financializer news A weblog highlighting financial topics making news in the international media.

Fortescue: Energy stocks and resources took a hit, with Fortescue down 6 per cent, BHP down 2.1 per cent and Santos down 6.6 per cent, according to Australian Broadcasting Corporation. The banks too closed lower, with the ANZ recording the biggest losses at just over 3 per cent. The ASX 200 closed down 110 points or 2.2 per cent at 5,096, while the All Ordinaries finished down just over 2 per cent to 5,117. Department store Myer reported a 70 per cent drop in net profit to $30 million. Despite recent volatility in the markets, the Reserve Bank kept the official interest rate on hold at 2 per cent as expected. It announced a five-year $600 million turnaround plan involving closing underperforming stores, cutting costs and enticing customers with new brands like Topshop. (news.financializer.com). As reported in the news.

pediatric neurosurgeon: While the bombastic real estate tycoon dominates much of the GOP field, the retired pediatric neurosurgeon with a calm bedside manner is quietly emerging as a serious presidential contender, according to CNN. Carson is tied with Trump for first place in a new Monmouth University survey of likely Iowa Republican caucusgoers, with the rest of the field lagging by double digits. Here comes Ben Carson. The Carson surge comes as Trump has set the terms of debate for the past two months, forcing other candidates to shift their focus and decide whether -- and how -- to fight back against his constant attacks. But the challenge is whether he is the Republican who could topple Trump, and move beyond the cult-of-personality phase of the campaign to create a lasting coalition energized more by substance than style. "The most important number right now is his net favorability, which is about popularity and personality. Carson, who was awarded the Medal of Freedom for his groundbreaking surgical work, is charting his own unorthodox campaign, running as a mild-mannered culture warrior with an inspirational biography. (news.financializer.com). As reported in the news.

Federal Reserve: ET, the Dow was down 428 points at 16,099, according to MSNBC. The New York Stock Exchange invoked a rarely used rule designed to smooth out volatility in the markets. At 2:10 p.m. Data out overnight in China showed manufacturing there shrinking at the fastest pace in three years. American investors are also nervous about the prospect that the Federal Reserve will raise interest rates soon. China is an engine of the world economy and a major market for American goods. (news.financializer.com). As reported in the news.

China: And Australian shares look set to open sharply lower after international markets tumbled following China manufacturing data which gave further indications that the world second-largest economy is slowing, according to Nine News Australia. At 0645 AEST on Wednesday, the September share price index futures contract was down 67 points at 4,991. At 0630 AEST on Wednesday, the currency was trading at 70.24 US cents, down from 71.08 cents on Tuesday. SHANGHAI - China is urging listed companies to merge and restructure, according to an official statement, as the government seeks to avert a stock rout and encourage investors to return to the market. NEW YORK - World oil prices have tumbled as poor manufacturing data in China, the world largest energy consumer, hammered the outlook for demand and shook market confidence. BEIJING - Further signs of slowing in the world second-biggest economy has sent shudders through global markets, adding to the worldwide sense of crisis over China financial management. (news.financializer.com). As reported in the news.

investors: The S&P 500 fell 16 points, or 0.8%, to 1,972, according to The Guardian. The Nasdaq composite slid 52 points, or 1.1%, to 4,776. Related:Rattled investors brace for big week as Federal Reserve considers rate increase The Dow Jones industrial average fell 114 points, or 0.7%, to 16,528. The falls came as investors reacted to similar dips in Asia and comments from the Federal Reserve vice-chairman, Stanley Fischer, over the weekend that suggested a rate increase could come sooner than some expected. It has fallen 12.5% this month, the third straight month of declines. In China, where a journalist from one of China leading financial magazines confessed on state television that his articles triggered the recent stock market chaos, the Shanghai Composite Index closed 0.8% lower on Monday. (news.financializer.com). As reported in the news.

