China’s Looming Currency Crisis
Mass capital outflows continue despite stymied Beijing’s efforts to boost the economy. Expect the yuan to tumble.
By Anne Stevenson-Yang and Kevin Dougherty
With self-driving automobiles on the horizon, why shouldn’t sneakers lace themselves up in the 21st century? So what if it takes a feat of engineering to perform a task that can be mastered by 5-year-olds? It’s cool.
Specifically, the campaign to boost the minimum wage would provide the impetus to put more robots to work—in place of humans.
“CFOs are telling policy makers there is a significant unintended consequence: Some jobs will be replaced by robots, and this replacement is permanent.”
Last year, as the dollar strengthened and the yuan slid (reflecting deflationary fears from China’s slowdown, which spilled into commodities), Facebook trounced the Brazilian oil company’s shares. As the yuan has strengthened this year (and the dollar has weakened), the rebound in Petrobras has left the social-media giant in the dust.
Moreover, the panel’s dot-plot graph of year-end rate expectations pointed to two more hikes this year, down from the four forecast in December.