Overseas Headlines – October 18, 2017


Overseas assets held by China’s centrally owned firms top $900 billion

The value of overseas assets held by China’s centrally owned enterprises has exceeded 6 trillion yuan ($906.34 billion), with investments in more than 185 countries and regions, the state assets regulator said on Wednesday. China’s state-owned enterprises (SOEs) are spearheading investment in infrastructure projects overseas along the ancient Silk Road land and sea trade routes, part of Beijing’s signature Belt and Road initiative. Firms owned by the central government have co-built 1,676 projects with countries along “the Belt and Road”, the state assets regulator said in a handout ahead of a news conference on the sidelines of the 19th Party Congress in Beijing. SOEs such as shipping conglomerate COSCO and the world’s biggest utility State Grid Corp of China have invested heavily in such projects in recent years to deepen China’s links with economies throughout Asia and beyond.




Germany’s Target 2 claims hit another record

Money continued to flow into Germany in April, Bundesbank data showed on Friday, pushing the country’s net claims against the rest of the 19-member currency bloc to a new record high. Germany’s net claims in the European Central Bank’s Target 2 payments system rose to 843.4 billion euros by the end of April from 829.8 billion euros a month earlier. Money has been flowing out of the euro zone’s periphery and into a handful of core countries in recent years with the ECB arguing that this is primarily due to its asset purchase programme as the bulk of investors selling their bonds maintain accounts in places like Germany. Indeed, a recent study published by the ECB showed that roughly 90 percent of the extra cash injected by the bank to boost the euro zone’s economy is piling up in just five countries: Germany, France, the Netherlands, Luxembourg and Finland.




Dollar Pushes Higher as Earnings Boost U.S. Stocks: Markets Wrap

The dollar strengthened and Treasury yields rose after traders added to bets on higher U.S. interest rates, while the Dow Jones Industrial Average climbed toward a fresh record. U.S. equities were bolstered by IBM’s forecast for its first sales growth in five years and better-than-estimated earnings at Abbott Laboratories. Oil gained amid signs of declining U.S. stockpiles. The Stoxx Europe 600 Index advanced on wagers the European Central Bank will remain accommodative even as it tapers asset purchases. The greenback’s advance over the past three days helped send volatility in major currencies to a three-month low. Fed funds futures indicate a roughly 80 percent chance that U.S. policy makers will raise rates at their December meeting, up from 72 percent Friday. President Donald Trump’s choice for the next Fed chair will be unveiled before he leaves Nov. 3 for an 11-day trip to Asia and Hawaii, a person familiar with the process said Tuesday. John Taylor was said to have impressed Trump in an interview, buoying gains in the greenback earlier this week given the assumption by many that he would favor tighter policy.