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PBOC Devalues Yuan For 3rd Day As President Xi Reminds The Fed "China's Economy Is Stable" - Live Feed
Following last night's ADB China growth downgrade, and warnings from The IMF's Lagarde that a "China slowdown is a major risk to the global economy," the weakness seen in Europe and US is continuing across AsiaPac tonight ahead of China's much-watched PMI data (though we are not sure why - since no "bad news" excuse is needed to enable super-easy policy). With Xi in the US, one would imagine a 'beat' for PMI will be engineered, although industrial metals are extending their losses. Credit markets area nxious with Malaysia CDS at 2011 highs, Philippines highest since 2014, and China back on the rise. Xi begins his speech tonight reminding The Fed that China "is the biggest developing nation in the world," and its economy "is stable" despite Yellen's fears.
President Xi live from Seattle...
- *XI SAYS CHINA DREAM IS THE PEOPLE'S DREAM
- *XI SAYS CHINA IS BIGGEST DEVELOPING NATION IN THE WORLD
- *CHINA HAS 200M PEOPLE THAT LIVE IN POVERTY, XI SAYS
- *XI SAYS CHINA HAS 300M MIDDLE-INCOME EARNERS
- *XI SAYS MORE THAN 85 MILLION CHINESE LIVE WITH DISABILITIES
- *DEVELOPMENT IS TOP PRIORITY FOR CHINA, XI SAYS
- *CHINA ECONOMY WILL MAINTAIN STABLE, RELATIVE FAST GROWTH: XI
- *CHINA'S ECONOMY IS IN REASONABLE RANGE, XI SAYS
- *CHINA TO MAINTAIN MEDIUM TO HIGH GROWTH RATE: XI
- *XI SAYS CHINA TO AVOID PANIC ON STOCK MARKET
- *XI SAYS CHINA'S STOCK MARKET HAS REACHED PHASE OF SELF-RECOVERY
- *CHINA OPPOSED TO CURRENCY WARS: XI
- *YUAN RATE DOESN'T HAVE FOUNDATION FOR CONTINUOUS FALL, XI SAYS
- *CHINA WON'T DEVALUE TO BOOST EXPORTS: XI
- *CHINA'S DEVELOPMENT MUST RELY ON REFORM, XI SAYS
- *XI SAYS CHINA WILL NEVER CLOSE ITS OPEN DOOR TO OUTSIDE WORLD
- *CHINA WON'T CHANGE POLICY FOR OVERSEAS INVESTMENT, XI SAYS
- *CHINA WELCOMES COOPERATION WITH MULTINATIONAL COS., XI SAYS
- *CHINA IS A STAUNCH DEFENDER OF CYBER SECURITY, XI SAYS
- *XI SAYS CHINA READY TO SET UP CYBERCRIME MECHANISM WITH U.S.
- *CHINA TO SET UP DIALOGUE WITH U.S. ON FIGHTING CYBER CRIME: XI
- *CHINA TO CONTINUE FIGHT AGAINST CORRUPTION, XI SAYS
- *CHINA STICKS TO PEACEFUL DEVELOPMENT PATH, XI JINPING SAYS
- *CHINA WON'T SEEK POWER EXPANSION, XI SAYS
- *XI WELCOMES U.S. TO JOIN ASIAN INFRASTRUCTURE INVESTMENT BANK
- *DISAGREEMENT BETWEEN CHINA, U.S. IS UNAVOIDABLE, XI SAYS
And then this!!
- *XI SAYS CHINA WILL TREAT ALL MARKET PLAYERS FAIRLY
Apart from short-sellers, right?
* * *
First, for your viewing pleasure, here is USDJPY ripping higher on the Japanese open... despite Japan being closed...

Because Kuroda never takes a day off!!!
And then the propaganda began...
- *CHINA 7% OF ECONOMIC GROWTH IS CREDIBLE: NDRC
And so was The Fed to most people until last Thursday.
* * *
The IMF stuck its beek in again...
- *LAGARDE SAYS GLOBAL PRODUCTIVITY SLOWDOWN IS TROUBLING
- *LAGARDE SAYS CHINA SLOWDOWN IS MAJOR RISK FOR GLOBAL ECONOMY
China also announced new initiatives to ponzi-up the finance system...
- *CHINA CITY BANKS TO PROVIDE LIQUIDITY TO EACH OTHER: CHINA NEWS
Or "pass the hot potato collateral chain of counterparty risk" as some in The West might call it.
Industrial metals continue to tumble...
Metals extended losses in London ahead of a Chinese factory gauge expected to show the country’s manufacturing sector in contraction for a seventh month. Zinc traded near the lowest level since 2010.
Aluminum fell 0.3 percent, adding to a 1.7 percent decline on Tuesday and continuing a sell-off across metals amid concerns about China’s demand. Copper slid 0.2 percent after posting its biggest loss since July.
Credit markets are showing some strains...
- Five-year credit-protection costs for Malaysia rose 19 bps yesterday, most since Jan. 6, to 206.5 bps, highest close since Oct. 2011, according to CMA New York data.
- Philippines 5-year CDS rose 9 bps, most since Dec. 12, to 128.5 bps, highest daily close since Aug. 24
- China’s 5-year CDS rose 5 bps to 121 bps, highest close since Sept. 1
Marginb debt rose for the second day in a row...
