5 in 5 with ANZ
5 in 5 with ANZ
Monday: US PPI firm, but China loans slump 89%
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Current time: 0:00 / Total time: -9:34
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Monday: US PPI firm, but China loans slump 89%

US PPI inflation firmer than forecast, so bond yields rose 7-9 basis points; China loan growth slumps 89% to 14-year low; Country Garden suspends onshore bond trade; RBNZ set to hold, for now

US PPI inflation was a bit faster than expected in July, which pushed bond yields up on Friday night. But China’s economy continues to struggle, with loan growth slumping to a 14-year low.

In our bonus deep-dive interview in five minutes, ANZ’s NZ Chief Economist Sharon Zollner looks at whether the RBNZ can keep pausing its Official Cash Rate at 5.5%.

5 things to know

  1. US producer price inflation of 0.3% in July was above the 0.2% consensus, which pushed up bond yields 7-9 basis points. ANZ’s Senior International Economist Tom Kenny thinks the Fed is still on track to pause next month.

  2. New bank loans in China fell 89% in July from June to 346 billion yuan (US$48b), less than half market expectations. Also, Country Garden has suspended trade on 11 onshore bonds from this morning.

  3. Food prices fell 0.5% in New Zealand in July, dragging annual food price inflation under 10% for the first time since September. ANZ Economist Henry Russell points to surprise falls in fruit and vege prices.

  4. Brent crude oil prices hit a nine-month high of US$88 a barrel on Friday night after the IEA forecast record-high oil demand in 2023.

  5. ANZ Group Chief Economist Richard Yestenga says central banks will be keeping a wary eye this week on resurgences in commodity prices.

Cheers

Bernard

PS: Tomorrow we’ll take a deeper dive into how El Nino is already affecting commodity prices and the economies in the Asia Pacific.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.