China

As the heat wave which has been hanging over Southern Europe for the last couple of weeks steadily eases off there is little sign that any of the warm air which is dissipating is reaching the chilled motors of the European and Chinese…

Global stocks continue to push higher ahead of speech tomorrow; dollar remains soft. Fed unlikely to deliver QE3 tomorrow and therefore markets may be disappointed. Is a potential change in PBOC policy in the pipeline; Hawkish comments from…

This has been an extremely tumultuous week throughout the capital and commodity markets. August itself has been a cruel month. The German stock market has lost around a quarter of its value. A marked slow down in the US and Europe in Q2 has…

Once again we are hearing very worried noises from various sectors about the possibility of a reduction in Chinese purchases of USG bonds. Is the PBoC going to stop buying USG bonds?

Markets stable but tone remains fragile. SNB expanded its sight deposit target; no EUR/CHF peg. BoE’s decision to stay on hold was unanimous. New measures announced by China boost CNY internationalization and integration with HK.

The Chinese foreign reserve accumulation is really about the exchange rate peg. As long as the Yuan's dollar peg remains near present levels, the current account imbalance will result in an accumulation of dollar reserves. Former Morgan…

Patrick Chovanec talked to Bloomberg earlier today about the Chinese rating agency Dagong’s downgrade of US sovereign debt to Single-A. Chovanec says that Dagong is ‘hyper-senstive’ to US risk.

Is the PBoC going to stop buying US treasuries? The debt ceiling debate and a potential default have brought this question back into the spotlight. The theoretical and the real world answer to concerns about China and US debt is the same:…

I have been arguing for a while that as long as the Chinese government retains its capacity to raise debt we are not going to see a sharp slowdown in economic growth – at least until 2013. Any indication that the economy is slowing too…

US leaders agree on budget deal, but House vote poses event risk ahead of August 2 deadline. Euro zone periphery benefits from improved market sentiment, but remains vulnerable. Equities and EM FX firm today on US news and stronger than…