DAX: News from Bloomberg this morning that ‘BMW & Co are losing their allure, and that’s got Germany worried’. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

China moves and data set off further jitters
Can the economy grow at 5.7 per cent this year?

Late Friday the People’s Bank of China loosened financial conditions further by cutting the ratio of reserve requirements commercial banks are obliged to hold. From today these will be 50 basis points lower than they were last Monday and some qualified banks will see their ratio drop by 100 basis points. Data published early this morning show that exports from the Chinese mainland in August fell by 1 per cent, well below analysts’ expectations, with trade to the US hit especially hard. Meanwhile imports fell by 5.6 per cent so that the trade surplus fell to $34 billion from $44 billion in July.

The Financial Times reports this morning that up to one third of so-called foreign direct investment consists of multinational firms shifting funds to minimise taxes. The study carried out by the IMF and the University of Copenhagen underscores the role competitive corporate tax arbitrage as had, and the need for tax reform.

Financial Markets and Political Commentary
 

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