Premier Wen’s recent attack on the Chinese banking system last month has highlighted what was already a very interesting debate on Chinese banks and the Chinese financial system. There is a growing sense that the Chinese banking system is deeply flawed and needs to be reformed.
While oil prices have declined over the last several months to roughly $98 a barrel for Brent grade crude oil. Bloomberg notes that the median estimate for the third quarter of 32 analysts it tracks for Brent crude is $114.50 a barrel.
With the equity market rally over the past month our long term and intermediate surveys improved slightly with the biggest development in the long term outlook (200 day survey) on the verge of moving into bullish territory (>60%).
The ongoing “Arab Spring” in the energy-rich Middle East has been fueled by rising food prices and economic stagnation – two factors that continue to play a major part in political developments in that part of the world.
While Europe, China and the U.S. were primarily responsible for a lower Global PMI reading, we believe the trend is your friend. In April, global PMI crossed above the three-month moving average, and historically, when a “cross-above” has happened, it’s signaled higher prices for many commodities.
The dollar strengthened today based on foreign central bank policy steps. Oddly enough, while the dollar strengthened the CRB index was up small. That’s because soft commodities like corn, wheat, OJ, and soybeans led the index higher with strong gains due to draught conditions and lower yields.
Chinese operas have been keeping audiences enthralled for hundreds of years with mythical characters, enchanting stories and elaborate masks that add drama and mystery.
News of a "monster" natural gas find in British Columbia has one again highlighted that North Americans need to make a choice. Do we want to keep the huge volumes of natural gas that have been discovered in recent years across the continent landlocked and transportable only by pipeline, or should we develop the infrastructure that will enable us to transport this fuel to the gas-hungry markets of Asia?
Spain may have the best soccer team, but it lost control of its banking system. That’s good news: the success of the Eurozone summit is not about money, but about process. For the first time in months, it appears there’s a sensible path forward.
You are probably fully aware that the largest US bank, JP Morgan, had a more than noticeable derivatives loss that was announced a few weeks back. In fact, regulators seemed so taken aback that they had JP’s CEO, Jamie Dimon, appear before the Senate Banking Committee to explain.