October 28th – Top Stories
- Gov. shutdown replaced holiday cheer with fear - NY Post – By Catherine Curan
More than a week after the debt-ceiling standoff ended, fresh evidence is piling up that the 16-day government shutdown left an indelible mark on American consumers, replacing holiday cheer with economic fear.
Americans are scared of losing their jobs and worried about the overall state of the economy, according to several new surveys.
Moody’s Analytics expects revenue growth to be weaker in 2013 than in any of the last three holiday seasons. Economists say spiking consumer anxiety underscores the painful reality of widespread joblessness and stagnant incomes.
“The biggest factor is the lack of wage-income growth, which is obviously related to weakness in the labor market and a high unemployment rate,” said Scott Hoyt, senior director of consumer economics at Moody’s Analytics.
- China’s State Council think tank sets out roadmap for reform - The South China Morning Post – By Li Jing
A top government think tank has unveiled a detailed road map for a series of far-reaching economic policy changes, in one of the strongest indications yet that the Communist Party intends to stay on the path of reform.
The recommendations by the State Council’s Development Research Centre came ahead of the much-anticipated third plenum of the party’s 18th Central Committee next month, a critical opportunity for President Xi Jinping to advance his economic and social reform agendas.
3/ Eurozone & UK
- Analysis – Convalescent euro zone seeks to escape debt overhang - Reuters – By Paul Taylor
Euro-area banks are likely to step up efforts to bolster their finances after the European Central Bank outlined its plans to scrutinize their health.
As the euro zone’s weakest members crawl out of their longest recession in modern history, their prospects of recovery are weighed down by a crushing mountain of debt far heavier than before four years of financial crisis.