“,”elementId”:”73f35834-0136-42f9-8567-7afb6060952a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Speaking on the sidelines of the Singapore International Energy Week conference, Aramco CEO Amin Nasser said:
“,”elementId”:”ed967ea6-b793-42fa-be92-90c6f0adfdcd”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
\n
“We see more demand for jet fuel and naphtha especially for crude-to-chemical projects.”
\n
“,”elementId”:”2a09cd1a-51c3-4e7e-afce-3675e35e7bd0″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1729493479000,”blockCreatedOnDisplay”:”02.51 EDT”,”blockLastUpdated”:1729493612000,”blockLastUpdatedDisplay”: “02.53 EDT”,”blockFirstPublished”:1729493612000,”blockFirstPublishedDisplay”:”02.53 EDT”,”blockFirstPublishedDisplayNoTimezone”:”02.53″,”title”:”Saudi Aramco CEO: Bullish on China”,”contributors”:[],”primaryDateLine”:”Monday 21 October 2024 03.02 EDT”,”SecondaryDateLine”:”First published Monday 21 October 2024 02.39 EDT”},{“id”:”6715eaaa8f08156d157770f1″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
“,”elementId”:”5ff54731-b8a3-4392-85fc-97dea1735d07″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Banks in China have cut borrowing costs in the latest attempt to stimuluate growth across the Chinese economy.
“,”elementId”:”427b96f6-48db-42fd-95ec-54b58767dabd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The People’s Bank of China (PBoC) has announced today that its two benchmark lending rates are being cut, by a quarter of one percent.
“,”elementId”:”e1a78e00-c180-486a-9683-20bb0193fb2b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
China’s one-year loan prime rate – a reference for loans to businesses and consumers – has fallen to 3.1% from 3.35%.
“,”elementId”:”1d3b5bac-8fca-443f-b9b6-889c4721f4e5″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The five-year LPR – the benchmark for mortgages – has been cut from 3.85% to 3.6%.
“,”elementId”:”a627dc00-ea74-4813-9231-ef8ade0efb06″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The LPR rates are set by a group of China’s major banks, and today’s reductions show they are passing on last month’s interest rate cut from the PBOC.
“,”elementId”:”6cd5f932-5d64-46f8-8d43-36237f160029″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Becky Liu, head of China macro strategy at Standard Chartered says:
“,”elementId”:”dc1bed07-6ee7-41c7-b35c-3f06a21b8ee2″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
\n
“The larger cuts confirm the PBOC’s stance of easing monetary policy more quickly, and echo the Politburo’s statement of cutting rates more forcefully.”
\n
“,”elementId”:”0bcc1d58-a5d3-4751-a320-c91cf500484c”},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”source”:”Twitter”,”id”:”1848216936653410369″,”elementId”:”c1ef9a38-9f7f-40df-84a1-6dc660ba6dee”,”hasMedia”:false,”role”:”inline”,”url”:”https://twitter.com/BigBreakingWire/status/1848216936653410369″,”isThirdPartyTracking”:false,”html”:”
🚨 China reduced its one-year loan prime rate from 3.35% to 3.10% and the five-year LPR from 3.85% to 3.60%, following the central bank’s late September interest rate cuts, aiming to revive economic growth and stabilize the housing market. pic.twitter.com/8oKsFM9zKW
— BigBreakingWire (@BigBreakingWire) October 21, 2024
“},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Some stocks rallied after the cuts were announced, with the Shenzhen SE Composite index gaining around 1.4% today.
“,”elementId”:”7b913c5e-3e7f-4cbb-a3fd-6881b19a1d78″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”source”:”Twitter”,”id”:”1848192125680128281″,”elementId”:”b9751ebe-c76c-4760-864d-23ca4833ff4e”,”hasMedia”:false,”role”:”inline”,”url”:”https://twitter.com/tEconomics/status/1848192125680128281″,”isThirdPartyTracking”:false,”html”:”
China Stocks Extend Gains as PBOC Cuts LPR
The Shanghai Composite rose 0.2% to around 3,270 while the Shenzhen Component jumped 1.3% to 10,490 on Monday, extending gains from the previous session after the People’s Ban…
More here: https://t.co/NQnnRvWDqr pic.twitter.com/4nbD6Zlw7d
— TRADING ECONOMICS (@tEconomics) October 21, 2024
“},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Stephen Innes, managing partner at SPI Asset Management, says:
“,”elementId”:”76535f01-2dbb-4636-b9dc-d941b5107cb9″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
\n
Sure, the rate cut wasn’t a shocker, but the market is banking on the idea that the combined impact of all these recent measures could at least stem the economic bleeding.
