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AUSTRALIA PRIVATE SECTOR CREDIT RISES 0.3% IN DECEMBER



Private sector credit in Australia was up 0.3 percent on month in December, the Reserve Bank of Australia said on Friday - accelerating from the 0.1 percent gain in November.

On a yearly basis, credit climbed 1.8 percent - up from 1.7 percent a month earlier.

Housing credit added 0.4 percent on month and 3.5 percent on year, while personal credit fell 0.5 percent on month and 12.3 percent on year and business credit gained 0.2 percent on month and 1.0 percent on year.

Broad money was up 0.6 percent on month and 12.6 percent on year.

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CHINA MANUFACTURING PMI EBBS IN JANUARY - CAIXIN



The manufacturing sector in China continued to expand in January, albeit at a slower pace, the latest survey from Caixin showed on Monday with a seasonally adjusted PMI score of 51.5.

That's down from 53.0, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Chinese goods producers signaled a sustained rise in output during January, to extend the current period of expansion to 11 months. That said, the rate of growth was the least marked since last April and modest. The slowdown coincided with a weaker increase in total new work at the start of the year.

Data indicated this was partly driven by a renewed drop in export orders, which fell for the first time in six months. Survey respondents often cited the resurgence of the COVID-19 virus globally when explaining the reduction.

Stock shortages at suppliers and shipping delays led to a further increase in delivery times for inputs. Furthermore, average vendor performance deteriorated at the steepest rate since last March.

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AUSTRALIA CB HOLDS KEY RATE; LIFTS QE



Australia's central bank left its key interest rate unchanged on Tuesday and raised the size of the asset purchase programme.

The board decided to maintain the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility.

But the board decided to buy an additional A$100 billion of bonds issued by the Australian Government and states and territories when the current bond purchase program is completed in mid April. These additional purchases will be at the current rate of A$5 billion a week.

The bank is not expecting to raise its interest rates until 2024.

Policymakers expect the economic recovery to continue, with the central scenario being for GDP to grow by 3.5 percent over both 2021 and 2022. GDP is expected to return to its end-2019 level by the middle of this year.

Both inflation and wages growth are forecast to pick up, but to do so only gradually, with both remaining below 2 percent over the next couple of years, the board said. In underlying terms, inflation is expected to be 1.25 percent over 2021 and 1.5 percent over 2022.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE FLASH CONSUMER PRICES, FINAL PMI DATA DUE



Flash consumer prices and final composite Purchasing Managers' survey results are due from euro area on Wednesday, headlining a busy day for the European economic news.

At 2.00 am ET, the Turkish Statistical Institute releases consumer and producer price figures for January. Economists expect inflation to rise to 14.68 percent from 14.6 percent in December.

At 3.15 am ET, IHS Markit releases Spain's services PMI data. The index is seen at 45.3 in January, down from 48.0 in December.

At 3.45 am ET, Italy's services PMI data is due. The services index is expected to fall to 39.5 in January from 39.7 a month ago.

Thereafter, final PMI figures are due from France and Germany at 3.50 am and 3.55 am ET, respectively.

At 3.55 am ET, Iceland's central bank is set to announce its interest rate decision.

At 4.00 am ET, IHS Markit publishes euro area composite PMI survey results. The final reading is seen at 47.5 in January, unchanged from flash estimate.

At 4.30 am ET, UK final composite PMI data is due. According to flash estimate, the composite index fell sharply to an eight-month low of 40.6 in January from 50.4 in December.

At 5.00 am ET, Eurostat publishes euro area flash consumer and producer price figures. Economists forecast consumer prices to rise 0.5 percent annually in January, in contrast to a fall of 0.3 percent in December.

Also, at 5.00 am, Italy's Istat releases flash consumer price figures for January. Consumer prices are forecast to drop 0.1 percent annually after easing 0.2 percent in December.

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NEW ZEALAND BUSINESS CONFIDENCE STRENGTHENS IN FEBRUARY



New Zealand business confidence strengthened in February, flash survey data from ANZ showed on Thursday.

The business sentiment index rose to 11.8 in February from 9.4 in December. The own activity outlook index advanced to 22.3 from 21.7 in the previous month.

However, there was a sharp rise in costs, dampening profitability, the survey showed.

Expected costs advanced 14 points in February. Firms are intending to pass the costs on where they can, with a net 49 percent of firms intending to raise their prices.

