Posted Saturday, January 3, 2009 by
Tony Sagami
Manufacturing activity in China contracted for
the fifth month in a row in December. The output index fell to a record 38.6.
That's an important number because manufacturing is a much larger part of the Chinese economy than ours. Manufacturing accounts for 43% of the Chinese economy.
That's an important number because manufacturing is a much larger part of the Chinese economy than ours. Manufacturing accounts for 43% of the Chinese economy.
Posted Saturday, January 3, 2009 by
Tony Sagami
Two Chinese companies are joining together to build the largest solar plant in the world.
China Technology Development Group and Qinghai Energy are going to build a 1 gigawatt solar power plant in China. This will be almost twice the size of the current leader.
China Technology Development Group and Qinghai Energy are going to build a 1 gigawatt solar power plant in China. This will be almost twice the size of the current leader.
Posted Wednesday, December 31, 2008 by
Tony Sagami
Forever is a very long time.
The Japanese Nikkei suffered its worst year ever in 2008, losing 42% --- the worst performance in its 58 year history.
The Japanese Nikkei suffered its worst year ever in 2008, losing 42% --- the worst performance in its 58 year history.
Posted Wednesday, December 31, 2008 by
Tony Sagami
It was a tough year in Hong Kong. The Hang Seng index dropped by 48.3% in 2008. That is the worst drop in 34 years.
Posted Wednesday, December 31, 2008 by
Tony Sagami
The latest S&P/Case Shiller index showed that the average price of single-family homes in 20 of America's largest cities fell by 18% in October, the largest one month decline in history.
Home prices have fallen every month since January of 2007 and I doubt they are done falling.
Home prices have fallen every month since January of 2007 and I doubt they are done falling.
Posted Wednesday, December 31, 2008 by
Tony Sagami
China is a fantastic country filled with wonderful people. I am not a fan of communism and one of its inevitable byproducts is corruption. This interesting article tells just how pervasive corruption is in China and rightly points it fingers at dishonest communist party officials looking for easy money.
"Corruption accounts for an estimated 3% to 15% of a $7-trillion economy,"
"Corruption accounts for an estimated 3% to 15% of a $7-trillion economy,"
Posted Wednesday, December 31, 2008 by
Tony Sagami
I don't know what you're opinion is of oil prices, but the Chinese think $40 a barrel oil is a bargain.
"China would press ahead with the second phase of construction of its national strategic oil reserves and also encourage companies to build up their commercial reserves."
"China would press ahead with the second phase of construction of its national strategic oil reserves and also encourage companies to build up their commercial reserves."
Posted Wednesday, December 31, 2008 by
Tony Sagami
Jim Rogers is pretty sharp and has a very global perspective when it comes to investing. Rogers said that he has become a big China buyer now.
“Some parts of the Chinese economy will be totally unaffected by what happens in the West. I started buying in October again. I never sold any Chinese shares.”
“Some parts of the Chinese economy will be totally unaffected by what happens in the West. I started buying in October again. I never sold any Chinese shares.”
Posted Monday, December 29, 2008 by
Tony Sagami
Larry Summers, head of Obama's National Economic Council, warned that our unemployment rate could hit 10%.
If true, the recession would become very painful.
If true, the recession would become very painful.
Posted Tuesday, December 23, 2008 by
Tony Sagami
Interesting article worth reading about the Philippines.
Roughly 10% --- nine million people --- of the Philippines population has left the country to take overseas jobs, primarily as maids, nannies, and nurses.
There are only two Philippine stocks listed on U.S exchanges (Etelcare Global Solutions and Philippine Long Distance Telephone) so I haven't paid much attention to the Philippines for investment ideas.
Roughly 10% --- nine million people --- of the Philippines population has left the country to take overseas jobs, primarily as maids, nannies, and nurses.
There are only two Philippine stocks listed on U.S exchanges (Etelcare Global Solutions and Philippine Long Distance Telephone) so I haven't paid much attention to the Philippines for investment ideas.
Posted Tuesday, December 23, 2008 by
Tony Sagami
I almost didn't believe the number when I saw it: Japanese exports plunged by 26.7% in November.
Exports to the U.S. were even worse: exports to the U.S. dropped by 34%.
Exports to the U.S. were even worse: exports to the U.S. dropped by 34%.
Posted Tuesday, December 23, 2008 by
Tony Sagami
We all know that Toyota makes great cars but they also make great profits. For the last 70 years in a row, Toyota has made money. Not anymore.