Erdogan: Koza Ipek is aiding Gulen terrorist organisation and disseminating its propaganda, state-run Anadolu agency said citing police, according to Business Week. The raids are the latest step in Erdogan campaign against Gulen which started following a series of police probes into government corruption in 2013. Police on 1 September raided Ankara headquarters of Koza Ipek Holding, a conglomerate linked to Erdogan former ally and now biggest rival, the US-based cleric Fethullah Gulen. Erdogan said Gulenists within state institutions were trying to unseat him with false allegations and purged tens of thousands of civil servants in retaliation. Erdogan wants to silence critical media ahead of the November elections, said Anthony Skinner, head of analysis for the Middle East and North Africa at U.K.-based forecasting company Verisk Maplecroft. Opposition party CHP lawmaker Baris Yarkadas said the crackdown will widen to target other papers critical of Erdogan as he prepares for Nov. 1 general elections key to his ambitions to accrue more powers to the presidency. (news.financializer.com). As reported in the news.

plant equipment: Related:Lagarde warns of Chinese slowdown as markets slide again - live updates The Nikkei share index in Japan closed down 3.8%, worsened by figures which showed Japanese firms are not investing in new plant and equipment because of concerns about demand from China, according to The Guardian. The Chinese and Hong Kong stock markets were also in the red. Two closely watched barometers of factory activity released on Tuesday were at multi-year lows, reviving concerns about the state of the country economy which caused a major sell-off on the world financial markets last week. The Shanghai Composite index was down 1.2%. In Korea, the Kospi index was down 1% after worse than expected export figures and in Australia the ASX200 index closed down 2.12% as economic growth threatens to dip into negative territory for the latest quarter when figures are released on Wednesday. The index, compiled by the Chinese Federation for Logistics and Purchasing, is based on a 100-point scale on which numbers above 50 indicate expansion. China official manufacturing index based on a survey of factory purchasing managers fell last month to 49.7, the lowest level since August 2012, from 50.0 in July. (news.financializer.com). As reported in the news.

national symbol: The current New Zealand flag, according to CNN. Culled from a pool of over 10,000 submissions by an aptly named "Flag Consideration Panel," three of the four final designs feature a prominent fern leaf -- a national symbol that also recalls a flag popular among the country rugby fans. The island nation government unveiled the shortlisted designs at a ceremony Tuesday, a key step in a multi-million-dollar campaign to replace the current flag that Prime Minister John Key has complained looks too much like Australia national emblem. The fourth design features a black and white koru -- a Maori symbol reminiscent of curled fern frond. A disgrace' But New Zealanders haven't shown a great deal of enthusiasm for change. New Zealanders will get to make their choice later this year -- and the winner will face off in a poll against the current flag in 2016. (news.financializer.com). As reported in the news.

Mel Charles: The Welsh had knocked out Hungary and struck the bar and the post three times against the Brazilians in Gothenburg, according to The Independent. When they returned, it was to indifference. Wales had reached the quarter-finals before being narrowly beaten by Brazil. I don’t think anyone in Britain knew we were playing, Mel Charles remembered. They are not indifferent now. I can’t recall seeing a single Welsh fan in Sweden. (news.financializer.com). As reported in the news.

foreign investors: The changes include reducing the amount of registered capital foreign investors need to hold before buying real estate and allowing China-based foreigners and companies to buy multiple properties, provided local government housing rules allow them to, according to Euro News. The move is seen by property experts as an attempt by Chinese authorities to stem the flow of capital leaving the country, with foreign investors unnerved by recent gyrations in the country stock market and the unexpected devaluation of the yuan. China announced last week that it was removing a series of cumbersome pieces of regulation on foreign property investment introduced in 2006 that have hindered investors from accessing what was once viewed as one of the most attractive real estate markets in the world. But foreign institutional property investors say while the reforms are welcome, clouds over China growth outlook and concerns the yuan may be devalued further mean worries about the economy trump changes to investment rules. Until two years ago China property market had the perfect combination of attributes for foreign real estate investors- a strengthening currency, climbing rents and rising prices. Potential foreign buyers will likely be concerned about the subdued China economic outlook and a softish renminbi, said Grosvenor Asia Pacific Greater China investment managing director Yu Yang in Hong Kong. (news.financializer.com). As reported in the news.

