OVERNIGHT NEWS
# Major FX and bond yields consolidate on final trading day of the week. Japan unveils $490bn fiscal stimulus, Germany and Greece announce restrictions for unvaccinated people.
# FX: TRY caps disastrous week with 8% swoon vs the USD, THB and INR outperform. Sterling excels in G10, NOK and SEK weaken by 1.2%. SG 12-month USD/TRY forecast raised to 13.90 and EUR/TRY to 15.57.
# UK October retail sales beat forecast. Headline + 0.8% m/m, ex- auto fuel +1.6% m/m.
# Norway: 3Q Mainland GDP +2.6% qoq and 3.8% yoy. September monthly GDP +0.6% m/m.
# Nikkei +0.5%, EUR 10y IRS +1bp at 0.187%, Brent crude +1.1% to $82.1/b, Gold -0.2% at $1,857/oz
US equities in the green, outperforming global peers; global rates mostly lower, led by the European periphery; Oil claws back from earlier losses; SARB and NBH hike while CBT cuts; key senators intimate support for Powell renomination; UST 10y at 1.585% (-0.3bp).
COLOMBIA
Foreign Direct Investment reached US 5,824.7 million in October, fell 0.02% annually. According to the latest report from the Banco de la República, foreign direct investment (FDI) in the country closed at US 5,824.7 million in October, a figure that represents a fall of 0.02% compared to what was reported in the same month of 2020, when the total balance was US 5,825.9 million. While, compared to the same period in 2019, the drop was 25.7%. In the oil, hydrocarbons, and mining sector, FDI totaled US 3,861.5 million, that is, an increase of 15.9% was registered compared to the US 3,331.2 million in October 2020. On the contrary, in the sum of the other sectors there was a fall of US 531.5 million in the last year. It is worth mentioning that, according to the Issuer’s accounts, in the first half of the year the largest investment flows were registered from Spain, with a total amount of US 458.9 million; followed by the United States (US 454.3 million), Panama (US 208.8 million), Switzerland (US 184.5 million) and the Netherlands (US 134.8 million).
Inter-American Development Bank approved a loan of US 800 million for the economic recovery of Colombia in the post-Covid era, with an emphasis on climate action management. According to the IDB, the program will facilitate the publication of the update of the Nationally Determined Contributions (CND) of the country, the publication for public consultation of a long-term decarbonization strategy for 2050 and the publication of the Framework of Reference for Green Bonds Sovereigns. Of that total amount, US 100 million comes from the Korean Infrastructure Fund (KIF) and another US 100 million is part of the risk transfer mechanism agreed between the IDB and the Government of Sweden through its International Development Agency (IDA). Additionally, this loan has parallel financing from the French Development Agency for US 228 million (EU 200 million) and from the German Development Bank for US 170 million (EU 150 million).
As of October 2021, the banknote circulation balance in Colombia rose 12.2% compared to the same period of 2020 to cop 111.1 trillion. As of the tenth month of last year, the balance stood at COP 99.1 trillion. Now, if the result with cut to October is compared with the balance of last December, when the amount was located at COP 108.6 trillion, a rise of 2.3% is observed, which in absolute terms translates into an increase of about COP 2.5 trillion. Now, in October of this year compared to September, the balance rose by about COP 1.4 trillion, going from COP 109.7 trillion to COP 111.1 trillion, according to the figures revealed by Banco de la República. It should be remembered that, in August of this year, the circulation of banknotes was located at COP 110.5 trillion; in July, at COP 110.4 trillion; in June, at COP 109.2 trillion; in May, at COP 107.4 trillion; in April, at COP 104.4 trillion; in March, at COP 105.5 trillion; in February, at COP 104.2 trillion; in January, at COP 105.1 trillion.