Toyota is forecasting that it will lose money in 2009 because of plunging demand and a strong yen.
"The tough times are hitting us far faster, wider and deeper than expected. This is an unprecedented crisis requiring urgent action."
Toyota is forecasting that it will lose money in 2009 because of plunging demand and a strong yen.
"The tough times are hitting us far faster, wider and deeper than expected. This is an unprecedented crisis requiring urgent action."
Posted Monday, December 22, 2008 by
Tony Sagami
The news has been filled with stories about tapped out consumers and weak holiday sales. The retail situation in couldn't be more different.
The Chinese Ministry of Commerce reported that China's retail sales broke the 10-trillion-yuan (about $1.5 trillion U.S. dollars) for the first time, which works out to roughly a 21% increase over the previous year.
The Chinese Ministry of Commerce reported that China's retail sales broke the 10-trillion-yuan (about $1.5 trillion U.S. dollars) for the first time, which works out to roughly a 21% increase over the previous year.
Posted Monday, December 22, 2008 by
Tony Sagami
The dollar amount isn't huge but the change in direction could be.
China reported that its cash horde of foreign exchange reserves declined from $1.906 trillion to $1.89 in September (most recent numbers).
That's the first time since December of 2003 that China's cash reserves have declined.
China reported that its cash horde of foreign exchange reserves declined from $1.906 trillion to $1.89 in September (most recent numbers).
That's the first time since December of 2003 that China's cash reserves have declined.
Posted Monday, December 22, 2008 by
Tony Sagami
At a cross-straits conference in Shanghai, the Chinese government pledged to help Taiwan through any economic slowdown. Part of that pledge included $2 billion of orders for the flat panel monitors/TVs from Taiwan manufacturers.
Think AUO Optronics (NYSE:AUO) is happy about this news?
Think AUO Optronics (NYSE:AUO) is happy about this news?
Posted Monday, December 22, 2008 by
Tony Sagami
The People's Bank of China (the Chinese Fed) cut it key lending rate by 27 basis points 5.31%. This is the fifth time since September that China has cut interest rates.
Posted Thursday, December 18, 2008 by
Tony Sagami
Think the job situation is tough in the U.S.? It isn't so rosy in China either.
I've also chronicled the surge in factory closures, leaving millions of factory workers out of work. According to the Chinese Academy of Social Sciences, the urban unemployment rate is now 9.4%.
Even the highly educated are having a tough time. Chen Guangqing of the National Association of Vocational Education said, "The employment situation may be worse than the 1990s. This time, college graduates are not finding work, and there are so many of them."
I've also chronicled the surge in factory closures, leaving millions of factory workers out of work. According to the Chinese Academy of Social Sciences, the urban unemployment rate is now 9.4%.
Even the highly educated are having a tough time. Chen Guangqing of the National Association of Vocational Education said, "The employment situation may be worse than the 1990s. This time, college graduates are not finding work, and there are so many of them."
Posted Thursday, December 18, 2008 by
Tony Sagami
We've been enjoying lower fuel prices for several months, but the Chinese have been stuck at higher prices because the Chinese government, not the free markets, control the price of fuel.
Fuel prices were cut yesterday. A 14% for gas, 18% drop in diesel prices, and a 30% drop in jet fuel prices.
Hmmm. Maybe it is time to take a look at those Chinese airlines again.
Fuel prices were cut yesterday. A 14% for gas, 18% drop in diesel prices, and a 30% drop in jet fuel prices.
Hmmm. Maybe it is time to take a look at those Chinese airlines again.
Posted Monday, December 15, 2008 by
Tony Sagami
These are some of the most worrisome quotes I've ever heard about the Chinese economy. And they are from the head of the International Monetary Fund.
"We started with China at 11% growth, then 8%, then 7% then China will probably grow at 5% or 6%. The possibility of a global recession is real, we realize something must be done."
"We started with China at 11% growth, then 8%, then 7% then China will probably grow at 5% or 6%. The possibility of a global recession is real, we realize something must be done."
"We are facing an unprecedented decline in output and we have evidence of substantial uncertainty limiting the effectiveness of some fiscal policy measures."
"We anticipate that the gross effect will last some time. We need large and diversified stimulus support that will last longer than one or two quarters."
What the IMF is telling us is that things are going to get very ugly.
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