Trump accuses China of ‘currency manipulation’ as yuan drops to lowest level in more than a decade

President Donald Trump accused China on Monday of manipulating its currency as the trade war between the world’s largest economies keeps escalating. “China dropped the price of their currency to an almost a historic low,” Trump said in a tweet. China — which has historically controlled its currency — allowed the yuan to fall to its lowest level in more than a decade. Trump’s comments on Monday came less than three months after his administration decided not to label China a currency manipulator.


President Donald Trump accused China on Monday of manipulating its currency as the trade war between the world’s largest economies keeps escalating. “China dropped the price of their currency to an almost a historic low,” Trump said in a tweet. China — which has historically controlled its currency — allowed the yuan to fall to its lowest level in more than a decade. Trump’s comments on Monday came less than three months after his administration decided not to label China a currency manipulator.
Trump accuses China of ‘currency manipulation’ as yuan drops to lowest level in more than a decade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: fred imbert
Keywords: news, cnbc, companies, exchange, manipulation, decade, drops, competitive, china, level, currency, rate, manipulator, administration, trump, yuan, accuses, trade, lowest


Trump accuses China of 'currency manipulation' as yuan drops to lowest level in more than a decade

President Donald Trump accused China on Monday of manipulating its currency as the trade war between the world’s largest economies keeps escalating.

“China dropped the price of their currency to an almost a historic low,” Trump said in a tweet. “It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!”

China — which has historically controlled its currency — allowed the yuan to fall to its lowest level in more than a decade. The yuan traded above 7 per U.S. dollar, making Chinese products cheaper.

The People’s Bank of China denied devaluing the yuan as a counter to U.S. tariffs. In a statement, PBOC Governor Yi Gang said China will “not engage in competitive devaluation, and not use the exchange rate for competitive purposes and not use the exchange rate as a tool to deal with external disturbances such as trade disputes.”

Trump’s comments on Monday came less than three months after his administration decided not to label China a currency manipulator. No country has been named a manipulator since the Clinton administration did so for China in 1994.

Though Trump vowed to brand China a manipulator during his campaign, his administration has passed on five opportunities to do so.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: fred imbert
Keywords: news, cnbc, companies, exchange, manipulation, decade, drops, competitive, china, level, currency, rate, manipulator, administration, trump, yuan, accuses, trade, lowest


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10-year Treasury yield plunges below 1.74% after China counters US trade action

The yield on the benchmark 10-year Treasury note fell below 1.74% on Monday, its lowest level since November 2016, after China countered new U.S. tariffs, escalating the protracted trade war between globe’s two biggest economies. The yield on the benchmark 10-year Treasury note, used as a benchmark for mortgage and auto loan rates, fell 12 basis points to 1.735%, its lowest level since Nov. 9, 2016. The yield on the 30-year Treasury bond fell 9 basis points to 2.293%, while the rate on the 2-yea


The yield on the benchmark 10-year Treasury note fell below 1.74% on Monday, its lowest level since November 2016, after China countered new U.S. tariffs, escalating the protracted trade war between globe’s two biggest economies. The yield on the benchmark 10-year Treasury note, used as a benchmark for mortgage and auto loan rates, fell 12 basis points to 1.735%, its lowest level since Nov. 9, 2016. The yield on the 30-year Treasury bond fell 9 basis points to 2.293%, while the rate on the 2-yea
10-year Treasury yield plunges below 1.74% after China counters US trade action Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: thomas franck
Keywords: news, cnbc, companies, plunges, action, yield, treasury, note, china, 174, points, currency, level, trade, counters, 10year, basis, fell, lowest


10-year Treasury yield plunges below 1.74% after China counters US trade action

The yield on the benchmark 10-year Treasury note fell below 1.74% on Monday, its lowest level since November 2016, after China countered new U.S. tariffs, escalating the protracted trade war between globe’s two biggest economies.

The yield on the benchmark 10-year Treasury note, used as a benchmark for mortgage and auto loan rates, fell 12 basis points to 1.735%, its lowest level since Nov. 9, 2016. The yield on the 30-year Treasury bond fell 9 basis points to 2.293%, while the rate on the 2-year Treasury dropped 12 basis points to 1.581%. Bond yields move inversely to prices.

The 10-year Treasury note yield, down more than 30 basis points in August, returned less than the 3-month Treasury bill at 2.017%.

