Oil Drop Offers China Double Dose of Help as Expansion Slows - Bloomberg: "The slide in oil prices to five-year lows offers China a double benefit as its leadership confronts the weakest expansion in a generation.
Crude prices that have fallen by about 30 percent could add 0.3 to 0.5 percentage point to growth in China, according to Mizuho Bank Ltd. The decline also keeps inflation slow enough to give scope for further easing after last month’s interest-rate cut, says economist Lu Ting at Bank of America Corp.
Greater wherewithal to shore up a growth rate that has weakened toward 7 percent would help China’s leadership as they attempt to reshape the economy. President Xi Jinping, who convenes an economic works conference this month, wants to cut pollution, install professional leadership at state-owned enterprises, elevate the role of market pricing and introduce private-sector competition into the financial sector."
'via Blog this'
