MNI China Daily Summary: Monday, February 10

MNI BRIEF: PBOC'S Zou Promoted To Vice Governor Role

MNI BRIEF: China Steel To See Limited Impact From U.S. Tariffs

MNI: China CFETS Yuan Index Down 0.15% In Week of Feb 7

MNI: PBOC Net Drains CNY234 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1707 Mon; -1.31% Y/Y

MNI: NORWAY JAN CORE CPI +0.1% M/M, +2.8% Y/Y

MNI: NORWAY JAN CPI +0.2% M/M, +2.3% Y/Y

MNI: US DEC CONSUMER CREDIT +$40.8B

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

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CHILE: Government Won't Rule Out Further Spending Cuts

CHILE
BulletEM BulletEmerging Market News
  • Budget director Javiera Martinez said in an interview in La Tercera that she can’t rule out further spending cuts this year to hit the government’s deficit target. She said that the government has already cut CLP 544bn in spending, with a further CLP 85bn of cuts planned, after lower-than-expected tax revenues last year. Any further adjustments would be considered, she said, after the Q1 budget report, which will include final 2024 numbers.
  • In the earlier Q4 budget report, the government said that the budget deficit was tracking at 2.9% of GDP last year, up from a 2.0% projection in the previous report. The deficit is expected to narrow to 1.7% of GDP this year, up from 1.0% estimated previously. Analysts continue to see risks to the deficit forecasts, given spending commitments and need for further restraint.
  • USDCLP is broadly unchanged in early trade Monday, with the pair remaining close to the 965 level. A c8% rally in copper prices over the last week has supported the peso, which has outperformed over the period, bringing USDCLP to a low of 956.55 last week. The move reinforces current bearish conditions and signals scope for an extension towards 940.35, the 61.8% retracement of the upleg between Sep 27 ‘24 - Jan 3.
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  • Budget director Javiera Martinez said in an interview in La Tercera that she can’t rule out further spending cuts this year to hit the government’s deficit target. She said that the government has already cut CLP 544bn in spending, with a further CLP 85bn of cuts planned, after lower-than-expected tax revenues last year. Any further adjustments would be considered, she said, after the Q1 budget report, which will include final 2024 numbers.
  • In the earlier Q4 budget report, the government said that the budget deficit was tracking at 2.9% of GDP last year, up from a 2.0% projection in the previous report. The deficit is expected to narrow to 1.7% of GDP this year, up from 1.0% estimated previously. Analysts continue to see risks to the deficit forecasts, given spending commitments and need for further restraint.
  • USDCLP is broadly unchanged in early trade Monday, with the pair remaining close to the 965 level. A c8% rally in copper prices over the last week has supported the peso, which has outperformed over the period, bringing USDCLP to a low of 956.55 last week. The move reinforces current bearish conditions and signals scope for an extension towards 940.35, the 61.8% retracement of the upleg between Sep 27 ‘24 - Jan 3.