JEWISH KING JESUS IS COMING AT THE RAPTURE FOR US IN THE CLOUDS-DON'T MISS IT FOR THE WORLD.THE BIBLE TAKEN LITERALLY- WHEN THE PLAIN SENSE MAKES GOOD SENSE-SEEK NO OTHER SENSE-LEST YOU END UP IN NONSENSE.GET SAVED NOW- CALL ON JESUS TODAY.THE ONLY SAVIOR OF THE WHOLE EARTH - NO OTHER. 1 COR 15:23-JESUS THE FIRST FRUITS-CHRISTIANS RAPTURED TO JESUS-FIRST FRUITS OF THE SPIRIT-23 But every man in his own order: Christ the firstfruits; afterward they that are Christ’s at his coming.ROMANS 8:23 And not only they, but ourselves also, which have the firstfruits of the Spirit, even we ourselves groan within ourselves, waiting for the adoption, to wit, the redemption of our body.(THE PRE-TRIB RAPTURE)
HOARDING OF GOLD AND SILVER
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.(IN 1 HR THE STOCK MARKETS WORLDWIDE WILL CRASH)
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed:(CONFISCATED) their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
REVELATION 13:16-18
16 And he(THE FALSE POPE WHO DEFECTED FROM THE CHRISTIAN FAITH) causeth all,(IN THE WORLD ) both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(MICROCHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark,(MICROCHIP IMPLANT) or the name of the beast,(WORLD DICTATORS NAME INGRAVED ON YOUR SKIN OR TATTOOED ON YOU OR IN THE MICROCHIP IMPLANT) or the number of his name.(THE NUMBERS OF HIS NAME INGRAVED IN THE MICROCHIP IMLPLANT)-(ALL THESE WILL TELL THE WORLD DICTATOR THAT YOUR WITH HIM AND AGAINST KING JESUS-GOD)
18 Here is wisdom. Let him that hath understanding count the number of the beast:(WORLD LEADER) for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM (6006006)OR(60020202006)(SOME KIND OF NUMBER IMPLANTED IN THE MICROCHIP THAT TELLS THE WORLD DICTATOR AND THE NEW WORLD ORDER THAT YOU GIVE YOUR TOTAL ALLIGIENCE TO HIM AND NOT JESUS)(ITS AN ETERNAL DECISION YOU MAKE)(YOU CHOOSE YOUR OWN DESTINY)(YOU TAKE THE DICTATORS NAME OR NUMBER UNDER YOUR SKIN,YOUR DOOMED TO THE LAKE OF FIRE AND TORMENTS FOREVER,NEVER ENDING MEANT ONLY FOR SATAN AND HIS ANGELS,NOT HUMAN BEINGS).OR YOU REFUSE THE MICROCHIP IMPLANT AND GO ON THE SIDE OF KING JESUS AND RULE FOREVER WITH HIM ON EARTH.YOU CHOOSE,ITS YOUR DECISION.
REVELATION 6:5-6
5 And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.(A DAYS WAGES FOR A LOAF OF BREAD)
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
The Shemitah is coming true.Do people not get it? There is a economic crash every 7 years.
1980: Recession
1987: Stock market crash
1994: Bond market crash
2001: 9/11, dot com, recession
2008: Housing crash
2015: See if something will happen-The central banks will be the death of us. Get ready and embrace yourself for the economic collapse.
BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days
http://ift.tt/1Jw4Ts8
UPDATE-AUGUST 26,2015-12:00AM
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China Anxiety Resurfaces to Torpedo Relief Rally in U.S. Stocks-Anna-Louise Jackson Joseph Ciolli-Updated on August 25, 2015 — 5:49 PM EDT-BLOOMBERG
A rebound that took the Dow Jones Industrial Average up more than 440 points disappeared in the final hours of trading, with investors giving in to trepidation over what will happen overnight in China amid the most volatile equity markets in four years.The 30-stock gauge ended down 204.91 points, or 1.3 percent, at 15,666.44 at 4:09 p.m. in New York, and 4 percent below its session high. The peak-to-trough retreat exceeded the loss at Monday’s close, when concern about global growth ignited the worst decline for U.S. shares in four years. The Standard & Poor’s 500 Index went from up 2.9 percent to down 1.4 percent, closing at 1,867.61 as most of the selling occurred after 2 p.m.“People are nervous about the potential volatility that could erupt or resurface in the market,” said Stephen Carl, principal and head equity trader at Williams Capital Group LP. “They’re not sure what’s going to happen overseas, and that uncertainty is winning out.”The unwinding disappointed bulls who earlier in the day staked hopes on China’s efforts to inject stimulus into its economy. The central bank today cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside in an attempt to stem the country’s biggest stock market rout since 1996 and a deepening economic slowdown.-‘Technical Damage’-More than $2 trillion has been erased from American equity values since last Wednesday, breaking a calm in a stock market that before this week had gone almost four years without a 10 percent correction.“Investors are going to be keeping a keen eye on the Asian markets overnight and how they react to the rate cut,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “The weak last hour in the market wasn’t a good sign.”Stocks couldn’t avoid plumbing Monday’s depths in a chart phenomenon known as a retest, where the lowest levels of previous days starts to influence trader psychology. The S&P 500 has now lost 11 percent in five days, the worst stretch since August 2011, with a measure of market turbulence known as the VIX sitting at more than twice its average level for the past three years.“There’s still some technical damage that needs to be corrected, and there’s still some selling that needs to take place,” said Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co. “We’re not just going to slingshot back up.”-More Swings-Every industry in the S&P 500 ended with losses, with the biggest in utilities, phone companies, commodity shares and banks. About 10.4 billion shares traded hands on U.S. exchanges, 53 percent higher than the three-month average.After a day of wild swings, the S&P 500 lost 3.9 percent Monday. That capped a 7 percent two-day retreat, the most since December 2008, sending the index into its first correction since 2011. JPMorgan Chase & Co. today recommended buying at these levels. The Chicago Board Options Exchange Volatility Index slid 12 percent Tuesday to 36.02. The VIX surged as much as 90 percent Monday to touch the highest level since January 2009 before closing at a nearly four-year high.Investors continued to watch economic reports for clues on the timing of an interest-rate increase by the Federal Reserve. Data today showed purchases of new homes rebounded in July, bolstering signs the real-estate market is picking up. A separate report showed consumer confidence climbed more than forecast in August, reaching the second-highest level in eight years on more favorable views of the labor market.Traders are now pricing in a roughly one-in-four chance the central bank will act at its September meeting, from about 48 percent just before the yuan devaluation, as the rout in equity markets has shaken confidence that the global economy will be strong enough to withstand higher U.S. rates.Fed Bank of Atlanta President Dennis Lockhart said Monday he still expects a rate raise this year, while cautioning that a stronger dollar, a weaker Chinese yuan and falling oil prices complicate the outlook.
