China to cut requirement reserve ratio by 1 percentage point

10 Octobre, 2018, 15:00 | Auteur: Auguste Feret
  • China Slashes Banks Reserve Requirements As Trade War Hits Growth

The US is battling an exchange war with China which debilitates the viewpoint for Chinese assembling and fares.

"In the face of rising trade frictions, moderate yuan depreciation aids exporters and is what the market expects to see", Tang Xiangbin, currency analyst at China Minsheng Banking Corp said, predicting additional USA rate hikes would help strengthen the dollar further. "All news is against it", Fraser Howie, an independent analyst who has written books about China and its financial system, told CNBC's "The Rundown" on Monday.

The move is not expected to put depreciatory pressure on the yuan, the statement said, adding that the bank would continue to maintain a "prudent and neutral" monetary policy.

Friday's USA non-farm payrolls showed job creation slowed in September, likely from Hurricane Florence's impact on restaurant and retail payrolls, but the Labor Department report also showed a rise in wages that could keep the Federal Reserve on track for more interest rate hikes.

Pence's speech marked a sharpened US approach toward China, going beyond the bitter trade war between the world's two biggest economies, which has magnified concerns about the outlook for China's economy.

Zhang Yi, chief economist at Zhonghai Shengrong Capital Management said the RRR cut indicates central bank's worries about the impact of "external shocks" to the markets. Beijing is therefore taking pre-emptive steps to avoid massive outflows of investor money from its financial system, analysts said, adding that could deal another blow to its economy which is already experiencing slower growth.

Saudi to supply extra oil to India to make-up for US sanctions
The Islamic Republic exported 1.1 million barrels per day (bpd) of crude in that seven-day period, Refinitiv Eikon data showed. China is reportedly reducing its oil imports from Iran , though it's not likely to fully comply with the USA demands.

Sydney train passengers and motorists warned to expect delays
Extra customer service staff are in place at major stations such as Central and Town Hall to manage crowds. Mr Foley live streamed on Facebook to announce the plans to refund commuters, following Monday's delays.

Branson says Virgin Galactic to launch space flight 'within weeks'
At the time Branson added that he hoped to become an astronaut within a year with Virgin Galactic. The rocket motor is covered by a cowl at the rear of the aircraft body.

Zeng Gang, a researcher with the Institute of Finance and Banking of the Chinese Academy of Social Sciences, said using the RRR cut to replace the MLF operation could optimize the maturity structure of credit, allow financial institutions to access long-term funds steadily and therefore reduce the financing costs of the real economy.

The easing, announced on the last day of China's week-long National Day holidays, came at a time when the world's second biggest economy is losing momentum amid an intensifying trade war with the US. Tokyo was closed for a public holiday. The rest of Asian markets fell on Monday, extending last week's sell-off.

China's $12-trillion economy is showing signs of a major setback.

The blue-chip CSI300 index was down 2.3 percent at the open and off more than 3 percent by 0215 GMT, while the Shanghai Composite Index dropped some 2.5 percent. "There is so much headwinds towards it now and I think it's right to prepare for the worst and expect the best", Gareth Nicholson, head of fixed income at Bank of Singapore, told CNBC's "The Rundown" on Monday.

Chinese Minister Liu Kun stated, "Some regions and companies have been hit (by trade frictions), but China has the ability to minimize the impact".

Conseillé:



Populaire

Banksy : l'oeuvre s'autodétruit après avoir été vendue 1,18 million
Au cas où il serait vendu un jour aux enchères... " Le besoin de détruire est aussi un besoin créatif ". Il est probable que la déchiqueteuse ait été déclenchée à distance par un acolyte, ou Banksy lui-même.

Andreas Christensen warns he may leave Chelsea due to lack of games
We have good results and we play super football, which only makes it harder. It's hard for me personally, but for the team it looks great.

Russian Federation internationals Aleksandr Kokorin & Pavel Mamaev investigated over attack
Kremlin-controlled state television featured a host of industry representatives and commentators angrily slamming the attack. FC Zenit said Kokorin, 27, would be disciplined pending the outcome of the police investigation.

Epidemiologist warned someone not to do a flu shot
ESR scientists said July was normally when flu infections peak but this year they peaked in September. Each flu vaccine available protects you against three strains of the virus or protects against four.

Tories will lose next election unless May chucks Chequers, Davis tells MPs
Dominic Raab, Brexit secretary, this evening addressed other MPs on the latest negotiations. Mr Raab replied that his suggestion was a "shortcut to no deal".

Incident involving Twins' Sano under investigation in DR
According to multiple reports, Miguel Sano has been involved in "traffic incident" in his home country of the Dominican Republic. Hopefully for Twins fans, nothing comes of this incident and Sano is back and ready to play for the 2019 season.

Sri Lanka vs England
After that, England managed to win their last eight bilateral series, the most recent was against India. When you drop yourself as a captain, it sets the tone and example of "nobody's place is cemented".

T'wolves owner turns down Heat offer for Jimmy Butler, report says
He is believed to be seeking a five-year, $190 million free-agent contract next summer. That's because Jimmy Butler apparently still wants to get away.

Banksy painting self-shreds after selling at auction for $1.4 million
Banksy is a Bristol-born artist whose true identity - despite rampant speculation - has never been officially revealed. A spokesman for Sotheby's said: 'We have talked with the successful purchaser who was surprised by the story.

Dani Carvajal: 'I want Premier League move'
Real Madrid star Dani Carvajal has admitted he dreams about moving to the Premier League . " And I am clear that I want to play in the Premier League ".