June 6th Macroeconomic Index: Bank of Canada Cuts Interest Rates, US Service Sector Surges

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Domestic News

1. Xu Xinchao, Deputy Secretary-General of the Beijing Municipal Government: We will actively plan for the National Data Security Industrial Park

2. Hangyang Group reached a strategic cooperation with Sinopec Shanghai Engineering Co., Ltd

3. The Central Bank: comprehensively promote the high-quality development of comprehensive statistics in the financial industry

4. He Lifeng met with Rodríguez, Special Envoy of the President of Cuba, Member of the Political Bureau of the Central Committee of the Communist Party of Cuba, and Minister of Foreign Affairs

5. The Seventh Session of the Standing Committee of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) held a plenary session

International News

1. The Bank of Canada cut interest rates for the first time in four years and said there was a reason to expect further cuts

2. The growth rate of private sector employment rate in the United States in May was lower than expected

3. Spain's crude oil imports rose to the highest level in six years in April

4. The U.S. service industry expanded again in May, and the business activity index hit the largest increase in three years

5.  The Bank of Canada joins the ranks of interest rate cuts, and the next one will be the European Central Bank

Domestic News

1. Xu Xinchao, Deputy Secretary-General of the Beijing Municipal Government: We will actively plan for the National Data Security Industrial Park

On June 5, at the opening ceremony of the Digital Security High-level Forum and the Beijing Cyber Security Conference, Xu Xinchao, Deputy Secretary-General of the Beijing Municipal Government, said that Beijing will improve the policy planning related to digital security, create an industrial agglomeration area with complementary advantages, focus on the construction of a national cybersecurity industrial park, actively plan the national data security industrial park, vigorously develop the Beijing-Tianjin cybersecurity industrial cluster, and create a new space carrier that leads the development of the national digital security industry

2. Hangyang Group reached a strategic cooperation with Sinopec Shanghai Engineering Co., Ltd

According to Hangyang Group, on June 3, Sha Yu, Executive Director and Secretary of the Party Committee of Sinopec Shanghai Engineering Co., Ltd., met with Zheng Wei, Chairman and General Manager of Hangyang Group.

3. The Central Bank: comprehensively promote the high-quality development of comprehensive statistics in the financial industry

The Party Branch of the Survey and Statistics Department of the Central Bank of China issued an article "Comprehensively Promoting the High-quality Development of Comprehensive Statistics in the Financial Industry", which emphasizes the need to strengthen the management of financial statistics, improve the comprehensive statistical standards and institutional systems of the financial industry, promote the coordination and benchmarking of statistical standards, continuously strengthen the management of financial statistics, ensure that financial data are timely, accurate and reliable, continue to improve the basic standards of comprehensive statistics of the financial industry, scientifically formulate the financial statistics system, promote the effective implementation of standards and coordinate benchmarking, and build a solid foundation for the integration and application of comprehensive statistical data of the financial industry. Optimize the functions of national financial basic data, enhance data collection and aggregation capabilities, and continuously promote the "granular warehousing" of various financial data, so as to achieve comprehensive coverage and effective monitoring of all kinds of financial activities. At the same time, accelerate the construction of data warehouses, improve data supply capacity, and serve all kinds of information needs.

4. He Lifeng met with Rodríguez, Special Envoy of the President of Cuba, Member of the Political Bureau of the Central Committee of the Communist Party of Cuba, and Minister of Foreign Affairs

He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Cuban President's special envoy, member of the Political Bureau of the CPC Central Committee and foreign minister Rodriguez, at the Great Hall of the People on 5 July, and the two sides exchanged views on Sino-Cuban cooperation and other issues. He Lifeng said that China and Cuba are good friends, good comrades and good brothers, and China and Cuba will work together to implement the important consensus reached by the two heads of state, deepen practical cooperation in trade, investment and tourism, and promote the building of a China-Cuba community with a shared future. Rodriguez said that Cuba is grateful to China for its valuable support and is willing to strengthen cooperation with China in various fields and promote new development of Cuban-Chinese special friendly relations.

