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On August 26th, it was reported that in July, total electricity consumption in China exceeded 1 trillion kilowatt-hours again, with electricity consumption for internet data services increasing by 40% year-on-year. Computing power is becoming a significant source of new electricity consumption. In August, the peak electricity load of a smart computing center in Changshu, Jiangsu Province, increased by over 70% compared to the same period last year. The peak electricity load of the computing power industry reached 200,000 kilowatts, accounting for approximately 4.1% of the citys total electricity load. The State Grid Changshu Power Supply Company stated that the computing power industry contributed nearly half of the citys increased electricity load, accounting for approximately 49%, reflecting that computing power load is gradually replacing seasonal air conditioning load as the core driver of electricity consumption growth this summer. In July, the electricity consumption of 106 computing power centers in Jiangsu Province exceeded 1.3 billion kilowatt-hours, a year-on-year increase of 31%, with supercomputing and smart computing centers accounting for over 80% of the total.The Bank of Thailand: The Monetary Policy Committee unanimously voted to keep interest rates unchanged.Dubai International Airport (DISA) reported on August 26 that passenger traffic fell by nearly a third in the first half of the year due to disruptions caused by the war in Iran, but expects demand to recover in the second half. DISA stated that passenger traffic reached 13 million in the second quarter, bringing the total for the first half of the year to 31.5 million. Despite a rebound in traffic in May and June, first-half traffic was still 31% lower than the record level set in the same period last year. The war in Iran has led to a global readjustment of air routes, repeatedly disrupting DISA. In May, the airport announced it had postponed its target of 100 million annual passengers by one year due to the significant drop in passenger traffic. Major Middle Eastern airlines Emirates, Qatar Airways, and Etihad Airways have all reduced operations and adjusted their international route networks to accommodate increased travel demand during the war. Several European airlines have also suspended flights to multiple destinations in the region and avoided the airspace of several Gulf states.August 26th - According to the Guangdong Branch of the General Administration of Customs, in the first seven months of this year, the import and export volume of comprehensive bonded zones (including cross-border industrial zones and bonded areas) in Guangdong Province reached 1.05 trillion yuan, a year-on-year increase of 32.3%, setting a new record for the same period in history and surpassing the trillion-yuan mark two months earlier than last year. While Guangdongs foreign trade has exceeded one trillion yuan for two consecutive months, the provinces comprehensive bonded zones continue to play a driving role, contributing 23.3% to Guangdongs foreign trade growth in the first seven months of this year.On August 26, Hu Zhenjiang, Deputy Director of the Civil Aviation Administration of China, met with Airbus Groups Chief Technology Officer and Executive Vice President of Commercial Airplanes, Mr. Marard, in Beijing. The two sides exchanged views on Airbuss business development in China and further strengthening cooperation in aviation safety, aircraft airworthiness, and maintenance support capabilities.

As BoJ Udea Mentions the Appropriateness of Current Monetary Policy, EUR/JPY Exhibits a V-Shaped Movement

Daniel Rogers

Feb 24, 2023 14:30

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When Kazuo Ueda, the nominee for Governor of the Bank of Japan (BoJ), addresses the Japanese parliament, the EUR/JPY currency pair exhibits a V-shaped movement. The commentary of Haruhiko Kuroda's successor as Governor of the Bank of Japan has increased the volatility of the Japanese Yen.

 

As he describes the current monetary policy as appropriate and necessary to sustain 2% inflation, BoJ Ueda's speech appears more diplomatic. Moreover, he stated that rising import prices are the cause of Japan's rising inflation. Domestic demand is still insufficient, but the central bank is attempting to achieve pre-pandemic growth rates. The neighborhood has descended into lunacy as a result of his speech's absence of Yield conversion control (YCC) discussions.

 

Despite current discussions about the expansion of the YCC, the economic outlook for the Japanese Yen is positive, as the Bank of Japan is working to increase labor costs, which will confidently support a revival in overall demand.

 

Nordea economists continue to be optimistic about the Japanese Yen: "We remain fairly sanguine on JPY due to our expectations of a change in Bank of Japan monetary policy later this year." According to a note from Nordea, the time is ripe for a normalization of the Bank of Japan's stimulative monetary policy, "with inflation reaching its highest level in decades and a prognosis for higher wage growth."

 

Despite the easing of inflationary pressures, investors are concerned that the normalization of the Eurozone economy will take a significant amount of time. In order to maintain a ceiling on the price index, the European Central Bank (ECB) is anticipated to continue raising interest rates.