Wang Yuqian via Caixin | It will be another four months before the much-anticipated Shenzhen Hong Kong stock connect system finally goes online and provides another bridge between the mainland and the offshore stock markets. The stock exchanges in Shenzen and Hong Kong jointly made an announcement yesterday, providing investors with some details of how the system is going to work.
J. L. Martínez Campuzano (Spanish Banking Association) | There are very few doubts about the basic strength of the Spanish economy at the moment, in line with relevant data. But there is one statistic published recently which deserves some special attention, namely that related to Bankruptcy Proceedings in Q2.
Julius Baer | Japan’s Q2 growth missed forecasts, confirming expectations for a sluggish economy, on weak exports and business investment. GDP expanded at an annualised pace of 0.2%, missing estimates for a 0.7% increase.
Coco Feng via Caixin | Growth in China’s fixed-asset investment from January to July slipped to 8.1 percent, the lowest year-to-date rate in over 16 years, as private companies tightened their purse strings, data from the National Statistics Bureau (NBS) released on August 12 showed.
With Brexit in the air, Italy’s referendum on constitutional reforms has got Europe on the edge of its seat.
Ceng Ying via Caixin | Chinese athlete Deng Wei clinched a gold medal in the Olympic women’s weight-lifting competition on August 11, winning fame and, likely, some financial security. But the price paid by this 23-year old from an impoverished village in western part of Fujian province was a steep one, as it is with many athletes.
Julius Baer Research| As speculation swirls ahead of next month’s informal oil producer meeting, it feels like ground hog day in the oil market. With prices diving into the lower 40s per barrel, talks about supply cuts from oil cartel’s members, OPEC, have resurfaced. We see the chances of any action as exceptionally slim.
Mark McFarland (UBP) | Brexit has had a cathartic effect which is likely to continue for a long time. Although Asia as a whole does not have very close links to the UK, the Asian markets are very sensitive to global growth, investment flows and interest rates in US dollars. What happens next in Europe will be crucial for Asia in the next few months.
Mari Pinardo | Insurance companies, particularly the European ones, are up against a rock and hard place due to the low interest rate environment, the need to look for long-term profitability, the lack of investor appetite and the impact of Brexit on European fixed income markets. This backdrop, coupled with the high level of fragmentation in the sector in Spain, is likely to lead to more consolidation in the short-term.
Peter Lundgreen via Caixin| What should be deeply worrying about the growing banking crisis in Italy is the origin of the non-performing loans. One significant sector is retail and wholesale, meaning it’s a widespread problem. A severe banking crisis is a shock for any economy and will, in many cases, hamper economic growth. This is the risk that Italy and the Eurozone are facing.