Beijing, in a step to resolve the dispute concerning scandals at Chinese companies, have allowed US authorities to review the documents from Chinese auditors, reports FT. In an agreement revealed today, US Public Company Accounting Oversight Board is granted permission to access the records held by Chinese accounting firms. The deal will prove beneficial to calm down the straining relations between the two economic giants, which could have resulted in the delisting of many...
Read More »
It is generally a good idea to listen to what Danish PM Helle Thorning-Schmidt says about the political side in the European Union. Not because she represents a large and powerful economy – which she doesn’t; but because she has spent all her political life in those circles and is well versed in different languages. She knows the European Union inside and out – and can say things representatives of the major countries can’t....
Read More »
Most investors are familiar with the speculative thesis that China is wrestling with a large property bubble right now, and that there may be little the international community can do to avoid the crash. The Chinese government is aware of the issues, and it’s stalling a $6.5 trillion urbanization plan on fears it will further hurt the economy. Property Crisis In China There are huge fears that several factors stemming from a Chinese property...
Read More »
China’s manufacturing activity contracted in May for the first time since October 2012, raising concerns that growth in Asia’s largest economy is slowing. A preliminary survey by HSBC Holdings plc (NYSE:HBC) (LON:HSBA) showed that new orders declined this month, and China’s flash Purchasing Manager’s Index (PMI) skidded to 49.6 in May. A reading below 50 is a sign of contraction in manufacturing activity. China’s actual PMI in April was 50.6, which had already declined...
Read More »
A gold mine is a hole in the ground with a liar on top–Mark Twain The above chart illustrates how historically cheap gold mining equities are to gold. Not since the Great Depression and Pearl Harbor have equities been so cheap on market cap to production, reserves and cash costs. See the XAU (Index of gold and silver miners) below as a percentage of the gold price–currently below the Great Recession lows of 2008:...
Read More »
Goldman Sachs Group, Inc. (NYSE:GS) CEO Lloyd Blankfein sat down with Bloomberg TV anchor Erik Schatzker at the company’s annual meeting in Salt Lake City. Lloyd Blankfein said that the firm is committed to growing in China even after it ended a seven-year investment in The Industrial and Commercial Bank of China (I.C.B.C.) (SHA:601398) (HKG:1398): “ICBC is not the key to our interest in China, or the big reflection of it. We’re investing in China...
Read More »
Asian equity markets were down on Thursday, including Japan’s Nikkei index, which had its worst performance in two years, reports WSJ. Weak performance from Chinese manufacturing segment and expectations that U.S. Federal Reserve may exit the bond-buying in coming months could have been the main reasons for the fall. Reasons for the fall The Japanese stocks did experience some volatility in Thursday’s trading session. The shares were up early but after the report, showing...
Read More »
Tim Cook, the CEO of Apple Inc. (NASDAQ:AAPL) pointed out specifically Texas to build its line of Mac Computers. Tim Cook vowed last year that the production of Mac will be started in the United States. The announcement was made by Cook in December last year. In a statement in front of the Senate subcommittee in Washington D.C, Cook revealed that the facility of Texas will be utilised for manufacturing the Macs from Apple...
Read More »
Japan’s Nikkei dropped 7.3% in yesterday’s trading after rising almost uninterrupted by 80% over the past several months. The drop has shocked many investors, but some investors had already been taking their profits. Hedge Funds have already started to unload Nikkei say analysts at SocGen in a new report with that title. According to data compiled by the firm, Hedge Fund investors have backed the Nikkei since it began rallying in November 2012. Although...
Read More »
Microsoft Corporation (NASDAQ:MSFT) chief executive Steve Ballmer said today that the company plans to hire several thousand employees in China over the next year. Ballmer was speaking at a press conference in Shanghai. The new workers will help boost the world’s largest software maker’s smartphone and cloud computing businesses using Windows OS. However, Steve Ballmer didn’t specify exactly how many new workers will be added. Microsoft Corporation (NASDAQ:MSFT) currently has about 4,000 employees in China. Ballmer...
Read More »
Gold’s been on a wild ride. After reaching a peak of $1,920 an ounce in September 2011, gold has tumbled 28% to the current ~$1,380 level forcing John Paulson to take a 47% loss in his gold fund during the first four months of this year, according to Bloomberg. Unlike John Paulson who maintained his positions in gold, other big players like George Soros and BlackRock cut their gold ETF holdings, while Goldman Sachs...
Read More »
