Summary of the past week’s key events
- Thai Nov car exports exceed 100,000 units
- Japan held elections last weekend which saw the Liberal Democratic Party (LDP) come to power with an overwhelming victory. LDP’s Shinzo Abe is expected to replace prime minister Yoshihiko Noda and had campaigned promising more monetary and fiscal stimulus.
- BoJ adds another 10T yen to its program, Nikkei trades above 10,000 intraweek as exporters get breather with weaker yen.
- China held its Central Economic Work Conference this weekend which sets forth monetary policy for 2013. Policymakers agreed to spend more to shore up the economy if necessary but are unlikely to announce a large stimulus. Policymakers also said that “expanding domestic demand will be a strategic basis for China’s development next year,” according to Xinhua.
- Spain sold €1.9 billion of short-term debt with yield of 1.195 percent on the 3-month bills, down from 1.254 percent the previous month. Borrowing costs also declined for the six-month bills.
- November home prices climbed 0.3 percent month-over-month in 70 major Chinese cities, after rising 0.05 percent the previous month. Home prices were up in 53 of 70 major cities, up from 35 in October. Meanwhile, Beijing continues to maintain curbs on its property sector.
- India’s central bank left interest rates unchanged. The repurchase rate was maintained at 8 percent, and cash reserve ratio was maintained at 4.25 percent. Central bank governor Duvvuri Subbarao has ignored called from the finance minister to lower interest rates and support the economy.
- Germany’s Ifo business climate index rose to 102.4 in December, from 101.4 the previous month, beating expectations.
- 74 billion baht would be given out in rebates under the first time car-buyers programme, how is the Thai government going to pay for all these populist policies?
- Euro-area exports fell 1.4 percent month-over-month in October and imports climbed 0.6 percent. The trade surplus narrowed to €7.9 billion.
- FDI in China in Nov falls 5.4% y/o/y, more than expected and negative for the 12th month in the past 13
- UK CPI in Nov holds at highest level since May at 2.7%, above the 2% BoE target for the 36th straight month.