Tag Archives: china

U.S. stocks surge after China cuts rates to help economy

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Michael Probst/ AP Picture

A trader sees his screens when the curve of the German stock index DAX rose near to 10,000 points again at the stock exchange in Frankfurt, Germany, Tuesday, Aug. 25, 2015.

Published Tuesday, Aug. 25, 2015|10:25 a.m.

Upgraded 2 hours, 4 minutes ago

Stocks rose Tuesday afternoon on Wall Street, eliminating a few of the heavy losses of a day previously, after China cut interest rates to attempt to increase the world’s second-largest economy.

Traders all over the world invited the move, which followed a dayslong worldwide sell-off triggered by worries of a stagnation in China.

“They’re alleviated by what China has done,” stated Chris Gaffney, president of EverBank World Markets, and are telling themselves: “Maybe it’s time to obtain back therein.”

Financiers likewise got some motivating news from a survey suggesting that U.S. consumer self-confidence rebounded this month. A different report showed sales of new U.S. houses got better in July.

The Dow was up 301 points, or 1.9 percent, to 16,172 since 1:03 p.m. Eastern time. The Requirement & & Poor’s 500 index acquired 37 points, or 2 percent, to 1,931. The Nasdaq composite rose 134 points, or 3 percent, to 4,661.

9 of the 10 sectors in the S&P 500 moved higher, with technology leading the pack, up 3.3 percent. Best Buy tape-recorded the greatest gain in the index, climbing up $4.35, or 15 percent, to $33.67, after the home electronic devices chain reported better-than-expected results for the quarter.

Energies lagged. Energy company Pepco Holdings decreased the most in the S&P 500 after regulators in Washington, D.C., declined its handle fellow energy Exelon. Pepco’s stock shed $4.07, or 15.1 percent, to $22.89.

The Dow sank more than 588 points on Monday, while the S&P 500 index was up to more than 10 percent off its recent peak, in what financiers refer to as a “correction.” The previous market correction was almost 4 years earlier.

The 3 indexes have actually closed lower five days in a row, with the Dow falling nearly 1,700 points because time.

China cut its rate of interest for the fifth time in nine months in a renewed effort to fortify financial development. The reserve bank also enhanced the amount of money available for financing by decreasing the reserves banks are required to hold.

“The reserves requirement really releases a great deal of liquidity into the marketplaces,” Gaffney stated.

The move came as Beijing seemed abandoning a strategy of having a state-owned company buy shares to stem the marketplace slide.

Experts said that while Tuesday’s actions by the reserve bank might soothe the stock market turmoil in the meantime, the country faces an extended period of uncertainty.

“The Chinese economy is going to be on this rough road for a while, and it will have ebbs and flows that will certainly no doubt have a significant impact on the international economy,” said Kamel Mellahi, teacher at the Warwick Company School. “What we are seeing now is a dress rehearsal of things to come.”

European markets recovered practically all their losses from Monday. Germany’s DAX jumped 5 percent, while France’s CAC-40 rose 4.1 percent. The FTSE 100 index of leading British shares got 3.1 percent.

China’s central bank took action hours after the nation’s primary stock index closed greatly lower for a 4th day. The Shanghai stock index slumped 7.6 percent, on top of Monday’s 8.5 percent loss.

Tokyo’s Nikkei 225 likewise closed lower, moving 4 percent. However other markets in Asia published modest recoveries. Hong Kong’s Hang Seng index increased 0.7 percent, while Sydney’s S&P ASX 200 got 2.7 percent.

Oil rebounded some from Monday’s high decreases. Benchmark U.S. crude got $1.24 to $39.48 per barrel in New york city.

U.S. government bond prices fell, rising the yield on the 10-year Treasury note to 2.11 percent.

AP Company Author Joe McDonald in Beijing contributed to this story.

Fears over China and Greece lower U.S. stocks for Second day

Friday, Aug. 21, 2015|10:03 a.m.

NEW YORK (AP)– U.S. stocks are dropping dramatically for a 2nd day following a sell-off in significant indexes all over the world on growing evidence that China’s economy is slowing. The brand-new bout of international selling followed news of a survey showing manufacturers on the mainland remain to agreement. Financiers are likewise stressed over more chaos in Greece after the resignation of its prime minister.

KEEPING SCORE: The Dow Jones industrial average fell 296 points, or 1.7 percent, to 16,694 as of 12:23 p.m. Eastern time. The Requirement & & Poor’s 500 index dropped 35 points, or 1.7 percent, to 2,000. The Nasdaq skidded 93 points, or 1.9 percent, to 4,784.

TECH CORRECTION?: The Nasdaq is now about 8 percent off its recent high of 5,218.86 on July 20. That puts it within shooting variety of exactly what traders call a “correction,” or a fall from a high of more 10 percent.

BROAD DROP: All 10 sectors of the S&P 500 fell, led by a 1.9 drop in information technology shares.

