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Yahoo News - Latest News & Headlines
(Last updated Mon Sep 16 6:20:15 EDT 2019)
UPDATE 1-Spain's high court rules against extraditing Venezuelan ex-general

UPDATE 1-Spain's high court rules against extraditing Venezuelan ex-generalSpain's High Court ruled on Monday that the government should refuse a request from the United States to extradite Venezuela's former military intelligence chief. Former general Hugo Carvajal was arrested on drug trafficking charges by Spanish police in April at the request of Washington, which says it believes he will share incriminating information about Venezuelan leader Nicolas Maduro. The court said the ex-spy chief would be freed from jail, where he has been held pending the extradition process, but did not say when he would be released.


Monday, September 16, 2019 5:58 am EDT

UPDATE 1-Johnson to explore Brexit deal with Juncker over lunch of snails, salmon

UPDATE 1-Johnson to explore Brexit deal with Juncker over lunch of snails, salmonBritish Prime Minister Boris Johnson will explore his chances of securing a Brexit deal over lunch with European Commission chief Jean-Claude Juncker on Monday, after weekend rhetoric from both suggested their positions remain far apart. With less than seven weeks until Britain is due to leave the European Union, Johnson has yet to reach an agreement with Brussels on how to manage the separation between the world's fifth-largest economy and its biggest trading partner. The future of the land border between EU member Ireland and the British province of Northern Ireland is the central issue of disagreement both between Johnson and the EU, and between Johnson and British lawmakers.


Monday, September 16, 2019 5:50 am EDT

The Latest: France says Brexit deal must guard peace, trade

The Latest: France says Brexit deal must guard peace, tradeThe French minister for Europe says EU countries are ready to discuss new proposals from Britain for a new Brexit deal if they protect Northern Ireland's peace deal and the bloc's common market. Speaking ahead of a meeting of EU ministers in Brussels, Amelie de Montchalin said it is essential that any amendment to the current proposed divorce deal should uphold the Good Friday Agreement, the treaty that ended decades of conflict in Northern Ireland.


Monday, September 16, 2019 5:37 am EDT

Brexit: Deutsche Bank cuts probability of no-deal to 35% vs 50%

Brexit: Deutsche Bank cuts probability of no-deal to 35% vs 50%Deutsche Bank said on Monday it cut its probability that Britain will crash out of the European Union on Oct. 31 without a deal to 35% from 50% previously after lawmakers passed a law that could force Prime Minister Boris Johnson to delay the process. For now, all eyes will be on both the upcoming Party conferences and any possible breakthrough in the run-up to next month's EU summit," it said in a note. Johnson has pledged to leave the EU with or without a deal on Oct. 31, even though British lawmakers have passed a law which would force him to request a delay beyond that date if he is unable to reach a deal with the EU.


Monday, September 16, 2019 5:33 am EDT

Yahoo News - Latest News & Headlines
(Last updated Mon Sep 16 6:20:15 EDT 2019)
Does U.S. women's soccer deserve equal pay?

Does U.S. women's soccer deserve equal pay?Has the U.S. women's soccer team done enough to warrant salaries that match their male counterparts? The 360 gives you all the angles on heavily-debated topics in the news.


Wednesday, July 10, 2019 1:46 pm EDT

After fighting for 9/11 victims, Jon Stewart turns to Warrior Games

After fighting for 9/11 victims, Jon Stewart turns to Warrior GamesThe former “Daily Show” host is serving as the host and emcee of this week’s 2019 Department of Defense Warrior Games in Tampa, where about 300 wounded, ill or injured active-duty and veteran military athletes are competing in 14 adaptive sports.


Wednesday, June 26, 2019 8:55 am EDT

Kevin Love talks anxiety, depression and the time he thought he was going to die mid-game

Kevin Love talks anxiety, depression and the time he thought he was going to die mid-game“Dear Men” explores how men are navigating the evolution of manhood. NBA All-Star Kevin Love’s mental health journey began in a moment of anxiety on the basketball court during a November 2017 game against the Atlanta Hawks.


