Updated throughout the day
September 11
Good evening everyone. With the Fed keeping the world on the edge of their seats, Asian shares went into risk-off mode once again with only the Shenzhen Composite and Japan’s broader Topix managing to eke out some gains. Here’s how Asia’s largest bourses did this week:
| Day | Week | |
| Shanghai Composite | +0.073 | +1.3% |
| Shenzhen Composite | +0.62% | +3.8% |
| Hang Seng Index | -0.27% | +3.2% |
| Hang Seng China Enterprises Index | -0.63% | +6% |
| Nikkei 225 | -0.19% | +2.7% |
| Topix | +0.1% | +2.5% |
The European markets meanwhile turned mostly negative, with the FTSE 100 slipping 0.2%, the Dax falling 0.5%, and the CAC sliding 0.3%. Since the Fed won’t give its decision until Thursday next week, I doubt anything’s going to change market-wise until then. Here’s what else you need to know:
Non-OPEC oil production set to hit 24-year low. We all know that crude oil’s continued fall could mean bad news for the industry, but here’s the International Energy Agency to tell you just how bad it could get: “Oil’s price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day – the biggest decline in 24 years.” International Energy Agency
Italian industrial output thrashes estimates. Proving how awesome Italians are, industrial output in the nation surged 1.1% in August, nearly double the 0.6% climb analysts have been expecting. Energy output’s 7.1% rise seemed to be the main driver behind the surge, while consumer good added another 1%. MarketWatch
Indonesia sends troops to battle smog fires. More than 10,000 troops are being sent to fight fires in southern Sumatra, as smoke makes thousands sick, delays flights and pushes air quality to unhealthy levels in neighbouring Singapore and Malaysia. Channel News Asia
Bank of Korea keeps rates unchanged. After slashing rates four times between August and June, the Bank of Korea kept its benchmark Base Rate unchanged this month at 1.50%. The prior cuts were mostly due to the MERS outbreak, which crippled the nation’s economy enough to force a government-backed stimulus package. While they’re not out of the woods yet economy-wise, the BOK “forecasts that the domestic economy will show a trend of recovery going forward.” Bank of Korea
Moody’s takes on the SFC. In a closely-watched hearing at the Securities and Futures Appeals Tribunal, U.S.-based Moody’s has locked horns with Hong Kong’s Securities and Futures Commission over complaints that a 2011 report from the ratings agency was “shoddy.” The report was apparently titled “Red Flags for Emerging Market Companies: A Focus On China,” and was highly critical of 61 major mainland Chinese firms. SCMP (paywall)
China premier rejects QE. In a speech to the World Economic Forum in Dalian, Li Keqiang said he was okay with slower growth. He also said that he expected China to have a soft landing — which suggests that he would be deploying other forms of stimulus. South China Morning Post (paywall)
Bank of England keeps rates steady. The Bank of England’s Monetary Policy Committee (MPC) kept its bank rate unchanged at 0.5% yesterday, and the MPC meeting minutes show that only ex-CBI economist Ian McCafferty voted for an immediate hike. Hawkishness from the committee seemed prevalent though. Bank of England
Senate blocks GOP measure to kill Iran nuclear deal. Senate Democrats voted 58-42 to kill the Republicans’disapproval resolution of President Obama’s nuclear deal with Iran. Politico
U.S. to “scale up” acceptance of Syrian refugees. President Obama wants to admit at least 10,000 Syrians in the next fiscal year. These refugees would boost the total number of refugees allowed in the U.S. to 75,000 for 2016. CNN
Three Colombians charged in global money laundering ring. The U.S. is charging the men in laundering billions of dollars of drug trafficking money through bank accounts in China and Hong Kong. Other defendants remain at large. Reuters
And you won’t believe this…
Elon Musk wants to nuke Mars. Not content with moon shots, Tesla’s Elon Musk wants to nuke a planet. But the super villain-like plan has a more benevolent aim: to terraform Mars. CBC
New species of human found in South Africa. Scientists have identified a previously unknown species of early human lineage dubbed Homo naledi. Naledi, which means “star” in Sesotho, is a nod to the area where the bones were found. New York Times
Photo: Charis Tsevis