Tag Archives: India

China, India, Greece and Ben….oh my!

By Admin | Published: August 29, 2011

Global equity markets had big movers overnight, but not all in the same direction.

China was down 1.5% as that nation extended their reserve requirements to include client margin accounts. This has some estimating that $140 billion more will have to be held as requirements over the next 6 mths. This means that the tightening of Chinese monetary conditions is not yet done and could see additional steps to reign in lending and therefore reduce inflation.

Next up, India took steps to ease a political crisis that had engulfed the nation. Opposition leader Hanzarre was on a 13 day fast … …READ MORE

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Top FX Themes and Trades: Ratings, Egypt, Ratings II, India

By Admin | Published: January 28, 2011

1. Ratings I. On January 27th, Standard and Poor’s cut Japan’s sovereign credit rating to AA- from AA and puts it on the same level as China. S&P said that Japan had no “coherent strategy” to deal with the outsized debt that will likely reach 200% debt-to-GDP this year. “The downgrade reflects our appraisal that Japan’s government debt ratios –already among the highest for rated sovereigns — will continue to rise further than we envisaged before the global economic recession hit the country and will peak only in the mid-2020s,” the agency said according to WSJ.

While the yen weakened … …READ MORE

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EM to the Upside

By Admin | Published: February 22, 2010

Greece Cools: There are two stories out on Greece today that are influencing the markets. The first to come out on Sunday was a story indicating that Greece wanted help/subsidy from the rest of the EU on their auctions. Greece indicated that the interest rates they will be paying are too high and will cause problems. “What we are saying simply is we need the help so that we can borrow at the same rate as other countries, not at high rates which in fact undermine our possibility for making the changes and cutting down our deficit,” Greek PM George … …READ MORE

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Inflation: What If The Unthinkable Happens?

By Admin | Published: January 19, 2010

Currently, there are two places in the world that are experiencing significant increases in prices and more may be coming. India’s Federal Chief Statistician Pronab Sen told a private television channel on Tuesday that the monthly inflation may touch double digits by March according to the Times of India. “It is really possible,” he said. India’s wholesale price index rose to 7.31% in December from a year earlier, driven by higher food prices. Processed food items rose 26.40% in December and non-processed food items increased by 19.17%. The Reserve Bank of India had only projected a 6.5% overall inflation rate … …READ MORE

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The Debt-Interest Rate Paradox

By Admin | Published: November 24, 2009

There appears to be a race to see who can warn and downgrade the most from the ratings agencies. Yesterday, Fitch downgraded Mexico’s foreign currency rating to BBB on the ability of the government to meet their fiscal obligations (reduced maneuverability of fiscal accounts) and their increasing debt to GDP. Today, they warned about Japanese banks saying that weaker loan quality may put pressure on Japan’s “mega” banks’ performance and in turn capitalization, which remains somewhat weak by international standards, especially in terms of the “core” capital levels

The FT reports that S&P released a study of the world’s major … …READ MORE

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