Updated throughout the day
August 14
Good evening everyone. After a really volatile week, Chinese equities ended trading on a high note, with the SHCOMP climbing 0.27% – up 5.9% for the week – while the SZCOMP jumped 0.5%, finishing the week up over 6%. Hong Kong however didn’t do as well, with the Hang Seng Index falling over 0.1% for the day and slumping over 2.3% for the week. Meanwhile in Japan, profit-taking took the Nikkei Average down almost 0.4% for the day, while the renminbi deval took it down almost 1% for the week. Here’s what else you need to know:
European GDP disappoints. German, French, and EU GDP growth data all came in below expectations, threatening “the region’s prospects for a sustained recovery.” MarketWatch
China’s National Bureau of Statistics strikes back at the FT. A few months ago, Capital Economics told the FT that China has been miscalculating its GDP growth due to an error with the NBS’ GDP deflator. Well, the NBS didn’t take too kindly to that, and have published a paper defending its use of the deflator. Capital Economics meanwhile, appears to remain unimpressed. National Bureau of Statistics
European Commission “committed” to helping Greece. Perhaps in response to the IMF’s stance on debt reforms, the European Commission has released a statement asserting their commitment to helping Greece “on all aspects” of their agreement, which includes – among others – the continued sustainability of Greece’s debt. European Commission
Greek parliament approves bailout deal. While undoubtedly a great thing, for Alexis Tsipras, it may cost him his political career. New York Times
China shuts down supercomputer due to Tianjin blasts. China’s Tianhe-1A, formerly the world’s fastest supercomputer and a source of great pride for the nation, had to be shut down after fallout from the Tianjin blasts managed to reach the building housing it. The supercomputer is typically used by the nation for weather forecasting, space exploration, as well as for military purposes. It is located less than a mile from the blast’s epicenter. Wall Street Journal
Hong Kong backs Uber. Following a police crackdown that ended with the arrests of seven Uber drivers and the detention of two of the company’s interns, nearly 50,000 Hong Kongers have signed a petition asking to support Uber Hong Kong. How successful it will be however, is a different story. SCMP (paywall)
Yuan rising. After falling 3% the past three days, the yuan found itself fixed at 6.3975 against dollar, 0.05% higher than its previous 6.4010 fix and much closer to yesterday’s 6.3982 closing price. CNBC
Ping An profits soar. Shenzhen-based Ping An Bank reported a 15% jump in net profits for the first half of the year, adding that fee and commission income soared by a whopping 76%. Unfortunately, bad loans held by the bank also seemed to have surged a staggering 50%, as the bank’s non-performing loan ratio climbed from 1.02% at the end of last year to 1.32% for the first half of this year. SCMP (paywall)
Companies are getting hurt by the lower yuan. With over $125 billion in dollar-denominated debt in their name, scores of Chinese companies – from local property developers to state-owned oil giants – are beginning to feel the heat of a lower yuan. Wall Street Journal
No debt relief, no IMF, capisce? Delia Velculescu, the IMF’s new mission chief in Greece, wants to make one thing really clear: “The IMF will remain closely engaged with the Greek government and the European partners to assist in this process, and will make an assessment of its participation in providing any additional financing to Greece once the steps on the authorities’ program and debt relief have been taken, expected at the time of the first review of the ESM program.” International Monetary Fund
Judge: BP manipulated the market. British Petroleum’s fines are adding up, after reaching a record $18.7 billion settlement for the 2010 oil spill and paying $303 million to settle its propane manipulation allegations, the oil giant is set to be fined once again for manipulating the Texas natural gas market in 2008. Wall Street Journal
Syriza ready to split as far-left calls for “new movement.” Prime Minister Alexis Tsipras is asking parliament to approve higher taxes and spending cuts so Greece can access 85 billion euros in new loans. The vote is slated for early Friday. Reuters
If you have small hands, you’re out of luck. Samsung is launching two ginormous phones. The Galaxy Note 5, which comes with a pen, and Galaxy S6 Edge+, which has a curved screen. Wired
Jessica Alba’s valuation is poppin’. Alba’s hot new company The Honest Co. raised $100 million at a $1.7 billion valuation. The actress’s company has taken off, despite controversy over the quality of products. It appeals to parents who want all-natural and eco-friendly products for their families and homes. Business Insider
Big Bird and John Snow are now best friends. HBO struck a deal with Sesame Street to air the next five seasons of the show first. PBS and its member stations will get a second shot at the beloved show, airing it for free later. Fortune
The Donald made millions from multi-level marketing firm. Donald Trump has made millions of dollars over the last decade from ACN, a multi-level marketing firm that has come under regulatory fire globally for sketchy business practices. Trump has endorsed ACN and featured it on “The Celebrity Apprentice.” Wall Street Journal
Head of AQR trading fired. Hitesh Mittal was fired from his position as head of trading at AQR Capital Management due to his previous role at Investment Technology Group. Before 2012, Mittal worked as head of liquidity management at ITG, which just agreed to pay $20.3 million in fines to the SEC over a secret trading project. Wall Street Journal
Photo credit: Jundy Tiu