As China’s yuan devaluation shocks markets, should the world fear a global currency war? August 13, 2015 Gabriel Stein is director of asset management services at Oxford Economics, says Yes Not because China wants to start one, but because the decision is not China’s. Ostensibly, the changes implemented over the past three days aim to give market forces greater influence over the currency. That is good news. But by announcing, on three [...]
The Chinese love affair with life’s little luxuries August 13, 2015 The seemingly rampant early success of brands such as Louis Vuitton a decade ago was largely due to the novelty of designer goods in China. Angelica Cheung, Vogue China’s editor in chief, likened the first glut of luxury goods in China to food being given to the starving. The well-heeled are now extremely [...]
Dow yo-yos 300 points – New York Report August 12, 2015 US STOCKS rebounded in afternoon trading yesterday to end little changed as energy shares and Apple offset continued concerns about a slowdown in China. The Dow Jones industrial average fell 0.33 points to 17,402.51, the S&P 500 gained 1.98 points, or 0.1 per cent, to 2,086.05 and the Nasdaq Composite added 7.60 points, or 0.15 [...]
As wage growth slows to 2.4 per cent in June, is the UK economy now a cause for concern? August 12, 2015 Calum Bennie is a savings expert at Scottish Friendly, says Yes While this moderate wage growth seems like good news for a steady as she goes economy, in reality, it suggests that the underlying situation is more fragile than we thought. In addition, the recent devaluations of the Chinese yuan have, in two fell swoops, [...]
Chinese central bank allows renminbi to devalue further August 12, 2015 The People’s Bank of China (PBoC) has set the mid-point rate for the renminbi lower for a second consecutive day. The Chinese central bank, which fixes the currency every morning, set the midpoint rate for the renminbi at 6.3306 per dollar, 1.6 per cent weaker. That follows a move by the PBoC on Tuesday which [...]
Trade and status: China weakens yuan to gain advantage August 12, 2015 China plans to top the global hierarchy with its surprise move to devalue its currency China shocked the world yesterday when it devalued the yuan by nearly 2 per cent against the dollar. The surprise move brings its currency to a three-year low against the greenback and should help revive exports. The news [...]
China currency move pulls on mining stocks – London Report August 12, 2015 LUXURY goods firm Burberry was one of the hardest hit UK firms yesterday, after China devalued its currency, raising the costs of imports. The FTSE 100 closed down 1.1 per cent. Weakness in commodity stocks has contributed to recent declines in the index, which is now more than six per cent off April’s record high. [...]
Chinese shock leaves the FTSE 100 nursing losses after renminbi devaluation August 12, 2015 The FTSE 100 fell by 72 points yesterday as luxury goods and mining firms suffered from China’s unexpected devaluation of the renminbi. The Chinese devaluation, news of which broke after the FTSE closed on Monday night, saw Burberry shares open 12p down on the previous day at 1,595p, before falling throughout the day to [...]
China’s shock devaluation is more about reform than its authorities panicking August 11, 2015 In a surprise move, China weakened its currency yesterday by setting the daily fix for the RMB 1.9 per cent lower, in its most significant devaluation since 1994. This has fuelled a great deal of speculation as to the reasons for this move and the ultimate implications for the Chinese economy and the rest of [...]
Markets taken aback by China’s move to devalue the renmibi to boost flagging economic growth August 11, 2015 Markets were taken aback by China’s move to devalue the renmibi nearly two per cent against the US dollar, to boost China’s flagging economic growth. Following weak trade and inflation data, central bank People’s Bank of China fixed its currency down 1.9 per cent, in a move which caused the Chinese currency’s biggest one-day drop [...]