In today’s briefing:
- ECB Easing Transmits Need To Hold Rates
- Proposed GST Reforms: Double Diwali Bonanza or Double Whammy?
- [IO Technicals 2025/35] Iron Ore Bulls Charge on Tight China Supply
- CX Daily: Chinese Renewables Firms Turn to New Markets, Models as Trade Barriers Rise
ECB Easing Transmits Need To Hold Rates
- ECB rate cuts are stimulating a trend rise in lending growth to levels consistent with no change in policy, as the monetary transmission mechanism delivers the easing.
- Activity surveys are less bullish, but reflect stagnant supply-side potential that can’t be fixed by stimulating demand, which would merely stoke the inflation problem.
- Potentially inappropriate Fed easing does not raise peer pressure like fundamental US weakness would. Domestic news dominates and supports our ECB call for no change.
Proposed GST Reforms: Double Diwali Bonanza or Double Whammy?
- GST reforms are set to change with centre proposing a two-rate structure of 5 and 18 per cent
- The announcement is aimed at boosting consumption in the mid-long run, curtailing effects of current higher tariffs.
- However, timing is of utmost importance. Any delay or adverse stance on the rollout could have significant ramifications for the overall economy and the festive season.
[IO Technicals 2025/35] Iron Ore Bulls Charge on Tight China Supply
- China’s planned steel cuts may lift global prices, while India and Southeast Asia’s infrastructure demand sustains robust iron ore consumption.
- Managed money participants trimmed net long exposure to 18.5k lots last week, with overall futures and options open interest slipping by 0.8%.
- Bullish MA crossover and MACD confirm renewed buying interest and strengthen the case for higher near-term price momentum.
CX Daily: Chinese Renewables Firms Turn to New Markets, Models as Trade Barriers Rise
- Renewables / Analysis: Chinese renewables firms turn to new markets, models as trade barriers rise
- Wahaha /In Depth: How Wahaha founder’s daughter took control amid a family squabble
- Law /In Depth: China mulls changes to grassroots governance
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