Saturday, 6 December 2008
Deals Worth Billions Threatened by China-Europe Disputes
While China and the US are making progress in their Strategic Economic Dialogue, billions of Euros worth of deals between China and Europe and France may be threatened due to disputes that have arisen between the two trading partners.
Coal Price Plummet Set to Continue, Defying Stimulus Plan
With the steep slowing of the power, steel, and non-ferrous metal industries in China, coal prices dropped sharply in November. Now the price for high-rank power coal has dropped by about 50% from its peak, and the trading volume is falling. The 4 trillion yuan rescue package will not immediately change the shrinking demand, and prices will continue to drop.
Friday, 5 December 2008
China Shuts Down over 300 Phishing Websites
Spike in such sites seen since late Sep, as financial crisis has been rapidly growing, many criminals took the chance to illegally attack above-mentioned websites by using phishing ones.
Asian Carmakers Don’t Want Big 3 to Fail
The top automakers in Asia would not welcome the collapse of one or even all of their three big Detroit rivals, though those who follow the industry expect the likes of Toyota, Honda and Hyundai to gain market share in the long term.
Investors Drain $12B from Mutual Funds
Investment research firm says money flowed out of both stock and bond based mutual funds last week
Lower Mortgage Rates Aren’t the Answer
The Treasury’s plan to make home payments more affordable doesn’t address the main problems with the housing market
Warning over Internet Painkillers
UK experts have warned of the dangers of purchasing drugs online in response to a study showing wide availability of strong painkillers over the internet.
‘A year ago, getting a loan was easy as a whistle ... but now, bankers are singing a different tune’
Leaving a banker’s office empty-handed was almost unheard of during the good times for city property developers. But the situation has since changed as the global economy heads into recession.
2nd Hand Smoke Hurts Fertility
Women who breathed in second-hand smoke as children or young adults were later more likely to have trouble getting pregnant and suffer more miscarriages than women not exposed to smoke, US researchers reported on Thursday.
Government Rebuts WSJ Editorial
Judiciary cannot be denigrated under the pretence of free speech, it says
Happy? Spread it Around
Hapiness is infectious and can ‘ripple’ through social groups such as family and friends - but work colleagues are apparently immune to each other’s moods, according to a study published on Friday.
Nissan to be Hit Next?
A financial collapse of the US auto industry could have a major impact on Nissan operations in North America, officials from the Japanese automaker said on Thursday.
Macau property bubble has burst, and it’s a long way down to the bottom
An eye-in-the-sky view of the growing casino trade
Southeast Asia’s New Nightlife Capital - Jakarta?
New venues like Buddha Bar and Cork & Screw may soon see Indonesia’s capital challenging more cosmopolitan centres in the region
Next Quarter Set to Worsen
Singapore could face its single worst quarter of growth next year an economist has said.
PM Defends Temasek, GIC
Prime Minister Lee Hsien Loong on Friday defended the performance of state-owned investment companies after a plunge in the value of their stakes in Citigroup, Merrill Lynch & Co and other global banks.
What else can he say? As if he will criticise his wife in public?
What else can he say? As if he will criticise his wife in public?
Olam +5.6%; May Be Seeing Short Squeeze – Daiwa
0733 GMT [Dow Jones] Olam extends gains, best blue chip performer as announcement of convertible bond buyback continues to support stock; shares +5.6% at S$1.03 vs STI +1.4%; resistance tipped at 30-day moving average of S$1.08. Daiwa says shares may be seeing short squeeze as convertible bond holders who are accepting company’s buyback offer unwind hedges in underlying shares. Broker adds company taking advantage of pricing disconnect between price of convertible bonds and company’s fundamentals. Maintains Buy rating and target price of S$4.01; “we like the company for its business model that hedges away most risks to generate fairly predictable earnings growth of around 25-30% per year, investors may be hard pressed to find companies that can deliver this type of growth in 2009 and 2010.” (KIG)
Singapore Expect Years of Slow Growth
Singapore’s economy, which is already in recession, may face years of slow growth, the country’s prime minister said on Friday, as it is hit by the fallout from the world economic crisis.
Man hogged karaoke, killed
Police say a Malaysian man has been stabbed to death by customers at a karaoke bar for singing too much and refusing to share the microphone.
