FURTHER FURTHER READING
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From the PBoC (dodgy translation courtesy of Google):
April 10, the British Financial Times (Chinese network) published “The central bank and the CBRC differences threaten market confidence” and “regulatory agencies friction hinder China’s financial reform,” two articles, article seriously inconsistent with the facts and distorted the facts, the people the reputation of the bank and the CBRC adverse effects.
Here’s where another €2bn or so of freshly-issued Greek bonds would go. Chart via Citi:
And that’s after the largest sovereign debt restructuring in history. Bracing isn’t it?
If nothing else, the report was a little more confirmation that the slowdown earlier this year was temporary pause rather than a reversal of the modest acceleration from the second half of 2013.
A few main points: Read more
Why is the euro so strong?
There are plenty of reasons, but one additional factor has been confirmed by the latest data on global foreign exchange reserves: central bank buying.
The euro’s share of global reserves, which dropped sharply when the single currency’s future was in doubt, has now been recovering for three consecutive quarters, according to quarterly figures published by the International Monetary Fund.
Putting a financial value on aid is tricky. Case in point, Monday’s FT editorial on the UK’s overseas development budget:
The expansion in the budget of the Department for International Development has not been without its critics. Some have questioned what intrinsic merit there is in spending 0.7 per cent of Britain’s output on overseas aid. The target is one that the development lobby has long been attached to… At the same time, there have been worries that Dfid’s £12bn budget is not spent effectively. Read more
At least Nomura acknowledge the absurdity… anyway, all Ukrainian roads lead to political uncertainty.
Optimism over the US economy, the prospect of further easing by the European Central Bank and waning market tensions regarding the Crimea crisis are helping push European stocks to two-week highs following a sturdy Asian session. The positive mood sees most industrial commodities gain ground and reduced demand for supposed havens such as Treasuries. Gold, which dropped to a one-month low on Tuesday, is up $3 to $1,313 an ounce even as the dollar index rises 0.1 per cent to 80.04. The FTSE Eurofirst 300 is up 0.6 per cent after its Asia-Pacific peer rallied 1 per cent and as US index futures show the S&P 500 adding 4 points to 1,870. That would leave the New York benchmark just 8 points below its record high. Read more
Presented without comment.
Gunvor $500m note, due May 2018. Read more
The prospect of US borrowing costs rising sooner than expected is rattling global stock, bond and currency markets. The FTSE Eurofirst 300 is down 0.4 per cent, tracking a poor Asian performance, as the dollar and short-term Treasury yields hold the previous session’s strong gains. Read more
Markets: Asia Pacific stocks followed Wall Street’s lead, placing geopolitical concerns regarding Crimea on the back burner and staging a rally. Meanwhile, the onshore renminbi exchange rate fell another 0.2 per cent to 6.1877 per US dollar, a fresh 11-month low. On Monday, the Chinese currency dropped 0.5 per cent, one of its biggest daily declines since China reformed its currency regime in 2005, after the People’s Bank of China doubled the currency’s trading band to 2 per cent over the weekend. (FT’s Global Markets Overview) Read more
Worries over China’s economy, alongside fears of an escalating Ukraine crisis, are draining risk appetite, hitting stocks and underpinning demand for “haven” bonds and currencies. The FTSE Eurofirst 300 equity index is down 0.6 per cent, tracking a 1.7 per cent slide by its Asia-Pacific peer. US index futures suggest the S&P 500 will add 2 points to 1,848.5 after the Wall Street benchmark’s 1.2 per cent slump on Thursday triggered the latest global sell-off. Read more
US and Russia to hold talks as markets rally || Russia spends $11bn supporting rouble || Beijing signals growth concerns || Mark Carney signals start of reviews on bank bonuses || Standard Chartered suffers first profits fall in a decade || Solar cell maker heads for first corporate bond default in China || Japan looks to Bitcoin tax || Spanish yield at 8-year low || Markets Read more
Depends on how confident you are that the market and economists can predict Putin’s next move, we suppose. Read more
Nine days in and it’s still falling…
Some analysts had thought Beijing was ready to let the renminbi stabilise, but a sharp sell-off on Friday – at one point it declined 0.9 per cent, its biggest daily fall since the new currency system was introduced in 2005 – showed that the central bank was still determined to push it further.
“We’re still seeing PBoC intervention”, said a trader with a bank in Beijing. “This is beyond our expectations.”