Global Economic Highlights and Trends on June 21st
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International Crude Price Trend and Exchange Rate of RMB to USD Trend
Domestic News
1. State-owned Assets Supervision and Administration Commission: More effective measures will be taken to support enterprises to do a good job in ensuring energy and electricity supply
2. National Energy Administration: From January to May, the total electricity consumption of the whole society was 3,837 billion kilowatt hours, a year-on-year increase of 8.6%
3. State Administration of Financial Supervision and Administration: The insurance industry should return to its roots and focus on its main business
4. Ministry of Housing and Urban-Rural Development: Reasonably determine the commercial housing that can be used as affordable housing, and lock in the demand for affordable housing in advance
5. Douyin Life Service has launched five major measures to help rejuvenate time-honored brands
International News
1. The Bank of England kept interest rates unchanged, suggesting that more policymakers may support interest rate cuts
2. Rainfall in Brazil affects transportation, and China increased the import of U.S. beans in May
3. The German think tank IFO raised its forecast for Germany's economic growth in 2024
4. Russia and Vietnam adopted a joint statement on deepening the comprehensive strategic partnership between the two countries
5. Brazil's Jalles will increase sugarcane crushing in the 2024/2025 crushing season and use more sugarcane for sugar production
Domestic News
1. The State-owned Assets Supervision and Administration Commission: More effective measures will be taken to support enterprises to do a good job in ensuring energy and electricity supply
On June 20, Zhang Yuzhuo, Secretary of the Party Committee and Director of the State-owned Assets Supervision and Administration Commission of the State Council, went to the State Power Investment Group Co., Ltd. to investigate and guide the work of ensuring the supply of energy and electricity in the peak summer. Zhang Yuzhuo said that in recent years, the Commission has grasped reform, strengthened management, accelerated the transformation of industrial structure, and made positive contributions to China's construction of a clean, low-carbon, safe and efficient energy system. At the critical period of the peak summer, it is necessary to stand at the height of stressing politics, promoting development, and protecting people's livelihood, further enhance the sense of responsibility and mission, and pay close attention to key areas, key periods, and key areas to increase the intensity of ensuring supply. The State-owned Assets Supervision and Administration Commission of the State Council will take more effective measures to support enterprises to do a good job in ensuring energy and electricity supply.
2. National Energy Administration: From January to May, the total electricity consumption of the whole society was 3,837 billion kilowatt hours, a year-on-year increase of 8.6%
Among them, the industrial power generation capacity above designated size is 3,657 billion kilowatt hours. In terms of electricity consumption by industry, the electricity consumption of the primary industry was 49.5 billion kWh, a year-on-year increase of 9.7%; the electricity consumption of the secondary industry was 2,536.5 billion kWh, a year-on-year increase of 7.2%; the electricity consumption of the tertiary industry was 691.8 billion kWh, a year-on-year increase of 12.7%; The domestic electricity consumption of urban and rural residents was 559.2 billion kWh, a year-on-year increase of 9.9%.
3. State Administration of Financial Supervision and Administration: The insurance industry should return to its roots and focus on its main business
The 2024 Lujiazui Forum continues to be held in Shanghai today (20th). The theme of the forum is "Promoting World Economic Growth with High-quality Financial Development". Li Yunze, director of the State Administration of Financial Supervision and Administration, said at the forum that the insurance industry should return to its origins, focus on its main business, and effectively play the role of economic shock absorber and social stabilizer. Li Yunze said that it is necessary to focus on innovation and development, and accurately and efficiently serve new quality productivity. We will accelerate the improvement of the insurance product system covering the whole life cycle of science and technology enterprises. Improve the "first (set) and first batch" insurance compensation policy mechanism, and better play the role of integrated circuit co-insurance. Increase the support of insurance funds for strategic emerging industries, advanced manufacturing, new infrastructure and venture capital. Improve the evaluation mechanism of green finance, promote the "willingness to insure" new energy vehicles, and encourage insurance institutions to strengthen risk protection and financial support for green industries and green consumption. (CCTV News)
4. Ministry of Housing and Urban-Rural Development: Reasonably determine the commercial housing that can be used as affordable housing, and lock in the demand for affordable housing in advance
According to the Ministry of Housing and Urban-Rural Development, cities and counties should make independent decisions and voluntarily participate in accordance with the real estate market situation in their respective regions, taking into account the actual demand for affordable housing, the inventory level of the commercial housing market and other factors, and in accordance with the idea of "government-led and market-oriented operation". It is necessary to insist on ordering according to demand, accurately find out the demand, carefully map out the base of the demand for affordable housing in the region and the stock of commercial housing that has been completed, reasonably determine the commercial housing that can be used as affordable housing, and lock in the demand for affordable housing in advance. It is necessary to adhere to the standardized implementation, prevent all kinds of risks, and standardize the acquisition subject, the acquisition process, and the placement and leasing, so that the acquired stock of commercial housing is suitable for the size, price, and location. It is necessary to adhere to the good use of financial support policies to achieve balanced funds and sustainable projects. (CCTV News)
5. Douyin Life Service has launched five major measures to help rejuvenate time-honored brands
Under the guidance of the Department of Circulation Industry Development of the Ministry of Commerce, the Beijing Municipal Bureau of Commerce, and the China General Chamber of Commerce, the China Association of Small and Medium-sized Commercial Enterprises and Douyin Life Service jointly held the 2024 "Heartbeat Time-honored Brand Rejuvenation Plan" kick-off meeting in Beijing. At the meeting, the organizer announced that it would invest 100 million traffic resources and launch five major measures: free operation support, the establishment of a "time-honored brand recommendation officer" team, a number of online and offline activities, product rights certification, and public welfare subsidies, to help time-honored brands achieve product upgrades and sales growth on Douyin, and help old brands rejuvenate themselves.