Wednesday, May 1, 2019 9:00 am EDT

Is there a crisis with our boys? Expert says they need love, not discipline

Is there a crisis with our boys? Expert says they need love, not discipline“Dear Men” explores how men are navigating the evolution of manhood. You can watch the current week's full episode of “Dear Men” every Wednesday at 8 p.m. ET on Roku. So why are young men struggling? So I don’t never hold back my tears when I'm feeling an emotional overload,” he said.


Wednesday, April 10, 2019 9:00 am EDT

Yahoo News - Latest News & Headlines
(Last updated Mon Sep 16 6:20:15 EDT 2019)
Global stocks mostly lower after oil prices surge

Global stocks mostly lower after oil prices surgeGlobal stock markets sank Monday after crude prices surged following an attack on Saudi Arabia's biggest oil processing facility. Market benchmarks in London and Frankfurt opened lower while Jakarta's benchmark lost 1.8%. Benchmark U.S. crude jumped $4.75 per barrel following the attack on oil producer Saudi Aramco's Abqaiq facility for which Yemeni rebels claimed responsibility.


Monday, September 16, 2019 6:11 am EDT

Political turmoil, price freeze cast shadow on Argentina's Vaca Muerta

Political turmoil, price freeze cast shadow on Argentina's Vaca MuertaIn late August, amid a sharp plunge in the Argentine peso, global suppliers to oil giant YPF received an unwelcome surprise in their inbox. A four-page notice that dollar contracts would be paid at a set exchange rate, far weaker than the market rate. In the unsigned, undated document, obtained by Reuters, state-controlled YPF set the exchange rate at 45.19 pesos per dollar for 90 days, about a quarter below the current price, saying it faced an "unprecedented" challenge amid government fuel price caps and a brewing financial crisis.


Monday, September 16, 2019 6:08 am EDT

Oil price posts biggest spike on record after Saudi facility attack — live updates

