Chillin' out till it needs to be funded
The post starts below in bold..opening with A statistical break to set the context – FOR a review of the new Global order as WEF and G-20 try to see where the world is going click here for the lovely product Reuters has
For those waiting for the inevitable massacre in the global markets to show its ‘ugly face’ at 9.30 am in the bull ring, the events in China have been long awaited as the much smaller Shanghai Stock exchange led the sun down through the recovering Germany and almost unending celebrations in the UK as 3% inflation fueled an almost 3% annual GDP growth in London. In London, Manchester and even parts nearer to the Irish seas, even without QE, restrictions are almost welcome as an almost palatable debate on inflation takes the deep crisis off the table and the acts of stability long due take over the writers remorse all pervading the saga’s phase of tumult and unending action.
Ireland of course is stuck with handouts from Portugal and Greece it does not want and the Eco Fin is going to decide on what the banks get in a day. So why the run on US stocks? Mostly beecause none of the bulls want to take issue s with a simple correction long due. The Dollar will emerge much more able if it can stay at lower rates, while China struggles with the story of missing domestic consumption and rising labour costs. All in all, not a bad morning to wake upto after just 2 years of a perfect storm.
In the new world, China and the East look like decisive funding giants with the developed world now learning the benefits of inflation and declining currencies. An oversimplification, but this is due stability and “global peace” so we must all stick to it. Of course the few and far listings in China are almost all the big China corporations on show and the BIG M&A, a GM IPO or the AIG sales are still the centerpiece of why the financial markets happen
Even as FDI to the G-20 has fallen 36% in Q2 India, Brazil, China and other key constituents have been growing their share faster and higher every month leading to wide curbs like FDI taxes by Korea and Brazil for example. Big M&A has risen 36% in the September Quarter according to the Reuters M&A report with new leaders at the top of the table even as the Capital Markets business has changed without anyone nary the wiser. This is the new world order that must be part of your base plan