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ECB Governing Council member Patsalides: On the issue of inflation, the passage of time is undoubtedly at our disadvantage.On July 29th, the "Implementation Plan for Artificial Intelligence Empowering the Digital Transformation of Manufacturing in Zhejiang Province (2026-2030)" was issued, proposing to promote data governance and the construction of high-quality datasets. It supports enterprises in registering industrial data assets and industrial data intellectual property rights. It encourages enterprises with a digital transformation level of 2.0 or higher to build unified data management platforms and promote multi-source heterogeneous data modeling, analysis, classification, and hierarchical management. Focusing on key industry scenarios such as integrated circuits, apparel and textiles, consumer electronics, and modern home furnishings, it promotes collaborative data collection, processing, labeling, testing, and application across the industrial chain to build high-quality, reusable industry datasets. It also advances the pilot construction of product master data standards and high-quality industry datasets to accelerate the creation of a trusted industrial data space.On July 29, Zhao Leji, Chairman of the Standing Committee of the National Peoples Congress (NPC), met with Slovak President Pellegrini in Beijing. Zhao stated that China is willing to work with Slovakia, guided by the important consensus reached by the two heads of state, to continuously enhance strategic mutual trust, deepen mutually beneficial cooperation in areas such as high-quality Belt and Road Initiative cooperation, trade and economic cooperation, artificial intelligence, and new energy, promote people-to-people exchanges, and jointly advance the high-level development of China-Slovakia relations. The NPC is willing to maintain close and friendly exchanges with the Slovak National Assembly, conduct exchanges of experience in legislation and oversight, and provide legal guarantees for pragmatic cooperation between the two countries.July 29th - The Bank of England is expected to assess its quantitative easing (QT) program at its policy meeting on Thursday. Quantitative easing refers to the process by which the central bank reduces its bond holdings purchased during the quantitative easing period. Ebury analyst Matthew Ryan noted in a report that the Bank of Englands assessment of QT is unlikely to have a significant impact on UK assets, as investors are likely to focus on inflation guidance and the voting outcome of the interest rate decision. Ryan stated that if the vote remains unchanged at 7-2 and subsequent guidance downplays inflation risks, the market may lower its expectations for a Bank of England rate hike.July 29 (Kyodo News) – The Japanese government announced on Wednesday that Japans national population fell below 120 million for the first time in 42 years, dropping to 119,736,483 at the beginning of this year, highlighting the serious challenges the country faces in addressing its declining birth rate. According to data from the Ministry of Internal Affairs and Communications, as of January 1, the number of Japanese citizens decreased by 917,000 from the previous year, the largest drop since comparable data became available in 1968. At the same time, the number of foreign residents increased by 354,000, reaching a record 4,031,159. The Ministry of Internal Affairs and Communications has been compiling these data since 2013. Faced with a labor shortage, Japan is gradually easing restrictions on the introduction of foreign workers. With more and more people coming to Japan in search of employment opportunities, the number of foreign residents has increased for the fourth consecutive year.

AUDJPY continues to struggle around 94.00 despite solid Aussie jobs data

Daniel Rogers

Nov 17, 2022 11:45

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The AUDJPY pair has stayed firm around 94.00 despite the release of bullish Australian employment data. Compared to the projected 15k and the preceding release of 0.9k, the Australian Bureau of Statistics announces that the economy has added 32,200 new jobs to the payroll market. In addition, the unemployment rate has decreased from 3.6% to 3.5% to 3.4%.

 

Australian employment numbers that surpass expectations will impress the Reserve Bank of Australia (RBA). This will allow RBA Governor Philip Lowe to continue steadily hiking rates. In light of this week's release of the RBA's minutes, the central bank will maintain a rate hike structure of 25 basis points (bps) because policymakers believe the Official Cash Rate (OCR) has already been hiked in a short amount of time.

 

Nevertheless, the inflation rate has not yet reached its high, as a historic increase in price growth observed in the third quarter indicates. The Australian inflation rate increased to 7.3%, exceeding the consensus expectation of 7.0%. This prompted the RBA to hike its projected interest rate to 8%. In addition to producing increasing price pressures, a limited market is responsible for the robust purchasing power of households.

 

As Russia-Poland tensions have largely calmed and no further developments are anticipated, the risk profile is expected to diminish.

 

On the Tokyo front, an unexpected decline in Gross Domestic Product is haunting investors. In contrast to expectations of a 0.3% increase, Japan's gross domestic product decreased 0.3% in the third quarter. We were surprised by the q/q decline in the third quarter because we underestimated the impact of higher inflation, the summer wave of COVID-19 infections, and a significant weakening of the yen, which exacerbated the nation's already soaring import costs.