mutual funds: One manager at a major fund – part of the national team of investors and brokerages charged with buying stocks to revive prices – said a friend, also an executive at a large fund, was recently summoned for a meeting with regulators, along with all other mutual funds that had engaged in short-selling activity, according to Euro News. If I don’t come back, look after my wife, his friend told him, handing the manager his home telephone number. Chinese fund managers say they have come under increasing pressure from Beijing as authorities’ attempts to revive the country stock markets hit headwinds, with some investors now being called in to explain trading strategies to regulators every two weeks. China has unleashed a volley of measures to try to prop up its stock markets <.CSI300> <.SSEC> that have fallen around 40 percent since mid-June, pushing domestic brokerages and fund managers to buy up shares and banning investors with large stakes from selling their holdings for six months. Adding to those concerns is the fact that authorities have also been probing investment funds’ trading strategies, looking into whether they have been engaging in alleged malicious short-selling or market manipulation. The authorities’ meddling has unnerved many investors, leaving them questioning China commitment to liberalising its capital markets and the long-term future of the country stock markets themselves. (news.financializer.com). As reported in the news.

price oil: In addition to the GDP number showing contraction in the second quarter, Canada benchmark stock index was also dragged lower by oil prices that came back down to earth after a huge jump on Monday, according to CBC. The price of a barrel of oil lost more than $4 to trade just above the $45 US a barrel level when stock markets closed in North America. The S&P/TSX Composite Index closed at 13,481, down 377 points. The TSX is closely correlated to fluctuations in the price of oil, as many of the index heaviest hitters are tied to energy prices. Weakness in U.S. stocks was more based on some fresh numbers out of China showing an index of the country factory purchasing managers dropped to a reading of 49.7 points in August. So, too, is the loonie, which shed a quarter of a cent to 75.71 cents US. U.S. stocks also sold off, with the Dow Jones down 469 points to 16,058. (news.financializer.com). As reported in the news.

accounting practices: President Masashi Muromachi, who took charge after three of his predecessors left following a July third-party report on accounting practices at the company, had said he might quit if the new deadline was missed, according to The Japan Times. The second delay of earnings, initially due in May, comes after internal and external probes of the industrial group accounting led to the resignations and caused at least ¥145 billion in writedowns. The industrial group obtained permission from the securities regulator to postpone the report due Monday until Sept. 7. Toshiba said Monday it discovered irregularities in percent-of-completion accounting related to a U.S. hydro-power unit construction project. They need to report as soon as possible. One week delay is not such a big deal, but that another week of uncertainty, said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. (news.financializer.com). As reported in the news.

Trump Tower: But when Bush took office in 1999, Trump didn't get the political help he needed to make his casino dreams a reality in the Sunshine State, according to CNN. Instead, Bush maintained his hardline stance against gambling in the state, delivering a death blow to Trump hopes of building out a multi-million dollar casino endeavor with the Seminole Tribe of Florida and prompting him to abandon those plans. "It certainly had a chilling effect," Doug Guetzloe, a Florida political consultant who worked for the gaming giant Bally Entertainment in the '90s, said of Bush election. "Gov. He did so for Jeb Bush in 1998, holding a high-dollar fundraiser for the gubernatorial candidate in Trump Tower and shelling out $50,000 to the Florida Republican Party. Bush made it clear to everyone that he was not interested in having casinos in the state of Florida ... the word definitely went through." As Trump and Bush now lock horns in their fight to secure the Republican presidential nomination, the casino episode illustrates that the animus between the two men took root far before the 2016 race. Petersburg Times, now Tampa Bay Times, in 1999, referencing the three failed referendums to approve casino gambling. Florida laws prevented casinos from expanding their offerings from bingo-style games to wider gambling operations, and when Bush was elected in 1998, he made clear none of that would happen on his watch. "I am opposed to casino gambling in this state and I am opposed whether it is on Indian property or otherwise ... The people have spoken and I support their position," Bush told the St. (news.financializer.com). As reported in the news.

Ibrahim al-Assaf: An official said this month 16 per cent which accounts for more than 90 per cent of revenue, has more than halved in price over the past 12 months, putting pressure on the finances of the Arab world largest economy and its currency, according to Business Week. While officials have been silent about the government seeking advice on budget cuts, two people familiar with the matter said this week the kingdom is looking into shelving billions of dollars of spending. Al-Harki already lost 40 per cent on his shares, but doesn’t want to sell before the Saudi government tells him how it plans to address the Gulf nation biggest economic challenge for years. King Salman, who came to power in January, was in Morocco on holiday in late August. Finance Minister Ibrahim al-Assaf ministry declined to comment on the latest economic developments. The last public appearance of his son, Deputy Crown Prince Mohammed, chairman of the Council for Economic and Development Affairs, was on 10 August, according to the official SPA news agency. (news.financializer.com). As reported in the news.

