The sentiment has also found its way into stocks such as BHP Billiton and Rio Tinto who have a progressive dividend payout policy in place but may have to revisit that strategy as pressure from all corners is pushing management to rethink their approach in a commodity crisis that has so far left no company unscathed.
Anglo: Fund manager bonus killer.
— Herman Lloyd (@HerrieLloyd) December 9, 2015
As China's inclusion into the IMF's SDR basket starts to settle amongst various participants in global trade, the spotlight will be heavily shone on the PBOC (People's Bank of China) as to the measures used in controlling the price of the currency.Today the PBOC announced today that it would lower the reference rate for the yuan which pushed the currency to 4 year lows against the dollar as it expects the Federal Reserve in the US to finally lift interest rates for the first time in 9 years. In saying this we cannot forget the impact the central bank's action had on the entire global financial system when it decided to lower the rate by more than it had done in a few decades which sent shockwaves reverberating in every direction.
Policymakers knew implicitly how much economic power they had built up over the past decade but I believe that the 24th August 2015 will go down in the history books of financial markets as the day Chinese authorities realised that they can no longer manipulate their markets that would go undetected or unnoticed and their relevance in the global financial system was growing with every passing year.
It also marked a day for the world of financial market participants who now have to battle a new fixture within the system which increases more volatility.
#China allows the #yuan to drop to a 4-year low against the US dollar: important for #oil and #commodities imports pic.twitter.com/WKVTfQUdFH
— Javier Blas (@JavierBlas2) December 9, 2015
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