\n
However, the reality seems to be that the Chinese Communist Party is desperately trying to harness the wealth effect from local equities to keep morale high. It’s a classic case of “hope floats” until the actual economic recovery kicks in—whenever that might be. Just look at Friday when Xi Jinping sent PBoC Governor Pan Gongsheng to pump some life into the markets with a pep talk, and guess what? It worked.
\n
Mainland and Hong Kong-listed stocks surged, the kind of response Beijing was banking on.
\n
“,”elementId”:”80af8704-149b-4b61-b76a-c48095da0350″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
It’s the latest in a flurry of attempt to stimulate the world’s second-largest economy, after growth slowed to an 18-month low last week. Last month, China announced wide-ranging measures including interest rate cuts and more liquidity for the banking system.
“,”elementId”:”089177b0-672d-4219-9197-585a18700a7d”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Beijing is attempting a difficult balancing act – trying to revive growth while also implementing structural reforms, and managing financial stability risk.
“,”elementId”:”e026377f-0d78-41af-8533-c3a53a91380a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
China’s property sector remains in a slump, with sales down sharply this year despite efforts to boost sentiment.
“,”elementId”:”c493121a-2155-4e0c-92ff-c077066099e1″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
And while cutting lending rates may provide some help, it will be difficult unless Chinese consumers feel confident enough to borrow – at a time where consumer confidence is near an all-time low….
“,”elementId”:”7db3c229-c5d7-4fc0-97ad-6aa09f77d739″},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”
The agenda
“,”elementId”:”8c312021-ddcc-4d67-955e-068d2fcb8304″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- \n
- \n
7am BST: German producer prices inflation report for September
- \n
3pm BST: The Conference Board’s leading economic index for the US
\n
\n
“,”elementId”:”41fa0613-f9fe-4fba-ad21-c6f57afc041f”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1729492748000,”blockCreatedOnDisplay”:”02.39 EDT”,”blockLastUpdated”:1729492670000,”blockLastUpdatedDisplay”: “02.37 EDT”,”blockFirstPublished”:1729492748000,”blockFirstPublishedDisplay”:”02.39 EDT”,”blockFirstPublishedDisplayNoTimezone”:”02.39″,”title”:”Introduction: China lowers lending rates in recent boost to growth”,”contributors “:[],”primaryDateLine”:”Monday 21 October 2024 03.02 EDT”,”SecondaryDateLine”:”First published Monday 21 October 2024 02.39 EDT”}],”filterKeyEvents”:false,”id”:”key -events-carousel-mobile “,”absoluteServerTimes”:false}”>
main events
In Germany, overall inflation fell more than expected.
German industrial producers reduced the prices of their products by 0.5% during September, meaning they were 1.4% lower than a year ago.
The main reason for the decline in PPI rates was the decline in energy prices. September 2024 was 6.6% lower than September 2023, including a 14.4% decline in mineral oil product prices.
die #ElzeigelPrize gewerblicher Produkte waren im September 2024 um 1,4 % niedriger als im September 2023. #please Hmm, 0.5%. https://t.co/UVzNycZaCZ pic.twitter.com/IfErygoZgr
— Statistics Federation (@destatis) October 21, 2024
\n\n”}}”/>
The fall in producer prices could impact consumer prices in stores and give the European Central Bank confidence to cut interest rates again in December.
Saudi Aramco CEO: Bullish on China
The head of oil giant Saudi Aramco has declared that the company is quite bullish on China and oil demand, especially given the Chinese government's stimulus package.
Speaking on the sidelines of the Singapore International Energy Week Conference, he said: aramco CEO amine nacelle Said:
“We see increased demand for jet fuel and naphtha, particularly in crude-to-chemical projects.”
