DIRS.INFO The most relevant business & tech news

☆ Will Chinese deflation help cure the West’s inflation problem?
▼ + stars: | 2023-08-22 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —The Chinese economy has hit a rough patch. What’s happening: Chinese consumer spending, factory production and investments in long-term assets like property or machinery all slumped last month. On Monday, the Chinese government surprised investors by deciding not to cut an important interest rate that influences mortgages. The beauty company is “mindful of the headwinds that have emerged in China’s economy,” said the report. And even still, many regional banks have struggled to prevent deposit outflows.

Persons: ”, Jason Pride, Michael Reynolds, Lisa Shalett, Edward Moya, Estee Lauder, Moya, “, Elisabeth Buchwald, Moody’s, ‘ Barbie ’, “ Barbie ”, Jordan Valinsky, Greta Gerwig, “ Oppenheimer, “ Barbie Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Morgan Stanley Wealth Management, European, Apple, Intel, Ford, Starbucks, Nike, Saudi, Comerica Inc, National Bancorp, UMB Financial Corp, Bank of New York Mellon, State, Northern Trust, & $ Locations: New York, China, Europe, Beijing, Asia, Russia, Saudi Arabia, Silicon

☆ TSX hits a 2-month low as dividend-paying stocks fall
▼ + stars: | 2023-08-21 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 33.52 points, or 0.2%, at 19,784.87, its lowest closing level since June 27. "Interest rates continue to climb, which is something negative for the TSX which is littered with dividend payers," said Barry Schwartz, a portfolio manager at Baskin Financial Services. Stocks paying high dividends dominate the real estate, utilities and financials sectors. Shares of Restaurant Brands International (QSR.TO) gained 0.9% after J.P.Morgan initiated coverage on the stock with an "overweight" rating.

Persons: Chris Helgren, Barry Schwartz, Stocks, Fergal Smith, Shubham Batra, Shashwat Chauhan, Shilpi Majumdar, Deepa Babington Organizations: Toronto Stock Exchange, REUTERS, Energy, Toronto Stock, TSX, Baskin Financial Services, Bank of Canada, Technology, Restaurant Brands, Thomson Locations: Toronto , Ontario, Canada, Real, Toronto, Bengaluru

☆ US dollar slips as traders cautious before Fed's Jackson Hole symposium
▼ + stars: | 2023-08-21 | by ( Laura Matthews | ) www.reuters.com time to read: +3 min

The Japanese yen , which is on intervention watch, weakened 0.55% versus the greenback at 146.21 per dollar, with analysts now seeing the threshold for intervention at around 150 per dollar. Meanwhile, the offshore yuan , also on watch for intervention, rose 0.3% versus the greenback at 7.2853 per dollar. Jane Foley, head of FX strategy at Rabobank in London, said a firm dollar is problematic for both central banks since "it threatens to expose both currencies to undesirable weakness." His comments may set the direction for U.S. Treasury yields, which have driven the rise in the dollar in recent weeks. "If Powell stays on the theoretical side of things, that might lower implied volatility of the dollar and lead to a smaller reaction."

Persons: Dado Ruvic, Jackson, Sahota, Jane Foley, Jerome Powell, Karl Schamotta, Christine Lagarde, Powell, Laura Matthews, Samuel Indyk, Tom Westbrook, Kirsten Donovan, Mark Potter, Will Dunham, Jonathan Oatis Organizations: REUTERS, U.S, U.S . Federal, FX, Fed, Reuters, Rabobank, Treasury, European Central Bank, Thomson Locations: U.S ., , Wyoming, San Francisco, China, London, United States, Wyoming, Toronto, New York, Singapore

