World economy talk

[safeorigin]

Another point for Mr. Schiff. Someone still owes him a dime though

[uls]

dollar rebounds

[uls]

[Monseratto]

FILIPINO CORPORATION- Same as the Chinese model, but replace the people with family relatives... and the media announces your every move.

TWO COWS ~{Matthias Varga}

SOCIALISM You have 2 cows. You give one to your neighbour

COMMUNISM You have 2 cows. The State takes both and gives you some milk

FASCISM You have 2 cows. The State takes both and sells you some milk

NAZISM You have 2 cows. The State takes both and shoots you

BUREAUCRATISM You have 2 cows. The State takes both, shoots one, milks the other, and then throws the milk away

TRADITIONAL CAPITALISM You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income

ROYAL BANK OF SCOTLAND (VENTURE) CAPITALISM You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more. You sell one cow to buy a new president of the United States , leaving you with nine cows. No balance sheet provided with the release. The public then buys your bull.

SURREALISM You have two giraffes. The government requires you to take harmonica lessons.

AN AMERICAN CORPORATION You have two cows. You sell one, and force the other to produce the milk of four cows. Later, you hire a consultant to analyse why the cow has dropped dead.

A GREEK CORPORATION You have two cows. You borrow lots of euros to build barns, milking sheds, hay stores, feed sheds, dairies, cold stores, abattoir, cheese unit and packing sheds. You still only have two cows.

A FRENCH CORPORATION You have two cows. You go on strike, organise a riot, and block the roads, because you want three cows.

A JAPANESE CORPORATION You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk. You then create a clever cow cartoon image called a Cowkimona and market it worldwide.

AN ITALIAN CORPORATION You have two cows, but you don't know where they are. You decide to have lunch.

A SWISS CORPORATION You have 5000 cows. None of them belong to you. You charge the owners for storing them.

A CHINESE CORPORATION You have two cows. You have 300 people milking them. You claim that you have full employment, and high bovine productivity. You arrest the newsman who reported the real situation.

AN INDIAN CORPORATION You have two cows. You worship them.

A BRITISH CORPORATION You have two cows. Both are mad.

AN IRAQI CORPORATION Everyone thinks you have lots of cows. You tell them that you have none. No-one believes you, so they bomb the ** out of you and invade your country. You still have no cows, but at least you are now a Democracy.

AN AUSTRALIAN CORPORATION You have two cows. Business seems pretty good. You close the office and go for a few beers to celebrate.

[uls]

China's currency managers want to flush out speculators who are betting the yuan would keep appreciating against the US dollar

the CNY was steadily appreciating and interest rates are high. so speculators sell USD, buy CNY, and park the money in China govt bonds

others buy options that profit from rising CNY (but lose money when the CNY falls below a certain level)

it seems the yuan is nearing that level coz the rapid depreciation is a sign speculators are unwinding positions (sell CNY, buy USD)

[uls]

from above:

the CNY was steadily appreciating and interest rates are high. so speculators sell USD, buy CNY, and park the money in China govt bonds

^^

what i described is a carry trade

yuan volatility is low coz it is a managed currency and China interest rates are high

now volatility has risen

Yuan Turns Worst Emerging Carry Trade as PBOC Stokes Volatility - Bloomberg

The yuan has gone from being the most attractive carry trade bet in emerging markets to the worst in the space of two months as central bank efforts to weaken the currency cause volatility to surge.

The yuan’s Sharpe ratio, which measures returns adjusted for price swings, turned negative this year as three-month implied volatility in the currency rose in February by the most since May, when the Federal Reserve signaled plans to cut stimulus. The exchange rate tumbled the most since 2010 on Feb. 25 amid speculation the People’s Bank of China was intervening to deter one-way bets on currency gains.

“A lot of investors globally were invested in the yuan because of the interest-rate differential and the low volatility,” Rajeev De Mello, who manages $10 billion as Singapore-based head of Asian fixed income at Schroder Investment Management Ltd., said in a Feb. 25 phone interview. “All of a sudden the low volatility part of the argument is no longer there.”

An unwinding of the carry trade may spur a slide in the yuan, which is set for the biggest monthly decline since the government unified official and market exchange rates at the end of 1993. Deutsche Bank AG, the world’s largest foreign-exchange trader, estimated this week that bullish bets on China’s currency amount to about $500 billion.

The yuan carry trade has lost 1.1 percent this year, compared with a gain of 5.8 percent in the Indonesian rupiah and a return of 2.3 percent in the Brazilian real according to data compiled by Bloomberg. In carry trades, investors borrow funds in a nation with low interest rates in favor of purchasing assets in countries where returns are higher.

[uls]

Russia Raises Interest Rates After Markets Plummet
Central Bank Raises Rates by 1.5 Percentage Points

By ANDREY OSTROUKH
Updated March 3, 2014 3:44 a.m. ET
MOSCOW—Russia's stocks, bonds and currency fell heavily Monday in response to Moscow's threat to send troops to Ukraine, prompting the central bank into aggressive action to try to stabilize markets.

