Tag Archives: China

Fed creating “grave distortions” – Brazil Central Bank

Posted on October 18, 2010 by macromon

Brazil is considering additional measures to keep the Real from appreciating  any further.  We like the Economist’s Big Mac Index, which is based on the concept of purchasing-power parity, to get a sense of the over/undervaluation of a currency.  The … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | Leave a comment

Rare Earth Day 2.0

Posted on October 18, 2010 by macromon

Take a look at Rare Earth (not the band) today.  Lots of market buzz as Molycorp (MCP) up over 10 percent and Rare Earth Elements (REE) up over 22 percent.  Recall our take on the Rare Earth trade as “gold … Continue reading →

Posted in Commodities, Geopolitical, Gold, Politics, Rare Earth Elements, Sovereign Risk | Tagged , , , , | 2 Comments

The Greatest Trade Ever?

Posted on October 15, 2010 by macromon

Check out Bespoke’s great table of Credit Default Swap (CDS) prices.   We don’t trade CDS, but doesn’t Long China/Short Japan,  straight up,  seem like the greatest trade ever? Or just outright short at 53 bps?   Japan’s public funding requirement is almost … Continue reading →

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Chinese Solar Spanked on US Trade Rep Announcement

Posted on October 15, 2010 by macromon

Holders of Chinese solar stocks got a little taste of what a trade war could feel like.  Trina Solar fell more than 9 percent as U.S. Trade Representative, Ron Kirk, announced his office has launched an investigation into the Chinese … Continue reading →

Posted in Black Swan Watch, BRICs, China, Currency, Equities, Policy, Politics, Sovereign Risk | Tagged , , , , , | 2 Comments

Beijing’s $2.18 Big Mac and $1,400 GOLDen Arches?

Posted on October 14, 2010 by macromon

The Economist updated their Big Mac Index, which measures currency misalignments based on purchasing-power parity.  We just used the Big Mac Index this past weekend in our recent posts,  Rio’s $5.00 Big Macs and Geithner’s Naughty List.   Here is what … Continue reading →

Posted in China, Commodities, Gold, Politics | Tagged , , , | 1 Comment

World’s Richest Women Are Chinese

Posted on October 12, 2010 by macromon

The FT published an interesting piece on the world’s richest women, which came as a surprise: The world’s three richest women are Chinese – as are 11 of the top 20 – according to the Hurun List of Self-Made Women … Continue reading →

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Geithner’s Naughty List?

Posted on October 10, 2010 by macromon

Look no further than the Economist’s Big Mac Index to understand who is on the Treasury’s Naughty List.  It uses July exchange rates,  so a bit dated as the most recent currency moves are not included. Interestingly,  Japan and Brazil … Continue reading →

Posted in BRICs, China, Commodities, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | 1 Comment

Breakup of the Euro isn’t unthinkable – Peer Steinbrueck

Posted on October 4, 2010 by macromon

Peer Steinbrueck, who served as finance minister under Angela Merkel from 2005 to 2009, has published, Unterm Strich (“On Balance”), his insider view of the financial crisis. It looks to be a fascinating read.  Bloomberg has a great first look: … Continue reading →

Posted in Black Swan Watch, Bonds, China, Credit, Geopolitical, Monetary Policy, Policy, Sovereign Risk | Tagged , , , , | Leave a comment

Rare Earth Day

Posted on September 27, 2010 by macromon

Rare Earth Elements (REE) have shown up on our radar as shares of Molycorp (MCP), one of the largest and only producers outside China,  has doubled in the past month.   REEs have no substitutes and are critical material inputs for … Continue reading →

Posted in Black Swan Watch, China, Commodities, Equities, Geopolitical, Rare Earth Elements | Tagged , , , | 2 Comments