CHINA JITTERS: In China, a preliminary version of a gauge of company activity, the Caixin buying supervisors’ index, was up to an all of a sudden low 47.1 points. Numbers listed below 50 reveal a contraction.

The devaluation of the yuan recently has shaken confidence on the planet’s No. 2 economy. The Shanghai Composite index suffered another steep drop of 4.3 percent on Friday.

THE QUOTE: “China has been on a mission to keep up the illusion of a progressive slowdown, however dealers aren’t buying it any longer,” said David Madden, market expert at IG.

OH, DEERE: Deere & & Co. fell $6.01, or 6 percent, to $84.63 after it cut its full-year outlook. It said it anticipates the weak agriculture and energy sectors to continue dragging down devices sales.

EUROPE DOWN: In Europe, France’s CAC-40 declined 3.2 percent while Germany’s DAX fell 2.9 percent. In Britain, the FTSE 100 index was down 2.8 percent.

GREECE BACK, TOO: Greece looks movinged towards another election on Sept. 20 supplied opposition parties cannot form a new government. Prime Minister Alexis Tsipras is wishing to profit from his individual popularity in the election as he looks for a brand-new mandate to govern. The country previously this week got its hands on the first tranche of cash from its 3rd worldwide bailout.

EXPERT TAKE: “While the decision to have a brand-new vote is likely to increase political unpredictability in the short-term … the hope is that the more dysfunctional members of his government will get pressed to the sidelines,” said Michael Hewson, chief market analyst at CMC Markets.

ASIA’S DAY: Tokyo’s Nikkei 225 was off 3 percent, Seoul’s Kospi shed 2 percent and Hong Kong’s Hang Seng fell 1.5 percent.

ENERGY: A stagnation in China has the potential to significantly crimp demand for oil. The benchmark U.S. crude plunged $1.25. or 3 percent, to $40.07 per barrel on the New York Mercantile Exchange. It has now remained in decline for 8 successive weeks, the longest streak since 1986. Brent crude, which is made use of to price worldwide oils, fell $1.36 to $45.26 in London.

CURRENCY: The euro increased 0.4 percent to $1.1355. The dollar was also 0.6 percent lower at 122.15 yen.

Special: China blast site owner on state company’s board

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Ng Han Guan/ AP

In this photo taken Thursday, Aug. 13, 2015, Chinese males walk through the site of an explosion at a warehouse in northeastern China’s Tianjin town.

Thursday, Aug. 20, 2015|8:32 p.m.

SHANGHAI– The guy unveiled as primary owner of the storage facilities at the center of deadly blasts in Tianjin also is on the board of a state-owned business that is eventually controlled by the same effective entity examining the surges, an Associated Press evaluation of public files found.

Business filings show that Yu Xuewei, the silent bulk shareholder of Ruihai International Logistics, rests on the board of directors of a subsidiary of China Sinochem, one of the nation’s most prominent conglomerates. Like other large state business, Sinochem is controlled by the State Council, the main authority supervising the examination into recently’s explosions at Ruihai’s chemical storage facilities that eliminated at least 114 individuals and displaced thousands.

Yu’s connections mean the degree of his political network and display the complexity of China’s political system, where the entity running an investigation can be linked to the business it is examining. Significant state-owned Chinese companies commonly are implicated of ignoring security and other regulations, specifically Cabinet-level business whose chief executives have a higher status in the ruling Communist Celebration hierarchy than the regulatory authorities who are expected to supervise them.

The subsidiary where Yu works as a director, Tianjin Port Sinochem Dangerous Goods Logistics Co., also has been accused of breaching safety standards at its own hazmat warehouses. The ecological group Greenpeace launched an examination today saying Tianjin Port Sinochem and its sibling business, Sinochem Tianjin Binhai Logistic Corp., operated dangerous chemical warehouses less than 1,000 meters (3,280 feet) from a major highway, schools and homes, in infraction of Chinese security laws.

China Sinochem has actually attempted to distance itself from Ruihai. Two days after the surges it published a statement acknowledging that former staff members worked at Ruihai, however disavowing any deeper links. Sinochem wrote that Ruihai “has no relationship with Sinochem or its affiliated companies” which previous workers had “all long ended employment” with Sinochem and its affiliates.

Current business records, nevertheless, show that Yu was a director Tianjin Port Sinochem even after he established Ruihai. Those records, filed with the Administration for Market and Commerce in Tianjin, were last updated in February and no subsequent changes to the board have been taped. The majority owner of Sinochem Logistics is Sinochem Tianjin Co., a subsidiary of China Sinochem, AIC records reveal.

Attempts to reach Sinochem for comment Thursday were not successful. Nobody at Tianjin Port Sinochem answered the phone. Sinochem Tianjin Binhai Logistic Corp. referred questions to the Sinochem Group. Calls, e-mails and a text message to Sinochem’s spokesman were not returned.