Bradley 2009
It has the following turning points:
12/14, 2008 (important)
1/20-21, 2009
2/8-9, 2009
6/3, 2009
6/26, 2009
7/14-15, 2009 (important)
9/14-15, 2009
10/22-23, 2009
11/9, 2009 (important)
First Beauty Contest Heralded New Freedoms
“The questions were fun, looking back now,” Ms. Xie said. “Such as ‘what is Newton’s law of gravitation?’, ‘who is the president of the United States?’ and ‘what is the nationwide official movement of five stresses [a focus on decorum, manners, hygiene, discipline and morals]?’”
Satellite problems hit Beijing’s space export ambitions
A 3 billion yuan (HK$3.4 billion) satellite China built and launched for Venezuela in late October had encountered some serious operational glitches that Chinese engineers were striving to fix, space-industry sources confirmed yesterday.
Public told to stay calm as France stands ground on Dalai Lama
With French President Nicolas Sarkozy refusing to cancel a meeting with the Dalai Lama tomorrow, the Foreign Ministry has called for calm among the Chinese public.
Pageants Become Big Business on Mainland
By the start of the 1990s, beauty pageants were becoming big business across the nation and organisers were profiting from expensive television advertisements.
Guangdong Told to Find Answers to Crisis
Maintaining economic growth amid the financial crisis would test the competence of government leaders, Vice-President Xi Jinping said on a fact-finding tour to Guangdong, urging them to “seek ways proactively” to keep up the growth rate, state media reported.
Officials Censured Over Spending Claims
Anti-graft authorities in Jiangxi and Zhejiang have censured their own officials for wasting public money on luxurious overseas tours after their travel spending claims were posted online, according to mainland media.
Send Navy to Tackle Pirates off Somalia, Says PLA General
Beijing should send naval ships to help stop Somali pirates menacing commercial vessels off Africa, a prominent mainland military strategist said, urging the nation to take a higher profile in such operations.
China Lacks Moral Authority to be a Superpower, Says Dalai Lama
China lacks the moral authority, including over the question of Tibet, to be a true superpower, the Dalai Lama said on Thursday during a European tour that has angered Beijing.
Dalai Lama, you are immoral too - to receive CIA money.
Dalai Lama, you are immoral too - to receive CIA money.
Taiwan Former Top Investigator Gets 10 Years’ Jail for Corruption
First person punished in graft scandals implicating Chen Shui-bian
US Urged to Protect China’s Investments
Vice-premier asks Washington to keep financial markets stable
Chinese Carmakers “Unlikely” to Buy GM Pieces, at the Moment
A look at multinational M&A actions in the auto industry in 90s, though, throws a discouraging light on the subject.
MoC Foreign Investment Corruption Case Involves Officials, Lawyers
It has been learned that a number of officials in charge of the Ministry of Commerce’s (MoC) foreign investment approval process have been detained, throwing an ugly light on corruption in the approval of foreign investment in China and testing the integrity of multinational companies.
Straits Asia +4.4% As Takeover Hopes Linger
0330 GMT [Dow Jones] Straits Asia Resources +4.4% at S$0.825, extending Thursday’s 7.5% gain, as investors continue to bet coal miner will receive takeover offer after major holder Straits Resources says several parties interested in its 47% stake. “The potential divestment should provide share price support amidst deteriorating sector fundamentals,” says Goldman Sachs; notes coal producers in Indonesia may be interested parties since SAR’s assets all based there. But volume of just over 15 million shares vs yesterday’s 50.3 million suggests less aggressive buying as players preferring not to chase up share price too much since there’s no guarantee of firm deal. 40-day moving average of around S$0.87 may offer resistance. (FKH)
Honda poised to quit Formula One
“I am told that for £1 you can now buy the Honda F1 team,” said BBC sports news correspondent Adam Parsons.
Military personnel sent to Ukraine to further aircraft carrier ambitions
The nation’s military has been sending personnel to an aircraft-carrier pilot base in Ukraine for training - further proof of the ambition to build its first aircraft-carrier battle group, a Canadian-based military magazine said yesterday.
