United States: Fed’s message of no rate hike until 2015 is sinking in: study
A new paper published by the Federal Reserve in San Francisco reveals that economists and investors have widely adopted the view that interest rates will stay very low until 2015. Fed economist Michael Bauer and the bank’s research director Glenn Rudebusch declared the following: “our estimates suggest that the Fed’s forward guidance has been effective in pushing out the expected liftoff horizon.”
China: FDI rises in the ten first months
As BBC News reported, Foreign Direct Investment to China rose 5.77% in the first ten months of 2013, which marks the first improvement over last year’s figures. The main increases came from the EU and the US, although both regions only account for a fraction of the total FDI, compared to the inflows from Asian countries.
Europe: Car sales increase for the second consecutive month
Mainly due to the rise in car sales in Spain, European car sales rose for the second consecutive month in October. The result came after the Spanish government introduced a subsidy for car purchases, which boosted sales.
Argentina: Argentina’s Kicillof, architect of YPF seizure, named economy minister
Reuters reports that Argentine President Cristina Fernandez burst back on the scene naming as economy minister the government’s point man in its 2012 seizure of the country’s biggest oil company. She also appointed Carlos Fabrega as the country’s new central bank .
Thailand: Thailand Cuts Economic Growth Forecast as Exports Falter
Bloomberg reports that Thailand downgraded its GDP forecasts about this year and the next, after the release of Q3 GDP. Now the government expects the economy to grow 3% from a range of 3.8%-4.3% previously estimated. For next year the economy is expected to pick up and grow between 4%-5%. The revision came on the back of weakening export growth which is projected to be flat this year.