The Day at a Glance | September 10 2021

The Top

*Joe Biden and Xi Jinping had their first telephone conversation since February to discuss tariffs, trade, the coronavirus, human rights and other issues.

*Industrial production in Mexico increased during July (1.1%) – at an annual rate, growth set at 8%.

*Inflation for producers accelerated slightly more than estimated in the United States during August (8.3% annual; 0.7% monthly).

*The Bank of Russia increased interest rates for a fifth consecutive time (6.75%) and points to further actions in the future after recording its highest rate of inflation in 5 years.

*China sanctions companies that make chips for automobiles due to their excessive price increases.

Economic environment

Biden and Xi had a telephone conversation to discuss key issues. President of the United States Joe Biden had a 90 minute conversation with his Chinese counterpart Xi Jinping last night and asked to maintain cooperation regarding issues like climate change – despite the fact that relations are tense concerning trade, tariffs, restrictions imposed on companies and human rights. Xi said that China is willing to seek progress in bilateral relations, including its cooperating to fight climate change and the pandemic as long as each country`s interests are respected. Xi stressed that the problems in Hong Kong, Taiwan and Xinjiang are internal affairs that the United States should not interfere with. The call was made after the US representative in the fight against climate change, John Kerry, wasn’t able to reach greater agreements with China before the Climate Change Conference (COP26), which will take place in Scotland in October. In China, authorities have maintained relations tense after asking Biden`s administration to withdraw all trade sanctions and for all import restrictions on Chinese companies regarding US technology to be eliminated, a request to which no response has been given yet.

Positive signs of recovery in Mexico`s industrial sector. Industrial production in Mexico increased 1.1% in July after two consecutive months of contraction, which sends positive signs of recovery as the Mexican industrial sector continues to recover (8% annual) despite having logged a slowdown. Manufacturing industries led growth during the period with a 1.4% increase, followed by construction (0.6%). The only one to recede was mining (-0.3%). Nevertheless, all other items logged an important recovery at an annual rate, with construction leading the way (16.6%), followed by manufacturing industries (7%).