Fri 9 Jun 2017


 NBR  Nightly Business Report.
 BTV   Bloomberg Technology: Market Report (Emily Chang).
CNBC Bruce McCain, Chief Investment Strategist at Key Private Bank discusses the tech sector Article

In Portfolioticker today

Today at the stock market

bull/bearA selloff in technology shares spoiled an otherwise buoyant day in the U.S. stock market. Apple led decliners in the S&P 500, sinking 3.7%, while Microsoft, Amazon, Facebook and Google all lost more than 1%.

  • The S&P 500 fell 0.1%, while the Dow Jones Industrial Average rose 0.4%.
  • The tech-heavy Nasdaq Composite Index dropped 1.8%, and the Nasdaq 100 Stock Index plunged 2.4%.
  • The FTSE 100 climbed 1%. The Stoxx Europe 600 Index added 0.3%.

The British GBP fell the most in 8 months as the election intended to strengthen Prime Minister Theresa May’s hand in negotiations with the European Union instead left her battling to survive, plunging the country into uncertainty just days before Brexit negotiations were due to start. The GBP’s retreat gave British stocks a boost, as the FTSE 100 Index gained around 1%. U.K. bonds rose.

Outside of Britain, investors turned their attention to sinking technology stocks following early enthusiasm that had pushed U.S. equity indexes to new intraday highs. The move lower began when Robert Boroujerdi, global chief investment officer at Goldman Sachs Group Inc., warned that low volatility in Facebook Inc., Amazon.com Inc., Apple, Microsoft Corp. and Google parent Alphabet Inc. may be blinding investors to risks such as cyclicality and regulation. The S&P 500 technology index plunged 2.7%.

“For now, the results of the U.K. elections do not appear to be threatening the global growth story. But for Britain, political uncertainty is likely to more than offset any benefit from a marginally weaker pound,” Mark Haefele, global chief investment officer at UBS Group AG, said in a note to clients.

The U.K. vote capped a series of major events this week – including former FBI Director James Comey’s testimony before the Senate Intelligence Committee on Thursday – that passed with relatively little fuss. Attention will now turn to the week ahead, when the Fed is expected to raise interest rates and the Bank of England, the Bank of Japan and the Swiss National Bank also meet.Bloomberg

Market indices

Index Ticker Today Change 31 Dec 16 YTD
S&P 500 SPX (INX) 2431.77 -0.09% 2238.83 +8.61%
DJIA INDU 21271.97 +0.42% 19762.60 +7.63%
NASDAQ IXIC 6207.92 -1.81% 5383.12 +15.32%

The portfolio today

USD and AUD denominated indices over the past 52 weeks (Chart: Bunting)
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting

Index values

Index Currency Today Change 31 Dec 16 YTD
USD-denominated Index USD 2.676 -3.59% 2.105 +27.14%
Valuation Rate USD/AUD 0.75798 -0.25% 0.72663 +4.31%
AUD-denominated Index AUD 3.531 -3.36% 2.895 +21.97%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 16 YTD
Alphabet A GOOGL $970.12 -3.40% $792.45 +22.42%
Alphabet C GOOG $949.83 -3.41% $771.82 +23.06%
Apple AAPL $148.98 -3.88% $115.82 +28.63%
Amazon AMZN $978.31 -3.16% $749.87 +30.46%
Ebay EBAY $34.94 -3.32% $29.69 +17.68%
Facebook FB $149.63 -3.28% $115.05 +30.05%
PayPal PYPL $53.40 -1.82% $39.47 +35.29%
Twitter TWTR $16.90 -3.92% $16.30 +3.68%
Visa V $94.56 -1.59% $78.02 +21.19%
VMware VMW $87.63 -3.29% $78.73 +11.30%

FX: USD/AUD

USD

DXY movements
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg

The Bloomberg Dollar Spot Index (DXY) added 0.2%.
Britain’s GBP weakened 1.8% to 1.2734/USD.
The EUR slipped 0.2% to USD 1.1197.
Japan’s JPY retreated 0.2% to 110.26.
Bloomberg

AUD

AUD movements
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com

Oil and Gas Futures

Futures prices

West Texas crude rose 0.5% to $45.86/barrel, after 2 days of losses. Oil has slumped this week as an unexpected increase in U.S. stockpiles cast doubt on OPEC’s ability to rebalance world crude markets. Bloomberg

Prices are as at 15:48 ET

  • NYMEX West Texas Intermediate (WTI): $45.82/barrel +0.39% Chart
  • ICE (London) Brent North Sea Crude: $48.13/barrel +0.56% Chart
  • NYMEX Natural gas futures: $3.04/MMBTU +0.46% Chart

Tech stocks fall, led by Apple

Shares of Apple Inc fell more than 3% on Friday after Bloomberg News reported that iPhones launched later this year will use modem chips with slower download speeds than some rival smartphones. Apple is widely expected to upgrade its iPhone this year, which marks the device’s 10th anniversary, and suggestions that its technology will lag the performance of high-end smartphones running Alphabet Inc’s Android system could hurt its sales.