Staff lower Chinese national flag in front of screens showing the index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. REUTERS/Tyrone Siu/File Photo Acquire Licensing RightsAug 22 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Some analysts reckon Tokyo could intervene selling dollars around 150 yen, only four big figures away from the current 146 yen. The 10-year yield rose to 4.35% on Monday, its highest since late 2007, and the real 10-year yield topped 2% for the first time since July 2009. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Tyrone Siu, Jamie McGeever, Ditto, Jackson, Josie Kao Organizations: REUTERS, Foreigners, Stock Connect, Treasury, Tech, Nasdaq, Thomson, Reuters Locations: Exchange, Hong Kong, China, Asia, Japan, State, Beijing, U.S, Johannesburg, South Korea, Indonesia

☆ Summer of angst as bond yields surge and global stocks wobble
▼ + stars: | 2023-08-21 | by ( ) www.reuters.com time to read: +5 min

Meanwhile, U.S. real yields, which show what investors can expect to earn on government bonds after adjusting for inflation, stand near their highest point since 2009. Benchmark yields also guide other key economic rates, raising the cost of capital as they climb. In Europe, a key long-term gauge of market inflation expectations remains well above the European Central Bank's 2% inflation target . Reuters GraphicsHigher bond yields, falling equities and a rising dollar are all tightening financial conditions fast, adding to investor concerns. Property accounts for roughly a quarter of China's economy, which is already suffering from tepid domestic consumption, faltering factory activity, rising unemployment and weak overseas demand.

Persons: Brendan McDermid, Goldman Sachs, Goldman, Hong, Yoruk Bahceli, Alun John, Dhara Ranasinghe, Lewis Krauskopf, Vincent Flasseur, Ira Iosebashvili, Mark Potter Organizations: New York Stock Exchange, REUTERS, Japan’s Nikkei, Reuters, Treasury, Central, Bank of England, Thomson Locations: New York City, U.S, Europe, Britain, China's

☆ World Bank’s green overhaul is slowly taking shape
▼ + stars: | 2023-08-21 | by ( Rebecca Christie | ) www.reuters.com time to read: +7 min

BRUSSELS, Aug 21 (Reuters Breakingviews) - To step up the fight against climate change, World Bank President Ajay Banga wants to overhaul the lender’s balance sheet without overturning its credit rating. Earlier this year, the World Bank pledged $50 billion over 10 years via changes to how it manages its equity to loan ratio. Such backing has been used before, for example by the UK to fund $1 billion of World Bank projects in India. The central banks would hold those bonds as liquid reserves, while the World Bank could use the SDRs for financing its operations. All of these options are more complicated than if the World Bank’s shareholders simply increased its paid-in capital outright.

Persons: Ajay Banga, Janet Yellen, Lawrence Summers, N.K, Singh, Joe Biden, Yellen, ”, Guarantors, Brad Setser, Stephen Paduano, George Hay, Francesco Guerrera, Streisand Neto Organizations: Reuters, World, Treasury, World Bank, Reuters Graphics, Mastercard, Citigroup, AAA, U.S, Bank, London School of Economics, International Monetary Fund, European Union, U.S ., Thomson Locations: BRUSSELS, U.S, Asia, Banga, India, Japan, China, European, Marrakech, Singh

☆ 'People are stupid': Strategist sees big downside as stocks ignore global crises — and names what to own
▼ + stars: | 2023-08-21 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Despite ongoing economic crises around the world, global stock markets have remained resilient so far this year. David Roche, president and global strategist at Independent Strategy , said equity markets were still relatively buoyant "because people are stupid" and overly complacent. They are related," Roche told CNBC's "Squawk Box Europe" on Thursday. The strategist suggested owning 30-year U.S. Treasurys , which were trading with a yield of 4.35% Friday. Earlier this month, billionaire investor Bill Ackman said he was betting against 30-year U.S. Treasurys in "a world with persistent 3% inflation."

