South China Morning Post
February 19, 2016
The New York Times
Thursday, February 18, 2016
Information normally in a capital-flow report from the People's Bank of China has disappeared without explanation, analysts say. The change makes gauging the severity of capital flight difficult. "Given current circumstances, the move will fuel more speculation that the country is under great pressure from capital outflows," said Liu Li-Gang, chief China economist at Australia and New Zealand Banking Group. "It will hurt the central bank's credibility."
South China Morning Post
February 16, 2016
Monday, February 15, 2016
Chinese banks originated a record 2.51 trillion yuan in loans last month, almost three times December's activity, as part of an effort to accelerate the economy, according to the People's Bank of China. Nonperforming loans reached 1.27 trillion yuan last year, the highest total in 10 years, according to the China Banking Regulatory Commission.
The Business Times/Bloomberg
February 17, 2016
China's regulatory scrutiny directed at shadow financing is leading many banks to use trusts or asset-management plans as lending sources, according to a Commerzbank report. This allows the banks to record the loans as funds to be received and may obscure up to 1 trillion yuan in losses.
February 22, 2016
To kick-start growth, Beijing is considering lowering the cash reserves banks have to set aside for potential bad loans. The danger: A more relaxed provision rule would put China’s credit risk back in the limelight, causing overseas investors to sell off Chinese stocks.
February 21, 2016
The core consumer price index jumped to an annualized rate of 2.2% in January, surprising markets that were pricing in a 25% chance of a Federal Reserve interest-rate increase. Markets are now pricing in a 40% chance, but the rate of personal-consumption expenditures will be released soon and could influence the Fed's path.
February 18, 2016
The Conference Board's Index of Leading Economic Indicators fell 0.2% in January (+2.2% y/y), following a revised 0.3% December decline. The fall matched expectations in the Action Economics Forecast Survey. The three-month change in the index fell to zero, its weakest reading since September. Lower stock prices, higher initial jobless insurance claims, a weaker ISM new orders index and fewer building permits accounted for the decline.
The Wall Street Journal
February 15, 2016
The Standard & Poor's 500 index has dropped 11% in the past year, despite higher dividends and revenue from many companies, as investors fear market volatility. Dividend yields for nearly 20% of companies tracked by the index are outperforming the 30-year US Treasury bond.
February 18, 2016
The Telegraph
Wednesday, February 17, 2016
Negative interest rates are a "dangerous experiment" that diminishes bank profitability and undermines confidence in central banks, economists say. Resorting to negative rates is a "gigantic fiscal-policy failure," says Narayana Kocherlakota, former head of the Federal Reserve Bank of Minneapolis.
February 21, 2016
Monday, February 22, 2016
Details on a cap on oil output agreed upon by Saudi Arabia, Russia, Venezuela and Qatar should be finalized soon, Russian Energy Minister Alexander Novak says. Negotiations are planned with non-OPEC nations, including Mexico and Norway. "We agreed that all consultations should be completed by March 1," Novak said. Saudi Oil Minister Ali al-Naimi is expected to clarify some details during a conference in Houston.
S&P Capital IQ/Barron’s
February 22, 2016
At the beginning of the year, EPS growth for 2016 was pegged at 7.4%. Today, aggregate estimates compiled by Capital IQ point to a 2.8% year-over-year gain.


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