More News Links: Verizon’s Netflix Bid, Google’s Siri, and Mobile driving ban

More News Links for 13 December 2011 including a report of Verizon chasing Netflix, Google building a siri competitor and a potential mobile driving ban

News Links: Hendry’s ‘China short’ fund makes big returns as China Stocks Drop to 2-Year Low

Financial news links on China, technology companies, the eurozone debt crisis and more

News Links: Yuan Limit Down for Ninth Straight Session

Financial news links for 12 December 2011 including stories on privacy, the European sovereign debt crisis, China and India

The Ugly Chart Contest

Here’s a couple ugly charts we’re monitoring: China’s Shanghai Composite stock index and Commodity Research Bureau Index (CRB). Do you think there’s causality here? Remember the “China is buying/hoarding every commodity” story

Look for North America to Fade Euro Moves

The dollar is broadly weaker as sentiment improves in the wake of an agreement on fiscal integration. European officials have struck what appears to be significant agreement; one of the costs is a new split in Europe as the UK and others are not in agreement. UK trade deficits narrows but unlikely to change economic outlook; China’s inflation decelerates

News Links: Economists see France losing AAA in 3 months

News links for 7 December 2011 featuring thoughts on a French downgrade, the austerity budget in Ireland, patents and China and other stories

China and Europe

China has an interest in preventing the total collapse of the largest buyer of its exports, but it also has an interest in forcing Europe to divest its overseas assets. Chinese banks and companies are in a position to be a buyer of some of those assets

House Prices Plunge in Chinese Ghost City

Could this be part of the reason the Shanghai was the only major index we track that was down last week

Stephen Roach on the IMF bailout, Chinese banks and US consumers

Here’s a good all-encompassing Bloomberg TV video with Morgan Stanley’s Stephen Roach from Friday. He is not impressed with the IMF plans that the Europeans are working on, calling the numbers “chump change”. Roach also talks about the US and Chinese economies as well.

The video is below followed by the copy from Bloomberg

How do we know that China is overinvesting?

For years I have been arguing that the Achilles heel of the Chinese growth model is the unsustainable rise in debt that comes as a necessary consequence of capital misallocation fueled by bank lending. Capital misallocation, I argued, was the nearly inevitable consequence of high investment growth over many years in a system in which price signals are severely distorted and there is political incentive to maximize economic activity in the near term. If capital misallocation is funded by debt, the increase in debt is necessarily unsustainable

News Links: European and Chinese Manufacturing Stalls, as US Advances

ISM – ISM Report – November 2011 Manufacturing ISM Report On Business® "The PMI registered 52.7 percent, an increase of 1.9 percentage points from October’s reading of 50.8 percent, indicating expansion in the manufacturing sector for the 28th consecutive month. The New Orders Index increased 4.3 percentage points from October to 56.7 percent, reflecting the

Choppy Market: Push Me Pull You

There have been several developments and they have imparted conflicting impulses into the market. The S&P downgrade of a number of large banks based on a new methodology that has been unfolding over the past couple of years comes at a poor time, when many banks, especially in Europe, are having funding problems and different measures of financial stress are elevated. Today’s development of the German 1 year note yield falling below zero for the first time is reflective of those pressures