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Among the EU member states, Sweden had the highest points in Services PMI. The figure came in at 58.6 points from the previous month’s 55.3 points record. On the other hand, France reported the lowest figure at 38.8 points. Spain and Italy also had disappointing reports of 39.4 points and 39.5 points. In addition to this, the current account was up by $67.4 billion. Meanwhile, Industrial Production MoM and YoY including Industrial New Orders reports managed to get out of the negative territory. The numbers were 1.2%, 0.2%, and 1.3% respectively. However, just like Germany, Sweden experienced a massive surge in new infections. It had its highest single day increase on November 19 at 7,623. Despite this, the number is still lower when compared to its peers. Germany’s light lockdown failed as the number of daily infections in the country had a median of 20,000 per day since November 2020.
A recent report from the OECD (Organization for Economic Co-operation and Development) suggests that Czechia will recover faster against the EU average. The intergovernmental economic organization said Czech Republic will go back to its pre-coronavirus level at the end of 2022. The OECD expects the eastern European country’s economy to plunge by 6.8% this 2020 followed by a small recovery in 2021 at 1.5%. Meanwhile, the expected 3.3% GDP growth in 2022 will help Czechia’s economy to totally recover from the pandemic. On the other hand, the second wave of COVID-19 in the region has slowed down the bloc’s recovery progress. In July, the European Commission said the Eurozone, a group of 19 countries who adopt the euro currency, will grow by 6.1%. However, it was revised down to 4.2%. In addition to this, the bloc said the expected V-shaped recovery will no longer be possible given the current economic climate.
The disappointing Nonfarm Payrolls result on Friday, December 04, is expected to pressure the US Congress to pass the proposed $2.2 trillion stimulus package. The figure for the recent NFP was 245,000 jobs added for the month of November. This was a decline of 60% from October’s 610,000 record. Meanwhile, the initial jobless claims report just recovered from two (2) weeks of increased in the number of unemployment benefit claimants. The participation rate also declined 61.5%. The US is also losing to China after the largest economy in the world incurred a $63.10 billion trade deficit. On the other hand, China’s trade surplus increased to $75.42 billion from $48.44 billion a month ago. In other news, Prime Minister Viktor Orban said Hungary will be sticking to its veto until the EU changed the budget’s conditions. Earlier, the EU Commission said members should follow the rule of law or risk their share of the EU budget vanish.
The strong ties between US President Donald Trump and Mexican President Andrés Manuel López Obrador will affect the US-Mexico relations once president-elect Joe Biden is sworn in the office. Biden will also be tackling the continued increase in US trade deficit against China of $63.10 billion. Analysts expect the Democratic candidate to further weaken the US dollar with his policies. In other news, the Standards and Poor reaffirmed Mexico’s economic outlook. It gave the country’s long-term foreign currency a “BBB” rating while long-term local currency retained a “BBB+” rating. Meanwhile, the outlook is still negative although for a different reason. The credit rating agency said the oil firm Petroleos Mexicanos (Pemex) risks Mexico’s economic recovery in the next 12-18 months due to the coronavirus pandemic and low demand for oil. The USDMXN pair will revisit its April 2018 low in the coming sessions.
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