World economy talk

[tidus1203]

^^Now THAT IS INTERESTING!

Pero syempre di rin yan gagawin ng China. Its like stepping your own foot. But syempre slowly divesting should be continued!

[uls]

^^

You'll find this interesting too:

China Dumps US Asset Backeds and Corporates
http://blog.atimes.net/?p=1352

Dollar-denominated risk assets, including asset-backed securities and corporates, are no longer wanted at the State Administration of Foreign Exchange (SAFE), nor at China’s large commercial banks. The Chinese government has ordered its reserve managers to divest itself of riskier securities and hold only Treasuries and US agency debt with an implicit or explicit government guarantee. This already has been communicated to American securities dealers, according to market participants with direct knowledge of the events.

It is not clear whether China’s motive is simple risk aversion in the wake of a sharp widening of corporate and mortgage spreads during the past two weeks, or whether there also is a political dimension. With the expected termination of the Federal Reserve’s special facility to purchase mortgage-backed securities next month, some asset-backed spreads already have blown out, and the Chinese institutions may simply be trying to get out of the way of a widening. There is some speculation that China’s action has to do with the recent deterioration of US-Chinese relations over arm sales to Taiwan and other issues. That would be an unusual action for the Chinese to take–Beijing does not mix investment and strategic policy–and would be hard to substantiate in any event.

[uls]

check out EUR/USD last night



3 month chart

[uls]

record short EUR

EUR short positioning continues to grow
Sun, Feb 14 2010, 23:08 GMT
http://www.forexlive.com
The market continues to bet on a lower EUR with the latest analysis showing EUR shorts at record levels. Short EUR contracts increased to a record 57k, up by over 30% (which is still a long way from the record for long EUR contracts which was close to 120k a few years ago). In other words, the market is short but it's bearish and still has room to move.

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everyone's too focused on the Spartans




Don't forget Dubai

http://twitter.com/CMAVision/

Market Update: Dubai 5 Yr CDS at 632 bps --> highest point since the 27th of November 2009. More data on www.cmavision.com.
8:52 AM Feb 12th from web

[uls]

the futures are green

gold is up

[tidus1203]

Everyone loves to blame the Chinese for being thrifty!

China has a different problem: its government is under attack for conservative spending policies that, critics say, are damaging long-term productivity prospects and contributing to the economic imbalances underlying the global financial crisis.

http://www.reuters.com/article/idUSTRE61E31Z20100215

As a Chinese myself I have to say medyo thrifty din ako and I am very conscious of my spending... I say it has helped me overall and is a great trait! The Americans are convincing the Chinese to be like them! Good Luck they are fighting ingrained culture afterall!

[Monseratto]

Markets were up yesterday, including commodities. Dollar lost a little from the Euro but gained on the yen.

Oil= 77.01
Gold=1,119.00
Euro= 1.3759
Yen=90.20

[tidus1203]

Good day for commodities. I am trading agri right now...

[uls]

concerns about Greece pushed 30 days into the future

investors got out of safe haven USD

USD index


went into risk assets

NYMEX crude

[uls]

Greek debt timebomb

[uls]

China reduces USG debt holdings

Japan surpasses China as largest holder of U.S. Treasury securities
http://news.xinhuanet.com/english201...c_13177277.htm

WASHINGTON, Feb. 16 (Xinhua) -- China trimmed its holdings of U.S. debt by 34.2 billion U.S. dollars in December 2009, leaving Japan as the largest holder of U.S. Treasury securities, the U.S. Treasury Department reported on Tuesday.

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[tidus1203]

China reduces USG debt holdings

Japan surpasses China as largest holder of U.S. Treasury securities
http://news.xinhuanet.com/english201...c_13177277.htm

The biggest chip in the bargaining table! More powerful than the the A-bomb!

[uls]

IMF to sell 191.3 tons of gold

http://www.imf.org/external/pubs/ft/...NEW021710A.htm

Following the sale of 212 tons of gold to central banks, the IMF is moving ahead with sales on the gold market, phasing the sales so as to avoid market disruption.

In September 2009, the IMF’s Executive Board approved gold sales totaling 403.3 metric tons (12,965,649 troy ounces). Having already sold over half that amount to several central banks, the IMF is now looking to sell the remaining 191.3 tons of gold.

The IMF will continue to hold a substantial portion of its assets in gold. The sale of the full 403.3 metric tons would reduce the IMF’s gold holdings by about one-eighth.

Spot gold hit $1,126 before the IMF press release

then fell after the press release



USD index back above 80

[Monseratto]

Oil= 79.00
Gold=1,119.00
Euro= 1.3495
Yen=92.015

[uls]

Fed raises the discount rate

USD index passes 81

[uls]

NYMEX crude passes $80

[tidus1203]

Basta ingat lang sa $85 for oil... Baka mag momentum nanaman yan pag nagkataon!