But the company’s debt issues have repercussions for the wider real estate sector, for China’s credit and equity markets, and for its economic growth model. 

Household spending and industrial production weakened in August, while property investment continued to lose steam. Our growth forecast for China faces downside risk.

After a poor 2020, 2021 is turning out to be one of the best years for some time in terms of the number of merger and acquisition deals.

Mario Draghi’s appointment as prime minister last February has brought some welcome stability to Italy and increased confidence in the country. We expect Draghi to remain in place until the end of his term in 2023, continuing to deliver on an unprecedented reform agenda in the meantime. This should help to support Italian bonds, while euro peripheral bonds in general should benefit from the roll-out of Next Generation EU (NGEU), the EU’s major recovery initiative.

The CIO’s view of the week ahead.

Next week, the FOMC is likely to leave a formal announcement on reducing asset purchases until its November meeting. But an updated ‘dot plot’ could reveal some restiveness about policy within the Fed ranks.

The Hong Kong dollar, Malaysian ringgit and Indonesian rupiah are emerging from the pandemic relatively unscathed. But each faces challenges ahead.

Central bank is pulling back but needs to convince markets its asset purchase programme will not end too soon.