Persons: David Roche, Roche, CNBC's, Vladimir Putin's, " Roche, I'm, Bill Ackman Organizations: Independent, Equity, JPMorgan, America, Pershing, Capital Management Locations: China, Russia, Beijing, Wall Street, China's, Moscow, Russian, West

The headquarters of the People's Bank of China, the central bank, is pictured behind an iron chain in Beijing August 30, 2010. REUTERS/Jason Lee/File Photo Acquire Licensing RightsAug 21 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. The People's Bank of China is expected to cut interest rates on Monday, but it may have to throw caution to the wind and 'go big' if it is to soothe the nervousness and concern around China currently sweeping through financial markets. Either way, investors will be looking to Beijing and Jackson Hole this week for some degree of assurance and guidance. Here are key developments that could provide more direction to markets on Monday:- China interest rate decision- Thailand GDP (Q2)- Hong Kong inflation (July)By Jamie McGeever; Editing by Diane CraftOur Standards: The Thomson Reuters Trust Principles.

Persons: Jason Lee, Jamie McGeever, Jerome Powell, Xi Jinping, Xi, Goldman Sachs, Goldman, Jackson, Diane Craft Organizations: People's Bank of China, REUTERS, People's Bank of, Bank of Korea, Bank Indonesia, U.S, U.S . Federal, Goldman, Barclays, Treasury, Thomson, Reuters Locations: Beijing, People's Bank of China, China, Asia, U.S ., Brazil, Russia, India, South Africa, U.S, Thailand, Hong Kong

☆ The dedollarization drive is facing a confidence crisis as the yuan, ruble and Argentine peso simultaneously plummet, an analyst says
▼ + stars: | 2023-08-20 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +4 min

Slumps in the ruble, yuan, and Argentine peso underscore how the US dollar is a more reliable currency, an expert told Insider. In the past week alone, the Chinese yuan, Russian ruble, and the Argentine peso plunged, forcing the countries' central banks to take drastic measures to calm markets. The Chinese currency fell Thursday to its weakest level this year amid investor anxiety over the deepening slowdown in the world's second-largest economy. Last month, Russian president Vladimir Putin said more than 80% of his country's trade with China is settled in the yuan and ruble. "The recent decline and volatility in the Chinese Yuan, the Russian Ruble, and to a lesser extent the Argentine Peso, will only add further challenges to the idea of de-dollarization," Zain Vawda, market analyst at DailyFX, said.

Persons: Slumps, Vladimir Putin, Yuan, Zain, Vawda, Paul Krugman, Larry Summers, It's Organizations: Service, Argentine, International Monetary Fund Locations: Argentine, Ukraine, Wall, Silicon, Argentina, Moscow, Beijing, Russian, China

☆ China's economy is flailing. Here's how its problems could spill into global markets.
▼ + stars: | 2023-08-19 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

China's economy is facing headwinds ranging from an unstable property market to weak consumer demand. Experts told Insider that a worsening scenario in China bodes poorly for global markets and other economies like the US. "As its economy continues facing downward pressures, its growth momentum might slow down further, in turn exacerbating the already significant pressures that the global economy is facing." One way this is already being felt is in the softening of Chinese demand, which has led to a sharp drop in trade. And as the housing crisis deepens, it will become harder to China to right the ship, creating a lasting drag on future global growth.

Persons: Janet Yellen, Joe Biden, Xi Jinping, Evergrande, Alfredo Montufar, Helu, Keith Hartley, Hartley, Noah Sheidlower, Dexter Roberts, David Roche, they're, Roche Organizations: Service, Privacy, China, Country Garden Holdings, China Center, Conference Board, Federal Reserve, Atlantic Council, Housing, Independent, CNBC Locations: China, Wall, Silicon, U.S

Global shares were stuck around two-month lows and Wall Street indexes closed nearly flat and narrowly mixed. Yields on benchmark 10-year U.S. Treasuries stepped back after flirting with 16-year highs earlier in the week. Investors expected the Fed may hold interest rates higher for longer as the U.S. economy continued to show strength. Attention now turns to the Fed and other top central banks' annual gathering in Jackson Hole, Wyoming. Investors will scrutinise a speech from Fed Chair Jerome Powell next Friday for clues about the interest rate outlook.