EU markets recover after China's Black Monday By Benjamin Fox-AUG 25,15-EUOBSERVER
BRUSSELS, Today, 20:30-After four days of market panic wiped 20 percent off the value of Chinese stocks, European markets rallied strongly on Tuesday (25 August).On the bourses of London, Frankfurt, and Paris, at least, Black Monday was followed by Turnaround Tuesday, as indices rose by 3.5 to 4.5 percent.Events in Shanghai had caused pandemonium on Monday, wiping $2.7 trillion (€2.3 trillion) off global share prices. European shares had their largest single-day fall since 2008 - the height of the financial crisis.On Tuesday morning (25 August), the People’s Bank of China (PBoC) reacted by introducing its fifth interest rate cut since last November. The bank reduced its one-year lending rate to 4.6 percent in a clear signal it’s prepared to head off a repeat of the stock market crash which hit the country in June.Despite the PBoC intervention, the benchmark Shanghai Composite fell by a further 7.6 percent on Tuesday, taking its losses over the past four trading days to more than 20 percent.The euro has also gained 3 percent against the dollar and sterling, although at $1.14 it is still slightly weaker than it was when the European Central Bank (ECB) announced its €1.1 trillion bond-buying programme in January.If this is confusing, it’s because there aren’t many signs that the European economy is actually that vulnerable to turmoil in the Far East. For example, the index on German business confidence has increased in August, indicating belief that its export-driven economy won’t be harmed.Europe is less dependent on Chinese imports and exports relatively little in return.Many of the container ships which ply the sea routes from Asia return there carrying empty boxes, or boxes full of recycled paper to make packaging for Chinese products.This means that a drop in spending by Chinese consumers, who saw their savings and pensions suffer a huge blow over the past week, shouldn’t hurt European firms too much.“What happened yesterday was purely panic,” said Commerzbank economist Peter Dixon.“We’re overplaying the impact the Chinese collapse would have on Europe. The risks are still high, and sentiment is still fragile”."Markets are beginning to realise this is a Chinese problem, not a European one,” he added. “These are specific issues which refer to fundamentals in other markets and do not reflect the situation in Europe”.For the time being, European economies are less likely to be hit by a slowdown in Chinese growth than the likes of Japan, Australia, and the US, whose firms have greater exposure to and higher investment in China.But in the long term, if the Chinese economy stagnates, European consumers will pay a price, particularly in countries whose economies are more reliant on borrowing and domestic consumer spending.China has been willing to buy large amounts of European and US debt while its economy was booming, but may be more reluctant to prop up Western borrowing if confidence evaporates at home.The China crisis has also underscored the continuing volatility in financial markets and the fact that the world’s largest trading blocs - China, the US, and Europe are significantly out of kilter with each other, both in terms of economic and monetary policy.The PBoC has cut interest rates five times since November.But the European Central Bank has been buying €60 billion of government and private bonds since March as part of a quantitative easing programme set to last until September 2016.By contrast, before the summer holidays most market analysts expected the US Federal Reserve to increase interest rates twice by Christmas.The Bank of England is also in line to raise rates, although in both cases, the uncertainty in China is now likely to delay rate increases.
China's Yuan Shock Gives Carry-Trade Crowd Worst Year Since '08-Ye Xie Liz McCormick-August 25, 2015 — 7:00 PM EDT-BLOOMBERG
China just gave investors one more reason to shun the most popular trading strategy in the $5.3 trillion-a-day currency market.Carry trades, or borrowing one currency cheaply to invest in a higher-yielding asset elsewhere, were already suffering the biggest losses since 2008 as the rout in emerging markets sent potential purchases tumbling. By cutting interest rates two weeks after its shock devaluation, China effectively crossed the yuan off investors’ shopping lists, too.Add to this a surge in volatility -- which is kryptonite for these transactions because it can wipe out the profit from the interest-rate differential -- and carry traders are finding fewer and fewer ways to make money. JPMorgan Private Bank and the asset-management unit of Bank of China both say the strategy’s best days are behind it.“It’s a terrible time to be long carry,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. “Increased volatility -- which I think we’ll stay with -- will continue to be terrible for carry. The period is over for carry trades.”A Deutsche Bank AG index tracking carry trade returns has plunged 13 percent this year, on track for its worst annual decline since the 2008 financial crisis.