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China Will Respond to Economic Weakness

The Chinese government has recently responded to the weakening economy by imposing a currency devaluation (which makes it cheaper for other countries to buy Chinese goods, which helps spur Chinese growth) and even preventing existing stocks from trading on the stock market (to prevent further stock declines).

Nonetheless, Chinese stocks are down nearly 40% since June. In response, China is expected to send cash across its banking system to spur growth (through reducing the amount of cash banks are supposed to hold in reserve – or in safekeeping – which would encourage banks to loan the extra cash out).

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North Korea and South Korea Agree to Ease Tensions

North Korea and South Korea may be neighbors, but they’re relations haven’t always been neighborly. Last week, the tensions escalated when North Korea planted landmines at the border, which caused two South Korean soldiers to lose limbs. In response, South Korea spread an anti-North Korean government message across the country.

After two days of deliberation, the two sides have come to an agreement to halt tensions after North Korea expressed regret over the landmine incident (which is rare). As Reuters’ reports, relations between the countries have been especially strained since 2010, when a South Korean warship was sunk (killing over 40 people). North Korea has denied responsibility.

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China: Yuan Devaluation

The world’s second largest economy has struggled to hit its growth targets, though the Chinese government alleges China grew at a 7% growth rate in the second quarter. Regardless of the Chinese government’s beliefs on the economy’s growth rate (which many economists disbelieve), China’s economy has experienced significant trouble since June 2015.

The Chinese stock market has plunged nearly 40% since June. (To combat further declines, the Chinese government halted trading on over 20% of stocks.) In response, the Chinese government has decided to devalue the yuan (the Chinese currency), which makes it cheaper for other countries to buy Chinese goods. As China relies on exporting their goods to other countries, the government expects this move to spur growth.

Classy Lady Mallory Bell shares her thoughts on what a yuan devaluation means:

1) The yuan came down a little, but not a lot. When there is a large devaluation, investors expect that in the future it can only go up, but this one was too small so investors expect it to go down further in the future.

2) The US market is worried, because now US goods will be expensive to Chinese consumers. For example, the devaluation sent US oil and other exports to China way down.

3) Finally, with US economy in good shape, the Fed was expected to raise interest rates in September. But because this could strengthen the dollar further, many now expect the rate hike will be postponed.

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ISIS Continues to Destroy Historical Landmarks

In what the United Nations calls a “war crime”, ISIS (the Islamic terrorist group that has taken control over parts of the Middle East) has now destroyed a 2,000-year-old temple in Syria (there are debates on whether or not the temple was destroyed on Sunday or a few months ago). This is one of many shrines that the group has destroyed, due to their beliefs that these historical shrines worship idols over God.

As CNN reports, the news of this destruction comes after the public beheading of an 82-year-old former director of antiquities at a Syrian museum.

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American & British Heroes Earn Legion of Honor Award

On Friday, Moroccan-born Ayoub El Khazzani boarded a high-speed train en route from Amsterdam to Paris. Ayoub carried an AK-47 weapon, a box cutter, a pistol, and more on the train and opened fire. Three Frenchmen and one British man caught wind of the attacker and jumped on him (and even used his own weapons against him).

The three childhood American friends and one British man restrained Ayoub and helped prevent any further damage aboard the train. While Ayoub’s attorney shared that he was only looking to “commit robbery”, the four honorable men believe Ayoub was ready to commit a terror attack. For their brave efforts, the four men won the Legion of Honor Award, an award created by Napolean Bonaparte to recognize leaders.

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	NEWS AND INSPIRATION FOR CLASSY LADIES