Inflation expectations lifted too, from 1.65 percent to 1.78 percent, another step closer to the 2 percent central bank's CPI target midpoint.

The profit expectations index slid to 0.5 from 6.8 in the previous survey period. The employment intentions climbed to 10.6 from 8.8. Final data is due on February 25.

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EUROPEAN ECONOMICS PREVIEW: GERMANY FACTORY ORDERS DATA DUE



Factory orders from Germany and Halifax house prices from the UK are due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is slated to issue Germany's factory orders for December. Economists forecast orders to fall 1 percent on month, reversing a 2.3 percent rise in November. In the meantime, industrial production data is due from Statistics Norway.

At 2.45 am ET, current account and foreign trade reports are due from France.

At 3.00 am ET, retail sales from the Czech Republic and industrial production from Hungary are due.

Hungary's industrial output is forecast to climb 2.0 percent annually in December, following a 3.5 percent rise in November.

Half an hour later, UK Halifax house price report is due. Monthly house price growth is seen at 0.3 percent in January versus +0.2 percent in December. Also, Statistics Sweden publishes industrial production and orders at 3.30 am.

At 4.00 am ET, Italy's Istat releases retail sales data for December. Sales had dropped 6.9 percent on month in November.

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FITCH MAINTAINS JAPAN'S SOVEREIGN RATINGS



Fitch Ratings maintained the sovereign ratings of Japan with a 'negative' outlook on Monday.

The ratings were retained at 'A' citing the strengths of an advanced and wealthy economy, with correspondingly robust governance standards and public institutions.

Fitch affirmed a 'negative' outlook on Japan's ratings, given continued downside risks to the macroeconomic and fiscal outlook from the coronavirus shock.

The agency expects the large fiscal support to be unwound gradually, but downside risks to growth exacerbate the challenge of placing the debt ratio on a downward path over the medium term.

After a 5.3 percent fall in 2020, Fitch forecast the economy to rebound by 3.5 percent in 2021 and 1.5 percent in 2022, supported by continued overseas demand for Japanese exports, which have recovered over recent months.

Fitch estimated government debt to have jumped to 254.8 percent of GDP in 2020 from 231.2 percent in 2019, the highest pre-pandemic debt ratio among Fitch-rated sovereigns. The debt is forecast to peak at 258.6 percent in 2023.

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EUROPEAN ECONOMICS PREVIEW: GERMAN FOREIGN TRADE DATA DUE



Foreign trade data from Germany is due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is slated to issue Germany's foreign trade figures. Economists forecast exports to fall 1 percent on month, reversing a 2.2 percent rise in November. Imports are seen easing 1.1 percent after rising 4.7 percent a month ago.

Germany's trade surplus is expected to fall to EUR 15.9 billion from EUR 16.4 billion in November.

At 4.00 am ET, Italy's Istat publishes industrial output data for December. Production is expected to grow 0.3 percent, in contrast to a 1.4 percent drop in November.

At 5.00 am ET, December industrial production report is due from Greece. Production had increased 8.6 percent on a yearly basis in November.

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CHINA CONSUMER PRICES RISE 1.0% ON MONTH IN JANUARY



Consumer prices in China were up 1.0 percent on month in January, the National Bureau of Statistics said on Wednesday - in line with expectations following the 0.7 percent increase in December.

On a yearly basis, consumer prices fell 0.3 percent - shy of expectations for a flat reading following the 0.2 percent gain in the previous month.

The bureau also said that producer prices rose 0.3 percent on year in January - missing forecasts for an increase of 0.4 percent after sinking 0.4 percent a month earlier.

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NEW ZEALAND ELECTRONIC CARD TRANSACTIONS SLIP 0.4% IN JANUARY



The total value of electronic card transactions in New Zealand was down a seasonally adjusted 0.4 percent on month or NZ$24 million in January, Statistics New Zealand said on Thursday - following the 19.2 percent spike in December.

Spending in the core retail industries slipped 0.7 percent on month or NZ$39 million.

On a yearly basis, electronic retail card spending was up 1.9 percent - slowing from 3.5 percent in the previous month.

By industry, the movements were: durables, up NZ$34 million (2.1 percent); motor vehicles (excluding fuel), up NZ$3 million (1.7 percent); fuel, down NZ$1 million (0.3 percent); apparel, down NZ$7 million (2.0 percent); and consumables, down NZ$31 million (1.3 percent).