-Bear Markets-The losses accelerated in the past week as bear markets in equities around the world, combined with a plunge in oil and metals prices, sent currencies from South Africa’s rand to Mexico’s peso tumbling to records. They’re the sort of currencies investors tend to buy in carry trades because of their relatively high interest rates.A JPMorgan Chase & Co. measure of currency volatility meanwhile approached its highest level this year, further sapping carry returns.“Across the board, carry has been under pressure,” said Kristjan Kasikov, a London-based quantitative analyst at Citigroup Inc., the world’s biggest currency dealer. “Weakness in commodity prices has hit some of the high-yielding currencies quite hard.”One of the most popular carry trades in recent months was borrowing yen to buy Australian dollars, according to CBA’s Capurso. Investors would pocket the difference between Japan’s near-zero borrowing costs and Australia’s main rate, which at the start of the year was 2.5 percent.The deals started to lose money, he said, as weaker growth in China and falling raw-materials prices sent the Aussie tumbling toward this week’s six-year low versus the dollar. Investors in the carry trades would have lost 5 percent in August, wiping out a 4 percent profit in the second quarter.-China Trade-Buying the yuan with funds borrowed more cheaply elsewhere was one of the most reliable ways to make money earlier in the year as China held its currency at about 6.2 to the dollar.As recently as mid-June, BlackRock Inc., which oversees $4.7 trillion, was piling into the trade and predicting it would remain a good bet for the next year and a half. The deal had been popular for some time, with Deutsche Bank estimating that almost $800 billion had poured into yuan carry trades since 2010.The transaction turned sour on Aug. 11, when China unexpectedly devalued its currency to boost exports. Tuesday’s interest-rate cut, its fifth since November, further undermined the yuan, which traded at about 6.4 per dollar yesterday in New York.As a result, buying the yuan with borrowed dollars and euros would have lost about 5 percent since the devaluation, after gaining an average 4 percent annually over the previous four years, data compiled by Bloomberg show.-Swiss Shock-The People’s Bank of China isn’t the first central bank whose policy decisions upset the carry trade this year. Investors who took advantage of Switzerland’s negative interest rates were left nursing losses when officials abandoned their exchange-rate cap back in January, sending the franc soaring to a record and upending deals funded in the currency.Yet China’s twin policy shocks have had the biggest impact, investors say, if only because of the sheer amount of money poured into yuan carry trades.BOCHK Asset Management Ltd., a unit of Bank of China that overseas about $7.7 billion, says investors in the deals will probably take profits.The yuan was “the best carry-trade currency for years because of its low volatility,” said Ben Sy, head of fixed-income, currencies and commodities for Asia at JPMorgan Private Bank in Hong Kong. “Now, volatility has almost doubled. Definitely, people will unwind.”
CHINA DEVALUES CURRENCY FOR AMERICAN INTEREST RATE RISE SPECULATION
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GREECE NEWS
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HOARDING OF GOLD AND SILVER
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.(IN 1 HR THE STOCK MARKETS WORLDWIDE WILL CRASH)
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed:(CONFISCATED) their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
REVELATION 13:16-18
16 And he(THE FALSE POPE WHO DEFECTED FROM THE CHRISTIAN FAITH) causeth all,(IN THE WORLD ) both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(MICROCHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark,(MICROCHIP IMPLANT) or the name of the beast,(WORLD DICTATORS NAME INGRAVED ON YOUR SKIN OR TATTOOED ON YOU OR IN THE MICROCHIP IMPLANT) or the number of his name.(THE NUMBERS OF HIS NAME INGRAVED IN THE MICROCHIP IMLPLANT)-(ALL THESE WILL TELL THE WORLD DICTATOR THAT YOUR WITH HIM AND AGAINST KING JESUS-GOD)
18 Here is wisdom. Let him that hath understanding count the number of the beast:(WORLD LEADER) for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM (6006006)OR(60020202006)(SOME KIND OF NUMBER IMPLANTED IN THE MICROCHIP THAT TELLS THE WORLD DICTATOR AND THE NEW WORLD ORDER THAT YOU GIVE YOUR TOTAL ALLIGIENCE TO HIM AND NOT JESUS)(ITS AN ETERNAL DECISION YOU MAKE)(YOU CHOOSE YOUR OWN DESTINY)(YOU TAKE THE DICTATORS NAME OR NUMBER UNDER YOUR SKIN,YOUR DOOMED TO THE LAKE OF FIRE AND TORMENTS FOREVER,NEVER ENDING MEANT ONLY FOR SATAN AND HIS ANGELS,NOT HUMAN BEINGS).OR YOU REFUSE THE MICROCHIP IMPLANT AND GO ON THE SIDE OF KING JESUS AND RULE FOREVER WITH HIM ON EARTH.YOU CHOOSE,ITS YOUR DECISION.