As the ruble sank to fresh record lows, with the dollar trading at 37 against the ruble and the euro at 51.2, the Central Bank of Russia raised interest rates by 1.5 percentage points, taking the key rate to 7%. It also bumped up its repo rate, at which banks receive liquidity, to 8%, and banks said it sold dollars heavily to support the currency. Russia’s deputy economy minister, Andrei Klepach, said that the central bank’s move has nothing to do with inflation and is purely aimed at limiting losses in the ruble, Interfax news agency reported.

[uls]

MICEX

[Monseratto]

[uls]

solar panel manufacturer Shanghai Chaori Solar Energy Science & Technology announced last night they won't be able make full interest payments due on March 7

[uls]

^^^

Shanghai Chaori in Default on Bond Interest Payments - WSJ.com

BEIJING—A Chinese solar-equipment maker on Friday failed to meet interest payments on a bond, according to a company official there, becoming China's first domestic corporate bond default.

Liu Tielong, board secretary of Shanghai Chaori Solar Energy Science & Technology Co., said on Friday that it was in default. The heavily indebted company had warned on Tuesday that it wouldn't be able to meet interest payments totaling 89.8 million yuan ($14.7 million), citing a credit squeeze and its inability to raise enough funds to make the interest payments.

The default, though small in size, marks the first time a Chinese company has defaulted on a bond traded in the mainland, according to Moody's Investors Service.

[uls]

US nonfarm payroll +175K jobs

higher than expected

so another $10B taper coming

dollar positive

[uls]

[uls]

[Monseratto]

Pizza chain Sbarro files for bankruptcy again

Pizza chain Sbarro files for bankruptcy again
BY AGENCE FRANCE-PRESSE
POSTED ON 03/11/2014 11:16 AM | UPDATED 03/11/2014 11:31 AM


NEW YORK, United States – US pizza chain Sbarro filed for bankruptcy protection for the second time in 3 years as a slowdown in mall traffic weighs on sales at its fast food restaurants.

The restauranteur requested protection under Chapter 11 while it reorganizes its finances, according to a filing in US bankruptcy court in New York.

The restructuring will affect about $140 million in Sbarro debt, according to report by rating agency Fitch.

Fitch also discussed a possible bankruptcy at Quizno's, another medium-sized restaurant chain.

The Sbarro and Quizno's troubles are "a warning sign of financial distress" confronting many brands in the restaurant industry, Fitch said.

"We do not view them as portending a widespread increase in bankruptcies of US restaurants, but a reflection of difficulties faced by brands that have lost their competitive position and relevancy with consumers."

Both chains have suffered the growth of competitors like Subway, Little Caesars and Papa John's. In Sbarro's case, Fitch said the 68-year-old chain has also lost out from consumers moving away from shopping malls.

Sbarro last month said it was cutting 155 restaurants in North America to reduce costs.

Sbarro's 2011 bankruptcy resulted in an agreement with creditors to trim its debt from $368 million to $130 million. – Rappler.com

[uls]

March 12 (Bloomberg) -- Herbalife, the nutrition company that hedge fund manager Bill Ackman has accused of being a pyramid scheme, disclosed that the U.S. Federal Trade Commission has started a civil probe into its practices.

[Lady Bathory]

I was referred by uls. He asked me to keep this thread going so here goes...

The U.S. dollar rallied last week on comments from Federal Reserve chair Janet Yellen that the central bank is in the process of normalizing monetary policy. If U.S. economic growth is sustained, quantitative easing will end this year and interest rates will start to rise in 2015. Many view U.S. economic growth to be the strongest among developed countries and the Federal Reserve will be the first central bank among the big-three central banks to withdraw monetary stimulus. I believe the U.S. dollar will strengthen more in the coming months.

[jut703]

OT: How did Uls get banned?


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[chua_riwap]

OT: How did Uls get banned?


Posted via Tsikot Mobile App

due to some depressed misunderstandings, that went into cosmic proportions.

Posted via Tsikot Mobile App

[Gumusut_Amige]

I was referred by uls. He asked me to keep this thread going so here goes...

The U.S. dollar rallied last week on comments from Federal Reserve chair Janet Yellen that the central bank is in the process of normalizing monetary policy. If U.S. economic growth is sustained, quantitative easing will end this year and interest rates will start to rise in 2015. Many view U.S. economic growth to be the strongest among developed countries and the Federal Reserve will be the first central bank among the big-three central banks to withdraw monetary stimulus. I believe the U.S. dollar will strengthen more in the coming months.

welcome po mam... ganon po ba, appreciate the gesture of bro uls. when would be the domino effect felt in our shores because of the crimea crisis?