Reuters (May 29)
“The U.S. dollar’s unusual moves in April, when it fell in tandem with stocks, has cast doubt over a long-lasting relationship between the greenback and risky assets. Over time, it might nudge non-U.S. investors to hedge more or reduce their exposure to American stocks and bonds. Both could create a self-reinforcing downward cycle for the dollar.”
Tags: April, Bonds, Dollar, Doubt, Downward cycle, Exposure, Greenback, Hedge, Non-U.S. investors, Relationship, Risky assets. Over, Self-reinforcing, Stocks, Unusual moves
Wall Street Journal (December 14)
“Falling prices in China” are causing havoc “as factories struggle to cope with overcapacity and weak demand.” This is increasing pressure “on Beijing to take more forceful action to prevent a downward spiral of deflation that becomes self-reinforcing, potentially landing China in a longer-term recession.”
Tags: China, Deflation, Downward spiral, Factories, Falling prices, Havoc, Overcapacity, Recession, Self-reinforcing, Struggle, Weak demand
