China Cash Squeeze Seen Creating Vietnam-Size Credit Hole China’s money-market cash squeeze is likely to reduce credit growth this year by 750 billion yuan ($122 billion), an amount equivalent to the size of Vietnam’s economy, according to a Bloomberg News survey. The number is the median estimate of 15 analysts, whose projections last week ranged from cuts of 20 billion yuan to 3 trillion yuan. The majority of respondents also said they approve of the government’s handling of the credit crunch and said the episode reinforces their expectations for policy reforms such as loosening controls on interest rates.(Source: Bloomberg) Greece nears deadline to receive next aid payment Greece was up against a deadline early Monday to receive its next tranche of aid from international lenders, with a senior International Monetary Fund official indicating a deal was close. Greek officials met with inspectors over the weekend from the so-called Troika of its lenders -- the IMF, European Union and European Central Bank -- as it seeks to unlock its next aid payment of 8.1 billion euros ($10.4 billion). Greece needs the funds for its national finances and was seeking to secure the aid tranche at a meeting of euro-zone finance ministers in Brussels on Monday, according to various reports. (Source: Marketwatch) Gold Bear-Market History Signals Second-Half Hope for Faithful Investors in gold funds, whose value slumped a record $44.7 billion in the second quarter, may do better in the second half of the year if history is any guide. Gains averaged 1.3 percent in the second half from 1981 to 2000, when gold endured a two-decade bear market, data compiled by Bloomberg show. First-half losses averaged 3.9 percent in the period. Investors sold 404.4 metric tons from exchange-traded products backed by the metal in the second quarter as prices tumbled into a bear market in April.(Source:Bloomberg) IMF May Cut Global Growth Forecast as Emerging Markets Slow The International Monetary Fund may cut its global growth forecast because the expansion of emerging market economies is slowing, Managing Director Christine Lagarde said.The Washington-based fund predicted in April that the world economy would expand 3.3 percent this year.“I fear, given what we’re seeing in particular in emerging countries, not the developing and low-income countries but emerging countries, that we will be slightly below that,” Lagarde told a conference in
Posted on: Mon, 08 Jul 2013 05:09:23 +0000
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