In today’s briefing:
- China Asset Watch: Keys for Xi to Getting the Economy and Equities Back Going
- UK: Inflating the Case for Another Hike
- China News Headline Not Discounted
- CX Daily: TikTok’s Foray Into Southeast Asian E-Commerce Is No Slam Dunk
China Asset Watch: Keys for Xi to Getting the Economy and Equities Back Going
- Xi kickstarting listed sectors in China using different policy tools will impact foreign markets
- Biden looks like the winner in our four scenarios whereas Xi and MBS’ newly friendship could be tested
- Chinese FDIs flows have already slowly but surely started to turn more positive from a rate of change perspective, which may be an early harbinger of slightly better times ahead for Chinese assets
UK: Inflating the Case for Another Hike
- UK inflation matched consensus forecasts for an energy-driven drop to 6.8% on the CPI and 9% on the RPI. Surging rent prices prevented the downside surprise we expected.
- Underlying inflationary pressures picked up some speed again, with the monthly impulse in our estimates exceeding twice the target-consistent pace.
- Higher services inflation and the previously reported wage spike seem set to drive the BoE into another 25bp rate hike in September. We expect a final one in November too.
China News Headline Not Discounted
- The People’s Bank of China (PBOC) has been draining liquidity through reverse repo while the Chinese Yuan (CNY) fixing has been notably stronger than anticipated.
- It could be attributed to various factors, such as: A significant drop in the manufacturing Purchasing Managers’ Index (PMI)
- Weaker PMI sub-indices, including export orders and employment
CX Daily: TikTok’s Foray Into Southeast Asian E-Commerce Is No Slam Dunk
- E-commerce /In Depth: TikTok’s foray into Southeast Asian e-commerce is no slam dunk
- Jobless /: Charts of the Day: The missing data in China’s rising unemployment
- Payment /: Third-party payment industry consolidates as prepaid card issuers exit
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