- *SHANGHAI MARGIN DEBT BALANCE CLIMBS FOR SECOND DAY
And China stocks are extending losses...
- *FTSE CHINA A50 INDEX FUTURES FALL 1.3% IN SINGAPORE
- *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.7% TO 3,218.8
And The PBOC devalued the Yuan fix for the 3rd day in a row...
- *CHINA SETS YUAN REFERENCE RATE AT 6.3773 AGAINST U.S. DOLLAR
- *CHINA SETS YUAN REFERENCE RATE AT WEAKEST LEVEL SINCE AUG. 31
We leave it to Jim Chanos to sum it all up - from Xi's speech-of-pure-comedic-genius to devlauing the Yuan most in a month while explainin that they are not...
Chanos on Shanghai:“It’s just a highly speculative market “It’s like a pig on LSD. You don’t know which way it’s going to run.”
Charts: Bloomberg
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China's economy is stable, because he says so!
Hey Xi, better re-instate those 300K P.L.A. soldiers you were going to cut...
I was going to comment about the instability, but there's a Chinese tank in my driveway that appears menacing so I'll just say "hurray Xi"....
Chinese military personnel are set to arrive in Syria in the next 6 weeks.
The Tribe hasn't allowed that nugget to be published! Bad PR for Bebe.
The Chinese economy is crumbling...they have turned into Japan 2.0
There will be fewer 0-64yr/old Chinese every year for the next 20 or 30 yrs...at least. Millions fewer every year where once there were 15+ million more every year.
This is declining consumption for decades...aka, a shrinking economy. Jobs will simply decline with the slowdown in consumption and overcapacity only further compounded by slowing exports.
http://seekingalpha.com/article/3526426-the-story-of-china-is-the-story-of-japan-just-10x-bigger
Sept 23rd - must watch -
September 23 2015 What will happen? https://www.youtube.com/watch?v=HB09F2PdXMw
Too busy at the moment. I'll watch it on Thursday
"Everythings fine, I've talked to my people. Don't sell Bear Zhao." - Meng Krammer
Gold is off 80 cents and ZB is down 10 ticks since commodity and credit markets are crumbling?
Just another day
Where's the US PPT?
Kevin Henry for finally get a vacation?
So, all things considered, things are awesome!
What a crock of shit.
Fuck China. U.S. has many problems. But amazing how people ignore what China is. Communism. Politicians and business have sold out for short term game. China has a long term plan and does not involve a happy ending for the west.
Chinese are fiendishly cunning devils. Your not going to like their regime.
I've said for years. China is communist and once they destroy us economically, there will cease to be any rich or middle class people in China. They are a totalitarian regime, never forget this.
"It's like a pig on LSD. You don't know which way it's going to run."
That's some funny shit right there. Cheers!! Happy Festivus, Yom Kippur, the summer's end, and a joyous Shemitah to all my friends out there in ZH land.
Politicians are the same around the world. Every statement they make is a damn lie or very close to being one.
They often tell not-lies. It's not the truth but some statement that cannot be called an outright lie. An example is that unemployment is at historic lows. Never mind that we count ever fewer people as jobless.
Exactly. They tell the 'truth', facts that are completely benign and with lots of loopholes.
This reads like a sketch for a bad Hollwood comedy movie with the token ethnic dudes.
LOL, sure it is X-ping.
Why are do keep devaluing?
You must have taken lessons fron Bernanke ("The subprime housing market is contained,").
In other words, stay calm evrything is fine. In the meantime you and your party is panicking.
Nothing to see here Bitchez..
Ladies and Gentlemen, the new world economic power, China. Xi says: "sunshine, lollipops and rainbows, everything is wonderful!"
There is a real economy and a paper or financial economy. When governments play these currency games they begin separating the two. The real economy is made up of real man-hours, real materials and energy. The inputs do not change even if one now says an inch is a foot.
As the two diverge it becomes ever harder to value and trade. It also increases, not decreases the risk of catastrophic failure as the market will eventually do it's own revaluation which will include a lack of confidence in a highly manipulated Chinese economy, currency and market.
So exactly HOW is the US going to make its inflation target when every other country on the planet is devaluing against the dollar, reducing the price of imported goods?
I gawfed ... that post was bangin', wackiest zh for a few months, every thing Xi said read like waist-deep rising bullcrap. The only let down was legarde ... she seems to transgress the internet itself.
Shanghai index down 2% on Xi news.
Replace Xi Jinping with open source software.
I announced it pretty well that I was bailing on my stocks in China. I missed out on about a 20% upside, but still came out way ahead. I'm saying now that I am entirely divesting from the Chinese market. Property holdings are all being liquidated and I'm getting out. They have always treated us like crap here, but there was still enough upside to put up with it. That upside is rapidly vanishing and foreigenrs are being blamed for the economic woes. If you are still in China, get out before it's too late.
Whoa! The dumb shits are out today.
A similar reaction was noted when when Zhu Rongji
commented on entering the WTO.
As they say, "The dogs howl but the caravan moves on."
I'm afraid you guys are the victims of a slight mistranslation.
President Xi actually said that China's economy is IN A stable.
Xi is a rare "Mulatto" Chinese .... not as white as Japanese and Korean monkeys .... he has just a touch of the water buffalo ?