In today’s briefing:
- Major Revisions of the Corporate Governance Report Guidelines in Korea: To Reduce “Korea Discount”
- China’s Real Estate Market Gets Some Relief in September on Policy Changes
- CPI Reaction Watch: Cementing a hike in November/December?
- UK Data Changes Yet Stay The Same
- CX Daily: Exclusive Interview: Lou Jiwei on Tackling a Greying China
- OPEC & EIA nugget: A day of reckoning ahead for Oil
Major Revisions of the Corporate Governance Report Guidelines in Korea: To Reduce “Korea Discount”
- On 12 October, the Financial Services Commission (FSC) announced major Revisions of the Corporate Governance Report Guidelines, including improvement of dividend procedures and revisions of governance principles.
- The major revisions of the Corporate Governance Report Guidelines in Korea should be catalysts for reducing “Korea Discount.”
- These new Corporate Governance Report will recommend the KOSPI listed companies with assets of more than 500 billion won to comply with the new guidelines effective 2024.
China’s Real Estate Market Gets Some Relief in September on Policy Changes
- Real estate sales in China increased in September from the previous month following efforts by some of the country’s biggest cities to spur homebuying.
- Last month, new property sales by China’s 100 largest developers grew 17.9% from August to 404.3 billion yuan ($55.4 billion), following two straight month-on-month declines, according to data provided Saturday by consultancy China Real Estate Information Corp. (CRIC).
- More than 60% of the developers reported month-on-month sales increases in September, with 29 registering jumps of more than 30%, the data showed.
CPI Reaction Watch: Cementing a hike in November/December?
- September’s CPI numbers just dropped with a small surprise in the headline, coming in at 0.4% vs 0.3% expected (3.7% YoY vs 3.6% expected), while core is in line with analysts’ median forecast.
- Headline rates stay on their disinflationary paths, and YoY rates are not accelerating due to base effects.
- Energy and shelter – the 2 nightmares throughout 21/22 – are taking the headlines again, with shelter re-accelerating and energy inflation staying at levels too far from target despite sluggish demand signals coming from the EIA.
UK Data Changes Yet Stay The Same
- Benchmark UK GDP revisions raised the level without changing trends, fiscal space, or public sector performance. Our Q3 GDP forecast rounds down to -0.1% q-o-q.
- UK GDP data remain resilient relative to recent labour market data, while the EA is nearer the opposite. Residual seasonality appears to have corrupted both narratives.
- The artificial depression in surveys and UK employment is at its seasonal worst. A reversal still underpins our contrarian hawkish November BoE call and Euro optimism.
CX Daily: Exclusive Interview: Lou Jiwei on Tackling a Greying China
- Lou Jiwei /: Exclusive Interview: Lou Jiwei on tackling a greying China
- Corruption /: Trending in China: ‘Lenient’ punishment of corrupt retired official sparks anger
- XPeng /: XPeng suspends supply chain chief in internal graft crackdown
OPEC & EIA nugget: A day of reckoning ahead for Oil
- The weekly EIA data is out at 11.00 am ET after last week’s data sparked a massive sell-off in oil markets.
- The implied Gasoline demand dropped 12-13% also in seasonally adjusted terms after a cocktail of decreased production and increased inventories of retail gasoline.
- The actual road congestion is up >5% since the early parts of October, meaning that demand is likely up (at least) as much before considering the technicalities of the EIA report that could have led to a flawed low number.
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