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On August 27, the Ministry of Commerce held a regular press conference. According to the arrangements for the upgraded free trade agreement, China and Switzerland made high-level two-way opening-up commitments in areas such as goods, services, and investment. In terms of goods trade, the final zero-tariff import ratio for both sides exceeds 99%. At the same time, both sides upgraded and improved the rules of origin and trade facilitation, and agreed to strengthen cooperation in standards and conformity assessment, which will help promote further development of bilateral trade. In terms of services trade and investment, the upgraded agreement will help promote my countrys exports of productive service industries to Switzerland; and will help provide investors from both sides with high-level investment access and a more stable, transparent, and predictable business environment. Furthermore, both sides will conduct broader and deeper cooperation in areas such as digital trade, artificial intelligence, sustainable development, supply chains, pharmaceuticals, machinery industry, and watches. Currently, both sides are accelerating their respective domestic procedures to formally sign the upgraded protocol as soon as possible, promote the early implementation of the results, and benefit enterprises and people of both countries at an early date.A spokesman for the Iraqi Armed Forces Commander-in-Chief said the international coalition’s mission will end as scheduled on September 30 next month.August 27th - The China Machinery Industry Federation announced today that my countrys machinery industry achieved rapid growth in production from January to July this year. The latest data shows that the added value of the five major sectors involved in the machinery industry all maintained a year-on-year growth trend. Specifically, the general equipment manufacturing industry grew by 7.9%, the special equipment manufacturing industry by 8.8%, the automobile manufacturing industry by 7.2%, the electrical machinery and equipment manufacturing industry by 6.5%, and the instrumentation manufacturing industry by 9.4%. Among representative products of the machinery industry, from January to July this year, the cumulative output of metal cutting machine tools reached 510,000 units, a year-on-year increase of 0.8%. The cumulative output of industrial robots reached 635,000 sets, a year-on-year increase of 28.5%. The cumulative output of generator sets reached 208.97 million kilowatts, a year-on-year increase of 2.8%.According to TASS, the head of the Russian intelligence agency said that issues related to the secret service were discussed.On August 27, at a regular press conference held by the Ministry of Commerce, a reporter asked about President Xi Jinpings upcoming state visit to Kyrgyzstan. The reporter inquired about the current achievements and future prospects of China-Kyrgyzstan economic and trade cooperation. Ministry of Commerce spokesperson Huang Ling stated that from January to July this year, China-Kyrgyzstan trade reached US$11.7 billion. Exports of Chinese "new three products" (referring to new agricultural products, new energy products, and new industrial products) and electromechanical products to Kyrgyzstan saw rapid growth, while cooperation in service trade and cross-border e-commerce continued to advance. Secondly, investment and economic and technological cooperation have deepened. China is Kyrgyzstans largest source of foreign investment. As of the end of July this year, Chinas direct investment in Kyrgyzstan across all sectors exceeded US$2 billion. Projects in large-scale infrastructure, energy, mining, agriculture, and green development are progressing smoothly. Thirdly, economic and trade negotiations have been effectively advanced. Significant progress has been made in negotiations on the China-Kyrgyzstan service trade and investment agreement; simultaneously, China and Kyrgyzstan are actively exploring and promoting trade and investment liberalization and facilitation between China and Central Asia, and the Shanghai Cooperation Organisation, thus promoting regional economic cooperation.

After A Fed Rise, The U.S. Banks Stress Index Might Deteriorate

Aria Thomas

Jun 17, 2022 11:09

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An indicator of credit risk in the U.S. banking sector may be exhibiting symptoms of strain as the Federal Reserve's aggressive rate rise path heightens economic pain forecasts.


According to Refinitiv data, the so-called FRA-OIS spread, which measures the difference between the U.S. three-month forward rate agreement and the overnight index swap rate, jumped to 29.50 basis points on Thursday, its widest level since May 23. The value was -11.66 basis points earlier in the week.


Widely regarded as a barometer for banking sector risk, a wider spread indicates that interbank lending risk has increased.


The recent increase in the margin between forward rate agreements and overnight index swap rates is worrisome, according to J.P. Morgan Asset Management global market analyst Jordan Jackson. "As the Fed becomes more hawkish, recession fears increase, hence boosting the underlying credit risk."


The Federal Reserve hiked interest rates by 75 basis points on Wednesday, its largest rise since 1994. Markets have been rocked by the prospect of more dramatic tightening, and fears of a future recession have intensified.


This month, the central bank also started letting bonds to expire off its more than $8 trillion balance sheet without replacing them, a procedure known as quantitative tightening that Jackson warned may possibly deplete the financial system's liquidity.


As the world's biggest holder of U.S. government debt lowers its market presence, this sentiment is shared by other investors who are concerned that market conditions may deteriorate.


"Now that quantitative tightening has formally begun, reserve draining has been rather steady over the last several months," Jackson said, adding that he expects the FRA-OIS disparity to become much wider.


Wall Street also perceives an increase in the likelihood of default by large banks.


On Thursday, credit default swap (CDS) spreads for JP Morgan, Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and Bank of America (NYSE:BAC) were nearing two-year highs.


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