Post Tagged with: "Asia"
Stephen Roach: US cannot handle the liquidity provided by Fed
Stephen Roach argues that the U.S. is not equipped to turn the Fed’s liquidity into domestic demand so the liquidity provided by quantitative easing will simply leak out abroad to form asset bubbles somewhere else. He is principally concerned with Asia here and suggests capital controls are one route to deal with this problem. Of
China’s Indirect Resource Grab
Here is anther note from Andy Lees of UBS this morning, this time regarding the intra-Asian competition for natural resources with China as the lead actor. Andy writes (links added): You will have seen this morning Vietnam’s state media warning that low seasonal floods through Vietnam’s Mekong Delta threaten to raise costs and cut output
Dollar on its Back Foot
Highlights The US dollar remains on its back foot. The main driver remains the contrast between the likely trajectory of Fed policy in contrast to the ECB. Moody’s 1-notch downgrade of Spanish credit rating and news that Anglo-Irish needs another 6.4 bln euros on top of the 22.9 bln already injected, and possibly another 5
Pace of Equity Flows into Asia are Accelerating
Asian equities have been a market darling this year, but the pace of inflows have increased in recent weeks. At around $534 mln, foreign inflows into Indonesia this month after nearly a quarter of the entire year’s. The $222 mln inflow into Philippine shares already this month is nearly half of the year-to-date amount. Foreign
Observations Early in the Pacific Century
The economic historian Arnold Toynbee argued that civilization began in the East, expanded around the world, and will return to the East. Even if expressed somewhat differently, many people seem to believe that the 21st century will be a Pacific century. The center of the world economy for the last couple of centuries has been
Yen Drops Back After Japan Comments on Currency; IFO Ahead
From The BBH Currency Strategy Team. Highlights Though concerns about economic growth prospects in major economies are still dominating financial markets after the poor US data yesterday, verbal intervention from Japan’s Finance Minister Noda, Prime Minister Kan, and then FM Noda again finally saw the yen retreat from multi-year highs against the dollar and euro.
Is Brazil Overheating?
Given near universal austerity measures in Europe and thoughts of the same in the US, increasingly it looks like the emerging markets are expected to do the heavy lifting to sustain a global recovery. As I said recently, "for the global economy, it’s China or bust." But, of course, China is not the only major
Manufacturing Sector Demonstrates Global Recovery
We have seen a host of manufacturing sector data over the past few days. Most of it has been pretty good and the data demonstrate that the global recovery has continued. Nevertheless, reviewing the data from the US, Europe, China and Singapore, there are some weaknesses beginning to show which I believe will become more
Asian Central Banks Thought to Have Sold Dollars
Strong upward pressure on the dollar emanating from the European debt crisis and the tensions on the Korean peninsula apparently was countered by intervention from several Asian central banks. At one point the dollar was nearly 5.25% stronger against the Korean won on the day, bringing its advance to more than 13% since May 14.
Euro Weakness Intensifies
Highlights Euro weakness intensifies as we start the week, risk-off trades dominate and the US dollar and the yen are the winners in the current context, still. There was no fresh ‘bad news’ from the EZ, but sentiment is extremely poor, with continued concern over the various austerity measures economic consequences and contagion (see below).
Links: 2010-03-18 – Overheating in Asia and more on China
FT.com – Asia’s inflation genie leaps out of the bottle House prices to fall further as loan arrears rise – Independent.ie TheMoneyIllusion » It’s China’s world, we just live in it (Krugman, round two) More Americans live with multiple generations of family – USATODAY.com FT.com – The weak renminbi is not just America’s problem How
The Pound Suffers while Asian Currencies Gain
Highlights The US dollar is mixed against the major and emerging market currencies. The euro is consolidating in yesterday’s range as bonds stabilize and despite a smaller than expected German trade surplus. Comments from EU spokesperson Altafaj just before the NY open that measures taken by Greece are sufficient have so far failed to take