The Weekend Wrap: Yuan Pressures, Shanghai Jazz, U.S. Exports to China and More

Markets, gold and other commodities the world over continue rallying with weakness in the USD and the U.S. FED suggesting it won’t let the market’s go down even if they want to. With the markets rallying so strongly, any indications of an uptick in the USD or interest rates, not to mention the FED changing their mind on QEII, would surely be the excuse for a substantial profit-taking decline and increased volatility, if not worse…..On the currency front, what currency didn’t rise to new yearly highs against the dollar yet?…the view is building that the USD will hold and recover at current lows from here….hope so as we certainly don’t need $83/barrel crude oil prices either……Meanwhile global emerging economies headed by China continue showing strength, Japan reports a rise in hedge fund startups……money continues pouring into bonds including the riskier ones as investors seek higher yields…..Li Ka Shing and partners is setting up a $400 million dollar fund in Kazakhstan to attract investment into Hong Kong, while AmCham Shanghai’s Door Knock Committee continues its worthy goal to encourage U.S. leaders to pay more attention to the amazing opportunity in front of us all to increase exports to China which will indeed create JOBS, well wouldn’t that be nice?……Germany, South Korea and Japan are way ahead of the game, with all of those countries executing far more aggressive and successful export programs and export revenues compared to the U.S…meanwhile the U.S. ForeclosureGate mess pushes any recovery in U.S. housing further down the road. Moving on…..China’s reply on the yuan issue to the western leaders continues unchanged: being pressured by western leaders to revalue the yuan as a means of solving the world’s problems is a very bad idea and poor politics at best…..and added pressure with China’s trade gap climbing to a record…..Across the next ocean to Europe, we find the common man rioting against economic reforms in France, London leads rents in the U.K. to a record high….enough, enough. Here in Shanghai there’s plenty of jazz in town around the JZ annual jazz festival at several venues including the World Expo. Consider our friend in the photo below and don’t work too hard.

Mario Cavolo
Shanghai

Read more at Mario Cavolo