Government Predicted The Slowest

(Reuters) - China's weekend reform of its currency regime nails shut the coffin on the last remains of doubt about whether the world's second biggest economy has successfully steered a course past a hard economic landing. Investors were questioning whether the worst sequential slowdown in China's economy since the 2008-09 global financial crisis could enter a sixth quarter after data on Friday revealed the weakest three months of annual growth in three years and a run rate below the official 7.5 percent 2012 target. Shifting the yuan trading rules is about the strongest signal Beijing could give that growth downside has diminished and potential pitfalls are manageable. Few reforms are as replete with risk as tinkering with the currency because faith in its soundness directly correlates ...

China’s economy is already in the hard landing phase according to Adrian Mowat, JPMorgan Chase & Co.’s chief Asian and emerging-market strategist. As the nation’s most resources are retreating, where the car sales, cement production, steel production, and construction stocks are down. It’s not a debate anymore, it’s a fact.” On the other hand, the Shanghai Composite Index fell 2.6 percent yesterday, which is considered the most since last November, after Premier Wen Jiabao said home prices are still unreasonable, and the government will maintain restrictions on the property market for an extended period even as the curbs threaten to slow economic growth. Also, Wen announced that the economic growth target of 7.5% for 2012, down from 8 percent over the past seven years, as last-week data ...

Fundamental Analysis EUR "There is at least still sufficient demand for goods ‘made in Germany’ to keep the industrial engine running in 2012" - Carsten Brzeski, senior economist at ING Group German factory orders increased more than expected in December as demand from overseas helped the euro zone’s largest economy to weather the debt crisis. Orders rose 1.7 per cent, after declining 4.9 per cent in November, said the Economy Ministry on Monday. USD "You wonder when people are going to look beyond Greece to the real issue, which is Italy" - Jeffrey Sica, president and CIO of Sica Wealth Management U.S. stocks declined on Monday, snapping a three-day winning streak, after the meeting of euro zone ministers was postponed because of Greek reluctance to commit to reforms. GBP "If the UK ...

As Greece failed to meet Monday’s deadline and did not decided on the terms of a new bailout that will secure the 130 billion euro, the prospects of a default in March widened, which could threaten other euro zone countries. As conditions in Europe may be deteriorating, the outlook for the global recovery is worsening. This is also making the outlook for the Asian economies gloomy and may lead to more cuts in profit forecasts by companies; thereby investors in Asia lost their appetite for risk today pushing the MSCI Asia Pacific Index down today by 0.1% at 14:00 in Tokyo. However some relief is felt by the fact that Greek Prime Minister Lucas Papademos began a second round of negotiations with international creditors in Athens today, after political leaders delayed yesterday their ...

(Reuters) - Asia's economic growth may be settling into a middling pace that is too slow to provide significant global support but too fast to warrant aggressive policy easing. Most of the region's emerging economies have space to cut interest rates or boost government spending to counter the impact from the global slowdown. That's in sharp contrast to the developed world where the United States, Britain, Japan and others have long since pushed benchmark borrowing costs down to near zero, while swollen budgets provide little scope for stimulus. But the latest batch of economic data out of Asia showed growth was not slowing quite as precipitously as many economists had feared. This bolsters the wait-and-see case, particularly when the biggest economic threat -- Europe's debt crisis -- is ...

Oil retreated on Wednesday as optimism spurred by talk the IMF may do more to help resolve the European debt crisis proved shortlived, with a gloomy demand outlook pressuring prices. Front-month Brent crude was down 40 cents at $111.13 a barrel by 1432 GMT, after touching an intraday peak of $112.20. U.S. oil gained 46 cents $101.17 a barrel. Brent futures hovered in backwardation, just above parity, as prompt oil was priced comparably to forward futures, illustrating weaker demand at the front of the curve. "The market is soft, the Brent curve is flirting with contango and the distillate market is being crushed, with heating oil margins in the United States collapsing," said Seth Kleinman, analyst at Citigroup. "We've lost a lot demand from warm temperatures." Oil was supported by ...

(Reuters) - Oil gained on Wednesday as demand-sensitive assets got a boost from talk the IMF may do more to help resolve the European debt crisis, helping to temper worry about the outcome of crucial Greek debt restructuring. Front-month Brent crude was 32 cents higher at $111.85 a barrel by 1214 GMT, after touching an intraday peak of $112.20. U.S. oil gained 46 cents $101.17 a barrel. Brent futures hovered in backwardation, just above parity, as prompt oil was priced comparably to forward futures, illustrating weaker demand at the front of the curve. It dipped briefly again into contango, getting down to -2 cents this morning for the first time in almost six months. Oil was supported by weakness in the dollar .DXY, as oil priced in the U.S. currency becomes more affordable to ...

Fundamental market overview EUR Due to All Saints day, 1 November is a holiday in France and Italy. Nevertheless, turmoil has not ended in Greece, where current PM Papandreou is losing his power after calling a referendum regarding next tranche of bailout funds. Greek FM Stefanos Manos claims that if Papandreou continues his path of referendum, it might cause breakdown of Greek finance system, country's default and refusing from Euro. USD Institute of Supply management released PMI for October at 50.8 points, 1.3 points lower than forecast. October data was 0.8 points down from September reading. Construction spending increased by 0.2% in September, despite 0.4% analysts' projections, Consensus Bureau reported today. Dow has lost 207 points since opening, and is currently standing at ...

Expert commentary "I fully agree with IMF: the Eurozone banks must be recapitalized" - Josef Marbacher, Professor of Banking and Finance at University of Applied Sciences Northwestern Switzerland and a former economist at the Swiss National Bank After the Franco-Belgian Dexia bank's shares record plunge by 38% on 10 October, the Board of Directors has approved of its "healthy" units sale to the Belgian government and confirmed the receipt of EUR 90 billion worth guarantees for the remaining "bad assets" of the bank provided by the overnments of Belgium (60.5%), France (36.5%) and Luxembourg (3%). Dukascopy Bank SA has interviewed an expert in banking, Dr. Prof. Josef Marbacher and found out his exclusive opinion on the Dexia bank's recent bail-out. Read more: FULL REPORT - Market ...