China will set out its major economic objectives and policy goals for 2020 at the National People’s Congress. We expect fiscal stimulus of 5-8% of nominal GDP to be announced, half the size of the stimulus that followed the GFC. Most of this stimulus will come in the form of bond issuance (e.g. special treasury bonds and local government special bonds). The biggest beneficiary of this stimulus will be the transport and infrastructure sectors. On monetary policy, we do not expect aggressive interest rate cuts or QE; but efforts will continue to ensure financial markets remain liquid, through lending targets and RRR cuts. Read more
WASHINGTON, D.C., UNITED STATES (SEPTEMBER 18, 2017) (IMF TV) – Bank of England Governor Mark Carney said on Monday (September 18) that Brexit is likely to hurt Britain’s growth prospects in the short term and push up inflation as the country adjusts to life outside the European Union. Continue reading
Speaking at the Council of the Americas, IMF Managing Director Christine Lagarde says China needs to keep trying to rebalance its economy away from commodity-intensive investment but also must be careful to safeguard “demand and financial stability.”
(Reuters Business Report) – Don Quixote: a Spanish literary hero famous for tilting his lance at imaginary foes – like windmills.
Austerity though – that’s seen as a very real enemy.
Many Spaniards in solidarity with ordinary Greeks.
European Parliament President Martin Schulz doubts Greek banks will reopen this week, calls for emergency humanitarian aid for Greece and demands the government make meaningful proposals on its debt to stave off ‘dramatic’ times.