The bid for Treasurys and pivot away from stocks came after actions by China fueled a new wave of trade anxiety across global markets.

China, which has in the past tinkered with its currency to boost its exports, allowed the yuan to fall to its lowest level in more than a decade, making Chinese exports cheaper. The onshore yuan broke above 7 per U.S. dollar, drawing the online ire of President Donald Trump, who voiced his complaint on Twitter.

“China dropped the price of their currency to an almost a historic low. It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!”

Trump’s criticism on Monday came less than three months after his Treasury Department decided not to label China a currency manipulator. Despite promises to label Beijing as such during Trump’s 2016 presidential campaign, the administration has passed on five opportunities to do so thus far.

Bloomberg News also reported that Beijing has asked state-owned companies to refrain from buying U.S. agricultural goods.

These moves came four days after Trump announced that the U.S. on Sept. 1 would impose a 10% tariff the remaining $300 billion worth of Chinese imports that had eluded duties. The news pushed the S&P 500 to its worst weekly performance of the year. The S&P 500 dropped 31% last week. The Dow had its second-biggest weekly drop of 2019 last week, sliding 2.6%.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: thomas franck
Keywords: news, cnbc, companies, plunges, action, yield, treasury, note, china, 174, points, currency, level, trade, counters, 10year, basis, fell, lowest


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US-China investment flows fall to five-year low amid escalating trade war

Investment flows between the U.S. and China fell to the lowest level in five years amid escalating tensions between the two countries, according to a study led by research firm Rhodium Group. That’s an 18% fall from the second-half of 2018 and the lowest level since January-to-June in 2014, the report published Thursday said. Relations between the U.S. and China — the two largest economies in the world — have been rocky over the past year. What started out as a trade dispute in recent months spi


Investment flows between the U.S. and China fell to the lowest level in five years amid escalating tensions between the two countries, according to a study led by research firm Rhodium Group. That’s an 18% fall from the second-half of 2018 and the lowest level since January-to-June in 2014, the report published Thursday said. Relations between the U.S. and China — the two largest economies in the world — have been rocky over the past year. What started out as a trade dispute in recent months spi
US-China investment flows fall to five-year low amid escalating trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: yen nee lee
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US-China investment flows fall to five-year low amid escalating trade war

Investment flows between the U.S. and China fell to the lowest level in five years amid escalating tensions between the two countries, according to a study led by research firm Rhodium Group.

Two-way direct and venture capital investments between the U.S. and China totaled $13 billion in the first six months this year, according to the report on Thursday. That’s an 18% fall from the second-half of 2018 and the lowest level since January-to-June in 2014, the report published Thursday said.

Relations between the U.S. and China — the two largest economies in the world — have been rocky over the past year. What started out as a trade dispute in recent months spilled over to areas such as technology and security, which affected sentiment among investors.

Some Chinese firms had initially considered setting up manufacturing in the U.S. to avoid elevated tariffs, but put their plans on hold as bilateral tensions escalated, said Rhodium. One such company is tech firm Bitmain Technologies, which froze its planned investment of $500 million, the report said.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: yen nee lee
Keywords: news, cnbc, companies, escalating, low, tensions, fall, lowest, rhodium, according, investment, china, months, level, uschina, amid, firm, trade, war, report, fiveyear, flows


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Sterling hits lowest level since April 2017 as disorderly Brexit fears grow

The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October. Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record. Previous London Mayor and former Foreign Secretary Boris


The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October. Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record. Previous London Mayor and former Foreign Secretary Boris
Sterling hits lowest level since April 2017 as disorderly Brexit fears grow Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: david reid
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Sterling hits lowest level since April 2017 as disorderly Brexit fears grow

Contenders to be the U.K.’s next leader, Boris Johnson and Jeremy Hunt (R), take part in the debate “Head To Head” on ITV on July 9, 2019 in Salford, England.

The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October.

Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record.

In a research note Tuesday, Nomura’s currency analyst Jordan Rochester called the fall in the pound’s spot price as “the story of the day” and said there was potentially more downside risk.

“I am worried that volume is starting from a very low base and hedging flows will be picking up further,” he said. Rochester said in a separate text on Monday that he expected a spike in volatility for the pound’s trade once lawmakers returned to the House of Commons in September after their summer breaks.

