Third quarter economic growth in Japan, this the final (link to the preliminary is below)
- GDP sa q/q 0.4%, ahead of the preliminary result.
- GDP annualised sa 1.8%
- GDP nominal q/q 0.6%
- GDP deflator (an inflation indication)
- Private consumption 0.5% q/q
- Business spending 1.8% q/q
For the preliminary readings and those for Q2, here is the report:
- Japan GDP (preliminary) for Q3 0.1% q/q (vs. expected 0.2%)
The growth figures are well ahead of the preliminary release. A relatively string report. Some of the strength in consumer activity will be ‘front loading’ ahead of the sales tax hike that came on October 1 I guess (although this did not show up to much extent in other data).
Latest data released by Eurostat – 5 December 2019
- Q3 final GDP +1.2% vs +1.2% y/y second reading
The secondary reading can be found here
. No changes to the previous estimate, as such this just reaffirms more sluggish growth seen in the euro area during the third quarter.
Household consumption was a minor bonus but growth is largely marred down by trade. EUR/USD stays a little more bid on the session at 1.1091 but is still unable to firmly break above the 1.1000 handle for now.
The Global Times citing some comments by the Chinese foreign ministry
The comments are via a series of tweets:
“The #US is used to suppressing specific countries and enterprises without any solid evidence, said Chinese FM, slamming the #FCC for barring China’s #Huawei and #ZTE from supplying US carriers in rural areas.
This economic bullying by the #US side blatantly flouts US’ principle of market economy. If this principle does not need to be adhered to, other countries can also do the same to US companies: Chinese FM”
This is not anything new really. We have heard these comments before as they have constantly voiced out their displeasure over the Huawei issue. But the warning on other countries potentially being preferred as business/trade partners is one to just be wary of.
Latest data released by Ifo – 25 November 2019
- Prior 94.6; revised to 94.7
- Expectations 92.1 vs 92.5 expected
- Prior 91.5; revised to 91.6
- Current assessment 97.9 vs 97.9 expected
- Prior 97.8
Slight delay in the release by the source. A measure of business conditions, sentiment and expectations towards the German economy.
The readings are within expectations and reaffirms some stability in sentiment and outlook towards the German economy so far in Q4. That said, the overall confidence levels remain low with risks to the economy still ever present.
EUR/USD keeps steady at 1.1021, near unchanged levels on the day currently.
Latest data released by Markit – 22 November 2019
- Prior 45.9
- Services PMI 51.5 vs 52.4 expected
- Prior 52.2
- Composite PMI 50.3 vs 50.9 expected
- Prior 50.6
The report here sort of summarises the overall sentiment from the French and German releases earlier. While there are green shoots starting to be observed in the manufacturing sector, domestic demand is beginning to weaken further as pointed out by the services print.
And when you weigh that as a whole, the composite reading still points to continued weakness in the euro area. As such, even if there are signs of hope, it is too soon to say that the European economy is on its way to a sustained recovery.
Further comments by China president Xi Jinping
- China did not start trade dispute with the US
- Will not flinch from such a fight
- Wants to work out agreement on trade on the basis of mutual respect, equality
- When necessary, we will fight back
- But we have been working actively to try and avoid a trade war
He is continuing with the usual rhetoric from the Chinese camp from the past few months. It’s pretty much a copy and paste of what they have been reiterating all along.
I reckon that gives you a sense of where the current standing is in terms of getting towards a “Phase One” trade deal.