Global

Banks Back G20 Infrastructure Hub. The world’s top development banks yesterday threw their support behind G20 plans for a global infrastructure hub to spur growth and create jobs, saying it is key to helping tackle poverty. The Group of 20 of the world’s biggest developed and emerging economies agreed in September to establish the Global Infrastructure Initiative, expected to be based in Sydney, to share information about matching investors with projects. Its main purpose is to cut red tape and close the “information gap” between potential investors and infrastructure projects as the G20 looks to spur world economies by shifting from government-led growth towards private sector-led growth. It was welcomed by the African Development Bank, Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, World Bank and IMF. (AFP)

Asia

China October Data Shows Economy Cooling Further, Need For More Policy Support. China's economy lost further momentum in October, with factory growth dipping and investment growth hitting a near 13-year low, testing the government's resolve to avoid stronger stimulus measures. The soft performance cemented the view that China is on track to grow at its weakest pace in 24 years. But leaders remain reluctant to use full-blown policy easing, such as cutting interest rates. Fixed-asset investment, an important driver of growth, grew 15.9% in the first 10 months of the year from a year ago, the National Bureau of Statistics said on Thursday. That was the weakest pace since December 2001. October factory output rose 7.7%, which was higher that August's 6.9% but below forecasts and the second weakest pace since the height of the global financial crisis. October retail sales growth eased to 11.5%, the slowest pace since early 2006. Economists polled by Reuters had forecast retail sales and industrial output to rise 11.6% and 8.0%, while fixed asset investment was seen up 15.9%. (Reuters)

Bank Of Korea Keeps Policy Steady In Nov, Dims Rate Cut Outlook. South Korea's central bank held interest rates steady on Thursday in its first unanimous vote since June, and sent no signal of a further policy easing soon – dampening expectations among investors for an additional rate cut. Bank of Korea Governor Lee Ju-yeol said an accelerated decline in the yen would be a cause for concern, but noted that weak sentiment among South Korean consumers and companies was mostly due to overblown concerns about the global economy. The Bank of Korea's monetary policy committee left its base rate unchanged at 2.00% after it cut rates in October, in line with expectations from 33 analysts who unanimously agreed rates would be kept on hold. (Reuters)

Bank Indonesia Holds Rate Before Widodo Fuel-Price Move. Indonesia’s central bank kept benchmark borrowing costs unchanged in its first meeting since President Joko Widodo took office, refraining from tightening policy before the government raises fuel prices. Bank Indonesia Governor Agus Martowardojo and his board left the reference rate at 7.5%, the central bank said in Jakarta today, staying on hold for a 12th straight month following 1.75%age points of increases in 2013. The decision was predicted by 21 of 22 economists surveyed by Bloomberg News, with one forecasting a move to 7.75%. (Bloomberg)

India And US Reach WTO Breakthrough Over Food. India and the US have resolved their disagreements on food security issues, paving the way for the implementation of a global trade pact. The deal to simplify trade procedures was done at a World Trade Organization (WTO) meeting summit in Bali in Indonesia last year. But India has been blocking implementation of that agreement. The breakthrough stems from a bilateral summit in September when Prime Minister Narendra Modi visited the US. It clears the way for the WTO to press ahead with the Trade Facilitation Agreement that was done in Bali. Analysts have estimated that that trade deal could add $1tn to the world economy, by reducing the costs of conducting trade by for example simplifying customs procedures. (BBC)

Americas

Jobless Claims In U.S. Rose More Than Forecast Last Week. Applications for U.S. unemployment benefits rose more than forecast last week, representing a pause from a recent run of readings close to a 14-year low.

Jobless claims increased by 12,000 to 290,000 in the week ended Nov. 8, the highest since Sept. 20, a Labor Department report showed today in Washington. The median forecast of 53 economists surveyed by Bloomberg called for 280,000. It was the ninth straight week claims have been less than 300,000. (Bloomberg)

Hiring In U.S. Picks Up As Workers Gain Confidence To Quit Jobs. Employers hired workers in September at the strongest pace since the last recession began and more people quit their jobs than at any time in more than six years, showing Americans are gaining confidence that the labor market is improving. Some 5.03 million employees were added to staff, boosting the hiring rate to 3.6% and matching July’s reading as the strongest since December 2007, the Labor Department reported today in Washington. Some 2.75 million people resigned in September, pushing the quits rate up to 2%, the highest since April 2008. (Bloomberg)

