Tonight at 7PM ET, I’ll be appearing on CNBC’s Kudlow Report discussing President Obama’s trip to China and the potential for a Chinese revaluation.… …READ MORE
Monthly Archives: November 2009
China Trade War Coming
New Zealand PM English says US dollar likely to decline further, says he discussed US dollar with US Tsy Sec Geithner, says Asian countries should not be worried about FX appreciation, but says he’s concerned about the strength of his own currency and it’s impact on NZ exports.
Thailand Finance Minister Chatikavanij says they have bought $15 bln in 2009 to slow US dollar descent, says China stressed APEC need to ensure no rise in protectionism, says no indication from China if or when a yuan revaluation will take place, and says weak yuan forces Asian central banks to curb … …READ MORE
Posted in Front Page Tagged China, Geithner, Thailand, trade war, US dollar, World Bank Leave a comment
Obama Focus on Far East
US Treasury Secretary Tim Geithner has been hitting the air waves and the editorial page during his trip to the APEC conference in Singapore. From Bloomberg to CNBC, Geithner has been consistent in stating that it’s very important the US maintain a strong dollar. However, he is advocating the opposite for the Asia-Pacific nations.
In an editorial in the Asian WSJ with the finance ministers of Indonesia and Singapore, Geithner said. “Market-oriented exchange rates in line with economic fundamentals will be essential in assuring the resource and sectoral shifts to match and foster the new patterns of demand.” Clearly, they … …READ MORE
Posted in Front Page Tagged Chinese yuan, Geithner, obama, US dollar, voters, Wen Jiabao Leave a comment
Media Appearance CNBC
Today at 11:20 AM ET, I’ll be appearing on CNBC’s the Call discussing the G20 meeting and the outlook for the US dollar.… …READ MORE
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G20 Affirms Weak $
Over the weekend, the US dollar was pummeled as it fell against almost every major currency and every minor currency except one. Hmm, which one would that be? Before we get to that, let’s run through the top seven reasons the greenback got whacked.
1. IMF report saying $ overvalued.
2. G20 no mention of US dollar in statement
3. G20 no stimulus exit.
4. China warns US to reduce deficit.
5. US House passes HC bill that expands deficit $1.1 trillion.
6. India to exit stimulus.
7. Better than expected German IP at +2.7% ve 1.0%.
All of these … …READ MORE
Posted in Front Page Tagged Brazil, China, g20, Larry Summers, Tim Geithner, US dollar Leave a comment
Sweet Child Of Mine Outlook
The recent volatility in the markets is perplexing after what has been a very good quarter for earnings and a very good quarter for US economic growth. As my friends in the music industry say, “What’s up with that?” Why are we experiencing this and what does it mean for the rest of the quarter?
Taking a look back for context, the world stood at the abyss and then stepped back with over $12 trillion in global stimulus coming from governments and central banks. This was done to offset the dramatic drop in the global economies and to offset almost … …READ MORE
Posted in Front Page Tagged central banks, global economy, government stimulus, stock market Leave a comment
PERAB Party!
Today, the White House is reconvening the President’s Economic Recovery Advisory Board. Today’s meeting is to continue discussion of the issues impacting the strength and competitiveness of the Nation’s economy. The group discussion will include an update on the research and preparatory work conducted in the PERAB subcommittees. According to the WH blog, “The PERAB will provide information and ideas obtained from across the country to promote the growth of the American economy, establish a stable and sound financial and banking system, create jobs, and improve the long-term prosperity of the American people.”
This will include their ideas on what … …READ MORE
Posted in Front Page Tagged financial regulatory reform, PERAB, President's Economic Recovery Board 2 Comments
Equity Food For Thought
After last weeks equity drop, here’s a few numbers that give investors the pause that doesn’t refresh. When the rally began last March, the P/E ratio for the S&P 500 based on 4 quarters of operating profits was a moderate 14. Now, it’s 27. According to the NYT, ” Even if you use a more conservative profit gauge — 10-year averaged earnings, a measure that smoothes out wild swings — you find that valuations have begun to soar. In March, the price-to-earnings ratio for the broad market using these “normalized” earnings was 13.3, well below the market’s historical average of … …READ MORE
