By Mohamed A. El-Erian Oil prices have been heading south again, with a barrel of US crude recently falling below $42 – the lowest level since March 2009, the nadir of the global financial crisis. And, while last year’s sharp price drop was heavily influenced by two large supply shocks, the current decline also has an … Continue reading
China’s benchmark stock index has just made its biggest weekly gain in two months. Investors bet that the weaker yuan will help to boost the economy. The Shanghai Composite Index rose 0.3% at the close today and this week the index advanced by 5.9%. The yuan lost 3% for the week as a result of Tuesday’s surprise devaluation. Gerry Alfonso, a sales trader at Shenwan … Continue reading
China’s Central Bank, the People’s Bank of China (PBOC), has further devalued the yuan on Thursday for a third day in a row — following a surprise “one-time devaluation” announced by the Central Bank on Tuesday — which is heating up what appears to be a currency war that is continuing to rattle markets. . On Thursday, the PBOC set the … Continue reading
Greece has become the first developed nation to default of its international debt obligations as the International Monetary Fund (IMF) confirmed on Tuesday night that it did not receive the €1.55 billion ($1.73 billion) payment from Athens that was due by the end of June 30, Brussels time. The Crisis in Greece has entered a new chapter … Continue reading
According to former CEO of PIMCO, Mohamed El-Erian, Greece is heading for a “massive economic contraction” and will likely be forced out of the euro zone. On Sunday, Greece imposed capital controls, shut its banks, and closed its stock markets until further notice to avert a collapse of its financial system following Greek Prime Minister Alexis Tsipras’s shock announcement late … Continue reading