G-7 Will Meet Again To Discuss "Bailout"

With the global

According to sources, G7 leaders are worried about the global economic outlook and are expected to agree to keep loose monetary policy at the meeting and to slow down fiscal consolidation in those countries that may implement structural reorganization.

If so, this means that the "normalization" process of monetary and fiscal policies in the post crisis era will come to an end, and the easing of the "two bottom" policy will come back.

G7 or joint tuning

"The main topic will be the slowdown in the global economy and what is the best solution," said G7 official, who is familiar with the preparations for the meeting.

Recently released economic data showed abnormal weakness.

The US non farm employment growth in August, which was released on Friday, is far below the 80 thousand increase expected by the market. The second quarter GDP was revised downward to 1% year-on-year.

In Europe, Germany's GDP grew by only 0.1% in the second quarter, while France was flat.

The "two bottom" risks facing the global economy are increasing.

G7 countries have reached a consensus that the global economy has entered the most difficult period since the collapse of Lehman Brothers, and that the economy has two chances of recession.

The officials said it was because of sovereignty.

In August, New York's stock market hit its worst performance in 10 years.

By the end of August 31st, the Dow Jones industrial average had more than 1000 waves in August and a 4.4% decline in the whole month.

In September 5th, Europe's stock market slumped again due to the European debt crisis and economic slowdown. The German stock market fell more than 5%.

In response to what measures G7 will take, the official pointed out that the G7 meeting will show that countries will "imply continued monetary policy easing, fiscal consolidation will continue, but some countries will slow down as the situation slows down".

He said that the discussion on monetary easing policy will include quantitative easing and other issues.

The officials also said that countries that have not faced market pressure for the time being need to slow down in the short term to consolidate their finances and strive to achieve their goals in 2013 to 2015, which will depend on the economic development of 2012.

At present, G7 has no plans to announce the official communiques after the meeting. However, a briefing on the main contents of the conference may be announced by France, which presided over the meeting.

European debt crisis needs urgent solution

According to sources, the G7 meeting will also be discussed.

With the European debt crisis dragged on, the next "Domino" is looming: Italy's ten year Treasury yields seem to be catching up with Spain.

This shows that the market has begun to pay special attention to Italy, which is regarded as the next target of debt crisis early warning.

Italy is likely to undertake structural reforms under pressure to increase its economic growth rate, thereby easing the market's concern about its ability to pay public debt, which accounts for 120% of GDP.

But those sources say euro zone countries are unlikely to make efforts beyond the scope of the agreement.

For example, G7 can not press the euro zone to further expand the scale of the European financial stability fund (EFSF), because Germany and France are more likely to undermine EFSF's AAA credit rating if they make more capital injection commitments.

JP Morgan expects China to lower its deposit rate

JP Morgan said in September 5th that China's inflation is expected to start to cool down, making it possible for China to reduce bank reserve requirements to support economic development.

Li Jing, managing director of Morgan chase and chairman of global market operations in China, said August is the month in which China has neither raised interest rates nor raised bank deposit reserve rates this year, indicating that China's monetary policy stance has been tightened to neutral.

The Central Bank of China has raised interest rates 5 times since the beginning of October, and has raised the deposit reserve ratio for the 9 time.

The deposit reserve ratio of large banks has reached a record high of 21.5%.

JP Morgan expects China to increase its CPI in August to 6.2%, down from 6.5% in July, according to JP's announcement on Friday.

In the next few months, CPI growth is expected to be over 5%, mainly driven by food prices.

JP Morgan expects China's gross domestic product (GDP) to grow by 8.9% this year, and believes that China's overall economic situation is "very healthy".

comprehensive

Loose expectations led to global stock market inflation

After the early fall of the storm, the Asian Pacific and European stock markets rebounded sharply as the policy shifted to the expected warming.

For the 4 consecutive trading days, the Shanghai and Shenzhen stock markets rebounded on the 7 day.

The Shanghai Composite Index has successfully returned to 2500 points, while the Shenzhen stock index has increased by more than 2%.

Compared with the volume of less than 100 billion yuan in the previous trading day, the two cities were significantly enlarged on that day.

The Shanghai and Shenzhen stock markets opened high on the same day.

The Shanghai composite index opened at 2480.94 points, running all day in the red plate area.

After early trading fell to 2475.22, the Shanghai stock index began to oscillate upward, easily recovered 2500 points, and closed at 2516.09 points near the highest point of the day, up 45.57 points from the previous trading day, or 1.84%.

Shenzhen composite index also rose by 2.16% at the same time.

7, other Asian Pacific stock markets also rose all the way.

On the same day, the average price index of the 225 stocks of Nikkei in Tokyo stock market rose 172.84 points over the previous trading day, closing at 8763.41 points, or 2.01%.

The composite index of Seoul stock market rose 66.75 points to 1833.46 points, or 3.78%.

The main stock index of Philippines's Manila stock market rose 12.13 points to 4315.21 points, or 0.28%.

The S&P / ASX200 index of Sydney stock market in Australia rose 107.90 points to 4183.40 points, or 2.65%.

The NZ x 50 index of New Zealand stock market rose 30.39 points to 3300.95 points, or 0.93%.

The Hang Seng Index of China's Hongkong stock market rose 337.50 points to 20048 points, or 1.71%.

European stock markets were also higher, with the UK, France and Germany gaining more than 2%.