The main events by the morning: August 29

• A debt market crisis is brewing in China: the yield on 10-year bonds has reached a historic low due to high demand. The Chinese Ministry of Finance plans to issue additional debts of $400 billion, which could lead to a drop in bond prices and losses for their holders, triggering a banking crisis.

• The Chinese yuan may strengthen by 10% if local companies decide to sell dollar assets worth $1 trillion. This development is predicted by the head of Eurizon SLJ Capital, Steven Jen. The main reason for this may be the Fed's rate cut and the associated loss of attractiveness of American assets.

• A Brazilian court has threatened to block the social network «X» in the country if Elon Musk does not appoint a new legal representative of the company. On August 17, X announced the closure of its office in Brazil. This step was taken after a judge of the country's Supreme Court threatened to arrest a representative of the company if it did not impose censorship restrictions.

• In Russia, banks have become more likely to refuse to issue mortgage loans. After the curtailment and revision of preferential programs, the share of rejected applications reached 57% of the total number of applications. This is especially noticeable in the primary market, where 73% of applicants receive a refusal.

• The Russian government and the Central Bank are considering joint actions to combat inflation. The Cabinet of Ministers may limit lending to state-owned companies and curtail preferential programs for small businesses and farmers. These measures are necessary, because even against the background of rising interest rates, lending volumes continue to increase.