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Tencent and JD.com invest in Leshi’s smart-TV unit

“Leshi has a market capitalization of about 20 billion yuan and had debt of 4.7 billion yuan at the end of September” writes Midwest Communications Inc for 95kqds.com. HONG KONG (Reuters) – Technology giants Tencent, JD.com and TCL are among investors in Chinese TV maker New Leshi Zhixin, its controlling shareholder Leshi Internet Information and Technology said on Wednesday.New investors such as Tencent and JD.com will hold 2.56 percent stakes, the filing said.Affiliates of Tencent Holdings, JD.com Inc, TCL Corp and Suning.com Co have agreed to each invest 300 million…

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Trump really needs someone to explain currency exchange rates to him

“Someone, somewhere, therefore needs to explain this currency exchange rates thing to him” writes Ap Photo Mark for washingtonexaminer.com. If interest rates — and we must think of real interest rates, after inflation — go higher in one currency, then that currency will rise in value.This isn’t part of by these countries to devalue their currencies, it’s the logical market reaction to those rising U.S. interest rates.If the United States continues to raise interest rates, the U.S. dollar will rise against the Chinese yuan and the Russian ruble.If I can…

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Trump accuses China of currency devaluation days after Treasury declines to label it a manipulator

“China remained on the Treasury’s “monitoring list” for currency practices and macroeconomic policies, while Russia is not on the list” writes unknown author for cnbc.com. President Donald Trump accused China on Monday of devaluing the yuan.The U.S. Treasury said in a semiannual report Friday that no major U.S. trading partner met the qualifications for being labeled a currency manipulator. Source: cnbc.com Share This:

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China’s next riposte in US trade spat could be ‘hidden weapon’ of currency devaluation

“Analysts believe that Beijing is mulling a devaluation of the Chinese yuan as a hidden weapon in its trade war arsenal” writes Ben Marlow for telegraph.co.uk. After Donald Trump warned that the White House was lining up a further $100bn of tariffs on Chinese products, Beijing ran out of US imports to ramp up taxes on.Beijing’s threat to fight fire with fire in its escalating trade spat with Washington had one crucial problem.A currency war — the use of monetary policy to devalue a currency to gain an advantage in international…

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Why China’s Yuan, not the Euro, could become the dominant global currency

“So surely that should mean that the Euro becomes a dominant currency, right?” writes Claudia Romeo for businessinsider.com. What we have seen is the Euro when it was launched, was launched as a currency that represented a very disparate range of countries with very different fortunes.You had an interest rate that was set to suit the economies largely of the largest countries like Germany and France. Source: businessinsider.com Share This:

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AUD News 

China’s trade data earlier helps the aussie on two fronts

“While the positive impact on the import figures can be seen clearly from a trade perspective – since Australia is one of China’s main exporters – there is also a sort of indirect impact that has helped to boost the aussie” reports forexlive.com. The fact that China’s imports remain solid and growing at a pace better than previous years (2015 and 2016), highlights how much China still relies on consumption and purchases.And that means Chinese authorities should not really want to favour a weaker Chinese yuan as it would create…

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Markets News Oil 

China Will Do What’s Best for China: Not Shooting Markets

“Bottom line, it’s more likely that China will threaten retaliation through financial markets than actually carry it out” writes Albert R for bloomberg.com. Similarly, selling U.S. Treasuries is a problem both for China and emerging markets.The temptation to fight in financial markets is there.The last time China depreciated its currency significantly, in August 2015, it set off a sequence of cascading declines in emerging markets and a rise in asset volatility. Source: bloomberg.com Share This:

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China holding Treasuries, keeps ‘nuclear option’ in trade war…

“But officials signaled no interest for now in bringing their vast holdings of U.S. Treasuries to the fight” writes Trevor Hunnicutt for reuters.com. Even if the likelihood of a change in Chinese policy regarding its Treasuries portfolio remains low, investors are sensitive to the risk any big shift would pose to world financial markets, where Treasuries are a global benchmark asset. Source: reuters.com Share This:

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Trump could launch a currency war against the yuan

“But if it views Chinese exports and investments as a threat, it may be only a matter of time before it targets the Chinese currency, too” writes Benjamin J for marketwatch.com. Of course, a currency war alongside a trade war would be dangerous, and possibly disastrous.Although its international standing has risen, China’s currency is still a long way from major-league status.Even more dramatically, the Trump administration has unveiled plans to impose import tariffs on a wide range of Chinese goods, valued at up to $50 billion. Source: marketwatch.com Share This:

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News Oil 

UOB says that Asian currencies have strengthened too much

“They argue that further US monetary policy stabilisation will help the dollar find its footing against Asian currencies in 2H 2018” reports forexlive.com. They say that the Chinese yuan and other Asian currencies have limited room for further gains following the rally over the past 15 months.Unless Chinese markets are open and “free”, then only that could be a serious consideration for oil traders and producers. Though, in the long-term, it does work in the yuan’s favour in terms of global trade since it eats into the dollar’s share of…

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