Hong Kong: Prices in Dubai fell 2.8 per cent in the second quarter, according to Business Week. Hong Kong was the best performing residential market, with prices up by 20.7 per cent. The decline in the twelve months through June was the biggest in 56 mainstream residential markets and larger than the 12 per cent fall in real estate prices in Ukraine, which has been hit by almost two years of protests, a separatist insurgency, and political upheaval, Knight Frank said on 1 September in a report. Over the past decade, Dubai property market has swung from boom to bust and back again. Then, prices started falling again this year amid oil slump and weaker currencies in Russia and Europe. Price gains in the two years through 2014 recouped much of the losses incurred in a 2008 collapse that pushed the city to the brink of bankruptcy. (news.financializer.com). As reported in the news.

Dan Holst Pellekaan: Mineral Resources spokesman Dan van Holst Pellekaan said the Government 10-point economic plan included a pledge for big increases in mineral and energy resources exploration, according to Australian Broadcasting Corporation. But he said the latest figures show a 60 per cent fall in mineral exploration compared with a year ago. Map: Adelaide 5000 The South Australian Government predictions relating to mining exploration ignored global trends that pointed to a downturn, the Opposition has said. Mr van Holst Pellekaan said it should have been obvious that the targets would not be met. "I find it incredibly concerning that the State Government predicted jobs increase and an increase in investment in exploration when in the two years leading up to them making that prediction international prices had fallen," he said. "Even the most simple of analyses would have made it very clear the promises that the Government made were not going to be fulfilled." Mineral Resources Minister Tom Koutsantonis said the state was not immune to global and national shifts in confidence. Mine uncertainty hurting farming community Meanwhile, Yorke Peninsula farmers say the State Government decision to grant Rex Minerals another year to submit environmental protection program and social management plan, for the open-cut gold, copper and iron ore mine, has left them in limbo. He said the Government was supporting the industry through a tough time, with the budget including targeted tax relief for mineral explorers and a doubling of a program which helped with mineral surveys, mapping and drilling. (news.financializer.com). As reported in the news.

housing market: Its "bear case" scenario has the ASX200 tumbling to 4,200 points, a 14 per cent fall from current levels on top of the 12 per cent slide the market has endured since its April peak. "The bear case is one centred on recession risk, while the bull case is one of significant fiscal policy reversal — which at present seems an elusive ideal rather than a tangible option," Morgan Stanley told its clients. "Our Base case for the next 12 months for Australia is one of increasing stagnation in both economic activity and corporate earnings profiles." The Morgan Stanley thesis is that the unwinding resources boom will continue to have a negative impact on industrial sectors while the housing cycle may have already peaked, according to Australian Broadcasting Corporation. Morgan Stanley Chris Nichol said: "Australia growth dynamic looks familiar on the surface, but with housing now being reined in, we disagree with the consensus that 'next year will be better'." "Policymakers are now putting the brakes on the housing market through macro-prudential policy measures, and we expect they will prove successful in slowing price growth and construction activity, with some impact on related-consumption into 2016. "Our Bear case scenario is one that is filled with stagnation and recession — a scenario that has an economy stalling under the weight of a resource unwind that relies too much on housing as the only game in town." Morgan Stanley five lessons from reporting season Caution to remain in outlooks: Morgan Stanley said there was little incentive for companies to provide upbeat outlooks. After a disappointing reporting season, Morgan Stanley strategy team has cut its 12-month forecast for the key ASX200 index from 5,650 to 5,150 — a downward revision of 9 per cent — roughly in line with current levels. Anxieties in Europe over Greece, coupled with a volatile situation with a cooling China and a stagnating domestic economy have conspired to deliver an overwhelming message of caution. Watching offshore earners: The Australian dollar remained remarkably resolute through the recent bout of China inspired global volatility, only showing a degree of weakness last week. The banks need to raise more capital while earnings are under pressure: "With ANZ and CBA raising equity over the season, the need and outlook for capital was well crystallised for investors," Morgan Stanley bank analysts noted."The ANZ update confirmed that credit quality should be assessed keenly; this, combined with a regulated slowdown in lending growth means the upgrade cycle is well and truly over". Resources: Morgan Stanley Chris Nichol said resource companies now look cheap, but without some stability — or indeed positive momentum — in the commodities they sell, the much-looked-for rotation into this sector remains elusive. (news.financializer.com). As reported in the news.

