Partial Government Shutdown in 11th DayOctober 11, 2013 Posted by: Pete Karabatos
Economists have voiced concerns that hitting the debt ceiling, even if funds were put aside to pay debt holders, would do harm to the U.S. economy. Glenn Hubbard, who served on George W. Bush’s administration, stated that “it signals that we have an inability as a nation to get our budget process in order” and that could “do damage to the U.S. growth potential and credibility.” The U.S. is currently in its 11th day of partial government shut down and is now only 6 days away from running out of borrowing capacity.
• Canada’s unemployment rate fell to the lowest level in nearly five years to 6.9% in September from 7.1% as a result of young people dropping out of the labor force. Canada’s labor participation rate is now the lowest in almost a decade.
• India’s industrial output growth slowed more than expected .6% in August due to moderating consumer spending.
• China’s passenger auto sales rose by 21% to an eight month high in September to 1.59 million units.
• ECP president Draghi said that the policy makers’ commitment to keep rates low allows for additional cuts if market turbulence resumes.
• China deputy central bank governor Yi Gang said that the country’s economy could grow by about 7% per annum for the “foreseeable future” even as policymakers try to stem the housing bubble and expansion in local government debt.
10/15 GBP: CPI/PPI/Retail Sales Reports (Sept.)
10/15 EUR: France CPI (Sept.)
10/16 USD: CPI (Sept.)
10/16 USD: Fed releases Beige Book
10/17 GBP: Retail Sales (Sept.)
10/17 USD: Housing Starts (Sept.)
10/18 USD: Industrial Production (Sept.)
10/18 CAD: CPI (Sept.)
10/21 JPY: Trade Balance (Sept.)
10/21 USD: Existing Home Sales (Sept.)