The recent movements in stock markets around the Globe (since Friday night in the US) have given us much cause for concern. Stock markets have continued to trade down while bond prices have lifted following heightened fears of a growth slowdown in China. The correction started after China ... Read more
Archives for August 2015
Next global recession may be ‘made in China’
As the global economy enters the seventh year of a sluggish recovery, it’s time to start asking when the world will face its next downturn — and what will drive it. by RUCHIR SHARMA The Wall Street Journal August 18, 2015 12:00AM As the global economy enters the seventh ... Read more
China poses a big question for global markets—Business Spectator
By Peter Cai The value of the Chinese yuan dropped for the second day after Beijing’s shock decision to introduce a new market-oriented daily reference rate setting regime. The move has sent shockwaves across global currency and equity markets, including Australia. The People’s Bank ... Read more
Three questions hover over China’s economy
by Michael Collins, Investment Commentator at Fidelity August 2015 Australia’s record of 23 years of continuous economic growth is impressive. Yet it is well short of China’s 37-year expansion since Deng Xiaoping introduced free-market reforms in 1978. Even more worthy of note in China’s ... Read more
Keep watch on the ‘three gluts’: PIMCO — By Daniel Palmer (Business Spectator)
The leading economic adviser at global bond fund PIMCO has detailed ‘three gluts’ that will drive the global economy over coming years through an environment of low growth, low interest rates and low inflation. Joachim Fels, a former chief economist at Morgan Stanley, noted a crucial interaction ... Read more
RBA Keeps Rates on Hold!
Media Release Date 4 August 2015 Statement by Glenn Stevens, Governor: Monetary Policy Decision At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent. The global economy is expanding at a moderate pace, but some key commodity ... Read more