Oil price posts biggest spike on record after Saudi facility attack — live updatesOil price makes biggest intraday jump since 1988 after Houthi drone attack on Saudi oil plants Disruption could send prices soaring ‘as high as $100 a barrel’ Donald Trump says US is ‘locked and loaded’ to go after aggressor European indices open lower as mood sours Robin Pagnamenta: A tit-for-tat oil fight between Saudi Arabia and Iran will be bad news for consumers and the global economy 11:05AM Full report: Trump says US is ‘locked and loaded’ as talk hopes cool US President Donald Trump (left), and Iranian President Hassan Rouhani Credit: NICHOLAS KAMM/AFP The Telegraph’s middle east correspondent Josie Ensor has a full report on how things stand between the US and Iran following the weekend’s events. She writes: US President Donald Trump and Iranian counterpart Hassan Rouhani appeared to back away from the prospect of talks on Monday, after an attack on a Saudi Arabian oil facility blamed on Tehran sent oil prices soaring... ...The Houthis, a Shia group aligned with Iran fighting Saudi-backed forces in Yemen, claimed responsibility for the attack and said it had the oil field “locked in its crosshairs”. However, experts and officials say it was unlikely to have been the Houthis, who lack the capability to carry out such a highly orchestrated attack on the kingdom. “This wasn’t done by an amateur, to put it very mildly,” tweeted Carl Bildt, co-chair of the European Council on Foreign Relations . “It was a massive and highly sophisticated attack.” You can read her full report here: Donald Trump and Hassan Rouhani back away from talks as US is ‘locked and loaded’ after Saudi oil attack 10:56AM Sound investment? A battle lies ahead for HMV’s new owner Canadian music mogul Doug Putman Credit: John Rennison/The Hamilton Spectator When HMV teetered once more of the brink of total shutdown earlier this year, it was Canadian masuic mogul Doug Putman who stepped in to rescue to ailing retailer. Retail correspondent Laura Onita has spoken to him about his plans for the trouble-prone company. She writes: Music retailers have found it tough over the years to stay afloat because of high costs, a fall in sales and the rise of download and then streaming services that have made CDs obsolete. Putman nevertheless is optimistic. Last week he unveiled plans for the so-called Vault, a cavernous shop in Birmingham, previously home to furniture seller Ikea. It is so big that when it will open its doors next month, it should be one of Europe’s largest entertainment stores, if not the largest, with tens of thousands of titles and live gigs on the cards. Does the HMV dog have a another day in it? Read more here: Challenges lie ahead in fight to save HMV under new Canadian owner HMV Timeline 10:45AM Reuters: Return to normal production “may take months” Reuters has heard from sources that it could be months before Saudi Arabia can return to full production capacity. Saudi Aramco’s full return to normal oil production volumes “may take months”, two sources briefed on the company’s operations said on Monday, after attacks on Saudi oil plants knocked out more than half of the country’s output. “It is still bad,” one source said. On Sunday, an industry source briefed on the developments told Reuters that Saudi Arabia’s oil exports will continue as normal this week as the kingdom taps into stocks from its large storage facilities, but that Aramco may have to cut exports later if the outage in output continued for long. It’s still too early to measure what the long-term disruption of the Abqaiq attack will be, but this is how the numbers look currently (complete with useful preamble,  courtesy of Wood Mackenzie’s Ed Crooks): A good chart showing the history of oil supply disruptions, from @JavierBlas and colleagues at Bloomberg pic.twitter.com/AfNKDqOrvv— Ed Crooks (@Ed_Crooks) September 16, 2019 10:27AM Oil price holds steady around 9pc up The price of oil, which registered its biggest intraday spike ever (about 20pc) as Asian markets opened in the wee hours of this morning, is now up around 9pc. That has left the price at around $66 a barrel, which is where it stood in mid-July. It’s worth remembering August was a tough month for the black liquid, as trade war wobbles raised fears of slowing demand. 