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Spains seasonally adjusted industrial production fell 0.3% year-on-year in December, compared with a forecast of 2.5% and a revised previous reading of 4.6% (up from 4.50%).On February 6th, at a press conference held by the State Council Information Office, Vice Minister of Commerce Yan Dong stated that in promoting the improvement and benefit of service consumption, the work of cultivating new growth points in service consumption will focus on closely integrating consumption promotion with improving peoples livelihoods. We will accelerate the formulation and issuance of an action plan for improving the quality and benefiting the people through service consumption, including more than 60 specific measures. This plan will work collaboratively from both the supply and demand sides, and in conjunction with relevant departments, promote the improvement of service supply levels in areas such as culture and entertainment, tourism and leisure, and sports events. At the same time, we will track and study new trends in service consumption, actively respond to the new expectations of the people, and better meet the service consumption demands that have a significant impact on peoples livelihoods and are highly requested by the public, such as health and elderly care, culture and tourism, and family services. Furthermore, we will fully utilize the strong employment absorption capacity of new growth point areas to promote employment and income growth, and promote a virtuous cycle of employment, income, and consumption.Moodys downgraded the outlook for Telekom Indonesia, Mobile Indonesia, Petronas Indonesia and its upstream energy companies to negative.On February 6th, Wang Xiaoliang, Director of the Online Audiovisual Program Management Department of the State Administration of Radio and Television, stated at a press conference held by the State Council Information Office that the Administration will focus on three dimensions to further promote micro-dramas in driving service consumption and contributing to economic and social development. First, strengthening policy guarantees. The Administration will formulate and implement the "Measures for the Development and Management of Micro-Dramas," ensuring both "flexible regulation" and "effective management." While safeguarding content safety, the Administration will vigorously promote fair market competition, stimulate industry innovation and creativity, and create a healthy, positive, and orderly environment. Second, strengthening creative guidance. Creators will be guided to find suitable topics and tell compelling stories from the struggles of the people to create a better life, from the inheritance of excellent traditional Chinese culture, and from the vibrant practice of Chinese-style modernization in the new era, continuously producing more high-quality works and expanding the supply of quality content. Finally, deepening integration and innovation. The Administration will thoroughly implement the "Micro-Drama+" action plan, empowering the development of various industries such as culture and tourism, sports, and agriculture, focusing on industry integration to expand service consumption.On February 6th, Kong Dejun, Director-General of the Department of Trade in Services and Commercial Services of the Ministry of Commerce, stated at a State Council policy briefing that the Ministry of Commerce and other departments will implement the requirements of the "Work Plan" and focus on three key areas to continuously promote the expansion and improvement of automotive aftermarket service consumption. First, pilot programs will be implemented to explore development models. To adapt to the new situation and trends in automobile circulation and consumption, the Ministry of Commerce, together with relevant departments, will further promote pilot reforms in automobile circulation and consumption, supporting pilot regions to deepen reforms, actively innovate, and conduct pilot trials based on local conditions, focusing on management systems, standards and technologies, and data platforms, exploring new paths for high-quality development of the automotive aftermarket. Second, the car rental service network will be further optimized to promote the coordinated development of car rental and tourism industries.

Weekly Market Outlook and Review – Week Ending 20 January

Jimmy Khan

Jan 16, 2023 15:43

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US Federal Reserve Chair Jerome Powell participated in a panel discussion on Tuesday (Central bank independence and the mission - changing viewpoints) in his first public appearance of 2023 and reaffirmed the commitment of the central bank to keep inflation under control. As interest rates are raised to slow the economy, Powell said, "restoring price stability when inflation is strong might involve policies that are not popular in the near term." However, there were few remarks about the new policy.


However, US inflation was the week's primary high point. According to the US Bureau of Labor Statistics, consumer prices decreased for a sixth straight month in the 12 months leading up to December (2022), easing to 6.5%. (BLS). This comes after the June 2022 high of 9.1%. US core annual inflation, which excludes energy and food, decreased by 0.3 percentage points from November's 6.0% figure to 5.7% in the 12 months ending in December.


Risk assets saw a buy as a result of this because market players expect the US Federal Reserve's policy tightening to slow down (Fed). The market has virtually priced in a 25 basis-point rise for the next Fed meeting on February 1 based on the pricing of Fed Fund futures contracts, according to the CME's FedWatch Tool. This move would raise the Federal Funds target range to 4.50%-4.75%.


Major US stock indexes battled their way into another week of gains on the markets (S&P 500 up 2.7%), helped by favorable US inflation data and the start of Q4 results on Friday, which were heavily weighted toward banking companies. While Wells Fargo & Co missed quarterly targets, JPMorgan Chase & Co exceeded them. The closely followed FAANG index in the equities market was noteworthy as well since it had a strong week of gains. Amazon increased by 14.0%, while Netflix was close behind at 5.47%.


The (main) currency market saw notable outperformers including EUR/USD, AUD/USD, and GBP/USD rise by 1.78%, 1.48%, and 1.15%, respectively. The USD/JPY fell by a startling 3.17% for the week, while the USD/CAD lost 0.35%.