Yu confessed to utilizing his political influence to obtain around safety norms in an interview published Wednesday by the state-run Xinhua News Agency, which was given unique access to him in detention. He stated he masked his affiliation with Ruihai by registering his 55 percent stake in the name of his other half’s coz.

The now-destroyed Ruihai storage facilities broke Chinese law due to the fact that they were less than 600 meters (2,000 feet) from a huge real estate complex, freeway and light rail station– and for other reasons. Ruihai was licensed to storage facility hazardous chemicals just through Oct. 16, 2014, according to Administration for Industry and Commerce records. Ruihai acquired a port license in June 2015 that again allowed them to deal with harmful chemicals, however in the interim handled hazmat without a license, according to Xinhua. Ruihai likewise failed to submit annual reports in 2013 and 2014, according to its filings.

Yu owns Ruihai with Dong Shexuan, whose father utilized to be chief of authorities at Tianjin Port and put his shares in the name of a schoolmate, according to Xinhua. Both males have been detained by police.

Dong informed Xinhua, “My connections cover cops and fire, and Yu Xuewei’s connections cover work security, port management, customs, maritime affairs, environmental management.”

Regardless of such plain revelations in China’s main media, the full web of interlocking interests and ownership behind Ruihai stays murky. The scope of published examinations has actually been largely restricted to Ruihai’s local power network. Reports in Chinese media exploring Ruihai’s connection with Sinochem have been censored.

Sinochem, founded one year after the People’s Republic of China itself was born, has interests in energy, agriculture, chemicals, property and monetary services. Sinochem said in its latest annual report that it has 50,000 staff members and more than 300 subsidiaries.

The State Council, China’s cabinet, has established a panel to examine the mishap, which has actually triggered public outrage at regulatory and safety lapses and gross chemical contamination in among China’s biggest cities. Chinese Premier Li Keqiang stated the investigative group would “severely” punish those liable, according to Xinhua, the mouthpiece of China’s Communist Party.

“If our homes are gone how can we have the faith to support and love the party or the nation?” stated Niu Guijun, who bought a home near the blast website in 2013.

Ruihai’s links to the State Council illustrate the overlapping corporate, political and regulative interests that are the standard in China’s one-party system.

“Who tries to keep an eye on how the industry works– regulators– government officers who establish security policy, as well as the office business owners, all these interests are combined,” stated Fu King-wa, an associate teacher at the University of Hong Kong’s Journalism and Media Studies Center. “I believe a lot of people discover this a problem, however there’s no channel to attempt and execute reform in a political way.”

Yu and the reported frontman for his shares in Ruihai, Li Liang, played functions in a minimum of 4 other companies, according to Chinese and Hong Kong business filings.

Though Yu Xuewei’s name does not appear in Ruihai’s business filings in China, Hong Kong records reveal that he set up a business called Hong Kong Ruihai International Logistics Co. Ltd. in January 2013, less than 2 months after Ruihai Logistics was registered in Tianjin. Lots of mainland business likewise sign up in Hong Kong to assist in trade funding.

AIC records likewise name Yu as a board member of Tianjin Henglu Biopharmaceutical Technology Co. Ltd., which was established in January 2014 to do advancement and consulting work and offer chemicals, though not harmful ones.

Apple depression grows on iPhone, China concerns

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Jeff Chiu/ AP

Apple CEO Tim Cook discusses the Apple Watch operating system at the Worldwide Developers Conference in San Francisco, Monday, June 8, 2015.

Tuesday, Aug. 4, 2015|12:46 p.m.

SAN FRANCISCO– Apple is plunging as the generally high-flying tech stock battles with the problem of raised expectations.

The world’s most important public company saw its stock rate drop for a fifth straight day on Tuesday, falling as much as $5.19 or 4.4 percent, to $113.25 as investors stressed over China’s economy and whether Apple can keep growing at the speed it’s preserved over the last couple of quarters.

Apple shares are down 14 percent given that closing at a record $133 in February. That puts Apple in a “correction,” which is Wall Street jargon for rate decreases of 10 percent or more from a peak.

The stock also dropped below its 200-day moving average, a technical indicator that traders use to gauge energy.

Apple sold more than 47 countless its trademark iPhones in the last quarter, or 35 percent more than a year previously. That drove the company’s earnings and profits above Wall Street estimates. However iPhone sales were not quite as excellent as some analysts forecasted, and executives gave a lukewarm forecast for the current period. That has sent out the stock into a decrease given that Apple reported incomes on July 21.

Investors are also stressed over recent hiccups in China’s economy, due to the fact that the nation is viewed as one of Apple’s most significant markets for expansion, stated Daniel Ives, a managing director and senior analyst for FBR Capital Markets.

He added that investors are expecting the December quarter, which is typically Apple’s best. The business sold 74 million iPhones during that duration in 2013, a 46 percent jump. However it will certainly be more difficult for Apple to show that type of development again.

Apple is now a “show me” stock for some financiers, stated Ives, although he added that new items like Apple Pay and the expected release of new iPhone designs this fall might offer the business a boost.