifth month
UK manufacturing expanded for a fifth month in September to reach the strongest level in almost two years as the economic recovery sustained its momentum. Output climbed 0.1% from the previous month, the Office of National Statistics said in London. The median forecast of 25 economists in survey was for an increase of 0.2%. Overall industrial production rose 0.4%, and the trade deficit narrowed as exports gained. (Bloomberg)
US: Wholesale inventories rose 1.5% in September
Inventories at US wholesalers climbed twice as much as forecast in September as suppliers stocked up ahead of the holiday sales season. The 1.5% increase in the value of inventories followed a revised 1.2% rise in August that was larger than initially estimated, Commerce Department figures showed. The median of economists surveyed projected a 0.7% gain. Sales climbed 0.4% to USD353.9bn, the highest since September 2008. (Bloomberg)
US: Job openings decreased 163,000 in September
Job openings in the US dropped in September for a second month, signaling a sustained labor market rebound will take time to develop, a government report showed. Openings decreased by 163,000 to 2.93m, the Labor Department said. The number of people hired rose from the prior month and separations declined. The unemployment rate was 9.6% for a third month in October even as payrolls increased 151,000, Labor Department figures showed last week. (Bloomberg)
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