Daily Macro Economy News on June 21

Latest Global Major Index

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

Domestic News

1. Premier Li Qiang co-chairs the seventh round of China-German government consultations with German Chancellor Olaf Scholz at the Chancellery in Berlin

2. After 10 months, LPR was cut again. China's 1-year LPR was reported at 3.55% in June, and the over-5-years variety was reported at 4.2%, both down 10 basis points from the last time

3. The relevant person in charge of the Civil Aviation Administration introduced that the domestic civil aviation market has basically recovered to the level of the same period in 2019, and the industry has an adequate supply of capacity

4. Since the hog futures were listed, structural changes have taken place in the hog breeding industry, with price fluctuations significantly reduced and market panic selling significantly reduced

International News

1. ECB Governing Council member Francois Villeroy de Galhau: Inflation could approach 2% by the end of 2024

2. Russian Sinara Bank executives expect the yuan to account for nearly 65% of Russians' foreign currency savings by the end of 2025

3. Electricity prices soar 80 percent in just hours in Texas US as heat wave hits

4. The two parties of US congress co-propose national AI commission

More detials:

Domestic News

1. Premier Li Qiang co-chairs the seventh round of China-German government consultations with German Chancellor Olaf Scholz at the Chancellery in Berlin

Li Qiang said that both sides should seize the opportunity for green transformation and promote the quality and upgrading of cooperation. China advocates that Germany and China become "green peer" partners, strengthen communication and coordination on green, environmental protection and other issues, promote green energy science and technology research and development, industrial technology upgrading, deepen cooperation in new energy vehicles, green finance, third-party markets, and other areas.

2. After 10 months, LPR was cut again. China's 1-year LPR was reported at 3.55% in June, and the over-5-years variety was reported at 4.2%, both down 10 basis points from the last time

As the new over-5-year LPR declined, mortgage rates around the world adjusted accordingly. A number of banks in Beijing, Shenzhen Province, and Suzhou Province have lowered their mortgage rates. Among them, the first suite loan rate in Suzhou Province has been as low as 4%. The first suite loan rate in Zhengzhou Province has dropped to 3.8% previously and is expected to drop to 3.7% thereafter.

3. The relevant person in charge of the Civil Aviation Administration introduced that the domestic civil aviation market has basically recovered to the level of the same period in 2019, and the industry has an adequate supply of capacity

The relevant person in charge of the Civil Aviation Administration introduced that the domestic civil aviation market has basically recovered to the level of the same period in 2019, and the industry has a sufficient supply of capacity. From the current summer civil aviation booking data, this year's summer peak season has a significant growth compared to 2019.

4. Since the hog futures were listed, structural changes have taken place in the hog breeding industry, with price fluctuations significantly reduced and market panic selling significantly reduced

According to the Securities Times, as the Dragon Boat Festival holiday is approaching, hog prices are still not improving and the hog breeding industry as a whole is still in the loss-making stage. It is worth noting that since the hog futures were listed, structural changes have occurred in the hog breeding industry, with price volatility significantly reduced and panic selling in the market significantly reduced. Since December last year, hog futures prices continued to hover at the bottom, except for the Spring Festival month, other months basically maintained near 16,000 yuan/ton.

International News

1. ECB Governing Council member Francois Villeroy de Galhau: Inflation could approach 2% by the end of 2024

Future ECB decisions will depend on inflation data, the duration of the terminal rate is more important than the level, and the inflation in France and the euro area has passed the peak,  most of the path of ECB rate hikes has been completed.

2. Russian Sinara Bank executives expect the yuan to account for nearly 65% of Russians' foreign currency savings by the end of 2025

The Central Bank of Russia recently assessed that the share of RMB payments in Russia's exports and imports rose significantly again in April, reaching 23% and 31%, respectively. Russian Sinara Bank executives expect the yuan to account for nearly 65% of Russians' foreign currency savings by the end of 2025.

3. Electricity prices soar 80 percent in just hours in Texas US as heat wave hits

Electricity prices in Texas soared 80 percent in just a few hours as the state's power grid was put to the test by the scorching heat, causing electricity supplies to shrink. Electricity prices stood at $4,500 per megawatt-hour as of late Tuesday afternoon local time, up from $2,500 earlier in the day, according to the Electric Reliability Council of Texas (ERCOT). The call comes after the Texas Utilities Commission called for voluntary power savings to avoid entering into emergencies that could lead to blackouts, and ERCOT data showed that backup power supplies were expected to be reduced to 2 percent of total capacity by 8 pm local time, down from 15 percent earlier in the day.

4. The two parties of US congress co-propose national AI commission

The US House of Representatives website shows that Democratic Representatives Ted Lieu and Anna Eshoo, along with Republican Representative Ken Buck, are introducing the National AI Commission Act. Meanwhile, Democratic Senator Brian Chaz will introduce a parallel bill in the Senate. According to an outline of the bill provided by the lawmakers, the proposed "National AI Council" would ensure that the risks and potential harms posed by AI are mitigated through regulation and would play a leading role in establishing the necessary, long-term AI regulations. The commission would be responsible for providing three reports to Congress and the President, starting with an interim report six months after its establishment, which would contain urgently needed legislative proposals, and a final report one year after its establishment, which would need to contain recommendations for a comprehensive legislative framework.

Domestic Macro Economy Index