Updated throughout the day.
August 24
The day has been so bad it has earned a name: Bloody Monday. Chinese stocks closed down at 8.5%, their lowest level in six months, with all the gains in the Shanghai Composite index over the past year being totally wiped out. Only about 100 stocks listed in Shanghai were still trading late, the other 993 stocks halted trading voluntarily or were forced to after the index hit the daily 10% limit.
- Nikkei 225: -4.61%
- Hang Seng Index: -4.8%
- ASX 200: -2.8%
- Kospi: -2.47%
- Straits Times Index: -3.36%
…and now the contagion has spread to Europe, with London’s FTSE 100 index opening 2.8% down. Meanwhile, Spain’s IBEX is down 3.3%, Italy’s FTSE MIB is down 3.5%, the Portuguese PSI 20 has shed 4.4%, and Germany’s DAX index is down 3%.
Here’s what else you need to know:
Euro surges to new highs. With oil undermining the British pound and ZIRP keeping the dollar fairly rooted, a surprising safe haven currency has emerged – the Euro. The oft-embattled currency posted some serious gains against most of its trading partners today, surging 0.75% against the pound and shooting as much as 0.93% versus the greenback. FXStreet
China Shenhua Energy gears up to tackle lower prices. In the midst of a righteous meltdown in commodities, state-owned coal giant Shenhua Group will see its listed subsidiary – China Shenhua Energy – cut its unit coal production costs as well as its “controllable” operating costs by 5% this year. SCMP (paywall)
Netflix teams up with SoftBank to take on Japan.While its attempts to break into China have so far been a bust, Netflix has just found a huge ally for its foray into Japan – Masayoshi Son’s giant SoftBank. The two have just announced that SoftBank customers would soon be able to sign up for Netflix through the bank’s website, call centers, and various shops with a subscription fee ranging between Y650 to Y1,450 per month. Wall Street Journal
Blaze breaks out at Japan steel plant. The fire broke out near Haneda Airport south of Tokyo after a cooling tower at a Nippon Steel-owned factory caught alight. There are no injuries reported. BBC
China pensions get go ahead to invest in stocks. Now if that doesn’t send a frisson of fear down your back, then this will put ice water in your veins. It’s a measure of China’s desperation to support the stock market that the country is empowering pensions to invest up to 30% of funds in stocks. Xinhua
There has been ANOTHER industrial blast in China. One person has been killed, and a further nine injured, after a warehouse in Zibo City exploded on the weekend. It comes little over a week after 121 people killed by a chemicals explosion in the city of Tianjin. BBC
Gulf stocks take a tumble. The effect of falling oil prices, and the decision by Fitch Ratings to cuts its outlook for Saudi Arabia debt, battered Gulf markets on Sunday. Dubai stocks took their biggest one-day hit in 8 months, closing down 7%. Reuters
Cops rough up rapper Khalifa for LAX hoverboard shenanigans. LA police are facing a storm of public protest after rough-handling Wiz Khalifa. The rap star was cuffed for riding his hoverboard Back to the Future-style through airport security. Now #NotResisting is doing the rounds in the Twittersphere. CNN
Usain Bolt still the fastest man in the world. The Jamaican runner has sprinted to his third 100-meter world title. Bolt secured the gold medal at the World Athletics Championship on Sunday after completing the sprint in 9.79 seconds. Wall Street Journal
Danger zone: The two Koreas enter second night of talks. North Korea is fuming that South Korea is blasting anti-communist messages into their territory. South Korea says the North is building up military units on the border and activating submarines. BBC
You won’t believe this:
We guess pandas don’t do sonograms. A panda at the zoo in Washington, D.C., gave birth to a healthy cub. Then to the surprise of one and all, gave birth to a second cub five hours later. These are the first giant pandas born in the U.S. Mashable
Photo: Wsilver