Megan: The top 15 world unfriendliest cities Christy emailed the radio station, revealing that Megan was an ex-girlfriend and she'd written the note in a bid to get her back, according to The Independent. Megan was the name I used to call my ex girlfriend. In a twist of fate, Irish radio station Today FM managed to track down Christy to find out the whole story. We went out for a year and a half. Then it stuck. The name arose from when I misheard her name and thought she was Megan for our first week of dating. (news.financializer.com). As reported in the news.

Brent U.S.: That came after oil prices dropped to their lowest in six-and-a-half years last week, according to Euro News. This roller-coaster volatility could continue especially if there are similar wild swings in the equity markets, said Ric Spooner, chief market analyst at Sydney CMC Markets. Brent and U.S. crude finished around 8 percent lower on Tuesday to end a 25 percent three-session surge, the largest three-day gain since 1990. Any change in sentiment tends to be amplified. U.S. stocks fell nearly 3 percent on Wall Street on Tuesday, with all three major U.S. equity indexes in negative territory for the year so far. Any change in direction in the oil markets has the potential to be risk driven by what going on in the equity markets, he said. (news.financializer.com). As reported in the news.

recession: But that slight monthly uptick wasn't enough to offset the contraction in the previous two months, which means for the second quarter as a whole, the economy shrank, according to CBC. Recession Knowing if we're in one matters: Don Pittis Alberta has lost 35,000 oilpatch jobs, petroleum producers say How a recession would shake up the election campaign The economy also shrank in the first quarter, which means Canada economy has met the bare minimum required before a recession is declared — two consecutive quarters of decline. The economy expanded by 0.5 per cent in June, Statistics Canada said. On an annualized basis, the economy shrank by 0.5 per cent in the April-to-June period, after contracting at an 0.8-per-cent annual pace in the first three months of 2015. The 'R' word Statistics Canada gross domestic product figures released today show the economy expanded in June, but declined by 0.1 per cent for the second quarter, meeting the bar of what is considered a recession. For comparison purposes, the U.S. economy expanded by 3.7 per cent during the same period, the data agency noted. (news.financializer.com). As reported in the news.

electoral system: The large crowds of protesters, which camped on Kuala Lumpur streets on the eve of the country National Day, also denounced the PM over an unpopular new good and services tax, and demanded reform of an electoral system they claim favors the powerful ruling party, the United Malays National Organization , which has controlled the multi-racial Southeast Asian nation through coalition governments since independence from Britain in 1957, according to Deutsche Welle. PM Najib denies any wrongdoing and has refused to heed the protesters' demands The PM, whose approval ratings have fallen sharply over the past year, has come under growing pressure in recent months over claims that $700 million were wired from the state-owned development company to his personal bank accounts. While police estimated the crowd size at 35,000, the organizers said more than 200,000 people came out in protest even after authorities blocked their website and banned yellow attire and the group logo. Najib, who set up the fund in 2009 that now faces debts totaling some $11 billion, serves as head of 1MDB advisory board. And while Malaysia anti-corruption agency recently confirmed that the controversial transfers had taken place, it said they had come from an unspecific source in the Middle East, and not 1MDB. But the statements have not succeeded in silencing the PM critics, with many analysts arguing that the weekend mass rally shows the extent of popular discontent with PM Najib. Growing discontent But Najib denies any wrongdoing and has refused to heed the protesters' demands, calling them "shallow-minded." A few weeks earlier he sacked his deputy and four other ministers in a cabinet reshuffle, and replaced the attorney general in what many view as a bid to stifle questions over the graft scandal. (news.financializer.com). As reported in the news.

: In Greater Vancouver, 572 homes above $3 million were sold in the month, compared to 319 a year ago, according to CBC. The highest price paid for a Greater Vancouver property was $17.5 million. In June 2015, there were 379 homes in that price range sold in Toronto, compared to 179 a year ago. In Toronto and Vancouver, the average cost of a detached home is in excess of $1 million and that is no longer considered a luxury price. He said the relative strength of the yuan, which wasn't devalued until mid-August, helped make most Canadian real estate affordable. Vancouver real estate prices not the fault of foreign buyers, says new report Vancouver real estate a bargain for Chinese investors, says China-based agent Re/Max brokers and agents reported luxury buyers, primarily from China, are typically families with children who are relocating to Canada to live. "While there has been a lot of concern about foreign investors in Canada housing market, we're seeing that the foreign buyers in our major luxury markets are living in their properties," said Gurinder Sandhu, executive vice-president of Re/Max Integra Ontario-Atlantic Canada. (news.financializer.com). As reported in the news.