Thursday, 4 December 2008
Small-business pioneer started with buttons
First registered entrepreneur faced mountain of taxes and fees
Town police storm party office in pay dispute
Dozens of police officers besieged the Communist Party headquarters in a town in Hunan province this week to demand higher pay and allowances, a human rights watchdog said yesterday. Such protests are almost unheard of on the mainland.
Tokyo costliest Asian city, Beijing more expensive than HK: survey
Strengthening currencies made Tokyo reclaim the title of Asia’s most expensive city for expatriates while Beijing has become more costly than Hong Kong for the first time, a survey showed on Thursday.
‘World Factory’ Struggles To Find Its Feet
“Guangdong is China’s southern gateway and economic engine,” he told reporters during an interview in Dongguan.
236 years ago Thomas Jefferson knew what we have only found out in the last year
‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.’
Thomas Jefferson 1802
Thomas Jefferson 1802
Former Taiwan intelligence chief jailed for 10 years over graft
A Taiwanese court on Thursday sentenced a former intelligence chief to 10 years in prison for his involvement in a corruption scandal implicating ex-president Chen Shui-bian.
Life After DPS Won’t Be Crippling For Developers
Study shows they can weather even 20% default rate by buyers under scheme
For Oil Traders, Dark Year Gets Bleaker
Total oil volumes traded here expected to plunge 30-40% this year
Olam +8.0%; Bond Buy Back Positive – Analyst
0210 GMT [Dow Jones] Olam (O32.SG) currently best blue chip performer after the commodities player says it is seeking to buy back convertible bonds; shares +8.0% at S$0.95 vs STI +1.7%. Olam says in statement it is making offer to buy back up to $150 million of the S$300 million of convertible bonds it sold earlier this year; bondholders have until Friday to tender holdings with settlement scheduled for Dec. 17. Analyst at local house says news is positive, “if they are able to buy back the bonds, which are trading at a deep discount, then it looks like a good move as they will retire a lot of debt at a good price.” Adds fact that company has financing in place to do the buy back also positive as shows lenders have confidence. Chart shows decent traded volume, stock oversold on technical indicators; suggests may have upward momentum with resistance tipped at 30-day moving average of S$1.08. (KIG)
Olam Daily
Both daily stochastic and William% indicators are oversold. MACD about to cut up anytime now. Looking to test 1.08.
Wednesday, 3 December 2008
RMB Depreciation Raises Worries Over Capital Outflow
China’s currency, the RMB, dropped to daily limit on both of the first two days, and touched the daily limit on third day, of December, to the surprise of the market, which is now in dispute over whether RMB, about the only currency that has maintained a strong position against USD in the second half of the year, is approaching a period of depreciation and whether depreciation will lead to large-scale capital outflow.
Markowski Comments
Are US stocks poised for a rebound? Christmas buying has gotten off to a lousy start; but, aid to the auto sector that will likely be forthcoming next week – if President Bush turns it down, President-elect Obama will do it once he takes office – a $500 billion stimulus package and further qualitative measures by the Fed will add up to an economic turnaround by the middle of next year. As I have noted before, the current and next quarter will prove to be quite rotten in terms of posted growth rates, that should be about 3% on average, but a turnaround could happen once housing stabilizes. That, I believe will happen next spring and could result in what appears to be an initial V-shaped economic response, even if growth then reverts to below trend for a while.
The Price Gap: Help! How Much Should Expat Pay?
Some Chinese wives won’t let their Western hubbies go shopping alone - prices will skyrocket when vendors see the luckless laowai. Nancy Zhang explores perplexing pricing.
Dubai Sees Increase in High-End Property Defaults
Dubai is witnessing a rise in defaults on high-end properties as financing conditions worsen and is likely to see smaller developers merge, according to a member of the Gulf Arab trade hub’s financial crisis committee.
Frugal Culture May be Saving Grace for Much of Asia
The Chinese, too, are likely to be helped by a cultural aversion to taking on large amounts of debt, analysts say.
Singapore May Be Worst Hit
Its open economy among reasons cited by analysts, after group says US in recession since end-2007
Beijing Plans to Buy More Metals
The central government is considering buying all types of base metals as reserves to help boost domestic demand, Wen Xianjun, vice-chairman of state-funded China Nonferrous Metals Industry Association, said on Wednesday.
