A look at China

The biggest economic problem for global markets at the moment is neither Greek drama or conflict between the West and Russia or slow recovery in the euro area. This is China.

Over the weekend, the second largest economy in the world continued with the series of bad news.

While consumer price inflation increased in July, which is not good news for domestic consumption, the collapse of producer prices continues.

The consumer price index has increased by 1.6% yoy, after rising 1.4% in June. At the same time production prices fell by 5.4% compared to a decrease of 4.8% the previous month.

China's foreign trade has also continued to deteriorate. Exports decreased by 8.3% compared to 195.1 billion dollars in July 2014, while imports declined by 8.1 % to 152.07 billion dollars. The trade surplus decreased by 10% to 43.03 billion dollars.

These data deepened concerns that the Chinese economy is heading towards crisis. Globally the country is the biggest consumer in copper, gold, steel and many other goods.

Russian ruble falls

For first time in the last six months the Russian ruble depreciated again. Yesterday it worth 70 rubles for one euro and 64 rubles per $ 1. Experts predict that the decline may continue because of the depreciation of the oil and Western sanctions against Moscow.

The currencies of many developing countries, especially those that export oil and gas continue to depreciate because of the worsening situation in China and the increase of the dollar.

In late July the Central Bank of Russia announced that reduces the base interest rate in the country by 50 basis points to 11%. This decision aims to boost the Russian economy.

Facebook introduced new service for business users

Facebook introduced a new service that allows business companies to communicate directly with customers  through private messages. With this step the company in trying to separate the message application and to set up new platform.

The business companies now have the opportunity to include a button "send message" in their ads that appear in the toolbar. This allows them to send messages that are personal.

For example, if a user posts a comment on the business page on Facebook, the respective company can send a private message to the user.

The innovation is part of the experience of the social network to convince more small and medium- sized business companies, especially those in developing economies like India, Brazil and Indonesia, to publish ads on its platform.

Uncertainty on the stock markets in USA today

The beginning of US session today started with great uncertainty. The day began with profit taking from short positions as risk appetite was supported by fundamental news. But at the same time the stock market consolidation continues.

Indicative of this is the movement of Apple’s shares. The tech giant depreciated for a fifth consecutive day. Today, the company lost 3.91% on the market capitalization, after yesterday fell by 2.4 percent. Shares passed two technical levels of support and are situated on 6-month low. And behind the corrective movement there are not standing bad financial results or forecasts.

In fact, the market is preparing for the expected change in monetary policy by the Fed in September. Rising interest rates will affect export companies, financial institutions, retailers, virtually the entire American economy.

Apple may become mobile operator

Apple is negotiating with several telecommunications companies for the creation of their own virtual mobile operator in the US and Europe. Sources close to the corporation claimed that it had already tested a similar service in the US, reports Business Insider.

If the project is implemented, Apple will be able to provide services to the owners of the iPhone, using the infrastructure of existing operators, under their own brand. It seems logical step after the release of iPad Air and iPad Mini 2 3 with the new SIM card working with several operators, including global GigSky.Earlier this year, Google launched a similar project. Project Fi now works for the owners of the smartphone Nexus 6.

USD slowed its rise in anticipation of new economic data

The dollar recorded greater losses on Friday when several weak report from the US provoked misgivings that the Fed may slow the interest rates increase. The greenback took a breather in the early morning yesterday amid hopes that the data on personal spending and business activity will return positive sentiment among investors.

On Friday the euro recorded solid gains against the dollar, but failed to hold to the end of the day. The greenback came under pressure after several weaker reports about the US economy, including that of gross domestic product, and this hesitated the investors.

Analysts believe that the dollar may return to profits this week, if supported by the upcoming macroeconomic news from the US. Later today will be presented the data of ISM regarding the manufacturing activity and with highest interest is expected the report on the change in non-agricultural employment, which will be published on Friday.

Another important event of the week will be associated with the meeting of the Bank of Japan, which will also be held on Friday. Set by the institution aims for growth in inflation does not justify in any way and the market participants expect to see a further expansion of the incentives. Such attitudes had previous meetings of the central bank, but for the moment the institution to refrain from this move.

The Canadian economy shrank by 0.2% in May

The Canadian economy continues to shrink for a fifth consecutive month in May, as gross domestic product decreased by 0.2% to 1.64 trillion Canadian dollars. 

Analysts had expected zero change indicator, after falling by 0.1 percent in April.

Over the outcome prevailed the weak performance of oil and gas, wholesale and industrial production. Production of durable consumer goods decreased by 2.4% and non-durable - by 0.7 percent. In general, the industrial production is down by 1.7%.