The Fed Pivot is too early, and the US labor market becomes more solid. US labor data, JOLTS Job Openings rose 437K (4.3% MoM) to 10.7 million in September, as job openings in the accommodation and Food Services industries are high. Even as the Fed is on track for aggressive rate hikes, the solid labor market is lowering the hopes of looser policy by The Fed at the FOMC Meeting next December. The Fed Pivot refers to policies with reverse direction quickly, such as the Hawkish FFR that hikes +75Bps in November and becomes Dovish in December, or the FFR is up by +50Bps. On the other hand, highinterest rates put pressure on the US manufacturing activity for the October period. This became the slowest pace of expansion in 2.5 years.
Corporate Bonds
Semen Indonesia Issues IDR 1 Trillion Bonds. State-owned cement holding issuer, Semen Indonesia (Persero) Tbk. (SMGR) issued bonds worth IDR 1 trillion with a public offering period taking place on 2-4 November 2022. As for this issuance, it is part of SMGR’s Public Offering of Sustainable Bonds II with a total target of IDR 3 trillion. (Bisnis Indonesia)
Domestic Issue
Indonesia’s Manufacturing Index Stays in Expansion Mode. Indonesia’s manufacturing activity is still expansive in October 2022. However, the expansion rate is not as fast as the previous month. S&P Global recorded that Purchasing Manager’s Index (PMI) of Manufacture, or Indonesia’s manufacturing index, in October 2022 was at the level of 51.8 or down compared to September 2022, which was 53.7. Foreign demand for Indonesian-made goods also decreased along with the foreign economic conditions that weakened, causing a decrease in Indonesia’s Manufacturing PMI. (Kontan)
Recommendation
Indonesia’s Manufacturing expansion slowed down. The decline in Indonesian-made goods, along with the economic pressures from several major trading partners, suppressed Indonesia’s Manufacturing PMI for the October period, the expansion was recorded at the level of 51.8 points (Vs. Sept. 53.7 points).
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