Mainland firms fill office space left by foreigners
Hong Kong office landlords are increasingly looking to mainland firms and especially big financial institutions to take up space being vacated by existing tenants.
Valuations say buy, but the fearful doubt their validity
The recent wild volatility in the Hong Kong stock market reflects the current tug of war in investors’ minds between greed and fear.
Time for lease flexibility
Comparing the Hong Kong property market with a roller-coaster ride is not entirely appropriate. Averaged out over the past 30 years, for instance, the “coaster” has tracked steadily upwards.
Beijing fund wary of investment in foreign banks
Mainland’s sovereign wealth fund, which last year poured US$5 billion into Morgan Stanley, is reluctant to plough more money into foreign financial institutions until governments hash out coherent policies to cope with the global economic and financial turmoil, the fund’s head said on Wednesday.
New York home woes catching up with Main Street
The economic crisis is finally crashing New York’s real estate party, forcing the city’s residents to start sharing the rest of the country’s pain.
College may become unaffordable for most in U.S.
The rising cost of college – even before the recession – threatens to put higher education out of reach for most Americans, according to the annual report from the National Center for Public Policy and Higher Education.
China’s economy, in need of jump start, waits for citizens’ fists to loosen
But such tenacious thrift, once an admirable quality here, has become a liability as the nation’s export-driven economy slows, a prospect that has stoked the government’s fear of unemployment and social instability, and that could threaten the Communist Party’s hold on power.
Asia will be first to resume growth
As long as the banking systems of the major economies don’t freeze up, China will resume growth, writes Minister Mentor Lee Kuan Yew
Europe, China should strike compromise on Dalai Lama
The decision by China to cancel - or at least postpone - a summit meeting with the European Union scheduled for this week in Lyon, France, is unprecedented and shows the extent of its unhappiness with the Europeans in general and with Nicholas Sarkozy, the French president, in particular.
Volatility Returns as US Stocks Plunge 7.7%
Investors in selling mood after market’s biggest five-day advance since 1932
Property Slump in China Threatens Global Growth
Building sector, the biggest driver of China’s growth, employs 77m people
China wealth fund lacks stomach for financial buys
China Investment Corp, the sovereign wealth fund that has incurred steep paper losses on its stakes in U.S. financial firms, said on Wednesday that it is “not brave enough” to invest in foreign financial firms and lacks confidence in the shifting U.S. financial regulatory situation.
Man wakes wife from coma by biting her toe
A man in Shenyang, capital city of the northeast Liaoning province has said that he woke his wife from a 10-year coma by nibbling on her toes.
Chinese Americans ‘All Brains, No Pay’
The reasons behind the discrepancy include racial discrimination, perceptions of “a lack of leadership potential”, and differences between Chinese Americans and the majority in “standing out” and “receiving recognition”, Professor Larry Hajime Shinagawa of the University of Maryland, who led the study team, said.
Dow 40% Rally to Start on December 15 - Sandy Jadeja
The Dow Industrial Average is poised for an extended bear-market rally that could see the index gain as much as 40 percent, Sandy Jadeja, chief market strategist at ODL Securities, told CNBC. But don’t buy until December 15, Jadeja warned.
STI - Technical Analysis by DB
The STI had started a recovery after hitting a multi-year low at 1,474 on October 28. At 1,934 it faced resistance and rebounded. The current leg down let prices fall to a low at 1,570 until November 21. A rebound of this intraday low occurred and prices formed a bullish engulfing in the daily candle chart, which paved the way for a retest of prior support and now resistance around 1,718. The index then failed at this hurdle and gapped lower in yesterday’s session. As long as prices remain above 1,570 odds favour a resumption of the short-term uptrend, especially if the index can take out the crucial 1,718 level. Key-resistance zone regarding the intermediate-term picture is seen at 2,178-2,297. A close below 1,570 would suggest a retest of key support at 1,474. Minor support is coming in at around 1,615.
Strategy: Aggressive traders may still prefer long-positions. Protective stops may be placed tight below 1,570 then. More risk-averse investors may look for a decisive close above next resistance at 1,736 before getting long.
Strategy: Aggressive traders may still prefer long-positions. Protective stops may be placed tight below 1,570 then. More risk-averse investors may look for a decisive close above next resistance at 1,736 before getting long.