Apple supplier Qualcomm Inc sells modems capable of downloading data at cutting-edge 1 gigabit speeds, but rival chipmaker Intel Corp’s (INTC.O) modem technology does not yet have that capability, according to the Bloomberg report. Since Apple is traditionally reluctant to rely on just one supplier, it is using modems from both companies, but capping download speeds of the quicker Qualcomm modems so that all of the new iPhones perform the same, Bloomberg reported, citing unnamed sources.Reuters

Bloomberg Report

Verizon Corp., AT&T Inc. and the rest of the U.S. wireless industry have a big boast for this year’s crop of smartphones: thanks to network upgrades, devices will be able to download as much as a gigabit of data in a single second — speeds 100 times faster than before.

But that won’t be the case for Apple Inc.’s newest iPhones, devices to go on sale later this year, leaving the company’s most important product potentially lagging behind the data performance of rival smartphones.

The reason stems from the delicate and sometimes complicated way Apple manages the supply of the components embedded in its flagship device — in this case, the modems, which handle the connection between a phone and the cellular network. One of Apple’s suppliers, Qualcomm Inc., sells a modem capable of the 1 gigabit download speeds. Another supplier, Intel Corp., is working on a modem with the same capability, but it won’t be ready for the iPhone’s introduction, according to people familiar with Apple’s decision.

Apple could in theory just use Qualcomm’s chips, but it has an aversion to being dependent on a single supplier, and its relationship with San Diego-based Qualcomm is particularly thorny. Cupertino, California-based Apple is embroiled in a bitter legal fight with the chipmaker, accusing the supplier of maintaining an illegal monopoly, and it’s seeking to loosen Qualcomm’s grip on the market for high-end smartphone modems. That’s why Apple will stick with Qualcomm modems for some of its new iPhones while relying on Intel for others.

Until Intel is able to offer its chips with matching features, Apple won’t enable some of capabilities of the phones running with Qualcomm modems, said the people, who asked not to be identified because the plan isn’t public. Apple, Qualcomm and Intel declined to comment.

Apple’s decision clashes with the marketing plans of a cellular industry desperate to show off faster network speeds to grab market share. The top U.S. wireless carriers — Verizon AT&T, T-Mobile US Inc. and Sprint Corp. — have declared 2017 the year of 1 gigabit speeds.

Apple used two modem suppliers — and the same technique to mask performance disparities — for last year’s iPhone 7. But the rise of gigabit wireless networks could make the strategy more risky: iPhone users will have a unified experience, no matter what modem is inside the new device, but it could look even less speedy compared to newer gigabit-ready smartphones from other manufacturers.

The carriers will be able to boast about 1 gigabit speeds if customers use other phones. Samsung Electronic Co.’s Galaxy S8, the main rival to the next iPhones, has Qualcomm’s X16 LTE modem and will keep up with the top speeds of the major wireless networks. Sprint sells the gigabit-ready HTC U11 and will have a Motorola Gigabit LTE phone later this year.

Apple’s decision to introduce new technology when it wants, rather than chase whatever the market dictates, isn’t new. The original iPhone launched in 2007 without support for 3G networks, and it was still wildly successful. It wasn’t until 2012 that the iPhone supported LTE technology that’s the basis of 4G networks — a year after Samsung Electronics Co. added that capability to its smartphones.

Still, Apple is dealing with a market that’s crying out for innovation to revive growth. Last year, the company’s revenue from iPhones, which generates more than 60 percent of Apple’s $216 billion annual sales, fell for the first time. Smartphone total market growth was just 2.5 percent, breaking a run of double-digit annual surges, according to industry analyst IDC.

Whether Apple’s decision will overshadow the company’s slick new design and features in the phone coming later this year, as well as its customer loyalty, remains to be seen. Achieving 1 gigabit data speeds requires almost lab-like optimal signal conditions that seldom occur in the real world.