U.S. Budget Deficit At $122b In October. The U.S. had a budget deficit of $122b in October, up 34% from the same period last year, according to data released by the Treasury Department on Thursday. Analysts polled by Reuters had expected a $111.7b deficit for last month. The deficit was $91b in October of 2013, according to Treasury's monthly budget statement. Last month's deficit was the largest for the month of October since 2011, according to a Treasury Department official. October's budget results were affected by differences in the calendar. If adjusted for timing-related transactions, the budget deficit in October would have been $84b. (Reuters)

China, Mexico Eye $7.4b In Investment Funds. China and Mexico will set up a $2.4-billion investment fund to support infrastructure, mining, and energy projects and are eyeing an oil deal worth up to $5b, Mexican President Enrique Peña Nieto said on Thursday. Since Peña Nieto took office in late 2012, he has sought to forge closer ties with China following years of rivalry between the two countries seeking to supply the U.S. market. "I want to stress that the basis of our relationship is trust," Peña Nieto told reporters in Beijing after meeting Chinese President Xi Jinping. "Now Mexico-China relations are broader, more stable, more productive and more beneficial for our people." (Reuters)

Europe

Greek Unemployment Eases To 25.9% In August. Greece's jobless rate fell to 25.9% in August from a downwardly revised 26.1% rate in July as the country's six-year recession eases, Greek statistics agency ELSTAT said on Thursday. August's reading was the lowest since August 2012 when unemployment stood at 25.5%. The record high was set in September 2013, when unemployment hit 28%. Greece's unemployment is coming down from record highs as the economy stabilizes after a severe recession but remains at more than double the euro zone average of 11.5% in August. (Reuters)

ECB Reiterates Ready To Act As Experts Cut Forecasts. The European Central Bank is ready to step up its stimulus should inflation in the euro zone remain too low for too long, it reiterated on Thursday in its monthly bulletin as a group of experts cut their predictions for economic growth. Euro zone annual inflation has been in what Draghi has called the "danger zone" below 1% for a year. The ECB said it would "closely monitor" the outlook for inflation. "Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate," the bulletin repeated. (Reuters)

Currencies

Yen Drops To 7-Year Low Vs Dollar As Japan Election Talk Picks Up. The dollar on Thursday neared a seven-year high against the yen amid heightened speculation that Japan's prime minister will call a snap election next month, and dipped against the euro. The dollar index eased 0.1% after New York Federal Reserve President William Dudley said any premature tightening in U.S. monetary policy could hurt economic recovery. The dollar was up 0.2% at 115.71 yen, not far from a seven-year high of 116.11 struck on Tuesday. The euro rose 0.3% against the dollar to $1.2476. Sterling dipped to a 14-month low against the dollar, with weaker British housing data adding to pressure on the pound from a shift in the Bank of England's economic outlook a day earlier. The pound was last off 0.4% at $1.5709 and is down 5% year to date against the dollar. (Reuters)

Commodities

Oil Slumps To Four-Year Low As Brent Crashes Below $80 A Barrel. Oil prices slumped more than 3% to four-year lows on Thursday, with benchmark Brent crashing below $80 a barrel, after a stockpile surge at the delivery point for U.S. crude frayed nerves of traders already worried about an oil glut. Brent settled down $2.46, or 3.1%, at $77.92 a barrel, after plumbing a September 2010 low of $77.83. U.S. crude finished down $2.97, or 3.9%, at $74.21. In post-settlement trade, it went as low as $74.07, also a trough from September 2010. (Reuters)

Gold Down On Drop In Oil Prices, Bright US Outlook. Gold fell on Thursday, as another sharp pullback in crude oil prices and improving U.S. jobs data decreased bullion's appeal as a hedge, and continued outflows from gold-backed ETFs suggested the precious metal is susceptible to further losses. Spot gold was down 0.1% at $1,159.59 by 2:38 p.m. EST (1938 GMT). Silver fell 0.5% to $15.55 an ounce. Platinum was down 0.8% at $1,187.70 an ounce and palladium dropped 1% at $763.98 an ounce. (Reuters)