JAKARTA (TheInsiderStories) – Good morning; here we provide several pieces of important news that might help your business decisions today:
Fed’s Yellen keeps eye on inflation – cheers economy
While the U.S. economy remains strong, the strength of the labor market calls for continued gradual increases in interest rates – despite subdued inflation, Federal Reserve Chair Janet Yellen said on Sunday. ‘We will be paying close attention to inflation data in the months ahead,’ Yellen said, in remarks prepared for an international banking seminar in Washington. ‘My best guess is that these soft readings will not persist.’ Yellen also opined she expected the U.S. economy to exceed its long-term trend during the second half of the year, and again claimed the economic impact of recent hurricanes should be temporary. The U.S. central bank voted to hold interest rates steady, at its last policy meeting in September.
Bankers Survey Reveals Slower-than-Expected Credit Growth
According to a Bank Indonesia survey, local Bankers expect credit to grow 10.6 percent (YoY) in 2017, a projection lower than the 12.4 percent suggested in a previous survey. The survey also showed how bankers have revised their estimates on interest rates for working capital and investment upward, while expecting consumption to dip.
PLN Electricity Sales Up 3.1 Percent
State electronic company PT Perusahaan Listrik Negaa booked 3.1 percent growth in sales through September 2017, compared to last year’s sales over the same period. Total sales volume as of September 2017 reached 163.6 terawatt hours (TWh), while September of last year, 158.6 TWh was reported, said Dadan Kusdiana, Head of Information Communication and Information Service Bureau at the Ministry of Energy and Mineral Resources. PLN also recorded an increase of 2.8 percent in electricity sales in West Java, where the volume as of this September reached 39.4 TWh, while last year it only reached 38.3 TWh over the same period.
US$1.27 billion in Indonesia Trade Expo 2017 deals
The four-day Trade Expo Indonesia concluded with deals worth $1.27 bn, the Ministry of Trade has announced, with the most prominent concluded with Saudi Arabia, Malaysia, Egypt, Thailand and Australia.
Jasa Marga Disburses Rp316 billion for Manado-Bitung Toll Road
PT Jasa Marga Tbk (IDX:JSMR) has disbursed a bailout of approximately Rp316 billion for the construction of a 39.9 km segment of the Manado-Bitung toll road in North Sulawesi Province. Overall funding for the segment is set at Rp6.7 tn., with the remaining Rp3.58 trillion to be covered by syndicated loans from state-owned banks, regional banks, and private sources.
IHS: Sovereign CDS spread widens amidst rising tensions with North Korea
Despite strong Japanese monthly data for exports and manufacturing production reported during September, concerns about North Korea’s hydrogen bomb test on 3 September and another ICBM test over Japan on 15 September continued to weigh on investor sentiment, pushing Japanese sovereign CDS spreads higher during the month. In parallel with rising Japanese CDS spreads, South Korean sovereign ones also widened in September, reflecting increasing concerns about geopolitical risks on the Korean peninsula, despite strong trade data showing that South Korean exports surged 35 percent YoY to a record high. Rising world oil prices saw the energy sector’s CDS spreads tighten the most among industry sectors in September. World oil prices jumped to two-year highs in late September on news that Turkey might impose sanctions on Iraq’s autonomous Kurdistan region, which pumps around 580,000 barrels of oil per day by pipeline for export through the Turkish port of Ceyhan. In the corporate space, news of Toshiba’s sale of its memory chip business to a Bain consortium saw the former’s CDS tighten by 9 percent.