Daily Macro Economy News on May 6

Latest Global Major Index

International Crude Price Trend and Exchange Rate of RMB to USD Trend

Domestic News

1MOC: we will take a variety of ways and measures to actively promote imports from CEE countries

2FAO: Sugar Price Index up 22.4 points (17.6%) in April, a record high since October 2011

3The first meeting of the 20th Central Finance and Economics Commission studied the issue of accelerating the construction of a modern industrial system and the issue of supporting a Chinese path to modernization with high-quality development of the population

4The executive meeting of the State Council considered the adoption of opinions on accelerating the development of advanced manufacturing clusters, the deployment of accelerating the construction of charging infrastructure, better support for new energy vehicles in rural areas, and realizing rural revitalization.

International News

1Despite the ongoing U.S. regional banking turmoil and deteriorating economic outlook, the employment market remains strong

2Fed's James Bullard says he supports Fed's 25 bps rate hike this week

3Australian Fed says the "top priority" is to lower inflation back to 2%-3% and it may need a further tightening monetary policy. GDP growth to bottom in Q4 2023, and go back to 2% in Q2 2025

4ECB Governing Councilor Francois Villeroy de Galhau said he supports smaller rate hikes, possibly several more, and it may return inflation to 2% by 2025 and possibly make even at the end of 2024.

More Details:

Domestic News

1MOC: we will take a variety of ways and measures to actively promote imports from CEE countries

Li Fei, the vice minister of the Ministry of Commerce (MOC), said that promoting imports from Central and Eastern Europe (CEE) countries mainly rely on measurements from four aspects, which are as follows: Firstly, to enhance the platform effectiveness of the Exposition. Secondly, we will advance the establishment of bilateral intergovernmental economic and trade joint committees and mixed committees with CEE countries to make better use of the mechanism of economic and trade cooperation. Thirdly, we will leverage the advantages of e-commerce, and fourthly, keep providing local leading enterprises with guidance and exemplary. MOC will keep supporting Ningbo, Zhejiang, and other localities to build China-CEE countries economic and trade cooperation demonstration zones of high standards, and industrial cooperation parks. Adopt pilot implementation in customs trade security, customs clearance facilitation cooperation and other aspects, to attract more investment from CEE enterprises, and deepen the industrial integration between countries in automotive, digital, green, health and other fields.

2FAO: Sugar Price Index up 22.4 points (17.6%) in April, a record high since October 2011

The FAO Sugar Price Index averaged 149.4 points in April, up 22.4 points (17.6 percent) from the previous month, marking the third consecutive month of upward movement, and reached the highest level since October 2011. This month's surge in sugar prices was mainly due to the further downward revisions to production forecasts in India and China, as well as lower-than-expected production in Thailand and the EU, leading to high concerns about tight global supply in the 2022/23 season. Despite the positive outlook for Brazil's 2023 sugarcane crop, the slow pace of harvest due to above-average rainfall further supported sugar prices. In addition, rising international crude oil prices combined with the Brazilian real's strength against the U.S. dollar also pushed world sugar prices upward overall.

3The first meeting of the 20th Central Finance and Economics Commission studied the issue of accelerating the construction of a modern industrial system and the issue of supporting a Chinese path to modernization with high-quality development of the population

The meeting stressed the need to grasp the wave of new technological revolutions such as artificial intelligence, adapt to the requirements of the harmonious coexistence of man and nature, maintain and enhance the advantages of a complete industrial system and strong supporting capabilities, efficiently gather global innovation factors, promote industrial intelligence, green and integration, and build a modern industrial system with integrity, sophistication and security. We should focus on improving the overall quality of the population, strive to maintain an appropriate fertility level and population size, accelerate the shaping of modern human resources with excellent quality, abundant total quantity, optimal structure and reasonable distribution, and support a Chinese path to modernization with high-quality population development.

4The executive meeting of the State Council considered the adoption of opinions on accelerating the development of advanced manufacturing clusters, the deployment of accelerating the construction of charging infrastructure, better support for new energy vehicles in rural areas, and realizing rural revitalization

The meeting pointed out that the development of advanced manufacturing clusters should be placed in a more prominent position, making coordinated advances in the transformation and upgrading of traditional industries and the cultivation and growth of emerging industries. To focus on the outstanding bottlenecks that restrict the new energy vehicles in rural areas, moderately construct the charging infrastructure in advance, and to further optimize support for the purchase and use of new energy vehicles policy, encourage enterprises to expand the supply of new energy vehicles, while strengthening safety supervision, and promote the healthy development of the rural new energy vehicle market.

International News

1Despite the ongoing U.S. regional banking turmoil and deteriorating economic outlook, the employment market remains strong

The U.S. Bureau of Labor Statistics released data showing that 253,000 new non-farm jobs were added in April, far exceeding market expectations of 180,000. The unemployment rate fell to 3.4%, a new low since 1969. The payrolls accelerated with average hourly earnings for employees rising 0.5% from a year earlier. U.S. short-term interest rate futures traders believe that the Federal Reserve is very unlikely to raise interest rates in June.

2Fed's James Bullard says he supports Fed's 25 bps rate hike this week

James Bullard from the Federal Reserve said he supports the Fed raising rates by 25 basis points this week. Recession should not be taken as the base case. The base case is slow economic growth and falling inflation, although there are certain risks. The committee believes that the current monetary policy has been tightened enough, and the interest rates have reached a sufficiently restrictive level.

3Australian Fed says the "top priority" is to lower inflation back to 2%-3% and it may need a further tightening monetary policy. GDP growth to bottom in Q4 2023, and go back to 2% in Q2 2025

Australian Fed says the "top priority" is to lower inflation back to 2%-3% and it may need a further tightening monetary policy. GDP growth to bottom in Q4 2023, and go back to 2% in Q2 2025.

4ECB Governing Councilor Francois Villeroy de Galhau said he supports smaller rate hikes, possibly several more, and it may return inflation to 2% by 2025 and possibly make even at the end of 2024

ECB Governing Councilor Francois Villeroy de Galhau said he supports smaller rate hikes, possibly several more, and it may return inflation to 2% by 2025 and possibly make even at the end of 2024.

Domestic Macro Economy Index