News

PA Market Report: Overview (Sep 06 – Sep 10) & Upcoming Events September’21

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Sep 6

New Zealand, except Auckland, to move to alert level 2 at 11.59 pm Tuesday (New Zealand)

Auckland will stay into level 4 until 11.59 pm next Tuesday, 14 September. Schools will be given 48 hours to reopen from Thursday morning. “These changes mean that we will have one part of the country level 4, and one part at Level 2,” Ardern says, which creates challenges, especially for Northland, cut off from the rest of Level 2. Essential workers crossing the border will be required to have weekly tests Bloomfield says essential workers crossing alert level boundaries will be required to undergo weekly testing.

Sep 7

Japan Aso: It’d be good if the next PM can boost govt revenue & restrain spending (Japan)

JAPAN’S FINANCE MINISTER ASO: IT WOULD BE GOOD IF THE NEXT PM CAN BOOST GOVT. REVENUE AND RESTRAIN SPENDING

Statement by Philip Lowe, Governor: Monetary Policy Decision (Australia)

At its meeting today, the Board decided to

– maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances of zero percent
– maintain the target of 10 basis points for the April 2024 Australian Government bond
– purchase government securities at the rate of $4 billion a week and continue the purchases at this rate until at least mid-February 2022. Prior to the Delta outbreak, the Australian economy had considerable momentum. GDP increased by 0.7 percent in the June quarter and by nearly 10 percent over the year. Business investment was picking up and the labor market

Sep 8

Bank of Canada maintains policy rate, continues forward guidance, and the current pace of quantitative easing (Canada)

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which is being maintained at a target pace of $2 billion per week.

BoE’s Bailey: MPC In Aug Was Split 4-4 As To Whether Minimum Necessary Conditions Were Met To Hike Rates (UK)

MORE BOE’S BAILEY: UNWINDING OF QE WILL ONLY TAKE PLACE ‘IN STABLE AND CALM MARKET CONDITIONS

BoE’s Bailey: I believe minimum conditions for a rate increase have been met, but that they are insufficient to warrant one (UK)

BOE GOV. BAILEY: I BELIEVE THAT THE MINIMUM CONDITIONS FOR A RATE INCREASE HAVE BEEN MET, BUT THAT THEY ARE INSUFFICIENT TO WARRANT ONE.

Sep 9

Monetary policy decisions (Euro Zone)

Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council judges that favorable financing conditions can be maintained with a moderately lower pace of net asset purchases under the pandemic emergency purchase programme (PEPP) than in the previous two quarters. The Governing Council also confirmed its other measures, namely the level of the key ECB interest rates, its forward guidance on their likely future evolution, its purchases under the asset purchase programme (APP), its reinvestment policies, and its longer-term refinancing operations.

Lagarde: ECB sees economic activity at the pre-pandemic level by year-end (Euro Zone)

#ECB LAGARDE: REBOUND PHASE IN RECOVERY INCREASINGLY ADVANCED – BBG
*LAGARDE: ECONOMY LARGELY REOPENED
*LAGARDE: ECONOMY SEEN RETURNING TO PRE-CRISIS LEVEL AT YEAR-END

Fed’s Bowman: US has achieved “significant progress” on price stability, is “quite close” to achieving its aim of full employment (USA)

FED’S BOWMAN: THE UNITED STATES HAS ACHIEVED “SIGNIFICANT PROGRESS” ON PRICE STABILITY AND IS “QUITE CLOSE” TO ACHIEVING ITS AIM OF FULL EMPLOYMENT.

Sep 10

Producer Price Indexes – August 2021 (USA)

The Producer Price Index for final demand increased 0.7 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 1.0 percent in July, the same as in June. (See table A.) On an unadjusted basis, the final demand index rose 8.3 percent for the 12 months ended in August, the largest advance since 12-month data were first calculated in November 2010. Leading to the August increase in the index for final demand, prices for final demand services rose 0.7 percent.

Labour Force Survey, August 2021 (Canada)

August Labour Force Survey (LFS) data reflect labor market conditions during the week of August 15 to 21. By the August reference week, most jurisdictions in Canada had implemented the final or near-final stages of their public health reopening plans. Indoor locations, such as restaurants, recreation facilities, personal care services, retail stores, and entertainment venues, were generally permitted to be open, with varying degrees of capacity restrictions.

Biden team weighs China trade probe in bid to pressure Beijing (USA)

BIDEN TEAM WEIGHS CHINA TRADE PROBE IN BID TO PRESSURE BEIJING