10:12AM Avon Rubber bounces forward with revenues expectations holding Avon Rubber supplies tactical equipment to police and military forces Credit: Christopher Jones Continuing what has been an unusually military-heavy blog, Avon Rubber has posted a trading statement ahead of its twelve-month results, saying it expects revenues to grow by 4pc for the full year. The firm, which supplies tactical equipment to police and military forces, said it had experienced a “strong” year, with successful aircrew mask deliveries to the US Department of Defence a highlight. It said strong law-enforcement performance had also bolstered its numbers. Paul McDonald, its chief executive. said: We are on track to deliver a strong set of results in what has been a transformational year for Avon Rubber. Jefferies analysts said: We retain our positive stance on Avon. [Management] has again delivered in FY19F... The group’s fundamentals look strong and we believe there is still plenty more to come from Avon. 9:51AM Cobham shareholders set to vote on takeover bid Defence and aerospace supplier Cobham provides technology for governments around the world Credit:  Chris Radburn/PA Wire Cobham investors will vote today on a £4bn takeover offer by American private equity firm Advent International, my colleague Alan Tovey reports. He writes: Advent’s 165p-a-share offer to delist the business, which has the backing of Cobham’s board, needs the support of 75pc of shareholders at a meeting being held at City law firm Allen & Overy. Investors are signalling they will approve the bid after no rival contenders emerged with better offers. One major shareholder said: “It’s with reluctance. We were hoping someone else would stick their head above the parapet but it hasn’t happened.” You can read his full report here: Cobham investors to vote on £4bn Advent takeover 9:48AM MJ Gleeson raises dividend after revenue rise A builder lays bricks at a property development (stock photo) Credit: Chris Ratcliffe/Bloomberg MJ Gleeson has raised its annual dividend following double-digit increases in its revenues and profit. The low-cost housebuilder benefited from strong operational performance including a 25pc rise in unit sales for its Gleeson Homes division. The company also announced it would maintain hold of its Strategic Land segment, which it had explored the idea of selling. Peel Hunt Analysts called the results “solid”, putting the company on a ‘Hold’ rating. They said: We continue to like the relative defensive qualities of the business and growth outlook, but this is reflected in the share price 9:22AM Spire Healthcare shares slip despite profit boost Nurses outside the Spire Nottingham Hospital Shares in Spire Healthcare are down around 2pc currently, despite the small-cap hospital operator posting a rise in profit to £9.6m during the first half of the year. Spire managed to turn around a £2.2m loss for the same period last year, following cost-cutting and expectation-beating revenue from NHS referrals. Justin Ash, its chief executive, said: This was a good performance with clear signs of our strategic and operational initiatives bearing fruit. We promised 2019 would be a year of stabilisation with revenue growth, continued quality improvement, cash generation and net debt reduction. All have been achieved in H1, with good operating profit performance. We saw growth in both private insurance and self-pay, with a particularly strong result in private insurance reflecting rising consumer awareness following our marketing campaigns Liberum analysts said: While today's update was very welcome given its patchy track record of earnings delivery, we still require more confidence that the market backdrop has stabilised before turning positive. 9:11AM UBS: Attacks puts the heat back on over Iran There had been hopes that Donald Trump’s firing on national security adviser John Bolton (right) would ease tensions over Iran Credit: Chip Somodevilla/Getty Images North America UBS analysts say the weekend’s events blow up any sense that relations between Washington, Riyadh and Tehran would soon settle. They write: If nothing else a reassessment of risk pricing will likely presumably come in the aftermath of this attack. To take out over 5pc of global supply (in the country with the bulk of ‘spare capacity’) in a single strike — a volume exceeding cumulative non-OPEC supply growth over 2014-2018 — is highly worrying. The departure of National Security Adviser [John] Bolton last week was interpreted by many as a reduction in political risk — this event may be significant magnitudes more consequential. 8:56AM Houthis say Saudi Oil facilities will remain a target Yemen’s Iran-backed Houthi rebels have said their weapons can reach anywhere in Saudi Arabia, and have vowed to continue targeting Saudi Arabian facilities. In comments cited by the Houthi television station, the group — which is at war with a Saudi-led coalition in Yemen — said it the attacks on Saturday were carried out by “planes” with new engines, most likely in reference to drones. Iran and the Persian Gulf 8:43AM Market movements: Oil giants and arms companies gain, airlines slip Visitors look at a display model of a Saudi Air Force Eurofighter Typhoon jet, manufactured by BAE Systems, in Riyadh, Saudi Arabia, in February Credit: Mohammed Almuaalemi/Bloomberg Oil giants Royal Dutch Shell and BP are the biggest risers on the FTSE 100 today, with British Gas-owner Centrica and arms manufacturer BAE Systems also finding gains. 