The Asian Big Bang

While the majority of investors are worrying about things through the traditional western viewpoint, the real story is that China is building a financial system before our eyes. The balance sheet structures are being reformed and established to create a … Read More

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If we chose to look in the right places, China is largely doing the right things with its economy

The recent retreat in the dollar trade weighted index has been matched by a rally in commodity prices, particularly oil, but I suspect that these are pull backs in new long term trends rather than reversals. Just as the dollar … Read More

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Asia needs to broaden and deepen its financial services infrastructure to solve some capital issues

The sell-off in bond markets has elements of 1994 about it. So far other markets have been resilient, but the traditional role of equities as the ‘ATM’ for the leveraged fixed income traders is making them rightly nervous. China’s latest … Read More

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Enormous election uncertainty in the UK

Many markets, including Hong Kong, are operating a short week this week thanks to the May day bank holiday, which doubtless will leave Monday relatively quiet as well as many take the long weekend. Japan is effectively closed all week … Read More

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China’s vast savings are being encouraged to move out of cash and housing and into capital markets

Unlike 2007 and 2009 the rally in Chinese markets does not appear to be a function of loose monetary policy. Despite recent cuts, monetary policy in China remains tight, suggesting  still more room for manoeuvre. Meanwhile fiscal stimulus through the … Read More

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Will international capital start to flow to Hong Kong and by extension China?

The Rubik’s cube of Chinese reform continues to click into place, and it was interesting to see an article in the Economist this week focussing on reform rather than the traditional obsession with the GDP number. Over the last few … Read More

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The one market that looks interesting is Japan

After a necessary correction, the dollar looks to have stabilised, while commodity markets remain very weak, which is good for consumers but bad for dollar debtors. In Europe, the Greek saga continues and  looks unlikely to settle anything before Easter, … Read More

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Emerging markets tend to do well when Europe struggles and vice versa

Post the derivatives expiry, noise traders began obsessing about the Federal Reserve  (Fed) and whether it would drop the word ‘patient’. The fact that it did so was seen as enough of a reason to sell the dollar, triggering a … Read More

Posted in Emerging Markets, Uncategorized | Leave a comment

Cautious regulators may be preventing QE in Europe from generating much growth

Two Friday the 13th’s  in a row, and the “ides” of March thrown in for good measure, not a good few  weeks for the superstitious perhaps, and equities generally have certainly seen a pickup in volatility, while US equities have … Read More

Posted in Quantitative Easing and Extraordinary Monetary Measures | Leave a comment

Technology’s advance making GDP look even more redundant / Apple the carmaker? Engine and transmission no longer barriers to entry

The European Central Bank (ECB) finally came out with the details for QE to start on Monday and last through until September, with purchases running at an estimated 60bn a month. Only around a fifth of these will be asset … Read More

Posted in Manufacturing | Leave a comment
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