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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMorgan Stanley says China's reflation journey will be 'slow and bumpy'More reflationary and restructuring policy at the Chinese Communist Party's December central economic work conference will help lift inflation print to a more normal range, said Robin Xing, Morgan Stanley's chief China economist.
Persons: Morgan Stanley, China's, Robin Xing, Morgan Stanley's Organizations: Communist Locations: China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's economy 'could be bottoming out', but unlikely to have robust reflation: Goldman SachsAndrew Tilton of Goldman Sachs says there are encouraging signs coming out of China and shares why he thinks Beijing will not implement measures that boost growth "dramatically".
Persons: Goldman Sachs Andrew Tilton, Goldman Sachs Locations: China, Beijing
REUTERS/Aly Song/File Photo Acquire Licensing RightsHONG KONG, Sept 1 (Reuters) - China is set to take further action including relaxing home-purchase restrictions as it scrambles to tackle a deepening crisis in its massive debt-riddled property sector, four people familiar with the matter said. They plan to act as existing policies failed to sustain a sector rebound earlier this year, the people added. The property sector accounts for roughly a quarter of the world's second-largest economy. However, it is in the throes of an unprecedented debt crisis that market participants fear could spread throughout the financial sector at home and beyond. They also reduced the downpayment ratio to no lower than 20% for first-home buyers and no lower than 30% for second-home purchases.
Persons: Aly, Morgan Stanley, Julie Zhu, Jane Xu, Sumeet Chatterjee, Christopher Cushing Organizations: REUTERS, Regulators, Council, Information Office, Reuters, Housing, People's Bank of China, National Administration of Financial, Thomson Locations: Shanghai, China, HONG KONG, Beijing, Shenzhen, Guangzhou
In late July, the central bank estimated that it would require the U.K. Treasury to backstop £150 billion ($189 billion) of losses on its asset purchase facility (APF). It saw the BOE accrue £895 billion worth of bond holdings while interest rates were historically low. However, the pace at which the central bank has had to tighten monetary policy in a bid to tame inflation means the costs have risen more sharply than anticipated. watch now"First, interest rates have risen far above levels assumed in the fiscal watchdog's spring forecasts. "On the other hand, though, while QE gilts are not sold, the BoE pays Bank Rate on the ~£900bn reserves it created to buy them.
Persons: Dan Kitwood, BOE, Sanjay Raja, Raja, Imogen Bachra, BoE, Bachra, QE Organizations: Bank of England, Getty, Deutsche Bank ., Treasury, AFP, Deutsche Bank, Bank, NatWest, Locations:
Dollar dips, Powell testimony and jobs data in focus
  + stars: | 2023-03-06 | by ( Karen Brettell | ) www.reuters.com   time to read: +3 min
The dollar index has bounced off a nine-month low of 100.80 reached on Feb. 1 as strong data and still-high inflation leads investors to reprice for higher rates for longer. Data on Monday showed that new orders for U.S.-manufactured goods fell in January, pulled down by a plunge in civilian aircraft bookings. Powell’s testimony will be watched for any new signals on whether the U.S. central bank could reaccelerate the pace of rate hikes in response to the recent data. The Chinese yuan and Aussie dollar fell after China on Sunday set a lower-than-expected target for economic growth this year of around 5%. The dollar gained 0.15% to 136.02 yen ahead of the final policy meeting for Bank of Japan Governor Haruhiko Kuroda on Thursday and Friday.
March 1 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. How Asian markets trade on the second day of the month on Thursday may come down to which of these two forces retains the most momentum. chartSpiraling bond yields, rates and inflation expectations aren't confined to the U.S. - euro zone PMIs also highlighted stagflationary pressures, while euro zone inflation expectations are the highest in over a decade and, in a rare occurrence, pushing above U.S. equivalents. Can Asian markets withstand these pressures on Thursday and take their cue again from China's economic renaissance? There are no top-tier Asian economic data releases on tap - South Korean retail sales, Australian building approvals and Japanese consumer confidence - leaving flash February euro zone inflation as perhaps the biggest market-mover of the day.
However, a four-month drop in the dollar is threatening to derail that trend by raising the cost of imported goods. But the welcome relief on the prices front is now facing a new threat — in the form of a falling dollar. A weaker dollar raises the cost of imported goods, which would eventually feed into consumer prices in the US. The US is a net importer of materials such as lumber and semiconductors that are crucial in manufacturing supply chains, and these would become costlier due to dollar weakness. "If we continue to see the dollar trade at current levels or even increase in weakness, that would be a headwind in the fight against high global inflation," Lomholt told Insider.
As inflation eases in the U.S., certain equities are poised to outperform, according to JPMorgan. Names poised to gain on lower inflation As this happens, some equities will see more of a benefit than others, according to the note. To identify such names, JPMorgan constructed an inflation underperformer basket, "a portfolio of stocks that are likely to underperform the broader market if inflation continues to rise and is expected to outperform the broader market if inflation surprises on the downside in the future." Popular beverage makers and restaurant chains should also get a boost if inflation eases, according to JPMorgan. "As inflation normalizes to a healthy rate and the cycle turns a corner, we would expect both reflation sensitive and long-duration sectors to outperform," wrote Lakos-Bujas.
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