The People's Bank has injected a record $61bn (£38bn) into the financial system over the past four days
Posted on 11/03/2012 12:50:52 AM PDT by bruinbirdman
Green shoots are sprouting across much of the Far East as stimulus begins to feed through, greatly reducing the risk of a deep global slump next year.
The People's Bank has injected a record $61bn (£38bn) into the financial system over the past four days
A slew of economic data from China and the Pacific Rim show that orders are picking up and trade is rebounding after the industrial recession of the past few months.
The Baltic Dry Index, measuring shipping rates for commodities – watched as a proxy for Chinese demand – has come back from the dead, rising 50pc since July.
Container freight rates on Asian routes have started to recover. The Danish group Maersk raised its shipping rates two weeks ago, and the Chinese operator COSCO followed suit on Thursday.
The HSBC/Markit index for Chinese manufacturing jumped to 49.5 in October. It is still below the expansion line of 50 – for the 12th month in a row – but domestic orders have risen sharply, suggesting that the world’s second-biggest economy is at last generating its own momentum.
“China’s manufacturing sector has picked itself off the floor but it is not moving with anything like the speed we’ve been used to over the past few years,” said Mark Williams from Capital Economics.
Beijing is taking no risks as the Communist Party gathers for the 10-year power transition next week.The People’s Bank has injected a record $61bn (£38bn) into the financial system over the past four days, loosening monetary policy. Zhiwei Zhang from Nomura expects a “sharp rebound” this quarter as companies rebuild depleted inventories, fuelled by loan growth of $250bn a month and double-digit rises in industrial sales.
A similar picture is emerging in Taiwan, Korea, India,
(Excerpt) Read more at telegraph.co.uk ...
Sounds like a pre-mature Keynesian celebration by a bunch in pinhead Phd economists.....but hey, what do I know?!
yitbos
yitbos
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