Daily Macro Economy News on July 14

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International Crude Price Trend and Exchange Rate of RMB to USD Trend

Domestic News

1. Bossco will invest in environmental protection equipment and a waste battery comprehensive utilization project in Anhui province

2. The Ministry of Commerce and other 15 departments issued the 2023 Work Program for Housekeeping for Slake Seasons

3. Ministry of Commerce: 2023 National Summer Consumption Season has Started

4. NEA: In June, the whole society used 775.1 billion kWh of electricity, up 3.9% year-on-year

International News

1. South Korea's ICT exports shrink 30% in the first half of 2023, down a consecutive 12 months

2. IEA cuts 2023 oil demand growth forecast for the first time this year due to global economic slowdown

3. US inflation improvement injects optimism into UK Inflation, the market prices peak was lower than the BOE rates

4. Eurozone industrial output annualized rate in May

More detials:

Domestic News

1. Bossco will invest in environmental protection equipment and a waste battery comprehensive utilization project in Anhui province

Bossco announced on July 13^th evening, the company intends to invest in green environmental protection along with a sanitation equipment production line project and a waste lithium battery resources comprehensive utilization project which can process 30,000 tons per year in Ningguo City, Anhui Province. It is planned to invest a total amount of less than 1.038 billion yuan. After the completion of the projects, Bossco will take Anhui Province as the core and radiate the Yangtze River Delta region and accelerate the promotion and application of Bossco's self-developed core technologies and homemade equipment related to energy conservation and environmental protection.

2. The Ministry of Commerce and other 15 departments issued the 2023 Work Program for Housekeeping for Slake Seasons

The Ministry of Commerce and other 15 departments issued the 2023 Work Program for Housekeeping for Slake Seasons, which pointed out it will organize consumption promotion activities to promote employment. Encourage all localities with conditions to organize excellent housekeeping enterprises to enter the business districts and communities, expanding the housekeeping consumption scene, boosting the consumption of housekeeping services, and creating housekeeping employment opportunities. Provide guidance to the development of accurate labor docking, and help transferred rural laborers who are willing to engage in housekeeping services to be employed directly in community service outlets. Encourage the integration and development of housekeeping enterprises with industrial chain and supply chain affiliates, and actively introduce new products, services, and consumption suitable for community needs. (Resource: Ministry of Commerce website)

3. Ministry of Commerce: 2023 National Summer Consumption Season has Started

Ministry of Commerce website announced on July 13^th news, on July 12^th, the 2023 National Summer Consumption Season as in Chongqing Non-sleeping Festival kick-off ceremony was held in Cross Gold Street, Jiefangbei, Chongqing City. The National Summer Consumption Season is one of the six major theme activities of the Ministry of Commerce’s 2023 Consumption Boost Year Activities, combined with the summer consumption season, the organization of various types of consumption promotion activities can better meet the need of avoiding the summer heat, recreational vehicle traveling, leisure tourism, night-time consumption, summer vacation, and other diversified activities. These activities will last until the end of August. Meanwhile, the Ministry of Commerce will organize all kinds of activities in different cities, such as "Night Beijing City" in Beijing, "Jiangsu new consumption, Summer Nightlife" in Jiangsu, "Shopping in Summer" in Zhejiang, Qingdao International Beer Festival in Qingdao, and other relevant business associations will also launch a variety of supporting activities.

4. NEA: In June, the whole society used 775.1 billion kWh of electricity, up 3.9% year-on-year

The National Energy Administration (NEA) released the June electricity consumption data for every walk of life. In June, 775.1 billion kilowatt-hours of electricity consumption were used, up 3.9% year-on-year. From industries perspective respectively, the primary industry used 12.2 billion kWh of electricity, up 14.0% year-on-year; the secondary industry used 502.7 billion kWh of electricity, up 2.3% year-on-year; the tertiary industry used 149.4 billion kWh of electricity, up 10.1% year-on-year. Urban and rural residents lived with 110.8 billion kWh of electricity, up 2.2% year-on-year. From January to June, the whole society used a total of 4307.6 billion kWh of electricity, and the total electricity consumption of the whole society amounted to 4307.6 billion kWh, up 5.0% year-on-year. From industries perspective respectively, the primary industry consumed 57.8 billion kWh of electricity, up 12.1% year-on-year; the secondary industry consumed 286.7 billion kWh of electricity, up 4.4% year-on-year; the tertiary industry consumed 763.1 billion kWh of electricity, up 9.9% year-on-year. Urban and rural residents consumed 619.7 billion kWh of electricity, up 1.3% year-on-year.

International News

1. South Korea's ICT exports shrink 30% in the first half of 2023, down a consecutive 12 months

South Korea's Ministry of Science, Technology, and Information Communication said that in the first half of 2023, the information and communication technology industry (ICT) exports amounted to 84.95 billion US dollars, with a record high for the same period last year compared to a decline of 30.6%. The chip market slump and the tailing effect of the good results of the same period last year is the main reason for the decline in ICT exports. As the main export of semiconductor exports in the first half of this year reached 43.93 billion US dollars, a year-on-year decline of 36.8%, showing an 11 consecutive months decline since last August. Among them, memory chip exports fell 49.7% year-on-year, and system chips fell 17.5%. (Resource: Yonhap News)

2. IEA cuts 2023 oil demand growth forecast for the first time this year due to global economic slowdown

The International Energy Agency (IEA) said that oil demand will hit a record high this year, but economic headwinds and interest rate hikes mean that oil demand growth will be slightly lower than expected. Although demand is expected to reach 102.1 million barrels per day (bpd), the agency cut its demand growth forecast for the first time this year, by 220,000 bpd to 2.2 million bpd. In its monthly oil report, the IEA said, "The challenging economic environment is putting pressure on global oil demand, especially due to the significant tightening of monetary policy in many developed and developing countries ." IEA added that demand in developed countries (especially Europe) remains subdued. Oil demand growth is set to halve to 1.1 million bpd next year, reflecting the improvement of the electrification of vehicles and increased energy efficiency.

3. US inflation improvement injects optimism into UK Inflation, the market prices peak was lower than the BOE rates

The Bank of England's (BOE) terminal rate pricing continues to move slightly lower, with the peak rate priced at 6.50% earlier this week now down to 6.25%. Current market pricing suggests an 85% chance of rates peaking at 6.25%, with the weaker-than-expected US inflation data announced on Wednesday being the main cause of the volatility in market pricing. There has been considerable uncertainty about where BOE rates will peak, with the market hovering between 6.25% and 6.50% for several sessions. However, it now looks likely to continue lower, although we would advise caution as we still need to digest UK inflation data next week. However, the start of a turnaround in US inflation has injected optimism for a turnaround in UK inflation.

4. Eurozone industrial output annualized rate in May

Eurozone Industrial Output Annualized in May was -2.2%, -1.2% expected and 0.20% prior.

Domestic Macro Economy Index