Good morning everyone. While China and Greece dominated the news this week, currencies have been making some pretty big moves in the background. The Aussie hit its six-year low against the Dollar yesterday, largely thanks to the continued slowdown in China, while the Kiwi dropped to its lowest level since 2009 amid falling dairy prices. A somewhat surprising rate cut from the BoC meanwhile saw the Loonie slip to its – again – six-year low against the greenback, while the Euro lost over 3.5% against the dollar since mid-June. The Pound however, has been flexing its muscles ever since BoE Governor Carney signaled a possible rate hike.
Here’s what else you need to know:
Asian equity futures roar. It looks like another good trading day in Asia as futures contracts on Japan’s Nikkei, Hong Kong’s Hang Seng, and the CSI 300 all surged at least 0.5%. The Nikkei Average is currently up 100 points in Osaka, while the Hang Seng Index gained 0.5% in its latest trading. The CSI 300 Index meanwhile scored nearly 4% in gains. Bloomberg
Ratings agencies slam Beijing’s market intervention. Ratings agencies slammed Beijing’s response to the stock market rout yesterday, with Moodys calling the moves “credit negative” and Fitch saying that “Policy intervention also raises questions about the pace of future financial reforms. This in turn underscores potentially significant operational risks for some financial institutions, especially brokers, which have exposure to – and operate in – the equity market.” the S&P meanwhile had this to say: “The rapid growth in debt, the opaque nature of its markets, high debt to GDP, and potential moral hazard created by state support all point to relatively high credit risks in China.” SCMP (paywall)
Japan’s lower house approved changes to its military powers. In a major win for Prime Minister Abe, Japan’s lower house of Parliament has passed a package of security bills allowing the Japanese military to fight – albeit limitedly – in foreign conflicts. This is also marks a huge shift for a nation that has embraced pacifism ever since World War II. New York Times
Japan ramps up infrastructure aid to its neighbors. In what has been seen as a bid to win more allies, Japan has apparently ramped up funding to its neighbor’s infrastructure projects. The Japan-led, $100 billion Asian Development Bank has seen its Asian lending soar 17% since the previous year, while Shinzo Abe himself has pledged billions more in aid. Bloomberg
Winter has come to the Emmys. The HBO series Game of Thrones was nominated for 24 Emmys over a number of categories, the most of any show this year. Andy Samberg will host the awards September 20. Variety
Photo credit: ILO in Asia and the Pacific via Flickr