Aug 11 2020 0
There is a great deal of big news around the world today so let's check them out.
Back to back
China said it would punish 11 Americans in retaliation for similar measures imposed by the US on Friday, but the list did not include any members of the Trump administration. Those punished include Senators Marco Rubio, Ted Cruz, Tom Cotton and Pat Toomey, among others. Chinese Foreign Ministry spokesman Zhao Lijian said: "In response to US misconduct, China has decided to impose sanctions on individuals who do not. in Hong Kong matters, "but he did not specify what the sanctions would lead to.
On Friday, the United States said it was imposing sanctions on 11 Chinese officials and their allies in Hong Kong, including Special Zone Chief, Carrie Lam, for their role in the reduction of political freedoms there. Meanwhile, Citigroup and Standard Chartered are increasingly monitoring their former British colonial banking customers, in order to avoid violating US sanctions against these officials. Citigroup is taking steps to suspend accounts that are related to a number of targeted individuals.
A quiet market
Asian stocks looked to have had a rather quiet session on Tuesday after a rather volatile session on Wall Street. The dollar hit a week's high. Japan's futures markets were little changed to reopen after Monday's Mountain Day holiday; the market in Australia was unchanged and increased strongly in Hong Kong. The S&P 500 index hit an all-time high since February, while the Nasdaq 100, in favor of technology stocks, fell. Treasury bonds slipped, pushing yields to the highest level in 2 weeks. The S&P 500 Total Return - including reinvested dividends - rose to an all-time high, surpassing the peak of February. In another development, oil prices rose the most in nearly three weeks. after Saudi Aramco said demand will continue to improve and traders bet on more US stimulus measures. The Turkish lira is weaker even as bank managers turn to lending at a slower pace in efforts to stabilize the currency.
Lebanese government step down
The Lebanese prime minister confirmed his resignation when outraged public demanded accountability for last week's blast at the Port of Beirut, the biggest peacetime disaster in national history. After just seven months in office, Prime Minister Hassan Diab said in a speech on Monday: "The scope of this disaster is greater than can be described." He blamed a corrupt political class for undermining his administration. Diab has failed to comply with the protesters' requests, who have been protesting since October in search of change, and have not conducted negotiations with donor countries and the National Monetary Fund. the billions of dollars in aid that a deeply indebted country needs. Previously, a number of ministers had quit their jobs as a result of the disaster, including finance and justice ministers.
China’s strategy
In 2015, China's devaluation caused market turmoil. Today, the yuan is down more than 10% against both the dollar and the currency basket of trading partners from its pre-devaluation level; and against the euro, the Chinese currency is close to hitting a six-year low. However, the gentle, stable price cuts have caused less concern. Activity in the forex market remains quiet: A measure of the yuan's expected volatility and an indicator of bearish options that has never reached levels seen after the move. shock of Beijing. China welcomes a weaker currency, which makes its goods more attractive globally. However, avoiding a sharp devaluation means trade-offs between stability and encouraging the renminbi play a more important role. But for now, the currency is still in little use outside of China.
Gamblers are back
China will continue to issue tourist visas to visitors to Macau, paving the way for a mass return of Chinese gamblers to return to the world's largest game center after months of losses. The city of Zhuhai in neighboring Guangdong province will begin issuing tourist visas, including individual and group tours, to mainland residents coming to Macau again on August 12. The move is in contrast to a ban taken in late January to stop the spread of coronavirus. It fueled the resurgence of the gambling district, which had five times the pre-pandemic Las Vegas Strip revenues, largely due to demand from China.
