Retreat in all markets
China’s unexpected decision to devaluate its currency triggers uncertainty in the markets.
China
China’s National Liquor Now Comes Laced with Viagra
LETTER FROM ASIA-PACIFIC | The Chinese hard spirit baijiu is known for its fiery taste, but some makers have added an extra kick in the form of powdered Viagra, according to the government’s food safety bureau.
Should Spain worry more about China or Brazil?
Pessimism over the latest data coming from these two developing countries could affect the recovery in Spain and Europe.
China considers investment plan to bolster growth
After the recent stock market collapse, China seeks to dispel doubts on a sharper economic slowdown with a new 1 Trillion yuan plan (€150 bn).
Markets relieved by China PMI
Caixin China services PMI rose to 53.8, a 11-month high, in July (well above the 50-mark separating contraction from growth and up from June’s 51.8), giving a respite to market watchers concerned by the recent weak manufacturing data.
De-stressing about Chinese equities
MADRID | They’ve been scaring us with an eventual China crash which would drag the world’s economy. And yet Daily Telegraph’s Roger Bootle insists there is no reason to panic here. The ratio of tradeable equities to GDP is running at just under 30%, while in most countries it exceeds 100%. See the New York Stock Exchange on the graph.
China flash PMI falls to a 15 month low
HONG KONG | July 24, 2015 | Barclays | The Markit “flash” manufacturing PMI unexpectedly fell to 48.2 in July, reaching a 15-month low (consensus: 49.7; Barclays: 49.7). The weaker PMI supports our view that the economy is not on solid footing, and we look for a flat growth profile in H2.
Greek crisis behind: You can relax for the time being
MADRID | July 21, 2015 | By JP Marín Arrese | Once the eurozone has overcome its Greek imbroglio, at least temporarily, the next unsettling move will come from the Fed’s widely expected rate hike.
Chinese bubble trouble: halfway through?
LONDON | July 17, 2015 | UBS | Property activity corrected visibly in 2014 and H1 2015, with declining property starts and weaker construction dragging down China’s industrial sector and GDP growth.
Chinese equity markets: Shaken, but not too stirred
LONDON | July 15, 2015 | BNP Paribas | The fall in the Chinese equity markets is mainly a market correction phenomenon, the most important question now is how it will transmit to the real economy. Our view is that the transmission will be muted.