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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- While inflation continues to surprise positively in some EM economies, it has been decelerating in a number of Asian and SE Asian countries in the past few months (Malaysia, Philippines, Thailand and Vietnam).
- Investors will therefore focus on China inflation data coming out on September 9.
- PPI inflation, which we follow more closely due to its LT strong relationship with China 10Y yield, is expected to remain stable at 9% YoY according to sell-side estimates.
- However, the chart below shows that the significant contraction in Chinese 'liquidity', which we define as the annual change in Total Social Financing (TSF) 12M sum, is currently pricing in a fall in PPI inflation in the coming months.
- The deceleration in inflation in Asia gives policymakers more time to normalize their policy rate and therefore wait for the uncertainty over the economic recovery to ease.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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