Persons: Brendan McDermid, Jackson Hole WASHINGTON, Treasuries, Blake Emerson, Jerome Powell, Powell, Brent, Toby Chopra, Mark Potter, Nick Macfie, Diane Craft, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Jackson, Treasury, Federal Reserve, Global, Dow Jones, Nasdaq, JP Morgan Private Bank, Federal, Securities, U.S, Thomson Locations: New York City, U.S, Jackson Hole, Jackson Hole , Wyoming, Japan

☆ Bond rout keeps stocks under water, China woes give dollar a lift
▼ + stars: | 2023-08-18 | by ( Huw Jones | ) www.reuters.com time to read: +6 min

Crude oil was set to snap a seven-week winning streak as China's slowing economic growth clouded the picture for demand. Jason Da Silva, director, global investment strategy at Arbuthnot Latham, said stock markets were paying the price for bond yields soaring as economic data from the United States smash expectations, despite all the rate hikes so far. Euro zone government bond yields also eased on Friday as concerns about the global economy nudged investors into safe-haven government bonds and further signs emerged that euro zone inflation has peaked. The U.S. dollar recovered from an earlier dip and was standing tall near a two-month top at 103.42 against its major peers. Brent crude futures eased 0.5% to $83.67 and U.S. West Texas Intermediate crude futures were off 0.4% at $79.99.

Persons: Toby Melville, bitcoin, Thursday's, Jason Da Silva, Arbuthnot Latham, Da Silva, Jerome Powell, HSI, China Evergrande, Toby Chopra, Mark Potter Organizations: London Stock Exchange, REUTERS, Companies, Jackson, Global, Nasdaq, ING, Treasury, Federal Reserve, CHINA SHADOW, HK, Japan's Nikkei, Bank of, U.S, Brent, . West Texas, Thomson Locations: Canary Wharf, London, Britain, Japan, U.S, China, United States, Jackson Hole , Wyoming, CHINA, Asia, Pacific, Hong Kong, Beijing, Bank of Japan

☆ Take Five: Summer at Jackson Hole
▼ + stars: | 2023-08-18 | by ( ) www.reuters.com time to read: +5 min

REUTERS/Jason Reed Acquire Licensing RightsLONDON, Aug 16 (Reuters) - It's summer camp season and not to be left out, U.S. rate setters and overseas pals gather in Jackson Hole, Wyoming, to talk central banking. U.S. Federal Reserve officials (plus friends from the ECB, BoE and BOJ) descend on Jackson Hole, Wyoming on Aug. 24-26 for their annual central bank confab. Inflation remains sticky in places and investors want to know how long it will take for central banks to switch to easing. European PMIs could provide a bigger signal on whether the European Central Bank will hike again in September and if the Bank of England opts for a big rate increase. Turkey's central bank is poised to raise rates on Thursday for the third time in a row since Hafize Gaye Erkan was appointed as governor in early June.

Persons: Jason Reed, Ira Iosebashvili, Li Gu, Yoruk, Rosario, Marc Jones, Rachel Savage, BoE, Jackson, Vladimir Putin, Hafize Gaye Erkan, Erkan, Tayyip Erdogan, Dhara Ranasinghe, Stephen Coates Organizations: U.S . Federal, REUTERS, U.S . Federal Reserve, ECB, Nvidia, CARE, HK, China, European Central Bank, Bank of England, West, Reuters, Thomson Locations: Washington, U.S, Jackson Hole , Wyoming, China, Ira, New York, Shanghai, Amsterdam, Jorgelina, London, Johannesburg, confab, CHINA, Beijing, United States, European, Brazil, Russia, India, South Africa, Saudi Arabia, Argentina, Egypt, Turkey