94 of the blue-chip index’s 101 stocks are in the red, however, with British Airways-owner IAG the top faller. On the mid-cap FTSE 250, airlines are also suffering, with Easyjet and Wizz Air both among the biggest drops. Predictably, energy firms Tullow Oil and Premier Oil are among the biggest risers. 8:34AM Reaction and analysis: ‘traders may be a little on edge for a while’ Here’s a sample of the reaction to this morning’s oil price move. Markets.com’s Neil Wilson said: This is a big escalation in terms of the scale and reach of these attacks so raises prospect of ongoing disruption and raises the geopolitical danger. It’s going to add a massive risk premium to crude prices, so it will likely materially drive prices higher for a while. The big uncertainties right now for crude are 1) the extent of the outage, 2) how does this escalate, and 3) could there be more attacks of this kind. What is certain is the genie is out of the bottle in terms of risk premium.  The implications of these attacks are far-reaching and lasting, going well beyond the immediate disruption to albeit a very large portion of global output. It is a material escalation in the risks to supply and, in short, traders now worry that Saudi Arabian oil production can be swiftly and easily knocked out, which goes against everything we’ve come to expect for the last 50 years. Saudi Arabia is supposed to be the reliable lynchpin, able to ramp production at will. It indicates ongoing destabilization to global energy markets and will raise very real concerns about the Aramco IPO.  Biggest losers are oil consumers (and SJP|) pic.twitter.com/7O2EBXKjF1— Garry White (@GarryWhite) September 16, 2019 Jefferies’ Jason Gammel said: If the Iranians have been driven to desperate measures from the loss of crude export revenues, an attack on Saudi capacity seems a likely response. The risk of wider conflict in the regions, including a Saudi or US response, will likely raise the political risk premium on crude prices by $5-10/bbl. In a worst case scenario that resulted in a shutdown of oil transport through the Straits of Hormuz, oil prices could push through $100/bbl. We think this outcome is highly unlikely however, not least because important Iranian allies like the Chinese would be hit hard. Saudi Riyal 12mth forwards set for biggest move since 2015 after attack of oil facility. Riyal has been pegged to US Dollar for decades, some traders use forward to speculate on the currency regime, BBG says. pic.twitter.com/SY6Pat5nkC— Holger Zschaepitz (@Schuldensuehner) September 16, 2019  OANDA’s Craig Erlam said: The attack was as severe as it was unexpected but that's not the worst thing about it. Saudi Arabia believes a significant proportion of the outages can be back online in a few days while Trump also approved release of supplies from the Strategic Petroleum Reserve to ensure the market remains well surprised. None of this should make us feel relaxed about the potential for further attacks though and the longer-term implications on the oil market. Spikes in oil prices when the global economy is already flirting with the idea of recession is not ideal and, if repeated and sustained, could ultimately be what tips us over the edge. While oil prices have pared gains following the initial knee-jerk reaction to the reports, Brent and WTI remain around 10pc higher as the geopolitical risk premium keeps prices elevated. This may settle down if attacks are not repeated but traders may be a little on edge for a while, keeping oil trading at a premium for some time. Business Briefing Newsletter REFERRAL (Article) 8:26AM European stocks sink as oil attacks undercut rally With markets finally getting a chance to react to the weekend’s oil attack shock, European equities are sliding slightly, losing some of the momentum they were building at the end of last week.  Credit: Bloomberg TV 7:56AM Chinese data adds to market gloom It’s not just oil prices causing consternation.  MSCIs broadest index of Asia-Pacific shares outside Japan slipped 0.4pc, Reuters reports, after data showed China's industrial production growth unexpectedly fell to its weakest pace in 17.5 years in August. Painting a dour picture of the world’s second-biggest economy, China’s statistics bureau said the country faces increasing downward pressure from external uncertainties. China's blue-chip index eased 0.5pc, while Hong Kong's Hang Seng index faltered about 1pc, despite expectations Beijing will soon announce more support measures. Liquidity was relatively thin with Japanese markets shut for a public holiday. 