TODAY’S TOP ARTICLES – 22 NOV 2013

Indonesia: Indonesia Pain Threshold Looms on Rate Increases
Reuters reports that despite Bank Indonesia’s decision to raise borrowing costs by 1.75 percentage points to 7.5% since early June the country is still facing a substantial current account deficit and a weak currency. Moreover, there is likely to be further capital flight and further depreciation once the Fed begins stimulus. Some analysts have suggested that raising interest rates has become ineffective and other measures, such as raising foreign reserve requirements, may be necessary.

Ukraine: EU trade agreement comes to a halt
After several months of talks with the EU in order to sign a free-trade agreement at the 26-27 November Eastern Europe Partnership Summit in Vilnius (Lithuania), Ukraine has stopped the process. Pressures from Russia, as well as the denial of President Yanukovich to release opposition leader Yulia Tymoshenko, are pointed as the main causes of the Ukrainian withdraw of the agreement, according to Bloomberg.

India: India to seek rupee trade payments to help currency
According to Reuters, India seeks to set up currency swap deals with the country’s major trading partners in an attempt to stabilize the rupee. It would include: Japan, Iraq and Venezuela.

China: China Pushes Unified Real Estate Registry; Property Tax Looming
Caijing reports that the Chinese government has announced plans to create a unified real estate registration system from the current “at least” nine separate government departments. This move could pave the way for the expansion of a piloted property tax.

Germany: Economy expands 0.3 in Q3
The German economy expanded 0.3% in Q3. The print came on the back of robust rise in domestic demand, which overshadowed the weakening in the external sector. The result comes amid the recent European Commission warning about the German trade surplus being a cause of imbalances in the rest of the European countries, as Reuters emphasized.

For latest economic indicators from around the world, please visit us at FocusEconomics.

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