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. The simplest conclusion is the Fed will not be able to ease again in anything like the way many had assumed or still think. This will lift the 'term premium' embedded in long-term bond yields, which has been so subdued since Fed balance sheet expansion met the crash of 2008, even if the Fed is done tightening policy rates, he said. Fed policy is more neutral than restrictive "if you believe we've returned to a pre-2008 world", he said, and that limits the scope for rate cuts in future. Writing by Mike Dolan; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, handwringing, Anujeet, we've, Amanda Lynam, Mike Dolan, Susan Fenton Organizations: New York Stock Exchange, REUTERS, Reserve, Treasury, U.S, AAA, Atlanta, Deutsche Bank, Vanguard, Federal Reserve, Brandywine Global, BlackRock, Reuters, Thomson Locations: New York City, U.S

☆ Morning Bid: China sets sombre tone with property turmoil
▼ + stars: | 2023-08-18 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Staff/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Kevin BucklandChina continues to set the mood for markets, and the tone is unswervingly sombre. Such hopes may have bolstered Chinese property shares in the Asian morning, but the wider markets in China and the rest of the region were gloomy. The Hang Seng Index sank about 0.7%, with mainland Chinese, Japanese and South Korean shares all also down. The People's Bank of China was signalling its intent to shore up the yuan again today, setting the official mid-point a whopping 1,000 pips stronger than the Reuters estimate. And with U.S. benchmark yields heading for pre-financial crisis highs, the yield gap between the two economies is yawning.

Persons: Kevin Buckland China, China Evergrande, Will, Philip Lane, Kevin Buckland, Edmund Klamann Organizations: Silicon Valley Bank, Credit Suisse, REUTERS, Staff, South, People's Bank of, Fed, Bank of England, ECB, Thomson Locations: Frankfurt, Silicon, Germany, China, U.S, People's Bank of China, Will China, Japan, Tokyo, Europe, Asia

☆ Why are Treasury yields so high and what does it mean for you?
▼ + stars: | 2023-08-18 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

On Thursday, the yield on the US 30-year Treasury bond hit its highest since 2011 and the 10-year note notched its best return since October 2022. Bond yields go up as bond prices fall. What it means: Higher bond yields could mean bad news for stocks: Bonds compete with stocks for investors’ dollars, and when yields go up, equities often go down. If international bond yields rise, the demand for US bonds may decrease, meaning the US may have to offer even higher yields to attract investors. Still, whatever happens abroad, Turnquist said the key to bringing Treasury yields down will be a slower US economy.

Persons: Bond, Stocks, Adam Turnquist, Turnquist, ”, ” Taylor, Taylor Swift, QuestionPro, Swift, Krystal Hur, Bryan Mena, Elton John’s, Larry Miller, New York University Steinhardt Organizations: CNN Business, Bell, New York CNN, Federal, Federal Reserve, Atlanta Fed, LPL, Treasury, EU, Bank of, Electric, Hawaiian Electric Industries, Street Journal, P Global, CNN, North, New York University Locations: New York, Bank of Japan, Hawaii, Maui, Lahaina, Los Angeles, American, North America

United States and Chinese flags are set up before a meeting between U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng at the Diaoyutai State Guesthouse in Beijing, China, Saturday, July 8, 2023. The U.S. economy expanded 1.2% in the second quarter, following 1.6% growth in the first three months of the year. Meanwhile, China's growth outlook continues to darken. "We may see similar growth rates between the U.S. and China, which is a concern for China because it is much poorer per capita," she added. The historic highs and lows of U.S. and Chinese economic surprises, respectively, will likely revert to mean as analysts adjust their expectations.

