Wednesday, 25 September, 2019
* PELOSI ANNOUNCES IMPEACHMENT INQUIRY INTO TRUMP
* CHINA’S WANG REJECTS U.S. CRITICISMS, SAYS BOTH SIDES SHOULD COOPERATE (RTRS)
* CHINA TO KEEP SUPPORTING PORK, SOY PURCHASE FROM U.S. (XINHUA)
* CHINA PREPARING TO BUY MORE U.S. PORK AS TRADE TALKS REVIVE (BBG)
* RBNZ LEAVES RATES ON HOLD, POLICY ROOM IF NEEDED (MNI)
* EU GETS FOURTH SET OF U.K. PROPOSALS WITH BACKSTOP ALTERNATIVES (BBG)
- Risk tone is on the backfoot following Trump’s harsh tone on China’s trade policies, further exacerbated by Democrats’ impeachment inquiry into Trump
- Asian equities are a sea of red so far in the midweek session; Nikkei 225 -0.38%, Shanghai Comp -0.57%, Shenzhen Comp -1.21%
- European and US equity futures are mixed; Euro Stoxx 50 -0.171%, FTSE 100 -0.228%, S&P500 e-minis +0.202%
- UST yields are mixed; 2yr -1.21bp to 1.6135% area and 10yr USTS +0.44bp to 1.6500% area
- DXY index seen pushing higher towards 98.550 area, +0.21% on the day
- Brent -0.81% to USD62.59/bbl; WTI -0.65% to USD56.92/bbl
POLITICS: The House will start an impeachment inquiry into President Donald Trump as a swell of Democrats denounce the president over alleged abuses of power, House Speaker Nancy Pelosi said Tuesday. Gathering pressure finally broke through the speaker’s reluctance to start impeachment proceedings amid concerns about the president’s efforts to push Ukraine to investigate the family of former Vice President Joe Biden, one of his top rivals for the presidency in 2020. At least 174 House members have now backed some action on impeachment. The number ballooned this week as centrist Democrats and vulnerable freshman lawmakers joined their ranks. (CNBC)
– The Bank of Japan must carefully examine the risks surrounding overseas economies and how they affect Japan, board member Takako Masai said on Wednesday, noting that the BOJ like other central banks will take policy action if needed.
BOJ: POLICY: BOJ Minutes: Members See Pre-Emptive Move On Risks
– A few Bank of Japan board members emphasized the need to take pre-emptive policy action against the heightened risks facing Japan’s economy, the minutes of the July 29-30 policy-setting meeting released on Wednesday showed. Some members also called for measures to mitigate the side-effects of further easing on commercial banks and the financial system.
– The Reserve Bank of New Zealand has left its official cash rate (OCR) unchanged at 1%, but said there “remains scope” for more fiscal and monetary stimulus. The RBNZ said that developments had not changed significantly since the August meeting at which it announced a big cut of 50 basis points down to the new record low of 1%.
JAPAN AUG PPI SERVICES +0.6% Y/Y; MEDIAN +0.5%; JUL +0.6%
AUSTRALIA AUG SKILLED VACANCIES -0.1% M/M; JUL -0.1%
NEW ZEALAND AUG TRADE BALANCE -NZ$1.565BN; MEDIAN -NZ$1.400BN; JUL -NZ$700MN
NEW ZEALAND AUG EXPORTS NZ$4.13BN; MEDIAN NZ$4.10BN; JUL NZ$4.96BN
NEW ZEALAND AUG IMPORTS NZ$5.69BN; MEDIAN NZ$5.58BN; JUL +NZ$5.66BN.
NEW ZEALAND AUG TRADE BALANCE YTD -NZ$5.484BN; MEDIAN -NZ$5.400BN; JUL -NZ$5.485BN
Focus Events, Wednesday 25th September (Times quoted BST)
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