The average usage of electricity per household climbed 9 percent in August from a year earlier to come to 363 kilowatt-hours (kWh), which is likely to lead to a 13 percent on-year increase in the rates, or 7,520 won ($3.88) on average to 63,610 won, according to Korea Electric Power Corp (KEPCO).

The calculation is based on preliminary data, and the amount will be fixed at the end of this month, it added.

The sharper growth than the usage came as KEPCO currently applies the tiered rate system for residential power usage, where households using more electricity are charged at a higher rate.

Some 76 percent of total households in South Korea are expected to pay more this year than last year, KEPCO said.

The country's average daily maximum power demand reached a record high of 87.8 gigawatts in August by rising 6.1 percent on-year.

The number of heat wave days, or days when the daily high was 33 degrees Celsius or higher, reached 16 in August, the second-highest since 1973, when the data was first recorded.

The number of tropical nights, where nighttime temperatures remained above 25 C from 6:01 p.m. to 9 a.m. the following day, reached 11.3 days in August, marking the first time this figure has reached double digits, government data showed. 

Source: Koreatimes

[Quick Facts]

[News Details]

[Today's Focus]

Market Eyes Further Rate Cuts from the Fed

Markets Set to Start the Week on a Negative Note

Japan’s gross domestic product (GDP) grew at an annualised pace of 2.9% in the three months through June compared to the previous quarter, the Cabinet Office said on Monday. The result compared with a preliminary estimate of 3.1%. Private consumption and capital investment were both revised a tad lower.

In non-inflation adjusted terms, the economy advanced 1.8% from the previous quarter, and the data reaffirmed that the total value of the economy exceeded ¥600 trillion (US$4.2 trillion or RM18.26 trillion) for the first time on record, a goal set a decade ago by policymakers in Japan.

While the key domestic demand components were slightly downgraded, the overall results broadly support BOJ governor Kazuo Ueda’s view that a gradual recovery will continue. Almost no economists expect the central bank to adjust its benchmark rate when the policy board meets later this month, but many BOJ watchers forecast a rate move by January.

Monday’s data confirmed that consumer spending grew 0.9% from the previous quarter in a sign of a recovery after it fell for four consecutive quarters through the end of March.

The revisions were largely within the margin for error, and don’t change the overall perception that the economy was in recovery last quarter, according to Takeshi Minami, the chief economist of Norinchukin Research Institute.

“Today’s data won’t really affect the BOJ’s policy stance,” Minami said. “They are unlikely to raise rates this month given unstable financial markets, but they have made it clear that a rate hike is in their mind, so I think another hike within the year is possible.”

Still, some economists are sceptical about the resilience of consumer demand as households contend with persistent inflation for the first time in a generation. The key gauge of consumer inflation has stayed at or above the BOJ’s 2% target for 28 months, with August data expected to extend that streak. While real wages have finally stopped falling after more than two years, consumer spending has stayed below pre-pandemic levels. 

The rebound in the economy was widely expected by economists after GDP contracted in the first three months of the year. Manufacturing during the period was undermined by a large earthquake northwest of Tokyo on New Year’s Day and disruptions to auto output as a safety certification scandal forced some companies to temporarily shutter factory lines. 

Concerns over cost of living and consumer demand will be on the minds of politicians vying to become Japan’s next prime minister. The ruling Liberal Democratic Party’s (LDP) Sept 27 leadership election is all but certain to determine Prime Minister Fumio Kishida’s successor due to the party’s dominance in Parliament.

Toshimitsu Motegi, currently the LDP secretary general and one of several candidates running in the party race, said last week he will compile an economic package if he wins the vote. Shinjiro Koizumi, one of the front runners in the leadership race, has also pledged to unveil a package should he become the prime minister.

With the likelihood that demand from China and the US may cool as economic growth slows, Japan’s consumer spending will be critical going forward, Minami said.  

“Consumer spending may get stronger as wages are starting to rise,” he said. “At the same time, a recent rise in prices for rice and food may keep households in a saving mode.”

Japan’s economy is expected to continue expanding this quarter, with economists looking for an annualised growth rate of 1.7%, according to the median estimate in a survey by Bloomberg last month. The pace would be well above the 1% that the central bank considers to be the top end of a range for the nation’s potential growth rate. That indicates that economists expect inflationary pressure to persist as the BOJ keeps policy rates at the lowest level among major peers even after two rate hikes earlier this year.  

The central bank will conclude its next policy meeting on Sept 20, with the focus likely to fall on the prospects of another rate increase in October or December after the latest hike to 0.25% in July.

Source: Theedgemarkets

The USD/CAD pair struggles to capitalize on Friday's strong intraday rally of over 100 pips and trades with a mild negative bias around mid-1.3500s during the Asian session on Monday. The downtick is sponsored by a modest rise in Crude Oil prices, though a combination of factors should help limit deeper losses.

Crude Oil prices move away from the lowest level since June 2023 touched on Friday amid the forecast of a potential hurricane approaching the northwestern US Gulf Coast, which accounts for 60% of US refining capacity. This, in turn, is seen underpinning the commodity-linked Loonie and exerting some downward pressure on the USD/CAD pair. That said, a weaker Canadian jobs report released on Friday raised hopes for additional interest rate cuts by the Bank of Canada (BoC) and should cap gains for the domestic currency.

Meanwhile, Friday's mixed US employment details provided evidence of a sharp deterioration in labor market. This, along with reduced bets for a larger interest rate cut by the Federal Reserve (Fed), tempers investors' appetite for riskier assets and drives some haven flows towards the US Dollar (USD). This might further hold back traders from placing aggressive bearish bets around the USD/CAD pair, making it prudent to wait for strong follow-through selling before positioning for any further depreciating move. 

Moving ahead, there isn't any relevant market-moving economic data due for release on Monday, either from the US or Canada, leaving the USD at the mercy of the broader risk sentiment and the US bond yields. Apart from this, Oil price dynamics should influence the Canadian Dollar (CAD) and contribute to producing short-term trading opportunities around the USD/CAD pair.

Source: FXSTREET

Financial advisor Suze Orman, a best-selling author and host of the Women & Money podcast, recently discussed why everyone should own Bitcoin and how the next generation of investors could define the future of cryptocurrency. 

Orman’s comments came during a recent interview with her former employer, CNBC. Her segment, the Suze Orman Show, ran from 2002 through 2016 and was among the network’s most highly rated finance-oriented programs. 

During the interview, Orman bucked the trend set by her contemporaries in the financial advisory industry and recommended that everyone invest in Bitcoin. 

Per the CNBC interview:

“As younger people make more money and mature, [Bitcoin] will be one of their investments of choice, and that will cause it to go up.”

Semi-bullish

While her bullishness extends to having Bitcoin in her own portfolio, she did show some trepidation, stating that she’s only invested via Bitcoin ETFs. 

“I don’t think it will ever be a currency or a store of value,” Orman lamented, “but because the younger generation has a fascination with it — and you see the energy — a whole lot of people having interest in it,” she added, “eventually it could very well catch fire.”

Number of identify-verified cryptoasset holders (in millions) from 2016 through June 2024. Source: Statista

She went on to explain that she feels better owning an ETF “because I would never want to see an FTX happen again.” Orman also added that she’d “never understand how the wallets work and how if you lose your passcode, you never get it again.”

Ultimately, however, Orman’s message was clear. As she told CNBC, “Everybody should absolutely have exposure to bitcoin.” She does however caution that holders “gotta be OK with losing that money,” and advises that traders only invest as much as they can afford. 

Source: COINTELEGRAPH