According to Reuters data the British pound has been the worst performing G-10 currency this year. Sterling’s recent trend of losses against its major trading partners has been attributed to the ongoing race to succeed Theresa May as the next Conservative Party leader and U.K. prime minister.

Previous London Mayor and former Foreign Secretary Boris Johnson is the favorite to defeat current Foreign Secretary Jeremy Hunt in the runoff.

In their pitches to Conservative Party members, both men have taken a hard-line stance on future negotiations with the European Union, suggesting that they are prepared to walk away without a deal on October 31.

In a television debate Monday, each declared that the Northern Ireland “backstop” was “dead,” as it could trap the U.K. into a never-ending customs union with the EU.

The backstop was agreed by May’s team with Brussels as a means to ensure that there was no physical border erected on the island of Ireland between Northern Ireland (which is a part of the U.K.) and the Republic of Ireland (a separate country that is to remain as a European Union member nation).


Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: david reid
Keywords: news, cnbc, companies, lowest, disorderly, secretary, ireland, uk, sterling, fears, low, trade, brexit, pound, currency, versus, separate, hits, grow, 2017, level, union


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China’s stocks rise as data shows lowest quarterly growth in 27 years

Chinese stocks recovered from an earlier slip to finish the trading day higher on Monday, following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years. The Shanghai composite added 0.4% to 2,942.19, while the Shenzhen component rose 1.04% to 9,309.42. The Shenzhen composite also gained 1% to 1,572.34. Elsewhere, South Korea’s Kospi ended the trading day in Seoul 0.2% lower at 2,082.48. overall, the MSCI Asia ex-Japan index rose 0.28%.


Chinese stocks recovered from an earlier slip to finish the trading day higher on Monday, following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years. The Shanghai composite added 0.4% to 2,942.19, while the Shenzhen component rose 1.04% to 9,309.42. The Shenzhen composite also gained 1% to 1,572.34. Elsewhere, South Korea’s Kospi ended the trading day in Seoul 0.2% lower at 2,082.48. overall, the MSCI Asia ex-Japan index rose 0.28%.
China’s stocks rise as data shows lowest quarterly growth in 27 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: eustance huang
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China's stocks rise as data shows lowest quarterly growth in 27 years

Chinese stocks recovered from an earlier slip to finish the trading day higher on Monday, following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years.

The Shanghai composite added 0.4% to 2,942.19, while the Shenzhen component rose 1.04% to 9,309.42. The Shenzhen composite also gained 1% to 1,572.34.

Hong Kong’s Hang Seng index added 0.22%, as of its final hour of trading, with the city still stuck in turmoil surrounding a controversial extradition bill. Meanwhile, the Budweiser initial public offering in Hong Kong, which was set to be the world’s biggest listing of 2019, was canceled by parent company Anheuser-Busch InBev.

Elsewhere, South Korea’s Kospi ended the trading day in Seoul 0.2% lower at 2,082.48.

Over in Australia, the S&P/ASX 200 declined 0.65% to close at 6,653.00 as most sectors slipped. Shares of wealth manager AMP plunged 15.81% after the company said it was “highly unlikely to proceed ” with the sale of its life insurance and wealth protection business.

overall, the MSCI Asia ex-Japan index rose 0.28%.

Markets in Japan were closed on Monday for a holiday.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: eustance huang
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China posts its lowest quarterly growth in 27 years as the trade war drags on

China released second-quarter figures on Monday showing that its economy slowed to 6.2% — the weakest rate in at least 27 years, as the country’s trade war with the U.S. took its toll. From April to June, China’s economy grew 6.2% from a year ago, the country’s statistics bureau said on Monday. The second quarter economic growth was the country’s slowest pace since the first quarter of 1992 — the earliest quarterly data on record, according to Reuters. China’s statistics bureau said the economy


China released second-quarter figures on Monday showing that its economy slowed to 6.2% — the weakest rate in at least 27 years, as the country’s trade war with the U.S. took its toll. From April to June, China’s economy grew 6.2% from a year ago, the country’s statistics bureau said on Monday. The second quarter economic growth was the country’s slowest pace since the first quarter of 1992 — the earliest quarterly data on record, according to Reuters. China’s statistics bureau said the economy
China posts its lowest quarterly growth in 27 years as the trade war drags on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: huileng tan
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China posts its lowest quarterly growth in 27 years as the trade war drags on

China released second-quarter figures on Monday showing that its economy slowed to 6.2% — the weakest rate in at least 27 years, as the country’s trade war with the U.S. took its toll.

