Archive for July, 2011
File not found. As The Manufacturing PMI Is Set To Fall Below 50…
The July PMI may fall below 50. Incidentally, PMI in July 2008 fell below 50 for two months, rebounded for one month, and fell off the cliff.
Bad Loans Surge In Chinese Underground Banking System
Non-performing loans in the underground banking system surge recently, and the HSBC flash estimate of manufacturing falls into contraction territory.
Economy, United States. 19 July, 2011, 1:18
Debt Ceiling Talk Update: Yields Surge As No Deal Is In Sight
As the political gridlock continues in Washington DC, Treasuries is no longer viewed as safe haven for the time being as yields surge.
Financials, World. 18 July, 2011, 23:43
Bank of America Capital Shortfall And China Construction Bank
Bank of American needs US$50 billion more capital cushion, which makes the sale of China Construction Bank more than probable.
Financials, World. 18 July, 2011, 19:54
After The Not-So-Stressful Stress Tests, Europe Is Stressed
Analysts worked with the data released from the phoney stress tests to test more severe assumptions about sovereign default.
Economy, United States. 18 July, 2011, 16:36
US Is Defaulting Because The ATM Machine Happened To Be Locked
Andrew Freris comes up with some of the most amusing metaphors of the potential default of the United States.
China, Financials. 18 July, 2011, 14:39
China Banks: Let Shares Prices Speak For Themselves
Chinese banking shares in Shanghai have been doing rather badly in the past 3 years, so badly that you would prefer to hold JPMorgan.
China, Real Estate. 18 July, 2011, 10:52
China: Home Prices In June 2011
More cities are recording falling prices, but more are recording slowing prices growth in June.
Economy. 17 July, 2011, 2:43
Thought Experiment: What If Your Currencies Were Pegged With Japanese Yen?
Japanese Yen has been strong against the US dollar for more than a decade, and has been very strong against almost every major currency in the past 3 years.
China, Real Estate. 17 July, 2011, 1:48
China Real Estate: Blowing The Bubbly Bubble
As far as curbing real estate prices in China, the government seems to be still very determined as further purchase restrictions are being considered.
Financials, World. 16 July, 2011, 0:02
European Banking Stress Tests: 8 Banks Failed
The latest stress tests by the European Banking Authority show that 8 banks failed the tests.
Politics & Society. 15 July, 2011, 22:16
Republicans Should Stop Playing With Fire On Debt Ceiling
The US government has the ability to honour its obligations. What the politicking shows is the Republicans’ lack of willingess to honour all obligations.
Economy, United States. 15 July, 2011, 11:15
Debt Ceiling Talk, Threats Of Downgrade, QE Or No QE
There is finally hope that there is some deal with respect of debt ceiling amid threats of downgrade, while Ben Bernanke reversed his position on QE.
Between Hard Landing And Not Landing
Not between hard landing or soft landing, but between landing or not landing.
Economy, United States. 14 July, 2011, 0:44
Ben Bernanke: More Easing Is On The Table If Deflationary Risks Re-emerge
Ben Bernanke basically confirms that quantitative easing is an option should economic weakness persists and deflationary risks re-emerge.
China: Q2 2011 GDP Grew by 9.5%
China GDP grew by 9.5% yoy in real term Latest data points are good across the board, but they suggest that easing policy now makes little sense.
Economy, United States. 13 July, 2011, 3:25
FOMC Minutes: QE3 or No QE3?
The slightest hint of possibility of QE3 in the Fed minutes made the stock market excited for half an hour.
Greek Default Is An Option, While Italy Is Sinking
Greek selective default is now on the table again, while the mess continues to unfold in Italy. Euro is at its 4-month low.
Economy, United Kingdom. 12 July, 2011, 17:00
United Kingdom: CPI Inflation Falls To 4.2%, RPI Inflation Falls To 5.0%
Inflation in the United Kingdom eased a bit in June: CPI inflation fell from 4.5% to 4.2% as the economy is doing pretty badly.
Financials, World. 12 July, 2011, 15:51
Rating Agencies Fight: Moody’s Versus Dagong
As Dagong credit rating agency picked a fight with Moody’s, Moody’s retaliates by dropping more bombs on Chinese companies.