“Son if you are going to be wrong, be wrong quickly, and for a de minimis loss of capital.” — Leon Levy

1. People Bank of China (PBoC) Devalue Yuan Against US Dollar After Weak Data — China sent a shock wave through currency markets by depreciating the Yuan almost 4 percent in 2-day period against the U.S. dollar to levels last seen three years ago. The move had a knock-on effect on currencies throughout the region, with the Singapore, New Zealand and Australian dollars, as well as the South Korean won, also dropping against the U.S. dollar in reaction. Also, Chinese exports slumped 8.3 percent in July, the biggest drop in four months and far worse than expectations for a 1 percent fall. Exports to the European Union fell 12.3 percent in July while those to the United States dropped 1.3 percent.
2. Moody Downgraded Brazil — Moody’s Investors Service has cut Brazil’s credit rating to near-junk status, citing weaker-than-expected economic performance, an upward trend in government spending, and lack of consensus on government reforms. Brazil’s government bond rating now stands at Baa3 with a stable outlook. “The numbers confirm that the authorities have been unable to deliver primary surpluses large enough to prevent an increase in debt ratios in 2015-2016,” Moody’s said.
3. Greece Rescue Terms Agreed — Athens and its international creditors agreed to specific reforms and budget cuts that would unlock nearly $95 bil in bailout aid after leaders reached a deal last month on the outlines of a new rescue plan. However, Greece PM Alexis Tsipras may face a political backlash that could force him to call snap elections.
4. Eurozone Growth Slows in Second Quarter — GDP (Gross Domestic Product) in the 19-nation region rose 0.3%, below views and down from 0.4% growth in the prior quarter. The top two economies lagged expectations, with Germany’s economy grew 0.4%, Italy’s 0.2%, while France reporting no growth. With market jolts coming from China, and Greece on the verge of a new bailout program, the euro area’s promising revival may still see difficulties ahead.
5. China Slowdown Worries and Oil Glut Press Oil to 6 1/2-year Low — crude prices have returned to more-than six-year lows as huge stockpiles and refinery shutdowns add to concerns about oversupply, while China’s devalued yuan heaps pressure on commodity markets. Oil futures slid earlier to $41.35 a barrel, a level last seen on March 4, 2009,.
6. Apple Now Aiming for 2016 Web TV Service Launch — Bloomberg, after previously aiming for a fall launch, Apple (NASDAQ:AAPL) is now looking to bring its Web TV service to market in 2016. The delay is blamed on slow-moving licensing talks with TV networks and the need for capacity upgrades. Sources suggest Apple wants to charge about $40/month for its service, in comparison to Dish’s (NASDAQ:DISH) Sling TV (which provides a limited number of channels) for $20/month and Sony’s (NYSE:SNE) more expansive PlayStation Vue service for $50-$70/month.

The week ahead — Economic data from Econoday.com:

Tags: Apple TV, China Yuan

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