Early Headlines: China Tech Index Down 27%, Greece Like Lehman, Europe Sub-zero Money Market, Global Trade Boom Ending and More
Early Bird Headlines 26 June 2015
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
- Fast Track Or No, The Long Global Trade Boom Is Over (Investor's Business Daily) Whether the proposed Trans-Pacific Partnership survives its tortuous path through the U.S. legislative process, economists say global trade is unlikely to expand or prove as crucial as it was in the two decades before 2010. They cite a number of factors, including a slowing global economy as well as the maturing of China's manufacturing engine, which has greatly slowed its imports.
- Supreme Court preserves tool for fighting housing discrimination (Al Jazeera) The ACA opinion was not the only SCOTUS victory for the president yesterday. By a 5-4 decision the court okayed the continuation of the Fair Housing Act of 1968 which may be used to prohibit housing policies that disproportionately harm racial minorities or other protected groups, even if there is no discriminatory intent behind them.
- Neil Irwin: Is Greece like Lehman Brothers? (Business Standard) If Greece were to do the nation-state equivalent of filing for bankruptcy - repudiate its debts, exit the eurozone, devalue its currency - it would cause catastrophic ripples across Europe.
- EU leaders agree on plan to tackle migrant crisis (Al Jazeera) European leaders agreed to share the care of migrants fleeing North Africa and the Middle East. Curiously the plan covers only 60,000 while 100,000 have already entered Europe since the beginning of the year and another 20,000 are estimated currently on the move.
- Europe's sub-zero money markets get weird. (Twitter) See also Europe's short term money markets are in a spin (Fast FT)
- Exclusive - ECB holds Athens lifeline unchanged as Bundesbank protests (Reuters) The European Central Bank (ECB) is continuing its high level of ELA (Emergency Liquidity Assistance) to assist Greek banks deakl with continuing cash withdrawals. Germany's Bundesbank President Jens Weidmann gave his strongest criticism yet of the use of emergency credit to prop up Greece's banks. He wants those banks to stop buying the short-term debt of their government.
- India among top 10 FDI destinations in 2014 (Business Standard) FDI (foreign direct investment) inflows into India were $34 billion in 2014, up 22%t rise from $28 billion in 2013. In fact, Inflows into the country were 83.5%t of South Asia's $41.2 billion, including Iran and the seven other member nations of the South Asian Association for Regional Cooperation. Among the top 10 recipients, China, Hong Kong and the US accounted for the biggest share (in that order). China took the top spot with FDI of $129 billion in 2014 ($124 billion in 2013). The US, which attracted $231 billion worth of FDI in 2013, only garnered $92 billion in 2014. Hong Kong got $103 billion of FDI in 2014. India is expected to see increased FDI again for 2015.
- Rajan says Indian economy will see through any impact of Greece crisis (Business Standard) Reserve Bank of India (RBI) governor Raghuram Rajan said in Stockholm on Wednesday that the Indian economy would see through any impact of the Greek crisis. According to Rajan, one factor helping India was its stronger foreign exchange reserves. Rajan was addressing a conference at the Stockholm School of Economics.
- PBOC Adds Cash for First Time in Two Months After Bond Sale Flop (Bloomberg) China added funds to the banking system using open-market operations for the first time in two months to help alleviate a seasonal cash squeeze. The People's Bank of China auctioned 35 billion yuan ($5.6 billion) of seven-day reverse-repurchase agreements at 2.7%. The latest injection of funds comes after the benchmark money-market rate climbed to a two-month high on Wednesday and a sovereign debt sale failed to raise the targeted amount for the first time in almost a year.
- Paulson Says Pollution Could Overwhelm China as Cities Expand (Bloomberg) Former U.S. Treasury Secretary Hank Paulson says government efforts to address pollution has "been blown away by the explosive, breakneck growth."
- "Blood On The Streets": Chinese 'Nasdaq' Crashes Most On Record, Morgan Stanley Warns "Don't Buy This Dip" (Zero Hedge) China's "Nasdaq" - the 90% small-cap tech-firm dominated CHINEXT is down 8.3% intraday - its biggest single-day loss ever... it is now down 27% from its highs! See also Chinese Stock Plunge Leaves State Media Speechless (Bloomberg)
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