Iron ore futures prices are rising, partly due to China's lower lending rates today.
The January iron ore contract, the most traded on China's Dalian Commodity Exchange, rose 1.5% to trade at 770 yuan (83 pounds) per tonne.
Iron ore prices rise on strong short-term demand, with additional interest rate cuts in China https://t.co/lwLuijJYlj pic.twitter.com/FapXqL56Ft
— Reuters (@Reuters) October 21, 2024
\n\n”}}”/>
Introduction: China lowers lending rates with recent growth boost
good morning. Welcome to our regular coverage of business, financial markets and the global economy.
Chinese banks have slashed borrowing costs in the latest attempt to stimulate growth across the country's economy.
of People's Bank of China (people's bank) announced today that it will cut its two benchmark lending rates by a quarter of 1%.
China's one-year loan prime rate, the standard for lending to businesses and consumers, fell to 3.1% from 3.35%.
The five-year LPR, the mortgage benchmark, was cut from 3.85% to 3.6%.
LPR rates are set by China's major banking groups, and today's cut shows they are continuing last month's cut in China rates. people's bank.
Becky LiuHead of China Macro Strategy standard Private reservation say:
“The significant rate cut confirms the People's Bank of China's stance to ease monetary policy more quickly and reflects the Politburo's statement to cut interest rates more forcefully.”
🚨 China lowered its one-year loan prime rate from 3.35% to 3.10% and lowered its five-year LPR following the central bank's late-September rate cut aimed at restoring economic growth and stabilizing the housing market. has been lowered from 3.85% to 3.60%. pic.twitter.com/8oKsFM9zKW
— BigBreakingWire (@BigBreakingWire) October 21, 2024
“}}”>
🚨 China lowered its one-year loan prime rate from 3.35% to 3.10% and lowered its five-year LPR following the central bank's late-September rate cut aimed at restoring economic growth and stabilizing the housing market. reduced from 3.85% to 3.60%. pic.twitter.com/8oKsFM9zKW
— BigBreakingWire (@BigBreakingWire) October 21, 2024
Some stocks rebounded after the rate cut was announced. shenzhen S.E. composite The index rose about 1.4% today.
Chinese stocks expand their gains as the People's Bank lowers LPR
On Monday, the Shanghai Composite rose 0.2% to around 3,270 and the Shenzhen Composite rose 1.3% to 10,490, extending gains from the previous session after the People's Ban.
Click here for details: https://t.co/NQnnRvWDqr pic.twitter.com/4nbD6Zlw7d
— Trade Economics (@tEconomics) October 21, 2024
“}}”>
Chinese stocks expand their gains as the People's Bank lowers LPR
The Shanghai Composite rose 0.2% to around 3,270 on Monday, and the Shenzhen Composite rose 1.3% to 10,490 on Monday, extending gains from the previous session after the People's Ban.
Click here for details: https://t.co/NQnnRvWDqr pic.twitter.com/4nbD6Zlw7d
— Trade Economics (@tEconomics) October 21, 2024
steven inesmanaging partner of SPI assets managementsays:
To be sure, the rate cut was not shocking, but markets are banking on the idea that the combined effect of all recent policy will at least stem the economic hemorrhage.
In reality, however, the Chinese Communist Party appears desperately trying to exploit the wealth effect of local stocks to keep morale high. This is a classic case of “hope floating around” until actual economic recovery begins, whenever that may be. Just look at what happened on Friday, when Xi Jinping dispatched Ban Gongsheng, the president of the People's Bank of China, to give a pep talk to energize the markets. It worked.
Listed stocks on the mainland and Hong Kong soared, and the Chinese government was banking on this.
This is the latest in a series of attempts to stimulate the world's second-largest economy after growth slowed to an 18-month low last week. China announced a wide range of measures last month, including lowering interest rates and increasing liquidity in the banking system.
The Chinese government is trying to strike a difficult balance as it attempts to revive growth while implementing structural reforms and managing financial stability risks.
China's real estate sector continues to be sluggish. Despite efforts to boost sentiment, sales have fallen significantly this year.
Lowering lending rates may help to some extent, but it will be difficult unless Chinese consumers feel confident enough to borrow. Consumer confidence is near an all-time low….