7:41AM ‘Biggest one-day move ever’ Smoke is seen following a fire at an Aramco factory in Abqaiq, Saudi Arabia, on Saturday Credit: REUTERS State energy producer Saudi Aramco lost about 5.7m barrels per day of output in Saturday’s attack after 10 unmanned aerial vehicles struck the world’s biggest crude-processing facility in Abqaiq and the kingdom’s second-biggest oil field in Khurais. For oil markets, it was the single worst sudden disruption ever, surpassing the loss of Kuwaiti and Iraqi petroleum supply in August 1990, when Saddam Hussein invaded his neighbour. It also exceeded the loss of Iranian oil output in 1979 during the Islamic Revolution, according to data from the US Department of Energy. In an extraordinary start to trading on Monday, London’s Brent futures leapt almost $12 in the seconds after the open, the most in dollar terms since they were launched in 1988. Prices have since pulled back about half of that initial surge of almost 20pc, but were still heading for the biggest advance in more than three years. Markets Hub - Brent spot Saudi Arabia can restart a significant volume of the halted oil production within days, but needs weeks to restore full output capacity, people familiar with the matter said. The kingdom — or its customers — may use stockpiles to keep oil supplies flowing in the short term. Aramco could consider declaring itself unable to fulfill contracts on some international shipments – known as force majeure – if the resumption of full capacity at Abqaiq takes weeks. That would rattle oil markets and cast a shadow on Aramco’s preparations for what could be the world’s biggest initial public offering. It’s also set to escalate a showdown pitting Saudi Arabia and the US against Iran, which backs proxy groups from Yemen to Syria and Lebanon. 7:37AM Trump: US is ‘locked and loaded’ Donald Trump tweeted yesterday promising to respond to the drone attack on Saudi Arabia: Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!— Donald J. Trump (@realDonaldTrump) September 15, 2019 4:50PM Agenda: Oil prices surge Thick black smoke rising from Saudi Aramco's Abqaiq oil processing facility in Buqyaq Credit:  Planet Labs Inc Oil prices surged nearly a fifth after drone strikes on two plants in Saudi Arabia knocked out more than 5pc of global oil supply. The dollar fell while safe havens and currencies of oil-producing countries rallied on Monday, as Middle East tensions mounted. Brent crude hit $66.31 a barrel in morning trading amid warnings prices at petrol pumps will rise. Yemen's Iran-aligned Houthi group claimed responsibility for the damage, but the US has pointed the finger directly at Iran. 5 things to start your day 1) Thomas Cook has secured an extra week to hammer out a £1.1bn rescue deal, as debt speculators pile pressure on the troubled holiday company. A meeting had been scheduled for Wednesday to agree terms but has been moved to next week as Thomas Cook battles to survive. 2) No-deal Brexit planners fear panic buying could cause shortages of toilet roll and disposable nappies despite reassurances from supermarket bosses, Whitehall insiders have told The Telegraph. Short supplies of such essentials are viewed as a genuine prospect if consumers take fright at lack of other goods, they said.  3)  Business investment will fall this year and again next year, dragging down economic growth and harming future productivity, the British Chambers of Commerce has warned. Companies are slamming the brakes on new projects illustrating “the impact of the political turmoil and lingering unwanted prospect of no-deal exit”, the business group said. 4) O2, the mobile phone giant, is set to begin testing "smart ambulances" equipped with next generation 5G technologylater this month in a deal with Samsung and the NHS. Britain's biggest mobile network operator by number of users will pilot the technology on six ambulances from the East of England Ambulance Trust. 5)  The economist who predicted the US housing bubble that triggered the financial crisis has warned that cracks are emerging in the property market again. In an interview with The Telegraph Robert Shiller, the Nobel prize-winning economist, said a recent slowdown in price increases worryingly echoes trends in the American housing market before the bubble burst. Coming up today Royal Bank of Canada analysts struck an upbeat tone on Spire Healthcare ahead of its first-half results today. After analysing NHS data, they wrote that “a positive surprise in H1 2019” was anticipated from the private hospital operator, adding “we would buy into the results”.  Interim results: City of London Investment Group, Horizon Discovery Group, Spire Healthcare Group  Full-year results: MJ Gleeson  Trading statement: Avon Rubber  Economics: Rightmove house prices (UK), Empire manufacturing (US)


