Monday, August 31, 2015

Its end of month, or start of a semester. Economy Vs Economic. JR

The end of month or the start of a Semester to conquer main players desition on the economic world.whom. Whom under non control brings the scene to its high level point to summit the muscle power to its highest point.
Currency variables as commodities ups and down,see the pharmaceutical market silently stepping high.
Whom to play the fair game?

Its tipikly the end of month..can it be the start of the semester. Economic and economy fighting it's position on a financial world.whom is on the game?
JR

Economy Vs Economic

Lots of news out of China: The Shanghai Composite took a dive during the session, closing the month down 12.5%, following reports that Beijing scrapped large-scale share purchases as a method of propping up markets. Meanwhile, more concerns over the world's second largest economy prompted Goldman Sachs to slash its forecasts for Chinese growth over the next three years to 6.4% (2016), 6.1% (2017) and 5.8% (2018). Beijing's also on the hunt for confessions. Nearly 200 journalists, traders and officials have been punished in what police call a "special campaign" to root out those accused of market destabilizing activities.

Snapping a three-day winning streak, Japan's Nikkei finished August with its biggest monthly decline since Jan. 2014 (-8.2%), hurt by soft industrial production data. Output fell 0.6% in July from the previous month, worse than economists' estimates of a 0.1% gain and following a 1.1% increase in June. "Weak demand from China is expected to continue to weigh on Japan's production going forward so China worries may persist," said Amundi Japan's Masaru Hamasaki.

For traders worried about the health of the emerging markets, India's growth data for April-June should supply some cheer today - the country is expected to remain the fastest growing major economy for a second straight quarter. Economists put India's gross domestic product at 7.4% in Q2, just below 7.5% in January-March. If the number is that high, it will be a boost for Prime Minister Narendra Modi, who has taken a beating after struggling to pass his legislative agenda.

Tens of thousands of protesters gathered in Malaysia's capital for a second day on Sunday demanding the resignation of Prime Minister Najib Razak despite police warnings stating the rally was illegal. Najib has been fighting for political survival after leaked documents in July showed he received some $700M in his private accounts from entities linked to indebted state fund 1MDB. The scandal has spurred an exodus of capital from Southeast Asia's third-largest economy and has partly contributed to the ringgit's plunge to a 17-year low earlier in August.

The eurozone's inflation rate held steady in August, highlighting the challenge European Central Bank policymakers face as they seek to revive consumer-price growth. Annual inflation came in at 0.2%, exceeding the median forecast for a reading of 0.1%, while core inflation held at 1%. The latest figures are a far cry from the 2% target set by the ECB and are likely to provide further impetus for the bank to continue its €1T asset purchasing program. Euro +0.2% to $1.1206, while European shares head for their worst month in four years.

A form of debt restructuring rather than outright forgiveness should enable Greece to handle its "unviable" debt burden, IMF Managing Director Christine Lagarde told Switzerland's Le Temps. "We are talking about extending maturities, reducing rates, (making) exemptions for a certain period of time. We are not speaking about cancelling debt," she added. However, the interview made no mention of whether the IMF will take part in the new €86B bailout. Lagarde previously said the fund would make its decision by October.

Puerto Rico is delaying the completion of its fiscal reform proposal by one week because the island was focused on contingency disaster planning for Tropical Storm Erika. Governor Alejandro Garcia Padilla had been slated to deliver a proposal to restructure the commonwealth's $72B debt burden by Sunday or Monday, but will now hold off until as late as Sept. 8.

Another U.S. Senator has given his support for the recent Iranian nuclear accord, moving President Obama a step closer to having sufficient backing to ensure the pact stands. The boost from Oregon's Jeff Merkley brings to 31 the number of senators publicly favoring the deal. Should sanctions be lifted, Iran would double its oil exports to 2.3M barrels a day, multiplying tensions in the world's sensitive oil markets. Crude futures -2% to $44.30/bbl.

Jose Rodrigo Umaña Martinez

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