Updated throughout the day
August 27
Good evening everyone. After dipping into the negative mid-afternoon, Chinese shares pulled another miraculous rally in the last hour, leading the SHCOMP to finish the day up 5.34% and the SZCOMP up 3.3% – the highest points in the day for both indices. Japan’s Nikkei Average and Hong Kong’s Hang Seng Index didn’t do too bad themselves:
- Nikkei 225: +1.08%
- Hang Seng Index: +3.6%
- CSI 300: +5.95%
The European markets are also in a good mood, with the FTSE 100 currently up 2.2%, the DAX up 2.6%, and the CAC up 2.6% as well. Oil seems keen to join in the fun too, with Brent surging 3% to $44.44 while WTI soared 3.55% to $39.97 – just a hair shy from the $40 mark. The mighty greenback meanwhile is mightily climbing, largely thanks to a spike in U.S. bond yields courtesy of the PBOC.
Here’s what else you need to know:
Super Mario might need to be extra super. A lot has changed since Mario Draghi unleashed his $68 billion-a-month stimulus plan. China is in doldrums and the Fed’s liftoff schedule is now all screwy, leaving the EU’s economy – as well as its inflation rate – way off their targets. Should Mario open the QE tap a little bit more? Wall Street Journal (paywall)
It was the CSRC’s fault. Ever wondered why China ham-fisted it’s response to the market rout? Well, in a must-read piece on China’s securities regulator, Reuters shows us exactly who’s to blame. Reuters
China collars 23 for Tianjin blast. Police in China have detained 23 people in connection with the chemical warehouse explosion that killed more than 100 people two weeks ago. Those held include the chief of transportation department in Tianjin. The New York Times
NY Fed president says September rate increase is “less compelling.” William Dudley said Wednesday morning that the prospect of a rate rise next month isn’t looking very good in the wake of global market turbulence. The U.S. economy’s growth is on track at a “moderate” pace, and Dudley still hopes rates will rise this year. Wall Street Journal
Europe migrant crisis gets worse, 50 dead. The dead were found in the hold of a boat carrying migrants off the coast of Libya. They are believed to have died of asphyxiation. 430 people were rescued alive from the boat by a Swedish coastguard ship. BBC
China work safety boss sacked. China’s work safety regulator Yang Dongliang has been booted out of the Communist Party for “serious breaches of discipline and the law”. This follows the chemical blasts in Tianjin killed at least 135 people earlier this month. BBC
Monsanto drops Syngenta bid. The Swiss Syngenta’s stocks tanked 18% after Monsanto announced it was backing out of acquisition talks. Monsanto had made an updated offer of about $47 billion Aug. 18 that Syngenta had turned down.CNBC
China doesn’t scare Blackstone. The private equity group is taking advantage of the global volatility, and looking for Chinese commercial property buying opportunities. “Volatility can be your friend if you have a medium to long term perspective,” says Christopher Heady, head of the Asian real estate business for Blackstone. Wall Street Journal
Schlumberger to buy Cameron International. Schlumberger, the world’s biggest oil-field services company, will buy the drill equipment producer for $12.74 billion in cash and stock. Cameron shares had falledn 42% in the last 12 months, but boomed 45% in premarket trading Wednesday with the deal’s announcement. Wall Street Journal
Fifty Shades publisher finds $10m of pain a turn-off. A US judge had ordered Aussie Amanda Hayward to set aside $10.7m for Texan Jennifer Pedroza following a royalties spat. The pair ran the small online publisher that first released the slap-and-tickle trilogy. BBC
You won’t believe this…
Grab a McWhopper. Burger King extended an olive branch, er French fry, to McDonald’s proposing the two team up for a hybrid of the Whopper and the Big Mac. The McWhopper was publicized in full-page ads in the New York Times and Chicago Tribune. Sadly, McDonald’s is saying no to the epic offer. TIME
Photo: 2 dogs