HSI - Technical Analysis by DB
Last week, the index managed to form another leg up, starting from the recent low at 11,814. On Friday prices showed an inside day at the centre line of the Bollinger Bands, indicating s rest within the short-term uptrend. With Monday’s upside breakout, the index triggered a continuation buy signal. However, yesterday’s slump negated this long-indication, changing the bias from bullish to short-term neutral with further consolidation to be expected. Key-resistance and next upside objective if prices take out resistance at 14,254 is seen at 15,318. It would take a decisive close above that latter level, in order to establish a major bottom and pave the way for an intermediate-term uptrend.
Strategy: Short-term aggressive traders may await a move above 14,254 before taking or adding to long-positions. Risk-averse investors with an intermediate-term perspective may await a close above 15,318 before doing so. A switch into short-positions may be pondered below important support at 11,814.
Strategy: Short-term aggressive traders may await a move above 14,254 before taking or adding to long-positions. Risk-averse investors with an intermediate-term perspective may await a close above 15,318 before doing so. A switch into short-positions may be pondered below important support at 11,814.
Tuesday, 2 December 2008
Nair Retracts Apology
'The only reason for my apology was a desire to get out of prison as soon as possible,' said Gopalan Nair.
After Mumbai Attack, Is China Ready?
Is China ready for terrorism after the terrorist attack in Mumbai, in China’s neighbouring country India? Tens of thousands of foreign invested enterprises in China, as well as the Chinese government and its citizens, are eager to know the answer.
What’s Up with this RMB Depreciation?
It appears that the RMB is approaching a period of depreciation, and Beijing must be readying itself against what is surely to be a storm of protest from foreign (particularly US) markets and politicians. But it would be worthwhile to look into the reasons for the possible drop in RMB value. Is this a dark plot by the Chinese government to kick foreign economies when they are down, or what? A perusal of the facts might give some guidance.
Next U.S. Crisis: Credit Cards
Government intervention or not, banks will be cutting up America’s credit cards at an unprecedented rate, with grave implications for the economy and company profits.
China Lures Overseas Chinese Financial Talent
Shanghai looks to fill 170 positions with overseas financial talent through a recruitment expedition.
Huge fiscal expansion will keep US from free fall
Right now, there’s intense debate about how aggressive the US government should be in its attempts to turn the economy around. Many economists, myself included, are calling for a very large fiscal expansion to keep the economy from going into free fall. Others, however, worry about the burden that large budget deficits will place on future generations.
Property Market Now Shows Classic Signs of Downturn
Analysis of Q3 caveats by DTZ points to new trends relating to sub-sales, foreign buying, HDB upgraders
Risk Aversion Back, with Yuan Badly Hit
Fears of more weak US data and a whole series of interest-rate cuts combined to bring the US dollar and Japanese yen back to favour during Asian currency trading yesterday, while the Chinese yuan suffered one of the sharpest one-day relapses since it was de-pegged from the greenback in July 2005.
Crude Oil Falls on Signs of Further Contraction in U.S. Economy
Crude oil fell to the lowest in more than three years in New York on signs that the economy in the U.S., the world’s largest energy consumer, is in a more severe economic slowdown than expected.
Why Singapore Draws Fund Management
Once certain issues are sorted out, the country will become a brilliant location for both managers and their funds
Go to China to Lose Weight
Three American men have taken the unusual step of moving to China in an extreme attempt to shed huge amounts of weight at a fat reduction clinic - and have become surprise local celebrities.
Bankrupts Jailed for Illegal Travels
Two bankrupt men who travelled overseas without getting clearance from the authorities were jailed yesterday following a crackdown on people who flout bankruptcy laws.
Bush’s Biggest Regret
The worst president in American's history
President George W. Bush said the biggest regret of his presidency was flawed intelligence that Iraq had weapons of mass destruction and told ABC World News in an interview airing on Monday that he was unprepared for war when he took office.
President George W. Bush said the biggest regret of his presidency was flawed intelligence that Iraq had weapons of mass destruction and told ABC World News in an interview airing on Monday that he was unprepared for war when he took office.
Gerald Celente Predicts Food Revolution in US Paul Joseph Watson
Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.
