29 December Pingu News Briefing
US jobless claims slightly up, but average holds steady; Singapore bank lending down; Australian pensions negative result on year but Christmas spending hits record high
Happy Thursday 29 December (^_−)−☆
Schedule for this week
Tuesday: Catching up after the weekend
Core Japan CPI better than expected at 2.9%; expected 2.8%
Wednesday: Ukraine Focus
Russian industrial production down 2.7% and retail sales down 9.2% YoY
Thursday: Economic Data Dump
US Initial Jobless claims: 225k, inc. by 9k
US Crude Oil Inventories: .718M (expected was -1.520M)
US Crude Oil Imports: 1.328M
US Cushing Crude Oil Inventories (-1.95M, previous .853M)
Korean CPI YoY: 5.0% (meets expected)
Singapore Bank Lending: 816.5B (Down 10B)
Friday: Cybersecurity (Plus US Chicago PMI, expected 40.5, previous 37.2)
Saturday: 2022’s Biggest Stories, 2023 Data to Watch
Plus CNY 3-category PMI data
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Pelé was one of one
Pelé, Brazilian footballer hero, died at age 82 in São Paulo. He was undergoing colon cancer treatment. Pelé’s name is recognisable beyond the football world, with most knowing of his magical touch on the ball and unmatched three World Cup championships. Brazilians and Argentinians reached across the bitter divide, including the nations’ presidents to mourn and offer condolences and memories of Pelé. For billions of people he unlocked the game of football and continued to do so long after retirement in 1977.
FIFA story | DW’s ObituaryBoJ announces a third day of bond buying
The Bank of Japan announced a third day of unscheduled bond purchases, offering unlimited purchases on two-year notes (yield .04%), five-year debt (.24%), 700Billion Yen of one-to-ten year bonds, and 300Billion yen of 10-to-25 year debt. Currently investors own $2.4 Trillion of foreign debt, but the recent unscheduled purchases may return investors to the home market, putting pressure on global bonds. Core inflation is also growing at the fastest pace in 40-years.
BloombergAustralian pension funds perform worst in 14 years, but Christmas spending all time high
Rising interest rates resulted in the worst performance in 14 years (2008) for the Australian pension industry, although the 4.3% drop does not compare with the 2008 plummet. Subsequent years after low-performances (2009, 2012, and 2019) each posted respective gains in the market, however, although inflation may halt this trend. | Bloomberg
Australian’s spent record amounts on Christmas shopping, however, totalling $50.4billion USD ($74.5BillionA), signalling a positive outlook for retailers and consumer optimism. Retail sales for the pre-Christmas shopping season (1 Nov. - 24 Dec.) increased by 8.6% YoY, while Boxing Day trading featured growth of 15.3% YoY. Inflation is a part of the explainer for why sales were up, as higher prices also mean higher sales figures; still, it is not enough to explain the consumer outlook growth undeniably linked to the Christmas season in Australia.
BloombergDemand for cash results in quadruple of Chinese repo rate to 1.95%
A demand for cash increase the Chinese repurchase rate rose to 1.95% after crashing to a record low of 0.42% earlier. Lunar New Year and tax payments may result in upward momentum, per Carie Li of DBS Bank in Hong Kong. The PBoC will fight for liquidity within the economy as well as enabling cash flows for the holiday spending season. BloombergGerman Finance Minister Lindner wants “friendshoring”
German Finance Minister Christian Lindner has asked the US Biden administration to follow by principles of “friendshoring” to avoid a trade war between the EU and US over a new green subsidies package. The package puts EU companies at a disadvantage in the US market, which may result in a trade war that is dangerous for larger geopolitical goals such as sanctioning China and Russia, while ensuring Ukraine’s victory. Bloomberg | Background Opinion PieceUS Jobless claism rise slightly (+9,000)
Although US Jobless claims remain near historic lows, the growth of claims to 225,000. Continuous claims rose to 1.7 Million, the highest since February. Tech and banking sectors continue to see the most layoffs, with leisure and hospitality remaining understaffed. BloombergRussia injures three civilians, fires 120 missiles at Ukraine
Russia fired 120 missiles at Ukrainian civilian infrastructure. 69 missiles were counted by the Ukrainian military, with 54 being intercepted. The air-raid alert lasted for five hours, and included kamikaze drones. BBC
Kyrylo Tymoshenko, via BBC Russian President Putin and Chinese President Xi meeting today via video
Putin and Xi will have a video chat date on Friday, drinking wine together and Xi pontificating about imaginative Siberian special operations. None of that is true, but Xi and Putin will meet to speak about “bilateral Russian-Chinese relations”, likely featuring Xi urging Putin to negotiate with Ukraine, among more bland discussions on China making Russia into an autocratic, servant partner.Sudden Russian Death Syndrome
In Russia, opposing Putin and standing near windows, a condition known as Sudden Russian Death Syndrome, has a fatality rate of 100%. (Elaine Godfrey, The Atlantic).That is all for today! See you in a few hours to make up for missing yesterday’s briefing. Apologies for that!
Ciao~
