Barclays read recent Chinese measures as evidence that officials are accepting that the country's growth trend has been hit by the build-up of imbalances that can no longer be sustained. Barclays's analysts think that a lower Chinese growth trend, more than the cyclical slowdown, opens interesting opportunities for FX markets in the months ahead.
A US government shutdown would not have a direct impact on the sovereign's 'AAA'/Stable rating, Fitch Ratings says. Its main implication for the US's sovereign creditworthiness would depend on whether it foreshadowed a destabilisation of US budget policymaking, including brinkmanship over the federal debt limit.
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This had been one of the most eagerly awaited FOMC meetings, but in the end the Federal Reserve decided to pass
its turn. The last time the Fed Funds rate was raised, back in June 2006, there was a far more compelling case,
making the central bank's job a good deal easier: unemployment was even lower than it is now (4.6% vs. 5.1%) and
inflation towered at 4%, while growth reached 2.7% and the 10-year rate stood at 5.1%.
Italian banks' nonperforming loans represent one of the key challenges to the country's weak recovery. The Bank of Italy has suggested a €100 billion bad bank.