Nonetheless, the first carrier to claim such network capabilities will get bragging rights and an edge at selling the promise of instantaneous movie downloads and high-quality live video. It’s one area where service providers can’t afford to be seen as laggards.

The carriers are already in a fierce price battle for subscribers. As the pool of new customers has declined, most of the user gains are coming at the expense of rivals. Sprint and T-Mobile have been taking customers from AT&T and Verizon by offering cheaper unlimited data at a time when video hungry users seek lower-cost plans to support their habits. The ability to advertise a service that’s 100-times faster may help carriers shift consumer focus to network performance and away from cut-throat pricing.

T-Mobile promised to have the first 1 gigabit data service available in the U.S. this year and has already started making network upgrades, Chief Technology Officer Neville Ray said in February. AT&T has started 1 gigabit mobile service in Austin, Texas, and plans to expand to as many as 20 cities this year. Verizon will begin 5G trials in 11 markets this summer and plans to start mobile testing of 1 gigabit speeds in those cities.

Sprint has been one of the most aggressive proponents of 1 gigabit mobile speeds, promising in December that it would offer the fastest service in the industry. Sprint said it will have at least three 1 gigabit capable phones available this year – with the exception of iPhones.Bloomberg

flag_europe UK: Election – May Snatches Defeat From the Jaws of Victory

Britain’s Prime Minister Theresa May called an unexpected general election on the basis that an increased majority would give her more authority in her Brexit negotiations with the European Union. The election was held on Thursday 8 Jun 2017. She did not perform well during the pre-election campaign period with the result that her Conservative Party lost its majority (down 12 seats to 318 seats in a 650 seat Parliament), and was forced to form a coalition with the Democratic Unionist Party in order to form a majority government controlling at least 326 seats.

With 649 seats decided (Kensington undecided after 3 recounts), the distribution of seats was as follows:

  • Conservative: 318 (-12)
  • Labour: 261 (+31)
  • Scottish National Party: 35 (-19)
  • Liberal Democrat: 12 (+3)
  • Democratic Unionist Party: 10 (+2)
  • Sinn Féin: 7 (+3)
  • Plaid Cymru: 4 (+1)
  • Green: 1 (+0)
  • Independent: 1 (-4)

This diagram, which compares the results of last year’s Brexit referendum (left) with yesterday’s election (right), indicates that the pro-Brexit government lost support from pro-Brexit referendum voters.

uk_brexit_vs_election

Some of the reasons suggested include Guardian (UK) Analysis Bloomberg Analysis:

  • poor campaign performance by Theresa May and her Conservative Party
  • higher than expected voter turnout: a 20 year high of 68.7%
  • Labour’s retention of deprived seats (measured in terms of income, employment, education, housing and crime etc)

The result of the election is that instead of entering into Brexit negotiations with Europe supported by an increased mandate, Theresa May clearly has substantially reduced support. UK/EU talks are scheduled to start in 10 days’ time.

European Council President Donald Tusk has reminded Theresa May that:

  • Tweet: “We don’t know when Brexit talks start. We know when they must end. Do your best to avoid a “no deal” as result of “no hegotiations.”
  • Letter: “… Our shared responsibility and urgent task now is to conduct the negotiations on the UK’s withdrawal from the European Union in the best possible spirit, securing the least disruptive outcome for our citizens, businesses and countries after March 2019. The timeframe set by Article 50 of the Treaty leaves us with no time to lose”.

flag_australia AU: Lending Finance. Apr 2017

Press Release Extract [ser_148]

Housing Finance for Owner Occupation
The total value of owner occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, and the seasonally adjusted series fell 1.1%.

Personal Finance

The trend series for the value of total personal finance commitments fell 2.7% in April 2017 compared with March 2017. Fixed lending commitments fell 3.4% and revolving credit commitments fell 1.6%.

The seasonally adjusted series for the value of total personal finance commitments fell 5.3%. Fixed lending commitments fell 5.5% and revolving credit commitments fell 5.1%.

Commercial Finance

The trend series for the value of total commercial finance commitments rose 0.3% in April 2017 compared with March 2017. Revolving lending commitments rose 4.1%, while fixed lending commitments fell 0.6%.

The seasonally adjusted series for the value of total commercial finance commitments fell 4.8% in April 2017, after a rise of 14.2% in March 2017. Revolving lending commitments fell 21.8%, after a rise of 38.2% in the previous month. Fixed lending commitments rose 0.7%, following a rise of 8.2% in the previous month.