Monday, September 16, 2019 6:08 am EDT

China’s Economy Slows Again, Adding Pressure for Policy Action

China’s Economy Slows Again, Adding Pressure for Policy Action(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. China’s slowdown is deepening just as risks for the global economy mount, piling pressure on the authorities to do more to support growth.Industrial output rose 4.4% from a year earlier in August, the lowest for a single month since 2002, while retail sales came in below expectations. Fixed-asset investment slowed to 5.5% in the first eight months, with the private sector lagging state investment for the 6th month.The data add support to the argument that policy makers’ efforts to brake the slowing economy aren’t sufficient as the nation grapples with structural downward pressure at home, the risk of yet-higher tariffs on exports to the U.S. and now surging oil prices. Nomura International Ltd. said this all raises the likelihood that the People’s Bank of China will cut its medium-term lending rate on Tuesday.“In terms of policy room, we still think there’s quite a lot for both the Ministry of Finance and the PBOC, but now it’s a matter of whether they want to use it,” Helen Qiao, chief Greater China economist at Bank of America Merrill Lynch said on Bloomberg television. “What I worry about is that policy makers are hesitating at the moment because of the potential implications on the long term impact, so they’re really fallen behind the curve.”The Shanghai Composite swung between gains and losses before closing slightly lower. Futures contracts on China’s 10-year government bond regained losses after the data release to close at 0.07% higher on Monday.The slowdown in output was almost across the board, with food processing and general equipment manufacturing unchanged from last year. Car output rose after declining for four months. Growth in sales of consumer goods slowed to 7.2%, the lowest since April this year, but there was an increase in food sales. The unemployment rate fell to 5.2% from 5.3% in July, within the narrow band it has occupied all year even amid the slowdown.The record oil price surge after a strike on a Saudi Arabian oil facility couldn’t have come at a worse time for China and a world economy already in the grip of a deepening downturn. While the severity of the impact will depend on how long the oil price spike endures, it risks further eroding fragile business and consumer confidence amid the ongoing U.S.-China dispute and already slowing global demand.Saudi Arabia is the largest single source of China’s crude oil imports, which in turn supply about 70% of total demand.After China’s data release on Monday by the National Bureau of Statistics, Citigroup Inc. lowered its growth forecast for the world’s second-biggest economy to 6.2% for this year from 6.3% previously, and to 5.8% from 6% for 2020.“We don’t expect a growth rebound in the fourth quarter anymore, with the new forecast flat at 6.1% year on year,” wrote Yu Xiangrong, a Hong Kong-based economist with Citigroup, referring to the quarterly outlook. “In particular, we now hold a more cautious view on the recovery of infrastructure investment and retail sales.”The People’s Bank of China cut the amount of cash banks must hold as reserves this month to the lowest level since 2007, though it’s still holding off on cutting borrowing costs more broadly.Some 265 billion yuan ($37.5 billion) of 1-year loans from the PBOC to banks will mature on Tuesday. The central bank will likely roll-over at least some of these, giving it an opportunity to cut the rate it charges.Analysts are divided on whether the PBOC would actually take the chance to cut. Some see the need for more significant easing while the other argue the authorities would like to avoid announcing multiple stimulus at once, and they’ll watch the U.S. Federal Reserve before taking any actions themselves. The Fed is expected to cut rates this week.Morgan Stanley expects borrowing costs to be cut by 10-15 basis points as early as this week, likely in the form of an medium-term lending rate cut.What Bloomberg’s Economists Say..“We expect policy support to continue at a measured pace as Chinese authorities strive to put a floor under the slowing economy. Yet, officials are bracing for a long war, and are careful not to deplete their policy ammunition.”-- Chang Shu and David Qu, Bloomberg EconomicsFor the full note click hereIt’s getting more difficult to “safeguard 6%” expansion in the third quarter and growth will likely slow further from the pace in the second quarter, China International Capital Corp. economists led by Eva Yi wrote in a note. Not only is it necessary, but there is room to step up the intensity of counter-cyclical adjustment in a timely manner to make sure economic growth won’t slip below the targeted growth range of 6-6.5%, Yi said.There are likely to be more easing measures including cuts to banks’ reserve ratios and the PBOC’s mid-term lending rate, although that cut probably wouldn’t happen this week, said Peiqian Liu, China economist at Natwest Markets Plc in Singapore. The pace of economic slowdown is faster than expected and the impact of the trade war on Chinese manufacturers has been relatively big, she said.Goodwill TalksNegotiators from China and the U.S. plan to have two rounds of face-to-face negotiations in coming weeks. Both sides have taken steps to show goodwill, and U.S. officials are considering an interim deal to delay tariffs with China, people familiar with the matter told Bloomberg.However, even if those talks do go well and get the negotiations back on track, it may not be enough.“Even a reprieve on the trade front, with U.S. and Chinese negotiators back at the table, will not in itself cure China’s growth malaise,” said Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc in Hong Kong. “There is a growing risk that keeping the reins too tight may push growth much lower.”(Updates with Morgan Stanley comments and markets reaction.)\--With assistance from Amanda Wang, Tian Chen, Yinan Zhao, Enda Curran, Dan Murtaugh and Claire Che.To contact Bloomberg News staff for this story: Miao Han in Beijing at mhan22@bloomberg.net;Tomoko Sato in Tokyo at tsato3@bloomberg.net;Kevin Hamlin in Beijing at khamlin@bloomberg.netTo contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James MaygerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.


Monday, September 16, 2019 6:07 am EDT







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