From April to June, China’s economy grew 6.2% from a year ago, the country’s statistics bureau said on Monday. That was in line with the expectations of analysts polled by Reuters, and lower than the 6.4% year-on-year growth in the first quarter of 2019.

The second quarter economic growth was the country’s slowest pace since the first quarter of 1992 — the earliest quarterly data on record, according to Reuters.

China’s statistics bureau said the economy faces a complex situation with increasing external uncertainties, Reuters reported. The world’s second largest economy also faces new downward pressures and will try to ensure steady economic growth, the statistics bureau added.

China’s months-long trade dispute with the U.S. has weighed on its economy.

“Uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce, ” said Tom Rafferty, principal economist for China at The Economist Intelligence Unit.

“Businesses remain skeptical that the two countries will reach a broader trade agreement and recognise that trade tensions may escalate again,” wrote Rafferty in a note on Monday.

One analyst said he will be watching China’s employment numbers more closely for a better read of the economy.

“Are factories shedding workers as their order book falls? Because that leads to the overall target of saying ‘we want to grow employment’ — and the social structure of China hinges on that, and I think that’s very important for the authorities,” said Colin Graham, Chief Investment Officer of multi asset solutions at Eastspring Investments.

Graham said there is room for the People’s Bank of China to introduce more fiscal stimulus in the months ahead to steady the economy.

“They have room to make sure the economy doesn’t slow too quickly,” Graham told CNBC’s “Street Signs” on Monday after the GDP numbers were released. He said he expected China’s 2019 full-year GDP growth to be flat at between 6.2% and 6.3% from a year ago.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: huileng tan
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Trump says administration preparing an executive order on drug prices

US President Donald Trump speaks to the media prior to departing from the South Lawn of the White House in Washington, DC, July 5, 2019. President Donald Trump said Friday he’s preparing an executive order declaring a “favored nations clause” for drug prices, where the U.S. will pay no more than the country with the lowest prescription drug prices. “We’re working on a favored nations clause, where we pay whatever the lowest nation’s price is. Why should other nations — like Canada — why should o


US President Donald Trump speaks to the media prior to departing from the South Lawn of the White House in Washington, DC, July 5, 2019. President Donald Trump said Friday he’s preparing an executive order declaring a “favored nations clause” for drug prices, where the U.S. will pay no more than the country with the lowest prescription drug prices. “We’re working on a favored nations clause, where we pay whatever the lowest nation’s price is. Why should other nations — like Canada — why should o
Trump says administration preparing an executive order on drug prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: berkeley lovelace jr angelica lavito, berkeley lovelace jr, angelica lavito
Keywords: news, cnbc, companies, administration, lawn, executive, nations, drug, order, trump, house, prices, white, lowest, pay, preparing, south


Trump says administration preparing an executive order on drug prices

US President Donald Trump speaks to the media prior to departing from the South Lawn of the White House in Washington, DC, July 5, 2019.

President Donald Trump said Friday he’s preparing an executive order declaring a “favored nations clause” for drug prices, where the U.S. will pay no more than the country with the lowest prescription drug prices.

“As you know for years and years other nations pay less for drugs than we do,” Trump told reporters on the South Lawn of the White House. “We’re working on a favored nations clause, where we pay whatever the lowest nation’s price is. Why should other nations — like Canada — why should other nations pay less than us? ”

The SPDR S&P Pharmaceuticals ETF, which tracks the pharma industry’s biggest companies, was down 1.4% after Trump’s announcement.

The Trump administration and Democrats in Congress are both trying to bring more transparency to drug prices and, ultimately, lower costs for consumers.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: berkeley lovelace jr angelica lavito, berkeley lovelace jr, angelica lavito
Keywords: news, cnbc, companies, administration, lawn, executive, nations, drug, order, trump, house, prices, white, lowest, pay, preparing, south


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10-year Treasury yield drops to lowest level since 2016, dipping further below 2%

The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.95%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill held steady at 2.205%, keeping a portion of the


The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.95%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill held steady at 2.205%, keeping a portion of the
10-year Treasury yield drops to lowest level since 2016, dipping further below 2% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: thomas franck
Keywords: news, cnbc, companies, level, lagarde, 2016, yield, lowest, dipping, zone, european, trump, treasury, euro, 10year, drops, world, lower


10-year Treasury yield drops to lowest level since 2016, dipping further below 2%

The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus.