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NEW ZEALAND FOOD PRICES CLIMB AN UNADJUSTED 1.3% IN JANUARY



Food prices in New Zealand were up an unadjusted 1.3 percent on month in January, Statistics New Zealand said on Friday.

Seasonally adjusted, food prices were flat on month.

In January 2021 compared with December 2020: fruit and vegetable prices rose 1.7 percent (down 1.4 percent after seasonal adjustment); meat, poultry, and fish prices rose 1.1 percent; grocery food prices rose 1.8 percent (up 0.8 percent after seasonal adjustment); non-alcoholic beverage prices rose 2.5 percent; and restaurant meals and ready-to-eat food prices rose 0.3 percent.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE INDUSTRIAL OUTPUT, FOREIGN TRADE DATA DUE



Industrial production and foreign trade figures from euro area are due on Monday, headlining a light day for the European economic news.

At 2.00 am ET, GDP data from Denmark and foreign trade data from Norway are due.

At 3.00 am ET, December construction output data is due from Hungary. Production had increased 5 percent annually in November.

At 4.00 am ET, consumer prices data is due from Poland. Inflation is forecast to remain unchanged at 2.4 percent in January.

At 5.00 am ET, Eurostat is scheduled to issue euro area foreign trade and industrial output figures for December. Economists forecast production to fall 1 percent on month, reversing a 2.5 percent rise in November.

The euro area foreign trade surplus is seen at EUR 25.3 billion in December versus EUR 25.8 billion in the previous month.

In the meantime, January consumer price data is due from Greece. Consumer prices are forecast to drop 2.3 percent annually in December.

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MicroStrategy decides to buy more Bitcoin



The bitcoin exchange rate is trading near the level of $50,000 per coin and is not even going to stop there. Ether is also not far from its highs, but it is still correcting and is now near the level of $1,745. At the moment, there are no discussions on any fall of the two largest cryptocurrencies. This is pretty logical, considering the latest news. For the past two weeks, everyone has been talking about Elon Musk's posts on Twitter and Tesla's decision to buy $1.5 billion worth of Bitcoin. These events led the cue ball to the cost of $50,000 per coin. However, further messages began to arrive, saying that the oldest banks, payment systems, and some other companies were already ready to join the cue ball hype. Since bitcoin and ether are already traded on the Chicago Mercantile Exchange, the popularization of the cryptocurrency segment is in full swing. In the future, bitcoin is going to be used as payment for goods and services. Apple already provides its users with the ability to store cryptocurrencies on their phone. But at the same time, there is still a huge number of skeptics of bitcoin and other tokens remaining in the world. While they criticize the cue ball, the coin continues to break value records. Despite this, many believe that the "bubble" is inflating again and will soon burst. The problem is that bitcoin itself is worthless, so it doesn't have any fair value. It can cost as much as you want, just like other cryptocurrencies. Its price is formed solely on the basis of supply and demand. And supply and demand are formed from the hype. To put it simply, the more people join the general mainstream in order to make money on the rise, the more expensive the cryptocurrency becomes. But this does not mean that it becomes more useful or more scarce. Just yesterday, it became known that MicroStrategy is going to raise $600 million of borrowed funds to buy more bitcoins. According to approximate estimates, the company's account already has about 72,000 coins, which is equal to 3.6 billion in dollar terms. The company has invested in bitcoin throughout 2020 and is now referred to as the "corporate sponsor" of bitcoin. The company, whose main activity is not actually related to investments in cryptocurrencies, but to business analytics, has risen in price by 580% during 2020 alone, due to its activity on the purchase of the number 1 cryptocurrency. Now, MicroStrategy is going to issue 600 million bonds for sale with a maturity in 2027. We also stand by the opinion that the "bubble" is inflated and will burst sooner or later. But while it is still growing, it is possible to make good money on it.

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EUROPEAN ECONOMICS PREVIEW: ECB MINUTES DUE



The minutes of the policy-setting meeting of the European Central Bank is due on Thursday, headlining a light day for the European economic news.

At 2.00 am ET, January foreign trade data is due from Switzerland. The trade surplus totaled CHF 3.05 billion in December.

At 3.30 am ET, Statistics Sweden is scheduled to issue consumer price data for January. Inflation is forecast to rise to 1.5 percent from 0.5 percent in December. At 4.00 am ET, industrial production and producer price figures are due from Poland. Production is expected to rise 0.6 percent on year in January, slower than the 11.2 percent increase in December.

