Mexico’s central bank cut its key lending rate for the first time since June 2014, citing slowing inflation and increasing slack in the economy, and fueling expectations that further monetary policy easing could be on the way.Read More
All posts by Julie Ros
Global stocks crumbled and oil prices extended a punishing sell-off on Thursday as an inverted US bond yield curve intensified fears about a world recession.
- As Global Order Crumbles, Risks of Recession Grow – Wall Street Journal
- US Curve Inverts for First Time in 12 Years; 30-Year Yield Tumbles – Reuters
Hong Kong’s airport resumed operations on Wednesday, rescheduling hundreds of flights that had been disrupted over the past two days as protesters clashed with riot police in a deepening crisis in the Chinese-controlled city.
- Hong Kong Airport Obtains Injunction to Stop Protesters Obstructing Operations – Straits Times
- Yuan Drop Could Roil Already Strained Hong Kong-Protest Hit Economy –South China Morning Post
Hong Kong’s deepening political crisis now risks becoming an economic one.
- Hong Kong Airport Grinds to Halt; China Likens Protests to Terrorism – Reuters
- Hong Kong’s Economic Troubles are Just Beginning – Asia Nikkei Review
Former China central bankers have warned of currency-war risks with the US after an abrupt escalation of trade tensions between the world’s two biggest economies this week.
- IMF Says China Should Keep Yuan Flexible as Trade War Widens – Bloomberg
- If China is a ‘Currency Manipulator’, Then Every Country Is – Forbes
The White House is holding off on a decision about licenses for US companies to restart business with Huawei Technologies Co. after Beijing said it was halting purchases of US farming goods, according to people familiar with the matter.Read More
China’s abrupt devaluation of the yuan this week is an acknowledgment from Beijing that its domestic economy needs help, a vulnerability that Chinese policy makers have played down during the escalating trade conflict with the US.
- China’s Yuan Could Weaken Past 7.5 if Trump Hikes Tariffs Further – CNBC
- China’s Forex Reserves Fall to $3.104 Trillion Amid Rising Trade Tensions – Reuters
- The Grey Area Between Currency Devaluation and Currency Manipulation – Yahoo Finance
China’s central bank set its daily currency reference rate marginally stronger than 7 a dollar, leaving analysts anticipating Thursday’s fixing as a key policy signal.Read More
President Donald Trump accused China of manipulating its currency as the trade war between the world’s largest economies keeps escalating.
- China’s Yuan Devaluation is a Slap in Face for Trump – Australian Financial Review
- US Treasury Labels China a Currency Manipulator – Financial Times
- US ‘Destroying International Order’, China Media Says – Reuters
The FX market was surprised today when the Peoples Bank of China set the onshore USD/CNY rate much higher than anticipated at 6.9225, leading to the offshore USD/CNH currency pair extending gains through 7.00 – a level previously defended by the Chinese authorities concerned about capital outflows and one at which the pair has never traded above.
- Why ‘Cracking Seven’ is a Big Deal for China’s Currency – Financial Times
- China Hits Back at Trump with Weaker Yuan, Halt on Crop Imports – Bloomberg