China

On Thursday the eagerly anticipated preliminary reading for UK GDP Q1 from the ONS showed that the UK had avoided a dreaded triple-dip recession, for now. Chancellor, George Osborne has been under considerable pressure to change course away from the current path of austerity. Following consecutive readings of poor economic data, criticism from the IMF and a downgrade by Fitch, Osborne has some briefing space. The ONS expect the UK economy to grow by 0.3%, which might be the milestone remembe…

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The Office for National Statistics (ONS) releases its preliminary UK GDP estimate for the first Quarter of 2013 at 9:30am (BST). Economists are expecting a marginally positive print of 0.1%, however a contraction would show that the UK economy has gone back into a recession for a third time since the credit crunch in 2008. A “triple-dip” recession could lead rating agency S&P to downgrade the UK’s credit rating from its top notch of AAA, on the 5th April S&P said&ld…

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What’s in a Tweet? Well a hacked Twitter account of the international news agency the Associated Press sent markets into turmoil after it stated “Breaking: Two Explosions in the White House and Barack Obama is injured” (April 23rd 2013). Algorithms reacted to the story creating a mini flash crash as the Dow dropped 150 points before recovering; following the release that the release was a fake. This all happened in matter of minutes, bringing a few highly contentious…

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PBOC's Gang Yi: Likely to widen RMB trading band in the near future -MNI More than two-thirds of the Japanese public now believe domestic prices will rise in the coming year, a government survey showed Wednesday, reflecting how the aggressive anti-deflation policies of Prime Minister Shinzo Abe's government have started to take root in the minds of the people -WSJ China’s property rebound gathered pace in March as new home prices in the southern city of Guangzhou ju…

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On Monday afternoon at the Boston Marathon, there were two large explosions near the finish line, killing at least two people and injuring dozens more. These atrocities were caught on camera via the media who covering the sporting event. Initially there was rumour and speculation as to the cause or who might be responsible however it seems too early to speculate without fact. The FBI has taken over the investigation into the explosions, with social media having a notable part in the rapid re…

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Trading yesterday in the UK had little macro news to drive markets, with the media focusing on the passing on first female Prime Minister of the UK. Thatcher was a controversial character, who in the City of London is usually revered and hailed for reviving the UK economy, but her policies were not without critics, especially from those who lived in communities with an industrial/mining focus. The media is awash with opinion pieces from all parts of the political spectrum, but there is…

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Uncertainty is something that investors will attempt to avoid at all costs. Political instability, verging on a nuclear war could cause a major shift of assets into safe havens. If the current words escalate, there is a real threat of something far more worrying to occur. North Korea has increased tensions, by threatening the US with a nuclear strike. The US realises that this the state poses potential danger and has deployed a missile launcher in Guam - Guardian More than half of all…

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The chair of the Eurogroup meetings, Jeroen Dijsselbloem, spooked markets with comments that the last-minute bailout of Cyprus set a precedent for any future interventions. The so-called bail-in of individual savers has been met my disbelief of many, after the move that was supposed to help Cyprus, send shockwaves through Europe. The unprecedented move led many to quickly draw parallels between Cyprus and other EU countries (PIGS), though EU official’s continuously stated that Cyprus w…

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China's February non-manufacturing PMI like manufacturing, slowed to a 5-month low of 54.5 versus 56.2 in January, reinforcing the view that the recovery in the world’s second largest economy remains modest Bernanke said that premature rate increases would carry a high risk of short-circuiting the recovery The North/South house price split in the UK: According to the latest Hometrack survey, more than three-quarters of postal areas registering price gains are in London…

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Chinese HSBC services PMI which rose to a four-month high of 54.0 from 51.7 in December RBA minutes which saw the bank leave rates unchanged at 3.00% S&P credit rating agency faces lawsuit over ratings - Telegraph Hedge Funds are taking large short positions for UK retailers, in a bet that further high street chains will collapse - CityAM SGX in talks over taking a stake in LCH.Clearnet - Financial Times Ford expect to spend $5bn this year shoring up its pen…

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This morning is the first European trading session of the week, following Friday’s better the expected jobs report and data from China over the weekend pointing to a faster than expected economic recovery.The global economy has become particularly reliant on Chinese products and high-end demand from the growing Chinese middle class. Fears of a so-called hard landing for the Chinese economy following sustained double digit growth have been a concern for economists and investors around t…

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The US Presidential election is in its final day of campaigning, postal votes are in and ballot votes will be done tomorrow. Considering I live in London, and haven’t visited the US since the campaigning began, somehow I feel overwhelmed by coverage. I watched the last election with an American friend and it was a milestone for US politics to elect Barack Obama. His term in office can be summed up in one quote of a previous US President“It’s the economy, stupid” (Bill…

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Overnight the Reserve Bank of Australia (RBA) release its minutes from the October 2nd meeting, when the central bank cut rates by from 3.50% to 3.25%. The dovish tone of the minutes noted of the expected weaker growth next year and the decline in appetite for business spending. The strength of the Aussie was also highlighted as it remains high by historical standards. AUDUSD dropped following the release around 20 pips, but the minutes had no further detail or surprises the cross retraced t…

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Another week begins and it is the first trading day of the week. Chinese data released on Saturday was better than expected giving Asian markets a lift from the open. However sentiment faded as markets focused on the continuing uncertainty in Europe. It is thought that Virgin Money may purchase the 316 RBS branches that need to be sold by the end of the year. Under the European regulations the bailout conditions stipulate that RBS must sell the branches by year end or incur large fines…

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Analysts and traders have been eyeing the slowdown of China as the source of the next financial crisis for many years. The Chinese economy has grown at envious levels to all in the west for well over a decade. As the western economies have gone into melt down, China has continued to demand raw materials, at an unprecedented level and produced low costs goods, with its cheap labour force. The PBOC has come under criticism for holding the exchange rate artificially low to remain competit…

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