Business

China won’t use its currency ‘aggressively’ even as tensions with U.S. ramp up, Morgan Stanley says

China's President Xi Jinping and U.S. President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on Nov. 9, 2017. Nicolas Asfouri | AFP | Getty ImagesChina is unlikely to use its currency aggressively as a tool against the U.S., even if tensions continue to ramp up between the two economic giants, Morgan Stanley's chief economist told CNBC. "I think there's another trend that's emerging ... China doesn't want its currency to be that volatile, or be seen to be a currency which is not seen to be stable enough to be a long time venue for being a reserve currency," Morgan Stanley's Chetan Ahya told CNBC on Thursday. The U.S. dollar is currently the world's reserve currency, but Beijing has been pushing for greater use of the Chinese yuan internationally. ...

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Goldman Sachs sees the Chinese yuan strengthening to 6.70 against the dollar in the next 12 months

The Chinese yuan is set to see a sizable appreciation against the greenback in the next 12 months, according to Zach Pandl, co-head of global foreign exchange, rates and emerging market strategy at Goldman Sachs. Pandl forecasts the Chinese currency could hit 6.70 per dollar in the next 12 months, "primarily through the health of the Chinese economy." That compares against current levels of 6.9973 per dollar for the onshore yuan, as of Wednesday morning Singapore time. Meanwhile, its offshore counterpart changed hands at 6.9971 against the greenback. "I think the domestic picture in China actually looks pretty solid," the strategist told CNBC's "Squawk Box Asia." He said the country is seeing a "pretty good rebound" from the shock of the coronavirus pandemic. The earliest reported c...

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China says its dollar-denominated exports, imports jumped in June, beating expectations of a decline

Aerial view of shipping containers sitting stacked at Lianyungang Port on June 3, 2019 in Lianyungang, Jiangsu Province of China. Wang Jianmin | Visual China Group | Getty ImagesChina's dollar-denominated exports and imports rose in June, as restrictions eased and countries started to reopen their economies. The June customs data beat expectations of a decline, with exports posting a rise of 0.5% as compared with a year ago, and imports jumping 2.7% in the same period. A Reuters poll had estimated that June exports contracted 1.5% from a year earlier, bouncing from a 3.3% decline in May. Imports were expected to fall 10.0% from last year, as compared with a drop of 16.7% in May, according to the poll. That could be attributed to higher purchases of crude oil and commodities. Earlier...

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China says the latest U.S. move is aggravating tensions in the South China Sea

U.S. Navy multirole fighter landing on the flight deck of USS Ronald Reagan (CVN-76) aircraft carrier as it sails in South China Sea Oct. 16, 2019. Catherine Lai | AFP | Getty ImagesChina said Tuesday that the latest U.S. rejection of Beijing's claims in the South China Sea unnecessarily provokes tension in the region. The highly disputed body of water — with its islands, fisheries, energy resources, military bases and trade routes — lies on the southern coast of mainland China and between Taiwan and Southeast Asian countries such as Vietnam, Indonesia and the Philippines. In a rare move, the U.S. Navy sent two aircraft carriers to conduct operations and exercises in the region on July 4, America's Independence Day. Beijing was already carrying out military exercises in the South Chi...

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Alleged Jeffrey Epstein sex crime accomplice Ghislaine Maxwell tried to flee from FBI agents before arrest, prosecutors reveal

Ghislaine Maxwell attends VIP Evening of Conversation for Women's Brain Health Initiative, Moderated by Tina Brown at Spring Studios on October 18, 2016 in New York City. Sylvain Gaboury | Patrick McMullan | Getty ImagesFederal prosecutors told a judge Monday that Ghislaine Maxwell, the British socialite charged with helping the late convicted sex offender Jeffrey Epstein feed his craving for underage girls, tried to flee apprehension from FBI agents right before they arrested her earlier this month. Prosecutors revealed Maxwell's effort in a court filing as they argued that she is likely to flee the United States if granted bail of $5 million, or even more. Prosecutors cited the millions of dollars that Maxwell has held in "dozens" of overseas bank accounts, her citizenship in Franc...

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Tesla jumps 14% on S&P 500 inclusion speculation — Now the 10th biggest U.S. stock by market value

Shares of Tesla hit a new all-time high on Monday, extending the stock's record run, as investors continue to pile into the Elon Musk-led company. And as the company's valuation climbs ever higher, speculation is growing that the company will soon join the S&P 500. After Monday's open, Tesla's market value increased to $321 billion, according to FactSet. That makes it the 10th largest U.S. stock by market value, leapfrogging Procter & Gamble, according to FactSet. After closing at an all-time high on Friday, shares were another 14% higher on Monday. For the year, the stock is up more than 300%. Earlier in July Tesla topped Toyota to become the largest automaker in the world by market value.  The stock is up more than 55% in July alone after the company handily beat delivery e...

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