Devaluations

It's about time economists realised that things don't happen immediately. Companies sign supply contracts for periods of months or even years. So the recent devaluations of the € and the Yuan will take time to filter through to the respective economies. It takes 12-18 months typically for currency devaluations to work through into tangible benefits.

Europe is starting to get there but I wouldn't expect significant results till early 2016.

China is a different question. Their biggest concern has to be whether the creeping levels of defaults and economic slowdown leads to civil unrest as the population discovers that the communist party can't and doesn't underwrite everything. Yes, they have huge reserves, but there are 1.4 billion Chinese and terrible demographics - it's one of the most rapidly ageing populations - so they have plenty to spend money on already, and if they were to start aggressively selling down their reserves it could cause a rout in government bond markets reducing further the value of the bonds they hold. As the country's debt pile grows the options available to the government are reduced. I fear the time is fast approaching when they will find themselves between a rock and a hard place.