November 11th – Top Stories
- Fed Still Seen Tapering in March Even as Job Growth Picks Up - Bloomberg – By Jeff Kearns & Victoria Stilwell
Economists still forecast the Federal Reserve will delay tapering asset purchases until March even after a report yesterday showed employers added more jobs than forecast in October.
Policy makers will pare the monthly pace of bond buying to $70 billion at their March 18-19 meeting from the current pace of $85 billion, according to the median of 32 economist estimates in a Bloomberg News survey yesterday. The median forecast in an Oct. 17-18 survey of 40 economists also called for a reduction to $70 billion in March.
- China inflation hits eight-month high amid tightening fear - Reuters – By Xiaoyi Shao and Kevin Yao
China’s annual inflation climbed to an eight-month high of 3.2 percent in October as food costs soared, fanning market worries about policy tightening as factory output and investment data pointed to signs of stabilization in the economy.
Inflation, which quickened slightly from 3.1 percent in September, was still lower than a median forecast of 3.3 percent in a Reuters poll and was below the official target of 3.5 percent for 2013.
3/ Eurozone & UK
- ECB split stokes German backlash fears - FT – By Peter Spiegel in Brussels and Stefan Wagstyl in Berlin
Divisions at the heart of the European Central Bank over last week’s rate cut have revived fears in Frankfurt of a German popular backlash against the bank’s policy making, even as the ECB faces decisions critical to the eurozone’s future.
People involved in the policy debates said divisions between northern and southern representatives on the ECB board have been mounting since market pressures on the eurozone relaxed, with council members freed up to revert to national intere