BEIJING (AP) — China has ended controls on bank interest
rates in a move toward making its financial system more market-oriented.
The change announced Friday by the central bank comes amid promises
by the ruling Communist Party to make the economy more efficient and
productive.
Analysts say one of the most important changes will be to overhaul
China’s banking industry that subsidizes state industry and lends little
to entrepreneurs.
http://www.usatoday.com/story/money/business/2013/07/19/china-bank-lending-rates/2567583/?utm_source=dlvr.it&utm_medium=twitter&dlvrit=110940
Krugman: “China is in big trouble. … Not some minor setback along the way, but something more fundamental.”
http://www.nytimes.com/2013/07/19/opinion/krugman-hitting-chinas-wall.html?_r=1&
Key point Krugman misses: China isn’t so much hitting a wall as bringing itself to an emergency stop. It’s deliberate
https://twitter.com/Max_Fisher
$ES_F $19.7bn was invested in global equity funds in the past week, the most for six months $$
$ES_F $700m was pulled from bond funds.The amount put in US equity funds was the most since June 2008
https://twitter.com/MrTopStep
People’s Bank of China decided to further promote market-oriented interest rate reform
Approved by the State Council, People’s Bank of China, from July 20,
2013 from the full liberalization of financial institutions lending rate
controls.
First, the cancellation of financial institutions lending rate 0.7
times the lower limit, by a financial institution lending on commercial
principles independently determine the level of interest rates.
Second, cancel bills discounted interest rate controls, changing the
discount rate at the rediscount rate plus points in a manner determined
by the financial institution determined independently.
Third, the establishment of rural credit cooperatives are no longer lending rate caps.
Fourth, to continue to strictly implement differentiated housing
credit policies to promote the healthy development of the real estate
market, individual housing loan interest rate floating range temporarily
adjusted.
Full liberalization of lending interest rate controls, the financial
institutions in consultation with the customer pricing will be further
expanded space, and promoting financial institutions to take
differentiated pricing strategy, and reduce financing costs; favor of
financial institutions to continuously improve the ability of
independent pricing, changing the operating mode , improve service
levels, increase business, residents financial support; help to optimize
the allocation of financial resources, better play the role of
financial support for the real economy, but also strong support for
economic restructuring and transformation and upgrading.
http://www.zerohedge.com/news/2013-07-19/pboc-scraps-lending-rate-floor-full-liberalization-interest-rate-controls
“Economists and investors around the world are finally getting
used to the idea that China’s years of blazing hot growth are a thing of
the past.”
http://www.businessinsider.com/scary-china-charts-2013-7
The True Chinese Credit Bubble: 240% Of GDP And Soaring
http://www.zerohedge.com/news/2013-04-11/true-chinese-credit-bubble-240-gdp-and-soaring
Crude Oil
In yesterday’s Crude report: “Short term, watch LVNs at 106.77 and
105.02 as resistance and support, respectively. A break through either
of these levels could start the initial party for a breakout.”
Crude finally got a breakout from the tightly-coiled 6-day range, as
price rallied through the 106.77 LVN before topping out at 108.43. Each
key bull target was taken out except the 125% target at 108.68, which I
was actually shooting for on my last scale late in the day.
Again, Crude Oil is rallying in pre-market trading, and new highs are
being seen. The 109.04 level has is a Fib extension from Thursday’s
trading, so that level may offer resistance. Additionally, program
trading algorithms are beginning to see a high number of Fib matches at
these levels, which means we could see some selling in Crude at some
point off these highs. Also, keep in mind my 109.51 weekly bull target
is still above and could be reached today.
Continue to buy pullbacks in Crude until 109.51 is reached. Selling is not advised until support at 107.70 is taken out.
http://pivotboss.com/2013/07/19/goog-hits-nq-on-the-close/
Crude Oil’s Fast & Furious Rise Will Hit Consumers Hard, Warns Kilburg
While most of the trading universe was preoccupied with other things
the price of crude oil has been ripping higher in an almost straight
line. KKM Financial CEO and founder Jeff Kilburg says Americans aren’t
going to be able to ignore the spike for long.
In early trading Friday WTI crude oil tacked on another dollar,
topping $109 a barrel, and racing to break $110 for the first time in
multiple years.
A close here would mark the second straight week of multiple percentage point gains.
“We’re seeing oil prices unfortunately rise and that’s going to mean
pain at the pump,” Kilburg told Breakout from the floor of the CME.
“On July 1st crude was trading $96, now we interject some Egyptian turmoil and people are really scared.”
Traders are frightened not just because many of them missed the move but they’ve been shorting crude during the rally.
As WTI rallies those same traders are taking off the short position
by purchasing upside calls or get long in other ways, all of which adds
fuel to the rally.
http://finance.yahoo.com/blogs/breakout/crude-oil-fast-furious-rise-hit-consumers-hard-123644491.html?l=1
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