The value of commitments for the purchase of dwellings by individuals for rent or resale (trend) fell 1.1% in April 2017 and the seasonally adjusted series fell 2.5%.

Lease Finance

The trend series for the value of total lease finance commitments fell 1.1% in April 2017 while the seasonally adjusted series rose 5.9%, after a fall of 11.4% in March 2017.

Australian Bureau of Statistics, “5671.0 – Lending Finance, Australia, April 2017“, 9 Jun 2017 More

flag_australia AU: Housing Finance. Apr 2017

apartments_20170117

Press Release Extract [ser_44]

DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (trend) fell 0.4% in April 2017 compared with March 2017, and the seasonally adjusted series fell 1.6% in April 2017.

The total value of owner occupied housing commitments (trend) fell (down $15m, 0.1%) in April 2017. Falls were recorded in commitments for the purchase of established dwellings (down $27m, 0.2%) while rises were recorded in commitments for the construction of dwellings (up $6m, 0.3%) and commitments for the purchase of new dwellings (up $5m, 0.5%). The seasonally adjusted series for the total value of owner occupied housing commitments fell 1.1% in April 2017.

The total value of investment housing commitments (trend) fell (down $133m, 1.0%) in April 2017 compared with March 2017. Falls were recorded in commitments for the purchase of dwellings by others for rent or resale (down $25m, 2.1%), and commitments for the purchase of dwellings by individuals for rent or resale (down $115m, 1.1%), while a rise was recorded in commitments for the construction of dwellings for rent and resale (up $6m, 0.5%). The seasonally adjusted series for the total value of investment housing commitments fell 2.3% in April 2017.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (trend) fell 0.5% in April 2017, following a fall of 0.5% in March 2017. Falls were recorded in commitments for the purchase of new dwellings (down 3, 0.1%) and commitments for the refinancing of established dwellings (down 302, 1.7%) while rises were recorded in commitments for the construction of dwellings (up 35, 0.6%) with commitments for the purchase of established dwellings excluding refinancing being flat. The seasonally adjusted series for the total number of owner occupied housing commitments fell 1.9% in April 2017.

Number of Owner Occupied Dwellings Financed – State

Between March 2017 and April 2017, the number of owner occupied housing commitments (trend) fell in Queensland (down 101, 1.0%), Western Australia (down 56, 1.0%), Victoria (down 56, 0.4%), New South Wales (down 14, 0.1%), the Australian Capital Territory (down 6, 0.5%), South Australia (down 6, 0.2%) and Tasmania (down 3, 0.4%), while a rise was recorded in the Northern Territory (up 6, 1.8%).

The seasonally adjusted estimates fell in Victoria (down 215, 1.4%), New South Wales (down 153, 0.9%), Tasmania (down 105, 9.8%), South Australia (down 43, 1.1%), Queensland (down 36, 0.3%), the Australian Capital Territory (down 30, 2.8%) and the Northern Territory (down 20, 6.0%), while a rise was recorded in Western Australia (up 31, 0.6%).

First Home Buyer Commitments

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 13.9% in April 2017 from 13.5% in March 2017. The number of first home buyer commitments decreased by 17.5% to 6,547 in April from 7,939 in March; the number of non-first home buyer commitments also decreased. Between March 2017 and April 2017, the average loan size for first home buyers rose $300 to $317,100. The average loan size for all owner occupied housing commitments rose $3,700 to $371,700 for the same period.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (trend) rose 0.1% in April 2017, following a rise of 0.2% in March 2017. The seasonally adjusted series fell 0.7% in April 2017, after a rise of 0.1% in March 2017.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (trend) rose 0.6% in April 2017, following a rise of 0.6% in March 2017. The seasonally adjusted series rose 2.1% in April 2017, following a rise of 1.4% in March 2017.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (trend) fell 0.1% in April 2017, following a fall of 0.1% in March 2017. The seasonally adjusted series fell 3.0% in April 2017, after a rise of 9.2% in March 2017.

Purchase of established dwellings (including refinancing across lending institutions)

The number of finance commitments for the purchase of established dwellings for owner occupation (trend) fell 0.7% in April 2017, following a fall of 0.7% in March 2017. The seasonally adjusted series fell 2.3% in April 2017, following a fall of 1.7% in March 2017.

Refinancing

The number of refinancing commitments for owner occupied housing (trend) fell 1.7% in April 2017, following a fall of 2.1% in March 2017. The seasonally adjusted series fell 4.5% in April 2017, following a fall of 3.0% in March 2017.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of commitments for owner occupied dwellings financed by banks (trend) fell 0.4% in April 2017, following a fall of 0.4% in March 2017. The seasonally adjusted series fell 2.4% in April 2017, after being flat in March 2017.

