Essentially free up 126000000000. 00 of liquid capital that could then be used to increase lending support consumption and boost Business Investments this move that came after the glop a moment announced earlier this week its intention to increase economic stimulus measures as china faces increasing headwinds and met the escalating trade war this is the strongest loosening signal from any policy meeting year to date and these measures should provide the support to the real economy and reduce the risk of a dramatic slowdown in the 2nd half of this move was certainly antagonized especially since the p. B. s c. Indicated recently that they are wary a larger scale easing measures and have so far refrained from cutting benchmark Interest Rates meanwhile just when the 2 sides have agreed to resume trade talks treasury secretary minucci and has been quietly pushing the i. M. F. And independent body to endorse its view that china is a currency manipulator this is happening just one week after
Street hands in its worst day of the year the selling was widespread all 11 sectors finishing the day deep in the red led lower by technology the cause china. That nation effective i. Weaponizing its currency sending the yuan lower, turning the the trade war into what many are considering right now a fullblown currency war. Weve got full Team Coverage of this dramatic turn of events lets things off with bob pisani live on the floor of the new york stock exchange. Hey, bob and melissa, we had a tough day here i want to give a sense of what happened last time china devalued its currency. This was about five years ago in august 2015. The last time china devalued its currency was in august 2015. That happened on three consecutive days of devaluations that was beginning on august 11th the market was very different back then. It was a different picture for the overall markets. Chinas currency was appreciating back then thats a big difference to now the stock market in china was just roaring
Those deflationary pressures, gdp target front and center, will it be 5 . Could it be below five, some say unlikely, but we wait and see in terms of where the target would be. It is also about the fed. We have fed chairman Jerome Powell set for testimony expected to reiterate the fed is in no hurry to cut rates, it is likely to lean towards a hawkish tone. We heard from many officials saying that the fed can afford to wait given the data, given strong inflation remain sticky, and the economy remains resilient. The fed, as well as china, expected to did cake dictate sentiment in the market. Also keeping an eye on thailand, india, as it is said to join the trading day in 44 minutes. Lets look at the set, currently up 0. 3 . This is a market that has been lackluster, one of the worst performers in asia yeartodate. Down 3 on the year. The thai baht has been under a lot of pressure, but today gaining 0. 1 . 35. 805 versus usd, and indian future is pointing to a higher open, up 0. 3 . Adani
John cryan will speak to us at 8 15. Car consolidation. Psa is said to purchase gms european operation for 2 billion euros. And passive aggressive. Standard life is to purchase Aberdeen Asset management as the etf industry drives fees lower and lower. Howdy will because cuts have to be to make these businesses competitive . Matt we are less than 30 minutes away from the european open and take a look at futures, down across the board. You saw u. S. Markets down as well, the cash trade there, asian stocks as well. European futures are following suit. I think more interesting is the bund trade right now, maybe it is a rebound. We saw such a huge spike in yields on friday, up to 0. 356 . But now yields are coming back down and investors are getting back into european debt, 0. 343 on the bunds. Guy lets take you to the gmm. I want to focus on the second column. I want to show you the japanese yen. It is up this morning. This is because of what is happening in north korea and there is a safe
Sailing into stormy waters. More territorial tension between hanoi and beijing as china launches naval drills. Sovereignty their is being violated. You can follow me on twitter. Dont forget to include the hashtag trending business. China and hong kong markets get underway in 30 minutes time. Singapore, taiwan, and my later have come online. Lets go to david. David we are looking at declines in the early hours of asian trade. It is hard to not figure out what the next catalyst will be that drives equity to the upside. Volume is dry. The u. S. Was closed overnight. The jobs data is coming out. Equity markets, which have enjoyed a fiveday run are having a bit of a blowback right now. The rba trade numbers and retail sales are due out in 30 minute time. Asia looks like this. Down. 33 . These are the mining stocks. Going the opposite way for obvious reading is obvious reasons. Have a look at silver. Have a look at gold. Platinum also. Silver touch 21 yesterday and this is where we are havin