Renminbi (RMB)

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Chinese shares were up overnight as GDP and retail figures beat expectations, helping to hide the fact that economic growth levels fell below 7% for the first time since 2009. China’s economy expanded quicker than economists forecast in the 3rd quarter as the services sector propped up the world’s second-largest economy. This suggests that monetary and fiscal stimulus is keeping Premier Li Keqiang’s 2015 expansion target within reach ahead of his historic UK visit tod…

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The PBoC’s overnight move to weaken its national currency, the RMB (Chinese Yuan), shows a significant shift in policy. They confirm they are to play a greater role going forward in the management of the exchange rate, sending ripples through the foreign exchange market. The move certainly comes at an opportune time for them following a series of weak macro trade data out of the country recently; exports have tumbled 8.3% in July from a year earlier and there has been a severe sl…

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Today’s breakdown of the Sunday papers: China RMB debate: The renminbi’s road to full internationalization http://www.euromoney.com/Article/3229831/China-RMB-debate-The-renminbis-road-to-full-internationalization.html The chief executive of Wonga has defended the payday lender by claiming it is “a powerful force for good in the financial world.” http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10206825/Wonga-is-a-force-for-good-f…

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All eyes on China and commodity markets as Premier Li Kequang announces 7% floor on growth. Premier Li Kequang was quoted as saying that economic growth could not dip below 7% as that was the required rate to ensure the Chinese economy doubles in size this decade. A 7% growth rate would however be the lowest level of growth since 1990, although some have remained sceptical of the figures produced by China. China had originally set a growth target of 7.5% for 2013 at the annual se…

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Following the attack on the US embassy in Libya and the murder of the US ambassador, commentators are citing the possibility of the unrest spreading across the region. Anger was vented against the US in retaliation to a film published by a US citizen that was felt mocked and undermined the Islamic faith. If there is unrest spirals and is widespread this is likely to impact on Oil prices due to the stability in the Middle Eastern region. Expectation and rumours surround the capped EURCH…

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It’s the first day of the trading week for London, following an impressive closing ceremony for the Paralympic Games. Last week’s markets ended following a disappointing US NFP report on Friday and further weak macro data out of China at the weekend. Though this led to markets getting a slight lift as it increases the likelihood of further stimulus from both the US and China. Spencer Dale of the Bank of England speaking at Trinity College Dublin over the weekend stat…

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Asian equities overnight have fallen after disappointing earnings from Chinese companies and Australia, a key trading partner of China, has cut its commodity sales forecast on concerns of the slowing Chinese economy. A decrease in inventories led to WTI Crude gaining during Asian trading. The City of London’s eyes this morning are on the Chancellor George Osborne’s 2012 Budget. With some headline parts of the Budgettacticallyleaked prior to the actual announcement, traders…

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