China

You have probably seen the headlines on the natural gas accident in Pennsylvania. Chesapeake Energy, the largest natgas driller reported on Tuesday that one of its wells in Bradford County, Pennsylvania was uncontrollably spilling thousands…

The Financial Times is reporting that China is attempting to address its wealth gap through a number of measures, the principal one of which is raising the tax exemption on income. As welcome as such a move is for consumers facing…

Analyzing official China comments in order to make a currency call is a fool’s errand. However, suffice it to say that all of these comments suggest a reduced patience for the status quo and an increased willingness to recalibrate China FX…

From the International Business Times and Andy Lees at UBS: Reports that central China's Hubei province has joined a growing list of regions facing coal shortages with a warning that it is very likely to start power rationing later this…

. If China’s current account surplus declines, there are, very broadly, two ways this can affect the US. On the one hand the surplus can simply be transferred to another country. For example if China’s current account surplus declines…

The easy stance of developed economy central banks is driving money into emerging markets and fostering the accommodative stance of those central banks, fearful of more hot money flows or currency appreciation. Easy money in the face of…

China data came in stronger than expected, and supports the view that PBOC is moving behind the curve with its gradualist approach and that it needs to get more aggressive. Q1 11 GDP growth slowed slightly to 9.7% y/y from 9.8% y/y in Q4…

This comes via Market Watch: Moody’s Investors Service on Thursday lowered its view on China’s property sector, warning that a slowdown is underway with credit conditions forecast to tighten over the next 18 months. However, the…

If China does continue to tighten to fight inflation as I also indicated I expect they will, the hard landing scenario is definitely something to consider. Early evidence shows that the property bubble is coming off the boil. But it is…

Victor Shih argues that Chinese FX reserves are vulnerable and that raising real interest rates are key to reducing the potential risk. Video and PDF presentation provided.