Chinese Economy Crashes To 2-Year Low; China Stocks Plunge, Asian Stocks Test 2015 Lows

#AceNewsReport – Aug.03: Yet again the endless reasurance from the talking heads of the world is proven fallacious as the crash in China’s stock market has apparently crashed its economy. China’s Manufacturing PMI final print for July collapsed to 47.8 – its lowest since July 2013. The reaction is not pretty. China is down 4-8% from Friday’s highs (led by high beta high-flyers in ChiNext), most Asian markets are down 2-3%, and the broad MSCI Asia Ex-Japan index is once again testing the lowest levels of 2015. But apart from that, China is contained…

Economy collapsed… but but but the clever people on TV said it wouldn’t matter that stocks plunged?

Chinese stocks tumble…

As does most of Asia…

Which has smashed Asian stocks to their lowest in 2015…

Charts:Bloomberg

Original Article: http://www.zerohedge.com/news/2015-08-03/chinese-economy-crashes-2-year-low-china-stocks-plunge-asian-stocks-test-2015-lows

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Uber to spend $1B over nine months for India expansion

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#AceFinanceNews -Aug.03: The ride-hailing service says it wants to expand the number of rides it offers in India to a million each day, up from a reported 200,00 daily trips.
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Original Article: http://feedproxy.google.com/~r/cnet/tcoc/~3/gaTS3OHs-x0/story01.htm

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MARKETS: HSBC first-half profits up 10 percent on China investing frenzy

#AceMarketsNews – Aug.03: HSBC Holdings said its first-half profit climbed a better than expected 10 percent, driven by a strong performance in Hong Kong that comes as the bank considers moving its headquarters to the Asian financial hub.

HSBC first-half profits up 10 percent on China investing frenzy

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HSBC says to sell Brazil unit to Bradesco for $5.2 billion

#AceFinanceReport – Aug.03: In a statement released on Monday, HSBC said that the agreement includes the disposal of the HSBC Bank Brasil SA Banco Múltiplo and the HSBC Serviços e Participações Ltda units to Bradesco. The sale, which is subject to regulatory approval and was sealed on July 31, should be completed by June next year.

The purchase price, which could undergo adjustments to reflect the net asset value of both businesses, is way above what investors and analysts had expected. Reuters reported on July 20, citing a source with direct knowledge of the matter, that Bradesco had entered exclusive talks with HSBC for the unit and was willing to pay around 12 billion reais, or 1.2 times book value, for HSBC Brasil.

According to the statement, Bradesco paid about 1.8 times book value for the business. Bradesco, Brazil’s second-largest private-sector bank, is currently trading at about 1.5 times book value. Bradesco confirmed the purchase in a statement.

The acquisition allows Osasco, Brazil-based Bradesco to close the asset gap with state-controlled Caixa Econômica Federal and, especially, larger private-sector rival Itaú Unibanco Holding SA. HSBC Brasil’s focus on high-income customers fits well into Bradesco’s plan to ramp up sales of specialised financial services for the wealthy and larger corporations.

Strategy missteps coupled with rising competition turned the unit into a problem for HSBC Chief Executive Officer Stuart Gulliver, who in June laid out plans to slash nearly one in five jobs worldwide and fix operations which, like in Brazil, were grappling with operational underperformance, high compliance costs and fierce competition.

HSBC, which arrived in Brazil late in the 1990s, never gained enough size to pose a real threat to Itaú, Bradesco or Banco do Brasil SA, the nation’s top lender by assets. HSBC Brasil has 854 branches, 21,000 employees and about 170 billion reais in assets, or the equivalent of 2.3 percent of the outstanding assets of Brazil’s banking system.

(Editing by Gopakumar Warrier and Muralikumar Anantharaman)

HSBC says to sell Brazil unit to Bradesco for $5.2 billion

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