Daily Macro Economy News on July 18

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Domestic News

1. Ministry of Agriculture and Rural Affairs: Will strengthen the state-owned farms to summarize and refine the practical experience of reform and development

2. Radio Administration Bureau of the MIIT and KRA held coordination talks on radio management work

3. Top Energy Co., Ltd Shanxi

4. Zheng Shanjie, Director of the National Development and Reform Commission, convened a symposium to listen to the views of private enterprises

International News

1. European gas prices tumble 7.5% as Norway completes gas plant overhaul

2. Heatwave sweeps across southern Europe or record high temperatures in Sicily may rise above 48.8 degrees Celsius

3. Russia to cut August oil exports as planned

4. Barclays: UK wage growth will keep inflation sticky

More detials:

Domestic News

1. Ministry of Agriculture and Rural Affairs: Will strengthen the state-owned farms to summarize and refine the practical experience of reform and development

The Ministry of Agriculture and Rural Affairs mentioned in its reply to the No. 7080 proposal of the 14th National People's Congress that the state-owned farms undertake national missions and tasks and involve a number of industries. At present, there is no special law to adjust and regulate state-owned farms, which affects their normal operation and strategic role. As a next step, the Ministry will study your suggestions in depth, further strengthen the summary and refinement of the practical experience of the reform and development of state-owned farms, continuously improve and upgrade the relevant work, do a good job in the legislative research and argumentation, and actively seek to form more consensus, so as to consolidate the status of state-owned farms as the market main body, give full play to the model leading role of the agricultural reclamation in comprehensively advancing the revitalization of the countryside and accelerating the construction of a strong agricultural country, and safeguard the social harmony and stability of the reclamation area and providing safeguards for the rule of law.

2. Radio Administration Bureau of the MIIT and KRA held coordination talks on radio management work

From July 12^th to 13^th, the Radio Administration Bureau of the Ministry of Industry and Information Technology (MIIT) and the Radio Policy Bureau of the Ministry of Science and ICT of the Republic of Korea (RPB) held the China-Republic of Korea Radio Authority (KRA) Coordination Meeting in Beijing. During the meeting, China and South Korea exchanged views on some of the important issues of WRC-23 and exchanged views on the coordination of important frequency bands. The two sides discussed the matter of restarting the satellite network coordination talks and agreed to restart the satellite network coordination through letters, talks at the satellite operator level or the competent authority level.

3. Top Energy Co., Ltd Shanxi

In the second quarter of 2023, Shanxi Sunshine Power Generation Company Limited, a wholly-owned subsidiary of Top Energy Co., Ltd Shanxi, completed power generation of 1,521,550,000 kWh, representing an increase of 24.02% year-on-year; on-grid electricity amounted to 1,387,560,000 kWh, representing an increase of 24.59% year-on-year; and the market-based trading electricity accounted for 100% of the on-grid electricity amount, which was the same as that of the previous year. The average price of feed-in tariff (including tax) was RMB 322.49/kWh, a year-on-year decrease of 21.42%.

4. Zheng Shanjie, Director of the National Development and Reform Commission, convened a symposium to listen to the views of private enterprises

On the morning of July 17^th, Zheng Shanjie, director of the National Development and Reform Commission, convened a symposium to have in-depth exchanges and discussions with the heads of private enterprises, such as Transfar Group, Fangda Group, Feihe Dairy, StellarNet, etc. Listened carefully to the real situation of the operation and development of the private enterprises, the difficulties they face and the relevant policy proposals.

International News

1. European gas prices tumble 7.5% as Norway completes gas plant overhaul

European gas prices tumbled as supplies from Norway soared after major maintenance work was completed. The benchmark European gas contract fell 7.5% at one point today after posting the biggest one-week drop of the year, 22%, on Friday. Lukewarm demand and rising inventory levels also helped keep prices in check. Maintenance work at Norway's Nyhamna gas processing plant ended as planned on Saturday. The shutdown, which lasted more than a month longer than originally planned, has led to sharp market volatility in recent weeks. Norwegian gas supplies are critical to maintaining Europe's fragile market balance.

2. Heatwave sweeps across southern Europe or record high temperatures in Sicily may rise above 48.8 degrees Celsius

The European Space Agency has warned that temperatures across southern Europe will hit record highs in the coming days, with extreme heat expected in Spain, France, Germany, and Poland. An anticyclone called "Cajon" (Charon), which advanced into the Mediterranean from North Africa on the 16th, will probably cause maximum temperatures in Sicily to rise to more than 48.8 degrees Celsius.

3. Russia to cut August oil exports as planned

According to Russia's Kommersant newspaper, Russia is moving towards realizing its plan to reduce oil exports by 500,000 b/d in August. Russia's offshore oil exports could fall to 2.9-3 million bpd in August, mainly due to a reduction in exports from Russia's Baltic ports. The cuts were achieved by adjusting the third-quarter export schedule of state-owned pipeline operator Transneft, two sources said. Russia announced plans to cut production earlier this month, hoping to join Saudi Arabia in boosting global oil prices.

4. Barclays: UK wage growth will keep inflation sticky

Barclays economists said ahead of the release of the UK's June CPI figures on Wednesday that continued wage growth will likely keep UK inflation high. Barclays estimates that core inflation should remain at 7.1%, with wage and price movements keeping services inflation sticky. Data released last week showed that average earnings growth for UK businesses continued to be higher than expected in the three months to May, while other indicators were the opposite (e.g., GDP growth, credit data, and some other labor market data), suggesting that the economy is cooling down.

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