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[SMM Steel Morning News] US GDP plummeted 32.9% in the second quarter, the biggest drop since the 1940s.
Jul 31,2020 08:28CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

News breakfast

"rising factors

1. Politburo of the CPC Central Committee: continue to expand domestic demand and speed up the construction of new infrastructure "

The political Bureau of the CPC Central Committee held a meeting, which demanded that we should not relax our efforts to do a good job in the prevention and control of the regular epidemic, improve the mechanism for the prevention and control of the regular epidemic, strengthen the reserve of medical and health materials, strengthen international cooperation in the prevention and control of the epidemic, and promote the construction of a human health community with practical actions. It is necessary to continue to expand domestic demand, overcome the impact of the epidemic, expand final consumption, and create conditions for the upgrading of household consumption. We should take a long-term view, actively expand effective investment and encourage social capital to participate. It is necessary to speed up the construction of a new type of infrastructure, further promote major regional development strategies, and speed up the implementation of major national strategic projects. It is necessary to use a new type of urbanization to drive investment and consumer demand, and promote the innovation of systems and mechanisms for the integrated development of urban agglomerations and metropolitan areas.

two。 Ministry of Commerce: go all out to do a good job in stabilizing foreign trade.

Gao Gao, spokesman for the Ministry of Commerce, said: in the next step, we will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, introduce new policies and measures in a timely manner, and do our best to stabilize foreign trade. The first is to protect the main body of foreign trade. We should give better play to the role of export credit insurance and help enterprises actively guard against order risks. We will promote "credit insurance plus guarantee" to support the financing of foreign trade enterprises, provide financing and credit enhancement support for foreign trade enterprises in various ways, and further expand the provision of export credit to small and medium-sized and micro foreign trade enterprises. We should do a good job in transferring export products to domestic sales and strive to ensure the sustainable development of enterprises. The second is to support enterprises in all aspects to grasp orders and expand the market. We will expand online channels for foreign trade, support the development of cross-border e-commerce, overseas warehousing, and foreign trade integrated service enterprises, and expand the pilot market procurement trade mode to promote the export of small and medium-sized and micro enterprises. Third, multiple measures should be taken to stabilize the industrial chain supply chain. We will encourage the central, western and northeast regions to give full play to their advantages and undertake labor-intensive foreign trade industries. Give full play to the role of foreign trade transformation and upgrading base, and enhance the leading role of large backbone foreign trade enterprises.

3. The 24th meeting of the China-South Korea Economic and Trade Joint Committee will be held on August 1.

After consultations between China and the ROK, the 24th meeting of the Sino-ROK Economic and Trade Joint Committee will be held in Qingdao, Shandong Province on the morning of August 1. The heads of the Ministry of Commerce of China and the Ministry of Foreign Affairs of South Korea will lead their respective delegations to attend the meeting. This meeting is the first face-to-face meeting of the intergovernmental economic and trade cooperation mechanism held between China and other countries since the outbreak of the COVID-19 epidemic. On the premise of ensuring the safety of epidemic prevention and control, the two sides will jointly plan the development direction of economic and trade cooperation between the two countries under the normalization of epidemic prevention and control, and discuss relevant key cooperation issues.

4. National coal consumption is expected to increase by 1.8% in July compared with the same period last year. Coal supply and demand will remain relatively stable. "

According to the dispatching Daily of the Transportation and Marketing Association, from July 1 to 28, the sales volume of key monitoring coal enterprises totaled 180 million tons, a decrease of 3.92 million tons, or 2.1%, compared with June. The Transportation and Marketing Association estimates that national coal consumption in July was about 340 million tons, up 1.8 per cent from a year earlier. Looking forward to the future, the Transportation and Marketing Association believes that for some time to come, with the continuous consolidation of the achievements in the prevention and control of the normal epidemic situation, the national economy will continue to show a steady and good development trend, and the demand for coal will gradually pick up. At the same time, spending the summer at the peak will provide a strong support for the demand for power coal. The supply and demand situation of the coal market will remain relatively stable, and the coal price will remain in a reasonable range in the later stage, but the uncertainty of the market and the downward pressure on the coal economy still exist.

5. Politburo of the CPC Central Committee: fiscal policy should be more active and monetary policy should be more flexible and moderate.

The political Bureau of the CPC Central Committee held a meeting, which pointed out that it is necessary to ensure that macro policies are effective. Fiscal policy should be more proactive and practical. It is necessary to ensure funds for the construction of major projects and pay attention to quality and efficiency. Monetary policy should be more flexible, moderate and accurate. It is necessary to maintain a reasonable growth in the money supply and the scale of social financing, and promote a significant reduction in comprehensive financing costs. It is necessary to ensure that the focus of new financing goes to manufacturing and small and medium-sized enterprises. Macroeconomic policies should strengthen coordination and cooperation to promote the integration of fiscal and monetary policies with employment, industrial and regional policies.

Downside factor

1. Political Bureau of the CPC Central Committee: to adhere to the principle of "housing without speculation" to promote the stable and healthy development of the real estate market.

The political Bureau of the CPC Central Committee held a meeting on July 30 to analyze and study the current economic situation and make arrangements for economic work in the second half of the year. The meeting called for insisting on the positioning that houses are used for living, not for speculation, so as to promote the stable and healthy development of the real estate market. It is necessary to ensure people's livelihood, do a good job in ensuring the basic livelihood of people in need, take effective measures to alleviate the impact of the epidemic on the employment of young people, strengthen employment services for migrant workers, and guide migrant workers returning to their hometown to find employment nearby.

two。 Us GDP plummeted 32.9% in the second quarter, the biggest drop since the 1940s.

In the United States, GDP fell by 32.9% in the second quarter from the initial annual rate, the biggest drop since the 1940s. It is estimated to be down 34.5%, compared with a previous value of 5%.

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