Persons: Janet Yellen, Mark Schiefelbein, That's, Goldman Sachs, Desmond Lachman, Dirk Willer, Jamie McGeever, Kirsten Donovan Organizations: Treasury, Rights, Atlanta Fed's, Barclays, Goldman, American Enterprise Institute, Reuters, Center for Strategic, International Studies, U.S, World Bank, Citi, Thomson Locations: United States, Diaoyutai, Beijing, China, Rights ORLANDO , Florida, U.S

REUTERS/Kim Kyung-Hoon/file photo Acquire Licensing RightsAug 18 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. At the very least, investors are nervous and scrambling to adjust to the higher yield environment. But given the tightening of financial conditions around the world, investors remain wary. The 10-year U.S. Treasury yield is above 4.30%, a whisker from highs not recorded since 2007 and the 10-year real yield at almost 2.0% is already at levels last seen in 2009. This is taking its toll - financial conditions across emerging markets are the tightest since early December, according to Goldman Sachs's EM financial conditions index, and risk assets are getting pounded.

Persons: Kim Kyung, Jamie McGeever, Bonds, Japan's, Goldman Sachs's, Josie Kao Organizations: REUTERS, U.S, Treasury, Bank of, People's Bank of China, Thomson, Reuters Locations: Ameyoko, Tokyo, Japan, Bank of Japan, China, Asia, Malaysia

☆ Central banks of Indonesia and Singapore start trial on cross-border QR code payments
▼ + stars: | 2023-08-17 | by ( ) www.reuters.com time to read: 1 min

JAKARTA, Aug 17 (Reuters) - Indonesia's central bank said on Thursday it had started a trial of cross-border QR code payments with its Singaporean counterpart. Both have set a target of introducing the system in the second half of this year, according to an earlier statement from Singapore's central bank. Reporting by Stefanno Sulaiman; Editing by Martin PettyOur Standards: The Thomson Reuters Trust Principles.

Persons: Stefanno Sulaiman, Martin Petty Organizations: Thomson Locations: JAKARTA

☆ Inflation is falling and the end of rate hikes is in sight - so why are bond yields still rising?
▼ + stars: | 2023-08-17 | by ( Max Adams | ) www.businessinsider.com time to read: +4 min

The 10-year Treasury yield is firmly above 4% in August, helping to stall the stock market's strong 2023 rally. But with the end of rate hikes in sight as inflation keeps falling, yields should theoretically be doing the opposite. Here's why Treasury yields have been steadily moving up this month. Rising yields have dented the stock market's stellar 2023 rally, confounding and frustrating markets that see an end in sight to the Federal Reserve's rate hiking campaign amid dwindling inflation. "Our base case remains that the U.S. economy will slow down/contract due to the elevated interest rates caused by the Fed rate hiking campaign," LPL's Gillum said.

Persons: Lawrence Gillum, Brandon Hall, screech, LPL's Gillum Organizations: Treasury, Service, LPL, Fed, JPMorgan, Tech Locations: Here's, Wall, Silicon, Treasuries, U.S

☆ Yield gap between China and US widens to highest since 2007 after surprise rate cut
▼ + stars: | 2023-08-16 | by ( ) www.reuters.com time to read: +3 min

And markets widely expect the PBOC to loosen monetary policy further. But the divergent monetary policy paths between the world's two largest economies widened the yield gap to 164 basis points between China's benchmark 10-year government bonds and U.S Treasuries s - the highest since February 2007. "More broadly, recent economic data releases in China have been disappointing, while those in the U.S. have surprised to the upside." The widening yield gap reduced foreign appetite in China's onshore yuan bonds, with latest official data showing overseas investors' holding declined in July. But the expectations for further monetary easing and capital outflow risks has pressure on the Chinese yuan to depreciate further.