Non-banks

The number of commitments for owner occupied dwellings financed by non-banks (trend) fell 1.7% in April 2017, following a fall of 1.7% in March 2017. The seasonally adjusted series rose 4.8% in April 2017, after a fall of 11.7% in March 2017. The number of commitments for owner occupied dwellings financed by permanent building societies (trend) rose 3.0% in April 2017, following a rise of 2.8% in March 2017.

HOUSING LOAN OUTSTANDINGS

At the end of April 2017, the value of outstanding housing loans financed by Authorised Deposit-taking Institutions (ADIs) was $1,588b, up $8b (0.5%) from the March 2017 closing balance. Owner occupied housing loan outstandings financed by ADIs rose $6b (0.6%) to $1,032b and investment housing loan outstandings financed by ADIs rose $2.2b (0.4%) to $556b.

Bank housing loan outstandings rose $8b (0.5%) during April 2017 to reach a closing balance of $1,551b. Owner occupied housing loan outstandings of banks rose $6b (0.6%) to $1,003b and investment housing loan outstandings of banks rose $2.1b (0.4%) to $547b.

Australian Bureau of Statistics, “5609.0 – Housing Finance, Australia, April 2017“, 9 Jun 2017 More

flag_japan Japan update

Currency: USD/JPY

JPY movements
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: Nikkei 225

N225 movements
^ Nikkei N225 movements over the past week Chart: Google Finance

Japan’s Nikkei 225 Stock Average jumped 0.5%. SoftBank Group Corp. rallied 7.4% to the highest in 17 years after agreeing to buy Boston Dynamics from Google parent Alphabet Inc.

flag_china China update

Consumer Price Index (CPI). May 2017

Preview: Trading Economics

China’s consumer prices rose 1.5 percent year-on-year in May of 2017, following a 1.2 percent rise in April and matching market consensus. It was the highest inflation rate since January, as cost of non-food increased further and cost of food fell much less than in a month earlier. On a monthly basis, consumer prices declined by 0.1 percent, after gaining 0.1 percent in a month earlier while market estimated a 0.2 percent drop. Inflation Rate in China averaged 5.36 percent from 1986 until 2017, reaching an all time high of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999.TradingEconomics

Press release

In May 2017, the consumer price index (CPI) went up by 1.5 percent year-on-year. The prices grew by 1.7 percent in cities and 1.1 percent in rural areas. The food prices went down by 1.6 percent, and the non-food prices decreased 2.3 percent. The prices of consumer goods went up by 0.7 percent and the prices of services grew by 2.9 percent. On average from January to May, the overall consumer prices were up by 1.4 percent from the same period of the previous year.

cn_cpi_20170609

In May, the consumer prices decreased 0.1 percent month-on-month. Of which, prices decreased 0.1 percent both in cities and rural areas. The food prices went down by 0.7 percent, and the non-food prices remained at the same level. The prices of consumer goods decreased 0.2 percent, and the prices of services increased 0.1 percent.

Year-on-Year Changes of Prices of Different Categories

In May, prices of food, tobacco and liquor, went down by 0.5 percent year-on-year, affecting nearly 0.15 percentage points decrease in the CPI. Of which, the prices of eggs, went down by 14.4 percent, affecting nearly 0.08 percentage points decrease in the CPI; meat, went down by 7.8 percent, affecting nearly 0.39 percentage points decrease in the CPI (price of pork was down by 12.8 percent, affecting nearly 0.38 percentage points decrease in the CPI); fresh vegetables, down by 6.3 percent, affecting nearly 0.15 percentage points decrease in the CPI; fresh fruits, up by 5.9 percent, affecting nearly 0.10 percentage point increase in the CPI; aquatic products, up by 6.9 percent, affecting nearly 0.12 percentage points increase in the CPI; grain, up by 1.4 percent, affecting nearly 0.03 percentage points increase in the CPI.

The prices of all the other seven categories increased. Of which, the prices of health care increased 5.9 percent, other articles and services increased 2.9 percent, education, culture and recreation increased 2.6 percent, residence increased 2.5 percent, clothing, transportation and communication, household articles and services, increased 1.3, 1.1 and 1.0 percent respectively.

