Daily commentary: More Chinese stimulus in the works

Yesterday I wrote about Chinese trade growth plummeting. This is having a negative impact on economic growth. The Chinese authorities get that. And so they have decided to boost demand. Yet more infrastructure stimulus is how the plan on doing it.

Andy Lees writes that the government has started a CNY26.5bn (USD4.2bn) program of subsidies to promote the use of energy saving household appliances in an effort to reduce energy consumption. This replaces a program that had ended last year. Further, the Chinese government is going to grant CNY6bn of subsidies for small engine cars purchases, again with the same goal of reducing energy consumption. This is small beer of course so the big news is that the Chinese are studying ways to boost domestic consumption while also pursuing more major infrastructure projects.

I wish we had more info on this but that’s all I have so far. I am pretty sceptical about whether this will work since China is already doing a lot of infrastructure projects.

That’s it. Here are the links.

Bank runs

BBC News – Watch deposit flight, not the eurocrats

Spain

Moody’s anunciará hoy una rebaja masiva del ráting de la banca,Banca. Expansión.com

Spanish banks: A rude awakening | The Economist

La reforma financiera no convence a nadie: el mercado espera un tercer ‘plan De Guindos’ – elConfidencial.com

La española Repsol explorará dos nuevas zonas de hidrocarburos en Bolivia – Yahoo! Noticias España

Greece

The euro in crisis: Groping towards Grexit | The Economist

Europe

German tempers boil over back-door euro rescues – Telegraph

Italy’s banks shaken as economic slump deepens – Telegraph

JPMorgan

How JPMorgan’s storm in a teapot grew – FT.com

For J.P. Morgan Trader, From ‘Caveman’ to ‘Whale’ – WSJ.com

Elsewhere

US has Iran strike plan ‘ready’ – The Irish Times

Japan’s Rakuten Wins the Heart of Pinterest in $100M Funding Round – Liz Gannes and Kara Swisher – Commerce – AllThingsD

KC Man Sues Bank Over Foreclosure Error – Project Economy News Story – KMBC Kansas City

Easy Useless Economics – NYTimes.com

China’s external debt soars to 27-yr high at $695 bn

US judge blocks indefinite detention of Americans — RT

Facebook: The Ultimate Dot-Com : The New Yorker

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