Issue 11 | Nov. 18, 2011

Exports rise at Port of Los Angeles
At the Port of Los Angeles, 2011 proves to show record-setting gains in exports, despite average figures in imports. As of October, there has been a 28.1 percent increase in export rates since October 2010. The Port of Long Beach, however, has experienced declines of 20.3 percent in imports and 20.8 percent in exports as of October.

Italy Swears in New Prime Minister in Effort to Calm Markets
Former European Union Commissioner Mario Monti and his team of “technocrats” were tapped by President Giorgio Napolitano to head the new Italian government. The change comes in the wake of former Prime Minister Silvio Berlusconi’s resignation last week after he lost his parliamentary majority. A career economist, Monti’s challenge in the weeks ahead will be to implement the necessary measures to balance Italy’s budget and restore the confidence of investors. Italy’s current budget path is widely seen as unsustainable, and a default of the Eurozone’s third largest economy would have a devastating impact on the global financial system.

Obama Heads to Indonesia for ASEAN Summit as Trans-Pacific Partnership Talks Heat Up
Fresh off closing the APEC conference in Hawaii, President Barack Obama heads to Indonesia for the annual ASEAN summit. Among the topics on his agenda is the Trans-Pacific Partnership (TPP), an agreement that would create a free trade bloc amongst its signing countries. So far the United States, Australia, Singapore, Chile, Peru, Malaysia, New Zealand, Brunei and Vietnam have joined the talks. The agreement signals a wider shift in the United States’ strategic orientation towards Asia, according to Obama: "The United States is a Pacific power, and we are here to stay.”

Standoff on Korea-U.S. Free Trade Agreement Continues in Korea’s National Assembly
The Korean National Assembly is currently wrangling over the passage of the Korea-U.S. (KORUS) Free Trade Agreement. The opposition party has opposed the investor-state dispute settlement system clause of the agreement. The agreement was ratified by the U.S.Congress last month.

Indonesian Logistics Lag Behind International Standards According to The World Bank
The World Bank reports that Indonesia is behind international standards in its export logistics. Indonesia’s main ports have the capacity for ships carrying a maximum of 4,000 containers; major ports in Malaysia and Europe have the capacity for ships carrying 14,000 containers. Consequentially, Indonesia must go through Singapore and Malaysia in order to export to Europe. The Indonesian government has created many plans that it hopes will bring the logistic cost ratio to 21-22 percent by 2015.

Tech Factories in Thailand Expected to Recover Within Two to Six Months
Now that floodwater in the central Ayutthaya province has begun to recede, Thailand’s factories could reopen in about two months, according to the industry group Electronic and Computer Employers’ Association. The floods have disrupted the industry’s supply chain, as Thailand manufactures between 40 and 45 percent of the world’s hard disk drives.

Retailers Report Split in Consumer Behavior
Recent reports on third-quarter results of major retail chains in the United States show a trend of division in spending habits between the wealthiest and poorest consumers. Data from Saks Fifth Avenue shows that the luxury retail market has performed strongly. In contrast, Wal-Mart’s data shows that shoppers are scaling back spending, even with staple foods.