At around 12:09 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.95%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill held steady at 2.205%, keeping a portion of the yield curve inverted.

Traders around the world snapped up government debt after the European Council on Tuesday nominated Christine Lagarde to head the European Central Bank. Many viewed the choice of Lagarde as a signal that euro zone rates will remain low for the foreseeable future as the ECB tries to foster inflation and GDP growth in the region.

Europe has seen markedly lower GDP growth relative to that of the U.S. in recent years. Economic forecasts have slumped further in recent months amid persistent tariff pressure from the Trump administration and cooler sentiment from manufacturers. The German 10-year bund fell to its lowest level in recorded history on Wednesday at -0.399%.

“The appointment of Christine Lagarde is certainly giving more adrenaline to the epic bubble of negative yielding bonds but the euro isn’t really moving,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in an email.

“It remains quite astonishing to see what is going on in European bond yields, to say the least. God help us when this unwinds one day,” he added.

Fears of an economic slowdown in Europe were also exacerbated after the U.S. government on Monday threatened to impose tariffs on $4 billion of additional euro zone goods in a long-running dispute over aircraft subsidies.

The U.S. Trade Representative’s office released a list of products — including Italian cheese, olives and whiskey — that could be targeted with new duties on top of those implemented in April. The new wave of proposed duties comes amid a 15-year dispute at the World Trade Organization over aircraft subsidies given to U.S. aerospace manufacturer Boeing and its European rival, Airbus.

Treasury also caught a bid after President Donald Trump picked two nominees likely to support easier monetary policy at the Federal Reserve. Both of Trump’s intended nominees, Christopher Waller and Judy Shelton, are thought to be advocates of lower rates.

Lower rates could give a boost to job creation, which posted another rough month in June, according to a Wednesday report from ADP and Moody’s Analytics. Private companies added just 102,000 jobs last month, well short of the meager 135,000 estimate. That followed a weak May print of just 41,000 and precede’s Friday’s employment report from the Labor Department.

The Institute for Supply Management’s non-manufacturing index and Services PMI for June and factory orders for May will follow slightly later in the session.


Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: thomas franck
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Private survey of China’s factory activity in June shows lowest reading since January

China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey. The PMI reading for May was 50.2. PMI readings above 50 indicate expansion, while those below that signal contraction. The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator, features a bigger mix of small- and medium-sized firms.


China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey. The PMI reading for May was 50.2. PMI readings above 50 indicate expansion, while those below that signal contraction. The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator, features a bigger mix of small- and medium-sized firms.
Private survey of China’s factory activity in June shows lowest reading since January Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: huileng tan
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Private survey of China's factory activity in June shows lowest reading since January

China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey.

The Caixin/Markit factory Purchasing Managers’ Index for June was 49.4 — the lowest since January when the indicator came in at 48.3.

Analysts polled by Reuters had expected the indicator to come in at 50. The PMI reading for May was 50.2.

PMI readings above 50 indicate expansion, while those below that signal contraction.

The lackluster reading was due to new orders falling into contractionary territory, pointing to shrinking domestic demand, said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin. The index measuring new export orders was also in negative territory,.

“Overall, China’s economy came under further pressure in June,” Zhong wrote in a report.

“It’s crucial for policymakers to step up countercyclical policies. New types of infrastructure, high-tech manufacturing and consumption are likely to be the main policy focuses,” Zhong added.

The Caixin survey finding was in line with readings from China’s official PMI which stood at 49.4 in June, contracting more than expected, according to China’s National Bureau of Statistics on Sunday. That was unchanged from the previous month. Analysts polled by Reuters had predicted a reading of 49.5.

The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator, features a bigger mix of small- and medium-sized firms.

The PMI is a survey of businesses about the operating environment. Such data offer a first glimpse into what’s happening in an economy, as they are usually among the first major economic indicators released each month.

For China, the PMI is among economic indicators that investors globally watch closely for signs of trouble amid domestic headwinds and the ongoing U.S.-China trade dispute.


Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: huileng tan
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IEA sees oil demand growth falling to lowest level in years as global economy stalls

The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession. On the demand side, the IEA followed OPEC by downwardly revising its global oil demand growth forecast for 2019 on Friday. The energy agency said it now expects oil demand growth to reach 1.2 million barrels per day (b/d) this year. Looking beyond the end of 2019, the IEA expects global oil demand


The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession. On the demand side, the IEA followed OPEC by downwardly revising its global oil demand growth forecast for 2019 on Friday. The energy agency said it now expects oil demand growth to reach 1.2 million barrels per day (b/d) this year. Looking beyond the end of 2019, the IEA expects global oil demand
IEA sees oil demand growth falling to lowest level in years as global economy stalls Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-14  Authors: sam meredith
Keywords: news, cnbc, companies, 2019, iran, trade, oil, stalls, growth, economy, sees, demand, global, falling, lowest, iea, level, bd, opec


IEA sees oil demand growth falling to lowest level in years as global economy stalls

The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession. The energy agency’s closely-watched report comes as world oil markets have undertaken a dramatic shift in recent months, switching from supply-side risks like OPEC’s output cuts or U.S. sanctions against Iran and Venezuela to worries about deteriorating demand growth. Crude futures have turned a 45% price rally in the first four months of 2019 into a fall of more than 15% since the start of April. “The main focus I think we should be looking at here is that until very recently the geopolitical factors related to Iran and Venezuela and Libya… they were at the forefront of people’s minds,” Neil Atkinson, head of the oil industry and markets division at the IEA, told CNBC’s “Street Signs Europe” on Friday. “Now we are starting to see that confidence in demand is taking over and that is the main driving factor behind the current state of the oil market.” International benchmark Brent crude traded at around $61.25 Friday morning, down around 0.1%, while U.S. West Texas Intermediate (WTI) stood at $52.15, nearly 0.3% lower.

‘Cannot be complacent’

A recent slide in oil prices was temporarily reversed on Thursday, following attacks on two oil tankers in one of the world’s key shipping routes. The incident in the Gulf of Oman off the coast of Iran pushed crude futures up as much as 4.5% in the previous session. It was the second time in less than a month that tankers had been attacked in the world’s most important zone for oil supplies, with hundreds of millions of dollars’ worth of oil passing through the shipping lane every year. Washington quickly blamed Iran for the attacks, but Tehran has denied the allegation. “I think we are realizing that, although we cannot be complacent, the situation is not yet representing a major threat to the security of oil supplies to the very important Strait of Hormuz,” the IEA’s Neil Atkinson said. On the demand side, the IEA followed OPEC by downwardly revising its global oil demand growth forecast for 2019 on Friday. The energy agency said it now expects oil demand growth to reach 1.2 million barrels per day (b/d) this year. That’s a downward revision of 100,000 b/d from the IEA’s previous projection. Global oil demand is estimated to have risen by just 250,000 b/d year-on-year in the first quarter of 2019, the IEA said, reflecting the lowest annual growth since the fourth quarter of 2011 — when the price of Brent averaged $109. Looking beyond the end of 2019, the IEA expects global oil demand growth to rebound to around 1.4 million b/d in 2020. “A clear message from our first look at 2020 is that there is plenty of non-OPEC supply growth available to meet any likely level of demand, assuming no major geopolitical shock, and the OPEC countries are sitting on 3.2 million b/d of spare capacity,” the IEA said Friday. “This is welcome news for consumers and the wider health of the currently vulnerable global economy, as it will limit significant upward pressure on oil prices.”

Saudi Arabia’s Energy Minister Khalid al-Falih attends a press conference at the end of the 13th meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and non- OPEC countries in Baku on March 18, 2019. Mladen ANTONOV | AFP

The IEA cited various reasons for slowing global oil consumption, including: a warm winter in Japan, a slowdown in the petrochemicals industry in Europe, tepid gasoline and diesel demand in the United States and the worsening trade outlook. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment. Expectations that trade officials from world’s largest economies will clinch a deal on the side-lines of a G20 meeting in Osaka on June 28-29 have been fading in recent days. OPEC also cited persistent trade tensions between Washington and Beijing as a risk to economic growth and fuel demand.

OPEC+


Company: cnbc, Activity: cnbc, Date: 2019-06-14  Authors: sam meredith
Keywords: news, cnbc, companies, 2019, iran, trade, oil, stalls, growth, economy, sees, demand, global, falling, lowest, iea, level, bd, opec


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