Archive for August 18th, 2008

China: Not Everything is Rising

August 18, 2008

It is remarkable that the fourth largest economy in the world would still be recording real economic growth of marginally more than 10%.  When an economy joins the upper tier in world rankings, potential economic growth generally declines, and the global environment was poor in 2Q08.  Nonetheless, among monthly data released last week, retail sales […] More

Currency Markets in the News

Euroland Reports a Third Trade Deficit in Four Months

August 18, 2008

Euroland posted seasonally adjusted trade deficits in four months during 1H08, including three of the last four.  A gap of EUR 3.0 billion in June was the largest deficit so far this year.  The unadjusted deficit swung from a surplus of EUR 8.7 billion in 1H07 to a deficit of EUR 12.6 billion.  The deterioration […] More

Canadian Portfolio Capital Data Also Misleading

August 18, 2008

Canada reported securities transactions today covering June.  There was a whopping net inflow of C$ 16.75 billion, as foreigners bought C$ 7.25 billion of net Canadian securities, while Canadians sold C$ 9.50 billion of foreign securities.  The net inflow of C$ 8.25 billion per month in 2H08 was nearly four times greater than the average […] More

U.S. International Capital Flow Data Rarely Timely

August 18, 2008

The usefulness of measured U.S. capital movements is impeded by their lack of timeliness.  The most accurate and comprehensive information from the Commerce Department are released only quarterly and arrive in the final month of the following quarter.  Monthly data from the Treasury Department contain more recent information but all too often are still out […] More

New Overnight Developments Abroad - Daily Update

New Developments Abroad: Pakistani Stocks Soar 4.5% After Musharraf Resigns

August 18, 2008

The dollar fell 0.9% against the kiwi, 0.7% relative to the Australian dollar, 0.4% against sterling, and 0.3% against the euro and yen.  The Fed is seen raising rates later rather than sooner.  Bernanke speaks Friday at Jackson Hole annual symposium. The Nikkei rose 1.1%, but stocks fell 5.5% in China, 2.7% in Taiwan, and […] More