MNI China Daily Summary: Thursday, July 4

MNI BRIEF: China Has Four Months To Negotiate EU EV Agreement

RPT-MNI INTERVIEW: ISM Choppiness Not A Clear Signal For Worry

MNI: PBOC Net Drains CNY98 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1305 Thurs; -0.79% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

Factory Orders Decline as Non-EU Orders Dip

DMP survey increases probability of August cut

MNI: UK JUNE CONSTRUCTION PMI 52.2 (FCST: 54.0); MAY 54.7

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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Negative Rates Questionnaire for Firms Released

BOE

The Bank of England has released the questionaire for firms to fill out regarding their readiness for negative rates: https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/letter/2020/info-request-operational-readiness-policy-rates-app1.xlsx?la=en&hash=C645BBC29971A53F8315E9B66DA1B90987146EB0

  • Questions include to what extent can systems handle zero or negative rates currently, what level of decimal places systems can handle, whether systems could handle a tiered system and what costs/time scales getting systems ready would incur.
  • In a letter from Sam Woods, Deputy Governor of the PRA, to CEOs, he writes that " The Bank and PRA will consider the wider business implications, including on financial stability, safety and soundness of authorised firms and pass-through to the wider economy. This letter, however, is seeking information to understand firms' operational readiness and challenges with potential implementation, particularly in terms of technology capabilities."
  • The press release also states that "This structured engagement is not indicative that the MPC will employ a zero or negative policy rate."
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