A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.
And the effects for Australia could be serious, affecting our key commodity exports and sparking the beginning of a period of recession-like conditions.
“If China does not find support today, the disorder could be monstrous.”
At the same time, Chinese authorities are putting a halt to any new stock listings. The market regulator announced on Friday it would limit initial public offerings — which disrupt the rest of the market — in an attempt to curb plunging share prices.
All short-selling — the practice of betting that stocks will fall — has been banned, and Chinese media has rushed to reassure citizens.
As Americans were celebrating the Fourth of July holiday, four Russian long-range bomber aircraft flew close enough to the US shores that they were intercepted by military fighter jets. The first set of two bombers flew near Alaska and just 30 minutes later a separate set flew far off the west coast of California.
According to officials at NORAD the flights stayed within international airspace and at no time did any of the Russian bombers enter or get close to entering sovereign North American boundaries.
The first incident occurred at approximately 10:30 a.m. EDT on July 4, when Alaskan-based NORAD F-22 fighters intercepted and visually identified two Russian TU-95 "Bear" long-range bomber aircraft flying off the coast of the Aleutian Islands within the Air Defense Identification Zone (an area of international waters that stretches 200 miles from US coastline), officials at NORAD said in a statement to ABC News.
Then at approximately 11 a.m. EDT, NORAD F-15 fighters from the Continental NORAD Region intercepted and visually identified two additional Bear bombers flying off the central California coast, well away from U.S. sovereign airspace.
While Northcom is not saying precisely how far out the California intercept occurred, one official said it was on the outer lines of the ADIZ, meaning it could have been as far out as 200 miles. US airspace begins 12 miles from the coasts. The US asks military aircraft from other countries operating in that space to identify themselves and will make sure they've changed course away from US shores before backing away.
While intercepts of Russian aircraft off Alaska occur frequently, intercepts off California are less common. In June last year a two long-range Russian bombers flew within 50 miles of northern California.
Why is that a problem? Well, the European Central Bank’s bond-purchasing program this year sent yields so low (negative, in fact) that investors revolted, selling German debt in the face of some signs of economic growth and causing unprecedented volatility. In the U.S., the economy has improved enough that the Federal Reserve is planning to raise interest rates this year from virtually zero, where they’ve been since 2008.
Investors are clearly getting more concerned about a full-blown selloff in assets globally after Greece rejected austerity measures required to receive additional bailout funds, and as the Shanghai Composite Index fell 25 percent from its peak in mid-June.