Month-on-Month Changes of Prices of Different Categories

In May, prices of food, tobacco and liquor decreased 0.4 percent month-on-month, affecting nearly 0.13 percentage points decrease in the CPI. Of which, prices for fresh vegetables, went down by 6.2 percent, affecting nearly 0.14 percentage points decrease in the CPI; eggs, down by 3.4 percent, affecting nearly 0.02 percentage points decrease in the CPI; meat, down by 1.8 percent, affecting nearly 0.08 percentage points decrease in the CPI (price of pork was down by 2.9 percent, affecting nearly 0.08 percentage points decrease in the CPI); fresh fruits, went up by 4.2 percent, affecting nearly 0.08 percentage points increase in the CPI; aquatic products, up by 1.2 percent, affecting nearly 0.02 percentage points increase in the CPI.

Among the prices of the other seven categories, four increased and three decreased. Of which, the prices of health care increased 0.4 percent, household articles and services, clothing, residence increased 0.2, 0.1 and 0.1 percent respectively, transportation and communication, other articles and services, education, culture and recreation decreased 0.3, 0.2 and 0.1 percent respectively.

National Bureau of Statistics of China, “Consumer Price Index (CPI). May 2017“, 9 Jun 2017 More

Producer Price Index (PPI). May 2017

Preview: Trading Economics

Producer prices in China rose 5.5 percent year-on-year in May of 2017, compared to a 6.4 percent rise in April and slightly below the market consensus of 5.7 percent. It was the ninth straight month of increase but the weakest since December 2016. Costs went up at slower pace for most categories: coal mining and coal processing (+37.2 percent from +40.4 percent in the prior month), oil and gas processing (+27 percent from +43 percent), petroleum processing (+22 percent from +27.5 percent), ferrous metal smelting and processing (+17.7 percent from +22.3 percent), raw materials and chemical manufacturing (+7.7 percent from +9.2 percent). The 6 major industries accounted for a total of 74.5 percent of the total increase in PPI. On a monthly basis, producer prices edged down 0.1 percent. Producer Prices Change in China averaged 1.08 percent from 1995 until 2017, reaching an all time high of 13.47 percent in July of 1995 and a record low of -8.20 percent in July of 2009.TradingEconomics

Press release

In May 2017, Producer Price Index (PPI) for manufactured goods increased 5.5 percent year-on-year, and decreased 0.3 percent month-on-month. The purchasing price index for manufactured goods increased 8.0 percent year-on-year, and decreased 0.3 percent month-on-month. On average from January to May, the PPI increased 6.8 percent year-on-year, the purchasing price index for manufactured goods went up by 9.0 percent year-on-year.

cn_ppi_1_20170609
cn_ppi_2_20170609

Year-on-Year Changes of Prices of Different Categories

The year-on-year change of producer prices for means of production increased 7.3 percent, meaning 5.3 percentage points increase in the overall price level. Of which, producer prices for mining and quarrying industry increased 22.7 percent; that of raw materials industry increased 11.1 percent; that of manufacturing and processing industry increased 4.6 percent. Producer prices for consumer goods increased 0.6 percent year-on-year, meaning 0.2 percentage points increase in the overall price level. Of which, producer prices for foodstuff increased 0.3 percent, that of clothing increased 1.5 percent, that of commodities went up by 1.1 percent, and that of durable consumer goods went up by 0.2 percent.

The year-on-year purchaser price indices for fuel and power increased 15.8 percent, ferrous metal materials increased 14.0 percent, non-ferrous metal materials and wires went up by 13.9 percent, chemical raw materials went up by 7.1 percent.

Month-on-Month Changes of Prices of Different Categories

The producer prices for means of production decreased 0.4 percent month-on-month, meaning 0.3 percentage points decrease in the overall price level. Of the total, producer prices for mining and quarrying industry decreased 0.8 percent, that of raw materials industry decreased 0.7 percent, that of manufacturing and processing industry decreased 0.2 percent. Producer prices for consumer goods decreased 0.1 percent month-on-month. Of which, producer prices for foodstuff and commodities both decreased 0.2 percent, that of clothing and durable consumer goods both remained at the same level (the amount of change was 0).

The month-on-month purchaser price indices for ferrous metal materials decreased 1.2 percent, non-ferrous metal materials and wires went down by 0.8 percent, chemical raw materials decreased 0.7 percent, fuel and power went down by 0.2 percent.

National Bureau of Statistics of China, “Producer Price Index (PPI). May 2017“, 9 Jun 2017 More

Currency: USD/CNY

CNY movements
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: CSI300

CSI300 movements
^ Shanghai CSI300 movements over the past week Chart: Google Finance