WEF focus points: Fed Sept rate hike & China deceleration

The 9th World Economic Forum's annual meeting of the new champions in Dalian, China, kicked off on Wednesday. This meeting takes place against the backdrop of global economic volatility that requires joint action. CNBC's Geoff Cutmore says the focus is on two key issues: 1) Whether the US Federal Reserve will lower interest rates in September and 2) Just how quickly China appears to be decelerating.

However, going by the positive tone of the equity markets, there is a belief that the PBoC or the People's Bank of China will step into the market again with fresh stimulus — maybe with a modest cut in interest rates and a likely reduction in RRR, the amount of reserves the banks must maintain as they lend money out. Against that, the Chinese finance ministry has also announced that there will be fresh government spending - some stimulus on the fiscal side. This in part may be the reason why most Asian markets are trading in green.

Cutmore says a lot of the conversation since morning centred around topics such as there are clear signs of deceleration in growth, but there is also a government that is responding both with fiscal and monetary policy.Watch video for more...