Death Star Economics

Icon

ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

China makes the world go round

There’s not much going on today. In the words of ZeroHedge:

Tonight’s session has been even more boring than yesterday’s, when nothing happened.

China‘s non-manufacturing PMI fell [unsurprisingly] by 2.6 points between July and August, marking the lowest score since March 2011. Most of it is attributed to the low global demand due to the financial and sovereign debt crisis.

On the back of this, oil prices declined in a panic over global fuel demand. This is a day after Iran’s president Mahmoud Ahmadi-Nejad admitted that Iranian oil sales had declined since the implementation of international sanctionsread article

But any slowing of China is risky business for export-driven Germany, the biggest trade partner in Europe and fifth largest in the world. But Germany, which is celebrating  its federal unity today, seems to be doing confusing well regardless of said risks.

Reflecting intertwined fates of the German and Chinese economies, the Dax and Chinese share prices have largely risen and fallen in tandem since the early 2000s. Lately, however, that relationship has appeared to break down. While internationally-traded Chinese shares have fallen about 1 per cent since early August, the Dax is up 8 per cent.

And some say there could be a new all-time high in the coming year, brought about by the countries relative economic strength (or if you believe the FT article quoted above, due to “different Teutonic factors”).

Also in Europe, a draft proposal that leaked out of Brussels last night, shows the attempt of a new fiscal reform act to be signed by all 17 eurozone members in this month’s summit. It appears to be based on Germany’s request for stricter supervision of countries with inconsistent reform track recordsread article

Almost five years after Bernie Madoff‘s arrest for running a Ponzi scheme that cost investors more than $17bn, the date for the Madoff employee trials has been set for October 2013 with all of 3.5 months allocated for the hearings.

I’m going to leave it at this.

So long.

Advertisements

Filed under: news brief, , , , , , , , , , , , , ,

One Response

  1. princess1960 says:

    hello

    EUZ just bla bla bla …nothing changed and will continue the same …
    CHINA i like BO party (not because is communist) but because if the others trying to fait men he have power.
    economy in china is not better than reast of the world
    GER risck off for intres politice
    Iran ..use the situation because he knows others needed oil.this is bad ..( I DON’T LIKE THE POILITEC IRAN USE FOR EVERYTHING)
    I AM BORED TOO NOT BECAUSE NEWS BUT BECAUSE IS THE SAME SITUATION READY 3 YEAR .
    we can hop ….maybe
    thank you very much don’t leave stay with me.
    ps .Zerohedge..have very exacte statisice i like all him blog (he is honest and extrimest) like me

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: