What’s behind China’s stock market meltdown? – Counting the Cost
For the second time in a week stocks have fallen on China’s stock exchanges, causing an emergency shutdown and intensifying concerns about the health of the world’s second largest economy.\n\nTrading was frozen on both the Shanghai and the Shenzhen stock exchanges on Monday and Thursday after stocks plunged by more than 7 percent.\n\nThe drop, which is being linked to poor economic figures, tensions after North Korea’s nuclear test and the spat between the Arab world and Iran, comes amid further data showing that China’s economy is slowing down.\n\nBut what is heightening fears is that markets have continued to fall despite government intervention.\n\nThe feeze in trading, also known as a \”circuit breaker\” was introduced last summer after more than $3.2 trillion was wiped off China’s markets in three weeks – an amount more than 10 times the size of the entire Greek economy.\n\nIn theory the circuit breaker should curb volatility, but it seems this week’s losses may have been triggered by a depreciation in the Chinese currency, the Yuan.\n\nCharles Horne, an economy portfolio manager with consultancy firm China Policy, joins Counting the Cost to discuss the currency devaluation and the general lack of confidence in the Chinese economy.\n\nSaudi-Iran and the coming ‘Oil Wars’\n\nRelations between Saudi Arabia and its regional rival Iran have reached an all-time low after Riyadh severed diplomatic ties with Tehran.\n\nThe escalation in tensions came just a few days after the kingdom controversially executed a prominent Shia cleric.\n\nRegional heavyweights, both countries hold one-quarter of the world’s proven oil reserves, but have been battling over regional influence.\n\nMamdouh Salameh, an international oil economist and a World Bank consultant on energy, joins the programme to discuss the Saudi-Iran crisis and whether oil could become the frontline in a new Cold War.\n\nSri Lanka opens doors to foreign investors\n\nTwenty-five years after a brutal civil war, Sri Lanka is beginning to see a big increase in tourism numbers.\n\nIn 2015, almost 1.8 million people came to the formerly troubled island, up nearly 18 percent on 2014.\n\nElected a year ago, the government is now trying to turn Sri Lanka into a destination for foreign investors – the most important being foreigners. Individuals and companies will now be allowed to own Sri Lankan land.\n\nAnushka Wijesinha, the chief economist at the Ceylon Chamber of Commerce, joins the programme to discuss the new investment drive.\n\n- Subscribe to our channel: http://bit.ly/AJSubscribe\n- Follow us on Twitter: https://twitter.com/AJEnglish\n- Find us on Facebook: https://www.facebook.com/aljazeera\n- Check out our website: http://www.aljazeera.com/
NASDAQ and NYSE sue SEC over plans to reorganize access to stock data
Nasdaq Inc and the New York Stock Exchange (NYSE) are suing the US Securities and Exchange Commission (SEC) in an effort to block the regulator’s plans to review publicly available data feeds that broadcast stock prices to investors, as evidenced by court documents.
According to the SEC’s plan, approved in December, supply and demand data for shares will be added to public (public) channels, which will increase access to information that exchanges are currently selling to professional traders at a premium..
«Nasdaq believes the SEC has exceeded its mandate by adopting an ill-considered redesign of the market structure», – said a Nasdaq spokesperson in an email. The statement says that this plan «will make the stock markets too complex and increase hidden costs for investors».
The documents were filed with the United States Court of Appeals for the District of Columbia (U.S. Court of Appeals District of Columbia Circuit).
The Wall Street Journal reported that Cboe Global Markets, which operates the Chicago Board Options Exchange (CBOE), has also sued the SEC over the matter..
This lawsuit is the latest legal action taken by exchanges against the SEC in recent years, including successfully challenging the SEC’s proposed experiment to limit trading fees for 1,400 different shares..
The SEC is also looking into other claims. In October, Citadel Securities sued the Securities and Exchange Commission for its decision to approve a new stock trading mechanism for exchange operator IEX Group Inc.