MNI: Several key developments of note over the New...>

MNI: Several key developments of note over the New Year period:

- 1) The PBoC will cut its RRR by 50bp as of Monday 6 Jan, which will free up

~CNY800bn worth of liquidity. This wasn't a surprise, recent comments from

Chinese Premier Li/State Council had signalled a high chance of such a move,

while many analysts had already called for RRR cuts in Jan. The PBoC said it

will continue with stable & prudent MonPol, maintaining appropriate flexibility

& refrain from credit flooding. The move will also help to address some seasonal

liquidity issues, ahead of the Chinese LNY later this month.

- 2) The Iranian Supreme Leader & U.S. President traded some (indirect) barbs

after a paramilitary group surrounded the U.S. embassy in Baghdad, Iraq.

Khamenei pushed back against the idea that his country was involved in the

event, which came on the back of U.S. airstrikes on Hezbollah facilities in Iraq

& Syria. The U.S. has deployed ~700 extra troops to the Middle East.

- 3) North Korea plans a "new strategic weapon," warning of "shocking action."

- 4) South Korean export data fell less than expected (Y/Y) in Dec, with exports

to China rising for the first time in 14 months.