The Strong Dollar has pushed the US Trade Deficit more. Appreciation of the USD exchange rates as the FFR remains at a high level, making US manufactured goods less competitive in the global market. US exports fell 0.7% MoM to the lowest level in seven months. Export pressures might indicate that the Trade Deficit will weigh the US economy in 4Q22. On the other hand, the Strong Dollar increased the bargaining power of the USD towards other countries’ currencies, and US imports grew by 0.6%, MoM. Bloomberg data shows that US Trade in Oct. recorded a deficit of -USD78.2 billion (vs. Sept. -USD74.1 billion), or an increase of 5.5% MoM.
Corporate Bonds
Pefindo Still Holds IDR 11.16 Trillion Bond Mandate. PT Pemeringkat Efek Indonesia (Pefindo) still holds the mandate for rating bonds worth IDR 11.16 trillion until the end of November 2022. The mandate comes from 17 companies, both with the status of StateOwned Enterprises (BUMN) and non-SOEs. Pefindo recorded the issuance of corporate bonds as of November 2022, originating from 9 non-state-owned companies amounting to IDR 6.78 trillion. Meanwhile, 8 state-owned companies issued bonds amounting to IDR 4.37 trillion. (Kontan)
Domestic Issue
Jokowi Soon Announce Bauxite Export Ban. Indonesia’s President, Joko Widodo (Jokowi), soon announce a ban on bauxite exports. This action is done to push the downstream of raw materials inside the country. Jokowi stated that investment is one of the keys to economic growth in 2023. For this reason, the downstream of raw materials will be consistently carried out. (CNN Indonesia)
Recommendation
ICE Newcastle again broke through the psychological level of USD400/ton. Besides hoping China’s Zero-Covid Policy to ease, the rising in European gas prices have again pushed up coal commodity prices. In awaiting the release of Foreign Exchange Reserves (Cadev) Indonesia data this morning, NHKSI Research projects that SUN market relatively mixed.
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