At 6.00 am ET, Turkey's central bank announces its interest rate decision. The bank is expected to hold its one-week repo rate at 17.00 percent.

At 7.30 am ET, the ECB releases the account of the monetary policy meeting of the governing council held on January 20 and 21. At the meeting, policymakers had decided to leave its key interest rates and asset purchases unchanged, and reaffirmed its willingness to adjust the policy tools when needed.

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SOUTH KOREA PRODUCER PRICE INFLATION RISES FOR SECOND MONTH



South Korea's producer price inflation rose for the second straight month in January, data published by Bank of Korea showed on Friday.

Producer prices increased 0.8 percent year-on-year in January, following a 0.2 percent rise in December.

Prices for agricultural, forestry and marine products prices increased 12.5 percent and those of services grew 1.6 percent. Prices for manufacturing products remained unchanged.

Meanwhile, prices for electric power, gas, water and waste declined 5.3 percent.

On a monthly basis, producer prices rose 0.9 percent in January, following a 0.8 percent increase in the prior month.

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THAI TRADE DATA DUE ON MONDAY



Thailand will on Monday release January figures for imports, exports and trade balance, highlighting a light day for Asia-Pacific economic activity.

Imports are expected to sink 10.5 percent on year after rising 3.62 percent in December. Exports are called higher by an annual 2.4 percent after adding 4.7 percent in the previous month. The trade surplus is pegged at $0.1 billion, down from $0.96 billion a month earlier.

China will provide February data on prime loan rates; in January, the one-year rate was 3.85 percent and the five-year rate was 4.65 percent.

Hong Kong will see January figures for consumer prices; in December, overall inflation was down 0.7 percent on year.

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NEW ZEALAND RETAIL SALES VOLUME RISES 4.8% ON YEAR IN Q4



The volume of retail sales in New Zealand was up 4.8 percent on year in the fourth quarter of 2020, Statistics New Zealand said on Tuesday - slowing from 8.3 percent in the three months prior.

The total value of retail sales was up 4.9 percent (NZ$1.3 billion).

The main movements by industry were: motor vehicle and parts retailing, up 12 percent (NZ$412 million); hardware, building, and garden supplies, up 16 percent (NZ$388 million); electrical and electronic goods retailing, up 19 percent (NZ$214 million); and supermarket and grocery stores, up 3.3 percent (NZ$187 million).

On a quarterly basis, sales were down 2.7 percent after skyrocketing 28.0 percent in the previous three months.

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MALAYSIA CONSUMER PRICES DECLINE SLOWS IN JANUARY



Malaysia's consumer prices declined at a softer pace in January, data from the Department of Statistics showed on Wednesday.

The consumer price index declined 0.2 percent year-on-year in January, following a 1.4 percent fall in December. Economists had expected a 0.8 percent fall.

The annual fall was largely driven by the decline in transportation cost, as prices fell 5.1 percent.

Prices for housing, water, electricity, gas and other fuels declined 0.7 percent yearly in January.
Prices for clothing and footwear decreased 0.4 percent and those of restaurants and hotel fell 0.1 percent.

On a monthly basis, consumer prices rose 1.2 percent in January.

The core inflation was 0.7 percent in January.

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AUSTRALIA PRIVATE CAPEX CLIMBS 3.0% IN Q4



Private capital expenditure was up 3.0 percent on quarter in the fourth quarter of 2020, the Australian Bureau of Statistics said on Thursday.

That beat forecasts for a flat reading following the 3.0 percent decline in the three months prior.

Capex for buildings and structures rose 0.7 percent in the December quarter 2020, while capex for equipment, plant and machinery rose 5.7 percent in the December quarter 2020.

Capex for mining fell 1.4 percent in the December quarter 2020, while capex for non-mining rose 4.9 percent in the December quarter 2020.

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JAPAN INDUSTRIAL OUTPUT CLIMBS 4.2% IN JANUARY



Industrial production in Japan was up a seasonally adjusted 4.2 percent on month in January, the Ministry of Economy, Trade and Industry said on Friday.

That beat expectations for an increase of 4.0 percent following the 1.0 percent decline in December.

On a yearly basis, industrial production dropped 5.3 percent - roughly in line with forecasts after slipping 2.6 percent in the previous month.

Upon the release of the data, the METI upgraded its assessment of industrial production, saying that it is now picking up.

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