5. The Seventh Session of the Standing Committee of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) held a plenary session

The seventh meeting of the Standing Committee of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) held a plenary meeting on the afternoon of the 5th, and 14 members of the Standing Committee of the CPPCC made speeches on "building a high-level socialist market economic system". Wang Huning, member of the Standing Committee of the Political Bureau of the CPC Central Committee and chairman of the National Committee of the Chinese People's Political Consultative Conference, attended the meeting. Standing Committee member Yi Gang suggested that we should adhere to deepening market-oriented reforms, promote the construction of the rule of law, adhere to high-level opening up, and further improve the socialist market economy system. Zhang Lianqi, a member of the Standing Committee, suggested that the reform of the fiscal and taxation system should be deepened, the construction of a unified national market should be promoted, and people's livelihood and well-being should be enhanced, so that all people can share the fruits of development. (Xinhua News Agency)

International News

1. The Bank of Canada cut interest rates for the first time in four years and said there was a reason to expect further cuts

The Bank of Canada cut interest rates by 25 basis points for the first time since 2020, in line with market expectations, becoming the first central bank in the G7 to start an easing cycle. Officials said they were more confident that inflation would move toward the 2% target, saying there was "reason to expect further rate cuts" if progress continued. "With more and more sustained evidence shows that underlying inflation is easing, monetary policy no longer needs to be as restrictive as it once was," Governor Macklem said. Since the start of the year, Canadian inflation has slowed faster than expected, with CPI slowing to 2.7% in April, while the central bank forecast 2.9% in the second quarter. Financial markets expect the ECB to most likely follow the lead of the Bank of Canada in cutting interest rates on Thursday.

2. The growth rate of private sector employment rate in the United States in May was lower than expected

Wednesday's ADP employment report showed that U.S. private sector jobs rose by 152,000 last month, below market expectations of an increase of 175,000, and the April increase was revised downward to 188,000. The report is the latest sign that jobs are not collapsing under the weight of the Fed's rate hikes, although other data suggest that the job market is becoming more flat. The U.S. Labor Department reported Tuesday that job openings fell to their lowest level in more than three years in April, and that the ratio of job openings to the number of unemployed people has returned to pre-pandemic levels in early 2020.

3. Spain's crude oil imports rose to the highest level in six years in April

Spain's crude oil imports rose to their highest level since January 2018 in April, with Brazil being Spain's largest supplier for the second month in a row, followed by the United States, Mexico and Angola, Iraq and Saudi Arabia, which also climbed to multi-month highs, according to national inventory agency CORES.

4. Luo 4.The U.S. service industry expanded again in May, and the business activity index hit the largest increase in three years

The U.S. services sector returned to growth in May after a brief contraction in April, with the business activity index posting its biggest increase in three years, a survey on Wednesday showed, which could support the Federal Reserve's cautious approach to rate cuts. The Institute for Supply Management (ISM) said the non-manufacturing PMI rose to 53.8 from 49.4 in April, the highest since August last year. The business activity index surged 10.3 points, the biggest increase since March 2021, to its highest level since November 2022 at 61.2. New orders growth accelerated again after slowing in the previous two months, while the service input cost indicator fell, and the employment indicator remained in contraction territory at 47.1. The stronger-than-expected services data contrasted sharply with the ISM manufacturing report, which showed factory activity contracted for a second straight month in May.

5. The Bank of Canada joins the ranks of interest rate cuts, and the next one will be the European Central Bank

The Bank of Canada became the third G10 central bank to cut interest rates after the Swiss National Bank and the Riksbank. With the ECB also expected to cut interest rates at Thursday's meeting, this should remove any residual notion of reliance on Fed policy. The rate cut came as the Bank of Canada stressed its "belief that inflation will continue to move closer to its 2% target" and said: "If inflation continues to ease, it is reasonable to expect further cuts in our policy rate." The market expects the Bank of Canada to cut interest rates again in September, and the move of major central banks to cut rates ahead of the Fed highlights the divergence between the US and other countries in terms of inflation performance and growth performance.

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