FT News Briefing China’s central bank overhaul
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Jan 7, 2025 Justin Trudeau's surprising resignation sends ripples through Canadian politics. Meanwhile, Germany's solar panel industry faces a crisis due to competition and economic pressures. In the US, bankruptcy filings have soared to the highest rate in 14 years. Amid these global shifts, China's central bank unveils a significant overhaul, moving to more efficient monetary policies to tackle deflation and stimulate growth. It's a whirlwind of economic transformations affecting multiple nations.
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German Solar Industry Slowdown
- Germany's solar panel industry, crucial for Europe's green transition, faces a slowdown.
- This is due to decreasing energy prices, rising interest rates, and increased competition from cheap Chinese panels.
US Corporate Bankruptcies Surge
- US corporate bankruptcies reached a 14-year high in 2024, the highest since the global financial crisis.
- Factors include high interest rates and weak consumer demand, impacting businesses like Tupperware and Spirit Airlines.
China's Monetary Policy Overhaul
- China's central bank is overhauling its monetary policy, shifting from quantity-based to price-based controls.
- This aims to improve capital efficiency and potentially address issues like overcapacity and bad debts.