Acupuncture Beats Aspirin
Acupuncture works better than drugs like aspirin to reduce the severity and frequency of chronic headaches, US researchers reported on Monday.
Marc Faber delivered this autopsy report
“We’ve moved into an environment of very high volatility where you will have up and down moves of, like, 20 percent all the time and that is a traders’ market... The Warren Buffett approach is dead and it’s been dead for ten years and it’s going to be dead for another ten years ... We can have huge rebounds and then huge downturns again and I think the best for the average investor is to play it relatively in small amounts and not gear up and take big risks.”
Wenzhou Looks Back in Wonder at Time it Could Do No Wrong
Wenzhou in Zhejiang province is full of contradictions: most of the city looks old and backward, but its dusty roads are jammed with luxury cars.
Chen Accused of Using His Jet to Smuggle Cash
Witness says she helped ex-president’s wife pay NT$740m into Taiwan bank
Shanghai Disney ‘Wins Approval’
The proposed Shanghai Disney resort had received long-awaited blessing from the central government ahead of a final deal between the entertainment giant and the Shanghai municipal government, sources said.
Monday, 1 December 2008
Political Crisis Ripples Across Thai Economy
As the closure of the Bangkok airports drags on, the cost of the disruption - in frayed nerves, cash, delayed goods and to Thailand’s image as a holiday paradise - is mounting.
Bangkok Feeling the Pain of Isolation
The Four Seasons hotel has taken French oysters and artichokes off the menu. Frustrated orchid growers cannot export their flowers, so they are selling them on the local market for one-third the price. And FedEx is no longer the world on time, not when the package is stuck in crisis-struck Thailand.
China-Europe Disenchantment
The public cheeriness that usually accompanies summits between China and the European Union is on ice this year after Beijing called off the annual meeting, exposing rifts that go well beyond their tiff over Tibet.
Laid-off Migrant Workers Test China’s Fragile Social Security System
A wave of unemployment among migrant workers, triggered by the closure of many of China’s financially straitened factories, is testing the country’s fragile social security system.
Shocking the U.S. Economy Back to Life
Now that the U.S. government has spent nearly $1.4 trillion to stabilize the financial system, economists and policy makers - and the president-elect - are trying to figure out how much must be invested in a stimulus package to stop the recession, and what that money should be spent on.
U.S. Media Thrive Worldwide, But Not U.S. Image
“There’s an acute understanding of the difference between the U.S. government and the American people,” she said. “And they look at U.S. entertainment as just that, entertainment.”
BHP, Rio May Have to Cut Coking Coal Prices 33%, Analysts Say
BHP Billiton Ltd., partner in the world’s biggest coking coal exporter, and Rio Tinto Group may have to cut contract prices by a third next year because of slumping demand from steelmakers, according to a survey of analysts.
Yanlord A Sell On Slowing China Property Market
Analysts are split on whether China-based property developer Yanlord Land shares have fallen far enough already to price in the cooling China property market, or whether they still have further to fall.
Stocks: Brace for a rocky week ahead
Investors await retail sales figures, and the latest readings on the health of the economy, with a close eye on the labour market.
14 Beauty Salons Shut as the Crisis Bites Deeper
At least 14 beauty salons, which mainly served employees in the financial sector, closed down in October and last month, with their customers badly affected by the economic crisis.
Exodus of Expats Foreseen as Crisis Takes Toll on Jobs
Lay-offs in financial sector could drive westerners away
Detroit’s Auto Bubble Pain
Automakers are suffering because sales were artificially boosted by cheap credit and the Big Three thought this could last forever.
Thousands more sit civil service exam despite slim chances
More than 775,000 applicants sat examinations for civil service jobs yesterday, state media reported, even though only 1.75 per cent have any hope of being recruited next year.
The ‘Eight Immortals’ Who Jockeyed for Control of a Nation
They were called the “eight immortals”, named after the mythical figures who unlocked the secret to eternal life, and together they worked behind closed doors, sometimes in the open, to decide the fate of the party, the economy and the social affairs of the nation.
Epic Rivals Whose Battle Shaped China
Chen Yun feared that Deng Xiaoping was taking the nation too far, too fast
British Top in Casual Sex League
Finland’s rating the highest but Britain ahead of other big Western industrial nations
China must help itself ... for the US’ sake
A far better solution is for Chinese demand to expand sufficiently to enable it to absorb its own excess capacity. The more China spends to create domestic demand, the less the US must spend to replace declining household consumption. There is no trade-off.