REVELATION 6:5-6
5 And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.(A DAYS WAGES FOR A LOAF OF BREAD)
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
The Shemitah is coming true.Do people not get it? There is a economic crash every 7 years.
1980: Recession
1987: Stock market crash
1994: Bond market crash
2001: 9/11, dot com, recession
2008: Housing crash
2015: See if something will happen-The central banks will be the death of us. Get ready and embrace yourself for the economic collapse.
BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days
http://ift.tt/1Jw4Ts8
UPDATE-AUGUST 26,2015-12:00AM
DOW MARKET WEDNESDAY-AUG 26,2015
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China Anxiety Resurfaces to Torpedo Relief Rally in U.S. Stocks-Anna-Louise Jackson Joseph Ciolli-Updated on August 25, 2015 — 5:49 PM EDT-BLOOMBERG
A rebound that took the Dow Jones Industrial Average up more than 440 points disappeared in the final hours of trading, with investors giving in to trepidation over what will happen overnight in China amid the most volatile equity markets in four years.The 30-stock gauge ended down 204.91 points, or 1.3 percent, at 15,666.44 at 4:09 p.m. in New York, and 4 percent below its session high. The peak-to-trough retreat exceeded the loss at Monday’s close, when concern about global growth ignited the worst decline for U.S. shares in four years. The Standard & Poor’s 500 Index went from up 2.9 percent to down 1.4 percent, closing at 1,867.61 as most of the selling occurred after 2 p.m.“People are nervous about the potential volatility that could erupt or resurface in the market,” said Stephen Carl, principal and head equity trader at Williams Capital Group LP. “They’re not sure what’s going to happen overseas, and that uncertainty is winning out.”The unwinding disappointed bulls who earlier in the day staked hopes on China’s efforts to inject stimulus into its economy. The central bank today cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside in an attempt to stem the country’s biggest stock market rout since 1996 and a deepening economic slowdown.-‘Technical Damage’-More than $2 trillion has been erased from American equity values since last Wednesday, breaking a calm in a stock market that before this week had gone almost four years without a 10 percent correction.“Investors are going to be keeping a keen eye on the Asian markets overnight and how they react to the rate cut,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “The weak last hour in the market wasn’t a good sign.”Stocks couldn’t avoid plumbing Monday’s depths in a chart phenomenon known as a retest, where the lowest levels of previous days starts to influence trader psychology. The S&P 500 has now lost 11 percent in five days, the worst stretch since August 2011, with a measure of market turbulence known as the VIX sitting at more than twice its average level for the past three years.“There’s still some technical damage that needs to be corrected, and there’s still some selling that needs to take place,” said Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co. “We’re not just going to slingshot back up.”-More Swings-Every industry in the S&P 500 ended with losses, with the biggest in utilities, phone companies, commodity shares and banks. About 10.4 billion shares traded hands on U.S. exchanges, 53 percent higher than the three-month average.After a day of wild swings, the S&P 500 lost 3.9 percent Monday. That capped a 7 percent two-day retreat, the most since December 2008, sending the index into its first correction since 2011. JPMorgan Chase & Co. today recommended buying at these levels. The Chicago Board Options Exchange Volatility Index slid 12 percent Tuesday to 36.02. The VIX surged as much as 90 percent Monday to touch the highest level since January 2009 before closing at a nearly four-year high.Investors continued to watch economic reports for clues on the timing of an interest-rate increase by the Federal Reserve. Data today showed purchases of new homes rebounded in July, bolstering signs the real-estate market is picking up. A separate report showed consumer confidence climbed more than forecast in August, reaching the second-highest level in eight years on more favorable views of the labor market.Traders are now pricing in a roughly one-in-four chance the central bank will act at its September meeting, from about 48 percent just before the yuan devaluation, as the rout in equity markets has shaken confidence that the global economy will be strong enough to withstand higher U.S. rates.Fed Bank of Atlanta President Dennis Lockhart said Monday he still expects a rate raise this year, while cautioning that a stronger dollar, a weaker Chinese yuan and falling oil prices complicate the outlook.