Persons: Janet Yellen, Mark Schiefelbein, David Chao, Eugenia Victorino, SEB, Winni Zhou, Tom Westbrook, Simon Cameron, Moore Organizations: Rights, People's Bank of China, Asia, Thomson Locations: United States, Diaoyutai, Beijing, China, Rights SHANGHAI, SINGAPORE, Invesco, U.S, Asia

☆ An $11 trillion wealth wipeout has set the world back for the first time since 2008, thanks to a trifecta of high inflation, interest rates, and currency declines
▼ + stars: | 2023-08-16 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

That's thanks to a trifecta of inflation, rising interest rates, and currency depreciation against the US dollar. But inflation, rising interest rates and currency depreciation caused a reversal in 2022," UBS analysts wrote in a note. That's sparked an aggressive policy reaction from central banks, which have hiked interest rates sharply over the past year. Higher inflation and interest rates tend to chip away at consumer spending power, eating away at individual savings and wealth. According to UBS, local currency depreciation against the greenback also played a big role in eroding global wealth.

Persons: That's Organizations: UBS, Service, Federal, greenback, Fed Locations: Wall, Silicon, Europe, North America, Asia, Pacific, Ukraine

NEW YORK, Aug 16 (Reuters) - Deflationary pressures in China could spill over into global markets, which is potentially near-term good news for Western central banks as they seek to curb inflation, U.S. asset manager PIMCO said on Wednesday. The economic deterioration could moderate inflation in China and, increasingly, also in the markets served by Chinese goods, PIMCO Economist and Managing Director Tiffany Wilding said in a note. "Deflation, weakening trade, collapsing loan demand, and a paralysed property sector dampen our risk appetite," it said. "For China, the risk of more pronounced deflationary pressure depends crucially on the government’s policies in the coming months," said Wilding. "Adequate fiscal stimulus to boost domestic demand may reaccelerate inflation, while delayed or inadequate policy measures could lead to a downward spiral," she said.

Persons: PIMCO, Tiffany Wilding, “, spillovers, Wilding, Davide Barbuscia, Mark Potter Organizations: PIMCO, Oxford Economics, Zhongrong International Trust Co, Thomson Locations: China, Western

REUTERS/Dado Ruvic/Illustration/File photo Acquire Licensing RightsAug 17 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asian market sentiment on Thursday will again be a mix of caution and nervousness, with familiar roots: a supercharged dollar and rising U.S. bond yields, tightening financial conditions, and deepening concern over China. Goldman Sachs's financial conditions indexes show that Chinese and aggregate emerging market financial conditions have tightened sharply this month, by more than 100 basis points, and are both now the tightest this year. But the pressure on Beijing to do more to support the creaking economy can be seen in the 10-year yield's slide to its lowest since May 2020. Remarkably, China's 10-year yield is now 170 basis points below the 10-year U.S. Treasury yield, the widest gap since 2007.

Persons: Dado Ruvic, Jamie McGeever, Goldman, Brent, Josie Kao Organizations: REUTERS, People's Bank of, Treasury, Thomson, Reuters Locations: China, U.S, Asia, Hong Kong, Philippines, Tokyo, People's Bank of China, Beijing, Japan, Australia

And with China's post-COVID recovery running into the ground and suffering a deepening real estate bust, western investment curbs throw more sand in the wheels. A question now is whether a retreat of western money from emerging markets at least partly explains both their recent underperformance and that of western government bonds, in which emerging central banks and sovereign funds are heavily invested. The picture has not been much better in aggregate emerging bond indices, even if they have done marginally better than developed world counterparts, and worries over emerging high-yield and property linked bonds are rising. Have global investors high-tailed it from emerging markets already? If western money grows more wary and is increasingly warned off China and other selective emerging investments, will there be a mutual pullback of official emerging money from western bond markets?

Persons: Aly, Joe Biden, Morgan, Biden, crumb, Mike Dolan, Richard Chang Organizations: REUTERS, U.S, U.S ., Bank of, Institute for International Finance, Treasury, Reuters, Twitter, Thomson Locations: Shanghai, Shenzhen, China, Ukraine, Washington, Russia, United States, Beijing, Moscow, Taiwan, Brazil, India, South Africa, Hong Kong, Saudi Arabia, South Korea

Search resuls for: "Central Banks"

25 mentions found