PIMCO sees a 7% devaluation in the yuan as Chinese economy slows

Further to Eamonn's earlier post here's a bit more detail now out from PIMCO via Bloomberg

• yuan poised to weaken by 7%
• PBOC will cut deposit rates by 75bps
• as a result,investors can expect declines in Asian emerging-market ccys inc S. Korean won and Malaysian ringgit

The report comes from portfolio managers Adam Bowe in Sydney, Isaac Meng in HK and Tadashi Kakuchi in Tokyo

"We expect pvt capex and property prices to weaken further, risking a negative spillover to employment and consumer spending. We expect to see a significant mon pol response from the PBOC"