EU markets recover after China's Black Monday By Benjamin Fox-AUG 25,15-EUOBSERVER
BRUSSELS, Today, 20:30-After four days of market panic wiped 20 percent off the value of Chinese stocks, European markets rallied strongly on Tuesday (25 August).On the bourses of London, Frankfurt, and Paris, at least, Black Monday was followed by Turnaround Tuesday, as indices rose by 3.5 to 4.5 percent.Events in Shanghai had caused pandemonium on Monday, wiping $2.7 trillion (€2.3 trillion) off global share prices. European shares had their largest single-day fall since 2008 - the height of the financial crisis.On Tuesday morning (25 August), the People’s Bank of China (PBoC) reacted by introducing its fifth interest rate cut since last November. The bank reduced its one-year lending rate to 4.6 percent in a clear signal it’s prepared to head off a repeat of the stock market crash which hit the country in June.Despite the PBoC intervention, the benchmark Shanghai Composite fell by a further 7.6 percent on Tuesday, taking its losses over the past four trading days to more than 20 percent.The euro has also gained 3 percent against the dollar and sterling, although at $1.14 it is still slightly weaker than it was when the European Central Bank (ECB) announced its €1.1 trillion bond-buying programme in January.If this is confusing, it’s because there aren’t many signs that the European economy is actually that vulnerable to turmoil in the Far East. For example, the index on German business confidence has increased in August, indicating belief that its export-driven economy won’t be harmed.Europe is less dependent on Chinese imports and exports relatively little in return.Many of the container ships which ply the sea routes from Asia return there carrying empty boxes, or boxes full of recycled paper to make packaging for Chinese products.This means that a drop in spending by Chinese consumers, who saw their savings and pensions suffer a huge blow over the past week, shouldn’t hurt European firms too much.“What happened yesterday was purely panic,” said Commerzbank economist Peter Dixon.“We’re overplaying the impact the Chinese collapse would have on Europe. The risks are still high, and sentiment is still fragile”."Markets are beginning to realise this is a Chinese problem, not a European one,” he added. “These are specific issues which refer to fundamentals in other markets and do not reflect the situation in Europe”.For the time being, European economies are less likely to be hit by a slowdown in Chinese growth than the likes of Japan, Australia, and the US, whose firms have greater exposure to and higher investment in China.But in the long term, if the Chinese economy stagnates, European consumers will pay a price, particularly in countries whose economies are more reliant on borrowing and domestic consumer spending.China has been willing to buy large amounts of European and US debt while its economy was booming, but may be more reluctant to prop up Western borrowing if confidence evaporates at home.The China crisis has also underscored the continuing volatility in financial markets and the fact that the world’s largest trading blocs - China, the US, and Europe are significantly out of kilter with each other, both in terms of economic and monetary policy.The PBoC has cut interest rates five times since November.But the European Central Bank has been buying €60 billion of government and private bonds since March as part of a quantitative easing programme set to last until September 2016.By contrast, before the summer holidays most market analysts expected the US Federal Reserve to increase interest rates twice by Christmas.The Bank of England is also in line to raise rates, although in both cases, the uncertainty in China is now likely to delay rate increases.
