Page 25 - ARUBATODDAY 22AUG,2015
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BUSINESS A25
Saturday 22 August 2015
Eurozone economy resilient in face of Greece, survey shows
LONDON (AP) — The — rose to 54.1 points in Au- economy, and in some of four years, “highlighting the for the country. The final
19-country eurozone econ- gust from 53.9 the previous the countries that have resilience of the economy touches to the 86 billion-eu-
omy was resilient in the month. been at the forefront of the through last month’s roll- ro ($93 billion) rescue deal
face of the recent crisis in Anything above 50 means region’s debt crisis over the ercoaster events of the were completed this week
Greece, the economy is expanding. past few years. Greek debt crisis and the and the first funds arrived in
which saw the country on Markit estimates the econ- France, though, was a lag- ongoing negotiations to tie Athens.
the brink of a euro exit, a omy to be growing at a gard once again. up the full details surround- Now that the bailout has
closely watched survey quarterly rate of 0.4 per- Rob Dobson, senior econ- ing the third bailout.” been completed,
showed Friday. cent, slightly ahead of the omist at Markit, said the In July, Tsipras has resigned ahead
Financial information com- 0.3 percent recorded in the survey suggests that the Greece’s future in the euro of likely elections next
pany Markit said its pur- second quarter. eurozone is still experienc- currency was under threat month, which he hopes will
chasing managers’ index The increase was largely ing “one of its best periods until Greek Prime Minister see him secure a mandate
for the eurozone — a broad due to a pick-up in Ger- of economic growth and Alexis Tsipras backed a to push the reforms de-
index ofbusiness activity many, Europe’s biggest job creation” over the past third international bailout manded by creditors.q
Japan’s finance minister warns China on currency moves
ELAINE KURTENBACH A woman using a smartphone walks by an electronic stock board of a securities firm in Tokyo, on Thursday after its gov-
AP Business Writer Friday, Aug. 21, 2015. Tokyo’s Nikkei 225 plunged 2 percent in the morning session as Asian stocks ernment decided to move
TOKYO (AP) — Japanese fell further Friday after a survey showed Chinese manufacturing weakened this month. to a free float to cope with
Finance Minister Taro Aso big swings in global curren-
said Friday that recent (AP Photo/Koji Sasahara) cies and commodity pric-
moves by China to allow es. Vietnam also allowed
its currency to depreciate on Friday. The yen’s decline China’s decision to widen While most economists say its currency, the dong, to
are a concern and could has been hastened by mas- the trading band for the such concerns are exag- weaken slightly.
pose problems for Tokyo. sive monetary easing since yuan, partly to make it gerated, a few countries The injection of massive
Japan’s Nikkei 225 stock 2013 by the Bank of Japan, more responsive to market have followed China’s amounts of cash into the
index fell 3 percent to which is buying trillions of forces, has raised fears that lead. Kazakhstan’s cur- Japanese economy drove
19,435.83 on Friday, slip- yen in assets each month, other countries will also al- rency plunged by over 20 the yen lower, while in turn
ping below the psycho- seeking to spur growth. low their currencies to fall. percent against the dollar boosting profits of major
logical 20,000 mark on corporations that earn a
widespread selling. “Chi- large share of their reve-
nese factors are a big part nue overseas — and push-
of this, without a doubt,” ing share prices higher.
Aso said at a regular news The strategy is the back-
briefing. bone of Prime Minister
A further devaluation of Shinzo Abe’s effort to
the Chinese yuan could staunch deflation, or fall-
put Japan in a “tough ing prices due to weak
spot,” the Nikkei newspa- demand, and spur growth
per and other local media by persuading consumers
quoted Aso as saying. and companies to spend
It was unclear what sorts more.
of choices Aso was imply- The yuan’s decline against
ing Japan might face, but the U.S. dollar has had a
the Japanese currency, limited direct impact on
the yen, has fallen by over the value of the yen. But
60 percent against the U.S. uncertainty over future
dollar since hitting a peak policy and over the im-
of 75.35 yen to the dollar in pact of China’s economic
October 2011. It was trad- slowdown is reverberating
ing near 123 yen per dollar across global markets.q
Key Chinese manufacturing index falls to 77-month low
BEIJING (AP) — China’s Numbers below 50 indicate chief economist for Caixin global crisis. possibility of capital out-
manufacturing contracted a contraction. That was Insight Group, a Chinese Retail sales growth has flows caused by expecta-
by an unexpectedly large weaker than most analysts financial news publisher, in weakened and July ex- tions of more devaluations
margin this month, a survey expected. a statement. “The govern- ports fell by an unexpect- of the yuan following last
showed Friday, adding to Output, new export orders ment needs to fine tune fis- edly large 8.3 percent. week’s surprise change in
signs of economic weak- and employment all de- cal and monetary policies “The old style policy eas- exchange rate policy.
ness. clined at faster rates than in to ensure macroeconomic ing in the past three quar- Shen and Wang said they
The preliminary version July. The preliminary figure stability and speed up the ters haven’t been felt by expect Beijing to respond
of the Caixin purchasing is based on responses from structural reform.” the real economy yet,” with two interest rate cuts in
managers’ index, formerly 85 to 90 percent of compa- China’s economic growth said Citigroup economists the next year and a reduc-
sponsored by HSBC Corp., nies surveyed for the index. held steady at 7 percent Minggao Shen and Serena tion in minimum reserves
fell to a 77-month low of “There is still pressure on in the latest quarter end- Wang in a report. banks are required to hold,
47.1 in August from July’s the front of maintaining ing in July, its weakest per- Chinese policymakers also a move that would free up
47.8 on a 100-point scale. growth rates,” said He Fan, formance since the 2008 have to contend with the more money for lending.q
