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Why China Is Driving Markets Lower
China is a "34 year old going into adolescence".
It needs "5-10 years to rebalance itself"
Saxo Bank's Chief economist, Steen Jakobsen and head of macro strategy, Mads Koefoed debate the issues affecting China and why it's the driving force behind global markets.
Chinese cash rates spiked as high as 25 percent for a second day on Friday as banks scrambled to secure cash - but fears of a broader banking crisis eased on speculation the central bank had quietly added funds to the market.
Analysts say the government has been holding off for a reason- it's trying to restructure the government and punish spectators.
But the Central Bank's strategy is a risky one, with the government grappling with a slowing economy.
Data out of China on Thursday showed fresh signs of economic weakness with manufacturing slumping to a 9 month low.
And you can read more of Steen Jakobsen and Mads Koefoed's thoughts here:
http://www.tradingfloor.com/traders/steen-jakobsen
http://www.tradingfloor.com/traders/mads-koefoed
02:26 minutes
Tags: banking crisis, banks, china, economic weakness, global markets, macro strategy, madskoefoed, manufacturing, peoples bank of china, steen jakobsen, tradingfloor.com, tradingfloorcom