The falling price of oil has a direct effect on the real exchange rate of nations most dependent on petroleum production.

Read more: http://www.cnbc.com/id/102942270

The head of the advertising giant WPP has warned to “be careful what you wish for” when it comes to China, as the company reported earnings.

Read more: http://www.cnbc.com/id/102947522

U.S. stock index futures pointed to a higher open on Wednesday after a highly-volatile session for China’s Shanghai Composite, with investors left largely unimpressed by the stimulus measures from the People’s Bank of China.

Read more: http://www.cnbc.com/id/102947693

As Xinhua reports, A researcher with China’s central bank on Tuesday blamed wide expectation of a Fed rate rise in September for the global market rout. Yao Yudong, head of the People’s Bank of China’s Research Institute of Finance, said the expected Fed rate hike next month had been the “trigger” for the wild market swings.

China stocks extend 5-day losing streak
http://money.cnn.com/2015/08/25/investing/china-stock-market/index.html

China’s benchmark Shanghai Composite index opened up 0.46 percent at 2978.7 on Wednesday, as investors cheered the People’s Bank of China ‘s (PBOC) decision to fire a double-barreled easing shot. The PBOC lowered interest rates and the reserve requirement ratio (RRR), which sets how much capital banks must hold, by 25 basis points late Tuesday on the back of a brutal multi-day sell-off in its …

Read more: http://www.cnbc.com/id/102946960

Malaysia’s currency nosedived nearly 2 percent on Wednesday to its fourth straight seventeen-year low amid new fears over 1Malaysia Development Berhad.

Read more: http://www.cnbc.com/id/102947337

Thai financial managers watched with horror as the ticker fell on their monitors during the weekend — the country’s stock exchange was slipping, and the textile industry, one of the largest sectors in the country’s economy, had suffered since the Chinese yuan dropped 2 percent against the dollar two weeks ago. The Chinese devaluation caused the Thai market toplunge to a multimonth low. A terrorist attack in the tourist hotspot of Bangkok last week pushed shares down even further.

Thailand’s economy is the second largest in southeast Asia but like many other emerging economies, the Thai economy is export-dependent, with exports accounting for more than two-thirds of its gross domestic product. China is its largest customer, making Thailand heavily dependent on the Chinese economy. China’s currency devaluation had a knock-on effect on the baht, which lost as much as 0.5 percent to 35.55 against the U.S. dollar, the lowest since April 2009.

A Bruising Start For European Markets

European stock markets opened sharply lower Wednesday as volatility continued to grip Asia.

The pan-European Stoxx 600 fell nearly 2 percent, while London’s benchmark FTSE 100 tumbled 90 points — a drop of 1.5 percent. Germany’s Dax was trading 1.9 percent lower and France’s CAC 40 was down by more than 2 percent.

The UK’s rush to embrace trade with China recently has raised its exposure to the market turmoil surrounding the world’s second largest economy.

Read more: http://www.cnbc.com/id/102944307

Earlier Wednesday, Asian bourses witnessed a drastic rise and fall in share prices, as China’s rate cut announcement from the previous day failed to placate investors. The Shanghai Composite index eventually ended the day in the red again, down 1.3 percent.

China’s Shanghai Composite index fluctuated Wednesday before ending the session lower by 1.3 percent.

Read more: CNBC US Home

				CNBC US Home Get latest business news on stock markets, financial & earnings on CNBC. View world markets streaming charts & video; check stock tickers and quotes.
				View on www.cnbc.com	Preview by Yahoo

With the global economy in shambles, IMF’s Ms. Christine Lagarde’s statement on Greece is particularly revealing:

To read Ms. Lagarde’s statement, click image to enlarge

Key points are:

1) Per Lagarde, “of critical importance for Greece’s ability to return to a sustainable fiscal and growth path”, “the specification of remaining parametric fiscal measures, not least a sizeable package of pension reforms, needed to underpin the program’s still-ambitious medium-term primary surplus target and additional measures to decisively improve confidence in the banking sector—the government needs some more time to develop its program in more detail.”

In other words, the path to Eurogroup’s 3.5% long term primary surplus target on which everything (repeat – everything) as far as fiscal targets go, hinges is not yet specified in full. The Holy Grail is not in sight, yet…

2) “…I remain firmly of the view that Greece’s debt has become unsustainable and that Greece cannot restore debt sustainability solely through actions on its own. Thus, it is equally critical …that Greece’s European partners make concrete commitments in the context of the first review of the ESM program to provide significant debt relief, well beyond what has been considered so far.”

In simple terms, for all the lingo pouring out of the Eurogroup tonight, Greece has not been fixed, its debt remains unsustainable for now and the IMF – which ESM Regling said tonight will be expected to chip into the Bailout 3.0 later this autumn – is still unsatisfied with the programme.

“Significant debt relief” – off the table so far per Eurogroup – is still IMF’s default setting.