China is eating through its FX reserves at the fastest rate since January

• Ben Moshinsky
 

• 4h
• 1,235

A giant panda takes its food as it holds a chunk of ice during a hot summer day in Wuhan, Hubei Province, China, July 26, 2016.China Daily/via REUTERS

China is working through its foreign exchange reserves at the fastest rate since January.

China's reserves dropped by $45.7 billion (£36.8 billion) last month to $3.121 trillion, according to data released by the People's Bank of China, hitting the lowest level since March 2011.

China's FX reserve figures came in slightly lower than analysts forecasts of $3.13 trillion, according to a Bloomberg survey.

The country's dollar pile has receded from a record $4 trillion in June 2014.

Here is the chart:

Investing

While the drop was severe, it was less dramatic than some expected. 

Here is what analysts at Macquarie had to say (emphasis ours):

"It’s not too surprising though, given the RMB has resumed the depreciation against the US$ since May. Due to the rising depreciation expectation recently, outflow pressure is set to linger."

With the dollar relatively strong, China's yuan currency faces pressure to depreciate. China has pursued a policy of selling dollars and buying yuan to slow the depreciating effect of capital outflows on its currency.

The US dollar index — heavily influenced by movements in the euro and Japanese yen — has jumped around 2.8% in October, leaving it at the highest level seen since mid-March.

Over the same period, the US dollar has strengthened by 1% against the yuan. In January, Chinese stock markets crashed, raising concerns about the country's financial stability and sparking capital outflows. This increased pressure on China to depreciate its currency and so policymakers accelerated 

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More: China Currency Dollar Yuan 

Europe's recovery STILL can't get off the ground

• Will Martin
 

• 6h
• 298
 
• 1

REUTERS/Hannibal Hanschke

The eurozone's recovery is still struggling to get off the ground, and remains "sluggish," according to the latest PMI data from IHS Markit released on Friday morning.

Markit's final composite PMI figure for the eurozone — a measure of growth in the continent-wide economy — confirmed a reading of 53.3 in October. 

That was a significant rise from September's reading of 52.6, but was a little lower than the 53.7 flash reading from last week, and remains low in the grand scheme of PMIs.

The purchasing managers index (PMI) figures from Markit are given as a number between 0 and 100. Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the better.

So, while the eurozone is still growing, what is worrying are the comments of IHS Markit's Senior Business Economist Chris Williamson in a release alongside the data. 

Williamson argued that the political uncertainty in Europe right now, surrounding things like Brexit, and upcoming elections across the continent, means that businesses are worried about, which in turn is stunting growth.

Here is what he had to say (emphasis ours): 

"The weaker than previously indicated expansion in October raises doubts about whether the eurozone is breaking out of the sluggish growth phase seen throughout much of this year.

"The October PMI signals a mere 0.3% GDP growth rate, suggesting the fourth quarter could see growth unchanged on that seen in the second and third quarters despite the ECB’s further efforts to stimulate the economy."

Williamson continues, noting that growth across different parts of the continent is vastly different:

"It’s a mixed picture of performance within the single currency area. Germany has revived to return as the major growth driver, with the October PMI signalling a 0.5% quarterly GDP growth rate. Spain is also enjoying a growth rate of 0.6-0.7% as the PMI edged higher. In France, although the rate of expansion slowed in October, recent months have seen the best performance for a year.

"Italy is a major concern, however, with growth having ground almost to a halt amid growing political uncertainty. Similarly, while Ireland’s PMI remains consistent with GDP rising at a quarterly rate approaching 1%, that’s down sharply from earlier in the year as worries mount about the potential impact of Brexit."

Here is the full scoreboard of PMIs:

• Services PMI — 52.8 (53.5 expected)
• Composite PMI —  53.3 (53.7 expected)

And here is IHS Markit's chart:

IHS Markit

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Starbucks jumps as revenue tops estimates

• Lisa Baertlein and Arathy S Nair, Reuters

• 18h
• 1,232
 
• 1

Starbucks CEO Howard Schultz speaks during the company's annual shareholder's meeting in Seattle, Washington Thomson Reuters

(Reuters) - Starbucks Corp reported higher-than-expected quarterly revenue, while sales at established cafes in its Americas region matched Wall Street's expectations, sending its shares up as much as 6.7 percent in extended trading.

Same-store sales for the U.S.-dominated Americas region were up 5 percent, matching estimates compiled by Consensus Metrix. The Americas region produces the lion's share of Starbucks sales.

Net income attributable to shareholders rose to $801 million, or 54 cents per share, in the fourth quarter ended Oct. 2, from $652.5 million, or 43 cents per share, a year ago.

Excluding items, the company earned 56 cents per share.

Total revenue rose to $5.71 billion from $4.91 billion, topping the average expectation of $5.68 billion, according to Thomson Reuters I/B/E/S.

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Shares of the world's largest coffee chain were up $1.4 at $52.49 in after-hours trading.