China's Yuan Shock Gives Carry-Trade Crowd Worst Year Since '08-Ye Xie Liz McCormick-August 25, 2015 — 7:00 PM EDT-BLOOMBERG
China just gave investors one more reason to shun the most popular trading strategy in the $5.3 trillion-a-day currency market.Carry trades, or borrowing one currency cheaply to invest in a higher-yielding asset elsewhere, were already suffering the biggest losses since 2008 as the rout in emerging markets sent potential purchases tumbling. By cutting interest rates two weeks after its shock devaluation, China effectively crossed the yuan off investors’ shopping lists, too.Add to this a surge in volatility -- which is kryptonite for these transactions because it can wipe out the profit from the interest-rate differential -- and carry traders are finding fewer and fewer ways to make money. JPMorgan Private Bank and the asset-management unit of Bank of China both say the strategy’s best days are behind it.“It’s a terrible time to be long carry,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. “Increased volatility -- which I think we’ll stay with -- will continue to be terrible for carry. The period is over for carry trades.”A Deutsche Bank AG index tracking carry trade returns has plunged 13 percent this year, on track for its worst annual decline since the 2008 financial crisis.-Bear Markets-The losses accelerated in the past week as bear markets in equities around the world, combined with a plunge in oil and metals prices, sent currencies from South Africa’s rand to Mexico’s peso tumbling to records. They’re the sort of currencies investors tend to buy in carry trades because of their relatively high interest rates.A JPMorgan Chase & Co. measure of currency volatility meanwhile approached its highest level this year, further sapping carry returns.“Across the board, carry has been under pressure,” said Kristjan Kasikov, a London-based quantitative analyst at Citigroup Inc., the world’s biggest currency dealer. “Weakness in commodity prices has hit some of the high-yielding currencies quite hard.”One of the most popular carry trades in recent months was borrowing yen to buy Australian dollars, according to CBA’s Capurso. Investors would pocket the difference between Japan’s near-zero borrowing costs and Australia’s main rate, which at the start of the year was 2.5 percent.The deals started to lose money, he said, as weaker growth in China and falling raw-materials prices sent the Aussie tumbling toward this week’s six-year low versus the dollar. Investors in the carry trades would have lost 5 percent in August, wiping out a 4 percent profit in the second quarter.-China Trade-Buying the yuan with funds borrowed more cheaply elsewhere was one of the most reliable ways to make money earlier in the year as China held its currency at about 6.2 to the dollar.As recently as mid-June, BlackRock Inc., which oversees $4.7 trillion, was piling into the trade and predicting it would remain a good bet for the next year and a half. The deal had been popular for some time, with Deutsche Bank estimating that almost $800 billion had poured into yuan carry trades since 2010.The transaction turned sour on Aug. 11, when China unexpectedly devalued its currency to boost exports. Tuesday’s interest-rate cut, its fifth since November, further undermined the yuan, which traded at about 6.4 per dollar yesterday in New York.As a result, buying the yuan with borrowed dollars and euros would have lost about 5 percent since the devaluation, after gaining an average 4 percent annually over the previous four years, data compiled by Bloomberg show.-Swiss Shock-The People’s Bank of China isn’t the first central bank whose policy decisions upset the carry trade this year. Investors who took advantage of Switzerland’s negative interest rates were left nursing losses when officials abandoned their exchange-rate cap back in January, sending the franc soaring to a record and upending deals funded in the currency.Yet China’s twin policy shocks have had the biggest impact, investors say, if only because of the sheer amount of money poured into yuan carry trades.BOCHK Asset Management Ltd., a unit of Bank of China that overseas about $7.7 billion, says investors in the deals will probably take profits.The yuan was “the best carry-trade currency for years because of its low volatility,” said Ben Sy, head of fixed-income, currencies and commodities for Asia at JPMorgan Private Bank in Hong Kong. “Now, volatility has almost doubled. Definitely, people will unwind.”
CHINA DEVALUES CURRENCY FOR AMERICAN INTEREST RATE RISE SPECULATION
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