Latest news with #BloombergEconomics'
Yahoo
a day ago
- Business
- Yahoo
China Boosts Credit with $204B Bond Push--But Borrowing Stays Muted
China's credit growth picked up in Maybut the momentum came from Beijing, not the private sector. The People's Bank of China reported nearly 1.5 trillion yuan ($204 billion) in government bonds were sold last month, roughly 20% higher than a year ago. That marks the third time in 2025 bond sales have topped 1 trillion yuan in a single month. The surge helped lift total aggregate financing to 2.29 trillion yuan, an increase from 2 trillion yuan in May 2024. On the ground, though, the appetite for new borrowing looks subdued. Households took out just 54 billion yuan in new loans last month, bringing the year-to-date total to 572 billion yuanthe lowest since at least 2009. New loans from financial institutions also fell, landing at 620 billion yuan, well below last year's 945 billion yuan for the same period. This comes even after the PBOC announced sweeping monetary easing in early May, including across-the-board rate cuts and liquidity moves that could inject 2.1 trillion yuan into the economy. According to Bloomberg Economics' Eric Zhu, May's numbers suggest the government is delivering on its stimulus plans, but the response from households and businesses remains cautious. For global investors watching China's recovery story, the next leg of growth may depend on whether demand strengthens beyond public-sector activity. Companies with strong exposure to the Chinese consumer, including Tesla (NASDAQ:TSLA), could be watching for early signs of a turn in private-sector sentiment. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
China Boosts Credit with $204B Bond Push--But Borrowing Stays Muted
China's credit growth picked up in Maybut the momentum came from Beijing, not the private sector. The People's Bank of China reported nearly 1.5 trillion yuan ($204 billion) in government bonds were sold last month, roughly 20% higher than a year ago. That marks the third time in 2025 bond sales have topped 1 trillion yuan in a single month. The surge helped lift total aggregate financing to 2.29 trillion yuan, an increase from 2 trillion yuan in May 2024. On the ground, though, the appetite for new borrowing looks subdued. Households took out just 54 billion yuan in new loans last month, bringing the year-to-date total to 572 billion yuanthe lowest since at least 2009. New loans from financial institutions also fell, landing at 620 billion yuan, well below last year's 945 billion yuan for the same period. This comes even after the PBOC announced sweeping monetary easing in early May, including across-the-board rate cuts and liquidity moves that could inject 2.1 trillion yuan into the economy. According to Bloomberg Economics' Eric Zhu, May's numbers suggest the government is delivering on its stimulus plans, but the response from households and businesses remains cautious. For global investors watching China's recovery story, the next leg of growth may depend on whether demand strengthens beyond public-sector activity. Companies with strong exposure to the Chinese consumer, including Tesla (NASDAQ:TSLA), could be watching for early signs of a turn in private-sector sentiment. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-04-2025
- Business
- Bloomberg
Oil Plunge and Stronger Pound Set to Dampen UK Inflation Surge
A resurgence in UK inflation that has kept the Bank of England nervous about cutting interest rates is set to be curbed by energy prices and the dollar tumbling in response to US President Donald Trump's trade war. Bloomberg Economics' in-house model SHOK shows that weaker oil prices and a stronger pound could dampen inflation by an average of 0.4 percentage points over the next year. SHOK broadly matches the key dynamics of the BOE's own model.
Bloomberg
02-03-2025
- Business
- Bloomberg
European Leaders Meet in London on Ukraine: Live Blog
Bloomberg Economics' Alex Isakov sees the spat as a win for Putin, giving the Russian president extra leverage to shape the settlement of the war. If US support is withdrawn, the clock will be ticking on how long Ukraine's forces can hold the line. Without continued US support, we estimate that Ukraine's existing US gear may start running out in the summer and Europe would struggle to fill the gap. For Ukraine, he says, a break with the US would mean an increased focus on securing support from its allies in Europe. Terminal readers can read Alex's full reaction here.
Bloomberg
21-02-2025
- Entertainment
- Bloomberg
What Ne Zha Boom Tells Us About Chinese Consumers
Animated Chinese film "Ne Zha 2" has smashed domestic box office records, raking in over $1.4 billion, the most ever for a local production. Bloomberg Economics' Eric Zhu explains why the movie's success suggests a change in consumption and even dating patterns in China. (Source: Bloomberg)