Taking the leap from making to serving
When Guangdong officials gathered for a closed-door meeting last month, a provincial think-tank told them they needed to cut red tape and overhaul the province’s industrial structure if they were to take the next step to development and survive the economic crisis.
HK factories want labour rules eased in Guangdong
The Federation of Hong Kong Industries is due to meet Guangdong governor Huang Huahua and senior provincial officials today in its latest effort to lobby on labour issues, as the financial crisis continues to bite.
Casino Economy Teeters on Credit Pyramid
“We stoked the fire and the flames got really hot,” said one senior casino executive in Macau. “But now there’s not enough fuel to keep it burning.”
Competitiveness concern may signal weaker yuan
But if exports - and overall growth - do weaken further, an attempt to restore China’s lost competitiveness by weakening the yuan may begin to look like an increasingly attractive option.
Low oil prices threaten investment and supply
Oil prices have a long way to fall before producers start to lose money and mothball fields, but even prices around US$50 could choke investment and lead to a supply crunch before the global economy recovers from recession.
Short- Selling Disclosure Proposals Require Tweaking
With a little fine-tuning to suit local circumstances, SGX’s latest proposals are clearly a step in the right direction.
How ITM, ATM, OTM warrants behave
A firm grasp of how ITM, ATM and OTM warrants behave is a good first step in avoiding such losses.
Further hedge-fund withdrawals likely: Morgan Stanley
Morgan Stanley increased its estimate for hedge-fund withdrawals as investors raise cash following declines in financial markets worldwide this year.
Hedge fund shake-up positive for industry
More investment opportunities open for other funds, says BNP Paribas exec
Be careful of buying into yet another bear rally
Once the month-end window-dressing of the major indices seen last week is over with (probably early this week), it’s very likely that Wall Street and markets in this part of the world will revert to reacting to the dismal economic and earnings news that’s being issued, news that’s not expected to be good.
As Inflation Passes Away, China Becomes a Big Winner
And how does China fit into this scenario? As China chooses the US Dollar as its reserve currency, the passing away of inflation is a major benefit to China. Long criticized by dollar critics, China is now looking like a real winner as its US bond investments increase in value and purchasing power. Yes, the passing away of inflation is a big boost to China!
Sunday, 30 November 2008
China’s Stimulus Plan Less Effective than Expected, More to Come
China’s massive economic stimulus package is, unsurprisingly, turning out to be less effective than expected. After the announcement of the 4 trillion yuan plan, it was predicted by many that its contribution to economic growth next year would be 2 to 3 percentage points. Now, the National Development and Reform Commission (NDRC) says that the investment plan may boost economic growth next year by 1 percentage point.
Chinese Firms Plundering Japanese Sake Brand Names
Famous brands have been registered in China without the consent of the genuine brewers
A Last-Gasp Idea for Clearing Our Air
It is quite a relief to come into the office on a Monday morning and breathe a bit of clean air. Spending the weekend in my apartment with the windows closed and the door shut, I kid myself that the air inside is cleaner than the air outside. It is, of course, the same air. And that is why, by the time the weekend is over and my throat is itching and my eyes watering, I am glad to sit in the industrially treated environment of my office.
Collecting Fine Wines Could Be a Good Investment, Say Experts
If there is one thing wine experts appear to agree on, it is that Bordeaux remains a safe option when looking for a fine-wine investment.
Market Mood
The continuing financial tsunami has been caused by innovations in financial products and the difficulty of monitoring the associated risks. However, the situation in China is just the opposite: compared with Europe and the United States, the mainland’s capital market is still in its infancy.
Now’s a Good Time to Keep Assets Liquid, and in Bottles
Investors savour how wine prices weather market storms
Questions to Ask When Shopping for Stocks
That said, certain equities, those that survive, will outperform cash over the next five to 10 years, and by a significant margin. There will be winners and losers from this crisis. The trick in part will be to avoid the losers.
Why Beijing Is In A Risky Place
As the factory to the world, China may be the nation most vulnerable to collapsing global demand
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