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December 03, 2024
RBI Decision Preview: Growth Slackens, Inflation Soars: RBI’s Policy Tightrope
December 3, 2024 6:42 AM UTC
The Reserve Bank of India (RBI) is gearing up to announce its last monetary policy decision for 2024 on December 6. For the upcoming meeting, we anticipate that the RBI will likely keep the repo rate unchanged at 6.5%, given the recent uptick in inflation. The decision to hold rate will come despite
Indonesia CPI Review: Headline Inflation Eases in November, but Core Pressures Build
December 3, 2024 6:29 AM UTC
Easing food inflation saw headline CPI decline to 1.5% yr/yr in November. Nonetheless, price pressures from a weakening IDR persist. Bank Indonesia will likely hold rates till the end of 2024.
December 02, 2024
France: The Beleaguered Consumer Hit Further by Fiscal Impasse
December 2, 2024 5:07 PM UTC
As France’s political deadlock intensifies amid a likely toppling of the fledgling government, markets are worried about the fiscal fall-out of what may at best be emergency legislation, a so-called Special Law that would keep the country running, but with funding approved month by month. To som
Preview: Due December 5 - U.S. October Trade Balance - Deficit to slip but may rebound in coming months
December 2, 2024 4:31 PM UTC
We expect an October trade deficit of $74.7bn, down from $84.4bn in September and below the Q3 average of $78.0bn. though trend in the deficit is probably still widening and we may see strong imports data later in Q4 in an attempt to beat threatened tariffs.
U.S. November ISM Manufacturing - Bounce led by positive new orders
December 2, 2024 3:27 PM UTC
November’s ISM manufacturing index at 48.4 from 46.5 is the highest since June and follows an upgraded final S and P manufacturing index of 49.7, also the highest since June, from a preliminary 48.8 and 48.5 in October.
Bank of Canada Preview for December 11: Another 50bps easing with tariffs threatened
December 2, 2024 2:16 PM UTC
The Bank of Canada meets on December 11, and we expect a second straight 50bps easing, to 3.25%. While October’s inflation data was a mild disappointment the underlying picture looks subdued. While there are some signs the economy is starting to respond to lower rates, with Q3 GDP having disappoin
Eurozone: What Services Inflation?
December 2, 2024 1:28 PM UTC
While real economy considerations seem to have taken over as the policy focus for the ECB majority, there are still some mutterings about apparent resilient services inflation. The latter is certainly the case when such inflation is measured on the conventional but possibly untimely y/y basis. How
Top Trump Tariff Threats
December 2, 2024 10:08 AM UTC
Internal dynamics within BRICS argues against a BRICS currency due to divergent economies and structures, though BRICS could one day look to have a payment system. Nevertheless, the threat of tariffs on BRICS if they form a new currency will also likely help the USD against EM currencies in H1 202
Asia Summary and Highlights 2 December
December 2, 2024 5:13 AM UTC
Asia Session
Over the weekend, Trump tweeted that he had a productive meeting with Trudeau while feeling the other way with BRICS. The equity space is opening the week with individual performance with Chinese and Hong Kong equities in the green and Nikkei & U.S. three major equity indexes in the red.
Asia Open - Overnight Highlights
December 2, 2024 12:00 AM UTC
EMERGING ASIA
EM currencies perform individually against the USD as USD returned from Thanksgiving and choppy amid the last trading day for the week. The biggest winners are THB by 0.4%, followed by SGD 0.27%, TWD 0.18%, IDR 0.16%, PHP 0.09%, HKD 0.02% and CNH 0.01%; the largest loser are KRW 0.19%,
December 01, 2024
November 29, 2024
Banxico Minutes: Evaluating Further Cuts
November 29, 2024 7:31 PM UTC
Banxico’s latest minutes reveal a 25 bps rate cut to 10.25%, with most board members supporting continued easing. They view recent non-core inflation spikes as transitory, expecting headline CPI to decline as shocks dissipate. Core CPI has dropped to 3.8%, reinforcing the case for further cuts, wh