The world this week
The Argentine government introduced emergency capital controls, restricting the amount of dollars that people and firms can buy. The measures are meant to stop money gushing out of the country amid a run on the peso, which has tumbled as investors fret that October’s presidential election will be won by a ticket that includes Cristina Fernández de Kirchner, a former president whose spendthrift policies ruined the economy.
India’s economy grew by 5% in the second quarter compared with the same three months last year, the country’s slowest growth rate in six years and well below market forecasts. Separate figures showed that domestic car sales slumped in August (by 49% for Tata Motors compared with August 2018) and that manufacturing activity was cooling rapidly. More government stimulus is now on the cards.
The Indian government also announced plans to streamline the country’s state-controlled banks, which hold lots of bad debt, cramping their ability to lend, and proposed that ten state banks be merged into four new ones. Markets gave the idea a cool reception.
Australia’s GDP grew by 1.4% in the second quarter, the slowest pace since the financial crisis. Exports are booming, but consumers in the Lucky Country are reining in their spending.
Turkey’s annual inflation rate fell to 15% in August, the lowest it has been for 15 months. Inflation soared to 25% at the end of last year amid a currency crisis. Today’s more stable lira and decreasing price pressures have boosted expectations that the central bank will again slash interest rates when it meets on September 12th, though probably by not as much as the 4.25-percentage-point cut to rates in July.
America and China agreed to resume high-level talks in early October to try to resolve their trade dispute. Negotiators last met in July and there is little hope that a breakthrough will come soon. There was evidence this week that the dispute is having an effect on manufacturing. Factory output in America surprisingly contracted in August for the first time in three years. In Britain manufacturing activity fell to a seven-year low. And in Germany a purchasing-managers’ index suggested that manufacturing had shrunk for an eighth consecutive month. Figures in China showed manufacturing contracting for the fourth month in a row.
中国和美国同意在10月初恢复高层会谈，试图解决两国的贸易争端。谈判代表上次会面是在7月份，当时谈判取得突破的希望渺茫 。本周有证据表明，这场争端正对制造业产生影响 。令人惊讶的是，美国8月份的工厂产量出现了三年来的首次萎缩 。英国制造业活动跌至7年来的最低点 。德国采购经理人指数显示，制造业已经连续第八个月萎缩 。中方数据显示，制造业连续第四个月出现收缩 。
1.capital controls 资本管制
The only way it works is if every country is doing it, or with capital controls.
2.trade dispute 贸易争端
If there is a trade dispute, we will submit the claim to the arbitration committee for settlement.
3.in a row 连续
If I'm inside for three days in a row, I go crazy
4.inflation rate 通胀率
The inflation rate now stands at 3.6 percent.