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 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
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
Comments are closed.