http://en.people.cn/n3/2016/1117/c90000-9143257.html
China is helping Philippines in infrastructures development and will be increasing FDI in the country too. Furthermore, China will include Philippines in the new sea lane which will be part of the one-belt-one-road plan.
Saturday, November 19, 2016
High interest rate environment is coming!
The spark of this vicious interest rate cycle is caused by the bond market selloff. Bond price and yield are inversely related to each other because bond pricing formula is based on time value of money concept.
As bond prices decrease, bond yields will increase and vice versa. Bond yields have been low for quite some time and some bond yields are even in negative territory now. Consequently, investors are selling bonds to seek better returns or yields and this bond selloff causes yields to fall. As China is USA largest creditor, China foreign reserves are shrinking because the total value of its USA bonds is declining. Since foreign reserves make up the backbone of the Renminbi (RMB) strength, RMB devaluation is inevitable as investors will sell RMB because its backbone is weakening. Thus, RMB has been declining to recent lows.
China is the de facto manufacturing factory of the world and the devaluation of RMB will cause inflation to escalate as China has to buy raw materials with higher prices for production. In other words, China is going to export inflation to the world. As inflation reaches the economic threshold levels of many countries, they will start to raise interest rates to contain inflation. The rises in interest rates will cause bond yields to spike up and depress the bond prices further.
Upon sensing this, China will continue to sell USA bonds to cut its foreign reserve losses with the ensuing outcome of shrinking foreign reserves and more RMB devaluations . This is the vicious interest rate cycle I am talking about. Therefore, the foreboding of higher interest rates is real and will be coming soon.
Baltic dry index - 1257
Today, Friday, November 18 2016, the Baltic Dry Index climbed by 26 points, reaching 1257 points.
Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Wednesday the 10th of February 2016, when the index dropped to 290 points.
US rig count - 588
HOUSTON (AP) — The number of rigs exploring for oil and natural gas in the U.S. increased by 20 this week to 588.
A year ago, 757 rigs were active. Depressed energy prices have curtailed oil and gas exploration, although the rig count has been rising in recent weeks.
Houston oilfield services company Baker Hughes Inc. said Friday that 471 rigs sought oil and 116 explored for natural gas this week. One was listed as miscellaneous.
Texas gained eight rigs and Louisiana and Oklahoma each gained four.
Ohio gained three, Colorado gained two, while Alabama and Utah each gained one. North Dakota, Pennsylvania and Wyoming each lost one rig. The U.S. rig count peaked at 4,530 in 1981. It bottomed out in May at 404.
Friday, November 18, 2016
It is unlikely that Japan will win the Malaysia HSR contract.
http://www.straitstimes.com/asia/east-asia/abe-makes-strong-pitch-for-spore-kl-high-speed-rail?utm_campaign=Echobox&utm_medium=Social&utm_source=Facebook&xtor=CS1-10#link_time=1479343208
China has proven its HSR technology to the world in its own country which is super stable and fast. Please look at our previous posts on China HSR.
China also won the HSR contract in Indonesia based on its own merits. Furthermore, Malaysia is getting cozy with China and will give China the preferential treatment in this bidding. Let's wait and see.
China has proven its HSR technology to the world in its own country which is super stable and fast. Please look at our previous posts on China HSR.
China also won the HSR contract in Indonesia based on its own merits. Furthermore, Malaysia is getting cozy with China and will give China the preferential treatment in this bidding. Let's wait and see.
Thursday, November 17, 2016
UFO sighting in Indonesia!
Singapore export slumps again!
http://finance.yahoo.com/news/singapores-exports-slump-trump-raise-042929452.html
Sigh! Malaysia economy is growing but Singapore economy is shrinking. Malaysia 2nd Quarter GDP growth was 4.1% in 2016 and looked set to grow at 4.2% for 2016.
http://www.thesundaily.my/news/1969791
Is Malaysia stunning growth peculiar to international growth or Singapore declining growth abnormal?
Sigh! Malaysia economy is growing but Singapore economy is shrinking. Malaysia 2nd Quarter GDP growth was 4.1% in 2016 and looked set to grow at 4.2% for 2016.
http://www.thesundaily.my/news/1969791
Is Malaysia stunning growth peculiar to international growth or Singapore declining growth abnormal?
NKF CEO was sacked for personal indiscretion with another guy. Hahaha!
Anyone with a decent IQ will know what personal indiscretion with another guy means. What a way to describe such incident! This is just like what our government is doing....Flooding becomes ponding in SG.
Wednesday, November 16, 2016
OMG! Taiwan is going to lift food import ban for radiation food from Japan.
I will think twice about touring Taiwan now because it's impossible to avoid eating radiation food from Japan in Taiwan as we cannot be certain that the food stalls and restaurants are not using Japan produce and seafood.
There was a japanese tv host who refused to believe that radiation food was harmful to human. Therefore, he tried to convince audiences by eating radiation food on TV. He had cancer after eating radiation food.
http://enenews.com/japan-tv-host-diagnosed-acute-lymphocytic-leukemia-eating-fukushima-produce-show
Do you want to end up like him? Be safe, not ignorant!
There was a japanese tv host who refused to believe that radiation food was harmful to human. Therefore, he tried to convince audiences by eating radiation food on TV. He had cancer after eating radiation food.
http://enenews.com/japan-tv-host-diagnosed-acute-lymphocytic-leukemia-eating-fukushima-produce-show
Do you want to end up like him? Be safe, not ignorant!
China has achieved another technological breakthrough!
China has achieved another technological breakthrough on its own with the development of a high field magnet.
Pakistan has formed strategic alliance with China.
Pakistan has bought 8 submarines from China which will mean China will help to train Pakistan navy.
China gave Singapore a stern warning again!
My fear for Singapore has materialized. Anti-Singapore sentiment has taken root in China and we can see this from the completion of Gwadar Port (Pakistan). China has warned Singapore again after the opening of Gwadar port. The first warning was to demand Singapore to stay out of South China Sea issue. The latest warning is “Don’t think that ancient China had only 1 route!” which implies that China has created another route to ship oil and goods that will bypass Singapore port.
The oil shipment from Middle East and Africa to China will reduce time by 85% with this new route as China can ship the oil from Gwadar port to Xinjiang and vice versa. This new route essentially bypasses the strait of Malacca and Singapore port totally. Therefore, Singapore port handling capacity will begin to reduce further after the operation of Gwadar port. This is the price to pay when we stand together with USA to contain China and China is containing Singapore’s growth through this vindictive move. This is not the end but the beginning of a sinister plan to destroy Singapore because China does not regard Singapore as a friendly Chinese nation anymore. We must give kudos to our ruling party for putting Singaporeans in this precarious predicament. Do not expect USA to come to help Singapore as history has shown that USA will forsake its allies for its own interest.
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