housing market: Its "bear case" scenario has the ASX200 tumbling to 4,200 points, a 14 per cent fall from current levels on top of the 12 per cent slide the market has endured since its April peak. "The bear case is one centred on recession risk, while the bull case is one of significant fiscal policy reversal — which at present seems an elusive ideal rather than a tangible option," Morgan Stanley told its clients. "Our Base case for the next 12 months for Australia is one of increasing stagnation in both economic activity and corporate earnings profiles." The Morgan Stanley thesis is that the unwinding resources boom will continue to have a negative impact on industrial sectors while the housing cycle may have already peaked, according to Australian Broadcasting Corporation. Morgan Stanley Chris Nichol said: "Australia growth dynamic looks familiar on the surface, but with housing now being reined in, we disagree with the consensus that 'next year will be better'." "Policymakers are now putting the brakes on the housing market through macro-prudential policy measures, and we expect they will prove successful in slowing price growth and construction activity, with some impact on related-consumption into 2016. "Our Bear case scenario is one that is filled with stagnation and recession — a scenario that has an economy stalling under the weight of a resource unwind that relies too much on housing as the only game in town." Morgan Stanley five lessons from reporting season Caution to remain in outlooks: Morgan Stanley said there was little incentive for companies to provide upbeat outlooks. After a disappointing reporting season, Morgan Stanley strategy team has cut its 12-month forecast for the key ASX200 index from 5,650 to 5,150 — a downward revision of 9 per cent — roughly in line with current levels. Anxieties in Europe over Greece, coupled with a volatile situation with a cooling China and a stagnating domestic economy have conspired to deliver an overwhelming message of caution. Watching offshore earners: The Australian dollar remained remarkably resolute through the recent bout of China inspired global volatility, only showing a degree of weakness last week. The banks need to raise more capital while earnings are under pressure: "With ANZ and CBA raising equity over the season, the need and outlook for capital was well crystallised for investors," Morgan Stanley bank analysts noted."The ANZ update confirmed that credit quality should be assessed keenly; this, combined with a regulated slowdown in lending growth means the upgrade cycle is well and truly over". Resources: Morgan Stanley Chris Nichol said resource companies now look cheap, but without some stability — or indeed positive momentum — in the commodities they sell, the much-looked-for rotation into this sector remains elusive. (news.financializer.com). As reported in the news.

Richard Umbers: The company announced a $221 million entitlement offer to retail and institutional investors at 94 cents per share to fund the new strategy and reduce debt, according to Nine News Australia. In statements released today, CEO Richard Umbers said the company wanted to bring the love of shopping to life and build on the company proud heritage. Myer has announced a new strategy to attract customers, simply called "New Myer", after suffering a decline in full-year after-tax profit of $68.7 million. We are investing in New Myer over the next five years to deliver a fresh interpretation of our brand, a re-energised and relevant range, improved service and in-store experiences complemented by a strong Omni-channel offer, the statement read. Myer net profit after tax was $29.8 million for the year to July 25, a 69.7 percent decrease on the previous year.© ninemsn 2015finance National Email your news tips Do you have any news photos or videos Property news: Will buyers worship heaven sent property - realestate.com.au Career news: Why career success could be right beside you - news: New York 'Sky Garage' takes parking to the next level - realestate.com.au Career news: Do you really truly want to be a leader - seek.com.au He said the new strategy comes off the back of the introduction of new brands TOPSHOP, TOPMAN, Seed, French Connection and Nine West and improvements in store layout and the online store. (news.financializer.com). As reported in the news.

Federal Reserve: ET, the Dow was down 428 points at 16,099, according to MSNBC. The New York Stock Exchange invoked a rarely used rule designed to smooth out volatility in the markets. At 2:10 p.m. Data out overnight in China showed manufacturing there shrinking at the fastest pace in three years. American investors are also nervous about the prospect that the Federal Reserve will raise interest rates soon. China is an engine of the world economy and a major market for American goods. (news.financializer.com). As reported in the news.