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Shinichi Uchida, Deputy Governor of the Bank of Japan: Japans financial environment remains loose, supporting economic activities.Shinichi Uchida, Deputy Governor of the Bank of Japan: Our estimates of the neutral interest rate are subject to estimation errors and are too wide, so these estimates cannot be used in actual policy implementation.Shinichi Uchida, Deputy Governor of the Bank of Japan: If the Bank of Japan only gives a response on future monetary policy, it may undermine the markets information creation function.On March 5, the government work report proposed to actively expand effective investment. Closely follow the national development strategy and peoples livelihood needs, give full play to the role of various government investment tools, strengthen fiscal and financial coordination, strengthen project reserves and element guarantees, accelerate the implementation of a number of key projects, and promote the smooth completion of major projects in the "14th Five-Year Plan". Select the right projects, manage and use the funds well, ensure the funding needs of projects under construction, and resolutely prevent inefficient and ineffective investment. This year, the central budget investment plans to arrange 735 billion yuan to make good use of ultra-long-term special treasury bonds, strengthen supporting financing such as ultra-long-term loans, strengthen top-down organization and coordination, and support the "double" construction with greater efforts. Optimize the management mechanism of local government special bonds, implement the negative list management of investment areas, and delegate project review authority. Simplify the investment approval process, and establish and improve a cross-departmental and cross-regional coordination and promotion mechanism for major projects. Increase investment in the service industry. Support and encourage the development of private investment, standardize the implementation of new mechanisms for cooperation between the government and social capital, guide more private capital to participate in the construction of major infrastructure, social livelihood and other fields, and give private capital greater room for development.Cheung Kong Holdings (00001.HK) rose more than 20% as the company plans to sell 80% of Hutchison Port Holdings Groups shares to the BlackRock consortium.

WTI recovers to $87.50 on Iran, OPEC+ buzz

Daniel Rogers

Sep 02, 2022 14:38

 截屏2022-09-01 下午4.56.12_1024x576.png

 

WTI crude oil prices consolidate weekly losses near a two-week low in Friday's Asian session. The energy benchmark hails the expected output drop from major suppliers while ignoring US-Iran oil deal discussions. The market's consolidation before the US jobs data seems to favor the latest commodity bounce.

 

Reuters reports that OPEC+ will meet on September 5 amid a backdrop of dropping prices and demand, even as top producer Saudi Arabia claims supply remains tight. OPEC+ this week reduced its demand estimate, now projecting demand to lag supply by 400,000 bpd in 2022 and 300,000 bpd in 2023.

 

On a second page, Reuters sources Iranian official news as claiming Iran has given a 'constructive' response to US suggestions aimed at restoring the 2015 nuclear deal.

 

Covid-led lockdown in China's Chengdu joins gloomy Manufacturing PMIs and hawkish Fedbets to squeeze WTI crude oil prices.

 

US 10-year Treasury rates decrease one point from late June's highs to 3.25 percent, while two-year bond coupons fall from a 15-year high. The CME's FedWatch Tool predicts a 74% chance of a rate hike in September, up from 69%.

 

Looking ahead, oil traders will watch the US Nonfarm Payrolls (NFP) and Unemployment Rate for August for fresh impulse.

 

Although $85.30-50 horizontal support limits the black gold's immediate fall, recovery is elusive until reaching the 50-DMA and 200-DMA, around $95.15-30.