(Reporting by Lisa Baertlein in Los Angeles and Arathy S Nair in Bengaluru; Editing by Bernard Orr and Saumyadeb Chakrabarty)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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12 of the most beautiful new buildings in China

• Melia Robinson
 

• 12h
• 22,331

The Harbin Opera House.MAD

Chinese architecture has always been loud, from the ornate pagodas that once housed family dynasties to the unusually shaped skyscrapers that inspired a ban on "weird buildings."

In recent years, contemporary buildings have cropped up on the glittering skylines of Beijing, Shanghai, and Hong Kong, and as far as the remote provinces south of Mongolia. These new developments add elegance and simplicity to the country's architectural portfolio.

We rounded up the most striking new buildings across China.

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Step aside, Sydney. The Harbin Opera House rises from the wetlands of the Heilongjiang province as though it were sculpted by wind. It blends seamlessly with the environment.

MAD

Architect: MAD

Year completed: 2015

Source: Forbes

When not obscured by fog, the Shanghai Tower stands out as one of the most beautiful skyscrapers in the world. The 127-story glass pillar appears to twist toward the sky.

The Shanghai Tower is situated furthest to the right.Shutterstock

Architect: Marshall Strabala

Year completed: 2015

Source: Business Insider

The Han Show Theater's squat, paper-lantern shape is made beautiful by an intricate, red mesh. The building's LED bulbs reflect on the lake at night, lighting up Wuhan, Hubei.

Stufish Entertainment Architects

Architect: Stufish Entertainment Architects

Year completed: 2014

Source: Housely

The Wuhan Revolution Museum opened in 2011 to commemorate the 100th anniversary of the rebellion that topped the Qing Dynasty. The V-shaped center cost $50 million to build.

iStock

Architect: CADI

Year completed: 2011

Source: China Daily

Beijing's Galaxy SOHO is a retail and office complex composed of swirling, egg-shaped masses. There are no corners or sharp transitions, giving it a futuristic vibe.

Reuters/Jason Lee

Architect: Zaha Hadid

Year completed: 2012

Source: Zaha Hadid

The Shanghai World Financial Center marks a departure from the norm with its elegant simplicity. A skywalk on the 100th floor provides unparalleled views of the financial capital.

The Shanghai World Financial Center is situated at left.iStock

Architect: William Pedersen

Year completed: 2008

Source: Architect Magazine

The headquarters for Shanghai gaming company Giant Interactive Group look torn from a video game. The colossal structure works with the environment, instead of fighting it.

Morphosis Architects

Architect: Morphosis Architects

Year completed: 2010

Source: Wired

The once flush-with-cash town of Ordos has been called the world's largest ghost town. Its masterpiece, the Art & City Museum, appears to float over a waving sand hill.

Ordos Museum By MAD Architects© iwan baan 03

Architect: MAD

Year completed: 2011

Source: Business Insider

Created by famed Chinese artist Ai Weiwei, the Bird's Nest stadium served as the centerpiece of the 2008 Summer Olympics Games. Its upkeep costs $11 million a year.

Shutterstock/Lu Jinrong

Architects: Jacques Herzog and Pierre de Meuron

Year completed: 2008

Source: NPR

You won't find a gold dome on top of the capital building in China's Zhejiang province. Instead, a park sits above the Congress Center Hangzhou's steely structure.

Jan Siefke/Peter Ruge

Architect: Peter Ruge, Matthias Matschewski, and Nicole Kubath

Year completed: 2010

Source: ArchDaily

The horseshoe-shaped Sheraton Huzhou Hot Spring Resort, also called the Moon Hotel, pays tribute to the traditional bridges depicted in old Chinese paintings.

MAD

Architect: Ma Yansong/MAD

Year completed: 2013

Source: Dezeen

The National Grand Theater features a titanium shell that, in the right conditions, casts a reflection on the lake that forms a perfect egg. Light streams through the glass roof.

iStock

Architect: Paul Andreu

Year completed: 2007

Source: ArchDaily

SEE ALSO: China put a ban on what it calls 'bizarre architecture' — here are 14 of the strangest examples

More: Features BI Innovation Architechture China 

Stocks just did something that we've never seen outside of a financial crisis

• Akin Oyedele
 

• 3h
• 23,278
 
• 8
 

The S&P 500 closed down for a seventh straight day on Wednesday. 

It's only the fourth time in the last 20 years that this has happened. But every other episode was a reaction to the European debt crisis or the collapse of Lehman Brothers in 2008, according to Callie Bost, a listed derivatives analyst at Tabb Group.

The benchmark index has lost about 2% since October 27. A combination of mixed earnings results at the peak of the third-quarter reporting season, as well as tightening in election polls ahead of next Tuesday's election, are among the things traders have focused on.Markets Insider

What makes this decline slightly more unusual is that normally early November is when we see the best five days of the year.

In a post last week, LPL Financial Research said the best five days of the year are usually the trading sessions after October 28. In fact, based on average returns since 1950 shown in the chart below, it's unusual for the market to have a down finish to October or a weak start to November. 

But of course, unlike the weather, the stock market does not move primarily based on the time of year.

LPL Financial

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