International News
1. The Bank of England kept interest rates unchanged, suggesting that more policymakers may support interest rate cuts
The Bank of England has signaled that more policymakers may be close to supporting a rate cut, keeping hopes of easing policy before the end of the summer. The Bank of England on Thursday kept interest rates at a 16-year high of 5.25%. But the minutes showed that the decision not to cut rates was a "delicate balance" for some of the nine members of the MPC. The Committee voted 7-2 in favour of holding it unchanged for the second consecutive meeting, however, most members were divided on the significance of the recent data that showed unexpectedly strong services inflation. The minutes said that some members felt that the recent data "did not significantly change the disinflationary trajectory the economy is on," suggesting that officials are increasingly convinced that they can start cutting interest rates. Others pointed to the risks posed by stubborn price pressures in the domestic services sector.
2. Rainfall in Brazil affects transportation, and China increased the import of U.S. beans in May
According to foreign media reports, customs data showed that China's imports of U.S. soybeans accelerated in May, surging 156% from the same period last year, while Brazil suffered floods some time ago, export transportation was affected, and supplies from Brazil lagged behind the same period last year for the first time this year. China's soybean imports totalled 10.22 million mt in May, including 8.8 million mt from Brazil, down 19% from a year earlier. From January to May, China imported a total of 24.71 million tons of soybeans from Brazil, up 23% from the same period last year. U.S. soybean sales to China have been sluggish this year as traders have taken advantage of lower prices and ample supplies from Brazil. China imported 1.27 million tonnes of soybeans from the United States in May, far less than imports from Brazil but significantly higher than 494103 tonnes in the same period last year. In the first five months of this year, imports from the United States totaled 10.85 million tons, down 34% from a year earlier.
3. The German think tank IFO raised its forecast for Germany's economic growth in 2024
Germany's economy will rebound better this year than previously expected, with the German think tank IFO now forecasting a 0.4% growth rate this year, compared with a 0.2% forecast in March. "New hope is emerging. The German economy is slowly emerging from the crisis," says Timo Wollmershaeuser, head of forecasting at the IFO. The German economy will accelerate its recovery in the second half of the year after a slow recovery in the first half of the year, as household purchasing power picks up and demand for goods and services gradually improves. Industrial activity is also likely to continue to rebound and benefit from the growth in global demand. However, the survey still shows that businesses have a poor assessment of the economic situation, although expectations for the economic situation have improved recently.
4. Russia and Vietnam adopted a joint statement on deepening the comprehensive strategic partnership between the two countries
On the afternoon of June 20, local time, Vietnamese President Surin and Russian President Vladimir Putin held a joint press conference and adopted a joint statement on deepening the comprehensive strategic partnership between the two countries. The two sides agreed to effectively implement, negotiate and strengthen the free trade agreement between Vietnam and the Eurasian Economic Union as soon as possible to promote bilateral trade and investment. In addition, the two sides agreed to study and expand research cooperation in the fields of new energy, clean energy, green transformation and sustainable development as soon as possible. The two sides are willing to promote defense and security cooperation on the basis of international law and practice. (CCTV News)
5. Brazil's Jalles will increase sugarcane crushing in the 2024/2025 crushing season and use more sugarcane for sugar production
Brazilian sugar and ethanol producer Jalles Machado said in a securities filing late Wednesday that it expects a 12% increase in sugarcane crushing in the 2024/25 season compared to the previous season, while allocating more sugarcane to the sugar industry, according to foreign media reports. In the new season, Jalles is expected to process 8.23 million tonnes of sugarcane, up from 7.35 million tonnes in the 2023/24 season, when the company's crush total was in line with its guidance. The company forecasts that 50.6% of sugarcane will be used for sugar production this season, up from 37.5% in the 2023/24 season. At the same time, ethanol will be allocated at 49.4 percent, down from 62.5 percent in the previous season. Most market participants expect Brazilian sugar mills to use more sugarcane for sugar production this season, as sugar prices remain more profitable than ethanol prices, following investments in expanding sugar production capacity. Jalles expects to invest R$797.5 million (US$147.05 million) in the 2024/25 season, down 7.7% from the previous year.
Domestic Macro Economy Index
