Banks And The Economy (2)

Economic NewsThis is the Bureau of Economic Analysis; National Accounts Data; Data from the Latest GDP News Release. Li added that China is to set up a cross border CNY payment system and is to allow foreign banks in its onshore forex market. At the same time, the Spanish benchmark IBEX-35 index (-0.9%) underperformed its peers, with SP/GE lOy bond yield spread also wider, as market participants continue to price in risks stemming from the upcoming elections in Catalonia on September 27th. The move was said to be linked to the overnight statement by China’s Li who said that China is to allow foreign central banks in onshore forex market. On the US calendar we have import price index, initial jobless claims and wholesale inventories and trade sales data all due.

In commodities, WTI has seen a pull back from yesterday’s API driven losses despite the risk off sentiment as the EIA have decreased their crude oil production forecast for 2015 and 2016, furthermore Cushing inventories decreased by 1.15mln bbl last week despite API crude supplies showing a build 2.1 min. Bourses in China have weakened as we head into the midday break with the Shanghai Comp currently -0.96%.

Demand for safe-haven assets, which in turn resulted in Bunds outperforming USTs on the back of policy divergence flow, failed to weigh on USD/JPY which remained bid amid the growing expectation of further easing by the BoJ. Some impressive numbers all round and its interesting that despite a bad year for performance, the US market remains open for supply.

Apple also weighed on sentiment yesterday as the latest product launch appeared to disappoint investors, but before we dig deeper into yesterday’s moves, it’s straight to China where we’ve got more data to digest. The news media participate in capitalism both as an actor within the market, but also as a mode to disseminate information about the market to individuals.

On that subject, DB’s Chief US Economist Joe Lavorgna yesterday shifted his view for liftoff timing from the September meeting to October, listing seven reasons for a change of view. Before we take a look at today’s calendar, surprising the market late last night was the sooner than expected news that S&P had downgraded Brazil’s sovereign rating to junk (from BBB- to BB+). You told us you don’t have time to search for the latest Ukrainian news or to translate local newspapers, magazines and research available on the market. The Kyiv Business Journal (KBJ) is a bi-weekly publication delivered by email summarizing the key business & economic news of Ukraine and the region.

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