Hong Kong’s de facto central bank bought $2.07 billion this week to stop the local currency from strengthening beyond its 31-year-old peg to the greenback.
Share listings, dividends and mergers and acquisitions are driving demand, the Hong Kong Monetary Authority said July 26. OAO MegaFon, Russia’s second-largest wireless operator, has shifted some of its cash holdings into the city’s dollar as the U.S. and Europe ratchet up sanctions, Chief Financial Officer Gevork Vermishyan said in an interview yesterday. Continue reading
MOSCOW, July 30 (RIA Novosti) – The Bank of Russia and the Reserve Bank of India have agreed to set up a working group to devise tools to use national currencies in bilateral payments, the Russian regulator said Wednesday. Continue reading
But it’s not just about keeping Chinese bellies full. According to an excellent in-depth report from Reuters, Beijing is increasingly equipping fishing boats with geolocation devices, filling them up with subsidized fuel, and dispatching them to the disputed waters of the South China Sea, where they are clashing with rival fishermen from Vietnam and the Philippines. Continue reading
Mexico City (AFP) – The leaders of China, Russia and Japan all descended on Latin America in recent weeks, jostling with the United States to increase their influence, invest and tap into resource-rich markets.
The latest arrival was Japanese Prime Minister Shinzo Abe, who on Monday was in Trinidad and Tobago, the second stop on a five-country tour that began on Friday in Mexico.
Abe’s visit began just as Chinese President Xi Jinping wrapped up his tour, which included stops in Brazil, Argentina, Venezuela and Cuba. Xi signed more than 100 trade agreements on the trip.
Russian President Vladimir Putin was in the region for a week from July 11, stopping in Argentina, Brazil, Nicaragua and Cuba. Continue reading
U.S. Census Bureau foreign trade data show that exports rose 17 percent from March through May _ the most recent months for which the data is available _ compared with the previous three months, before sanctions were imposed. The value of exports has risen in each consecutive month this year, an unusual trend in a trade relationship that historically fluctuates on a monthly basis.
Russian markets account for less than 1 percent of U.S. exports, but what the U.S. sells to Russia is largely high-tech and expensive goods, including technology and equipment for the energy sector, which faces the threat of targeted sanctions.
Robert Kahn, a senior fellow in international economics at the Council on Foreign Relations, said the rise in exports was evidence that Russian companies were stockpiling goods with the expectation that future sanctions would prevent U.S. companies from selling to their country. Continue reading
BERLIN(Own report) – German businesses are demanding that the government intensify its support for tapping the “continent of opportunity, Africa” in competition with China and other BRICS countries. Parallel to the West’s waning global influence, German businesses are loosing ground on the African continent. This is why German enterprises are pushing for increasing Hermes trade credit insurances, double taxation treaties, and generally “stronger political support for the German industry in Africa.” A building industry federation is explicitly demanding that future allocations of development funds be tied to orders for German/European firms. The German government has indicated its readiness to implement these policies. The KfW Development Bank and other public-sector banks are already seeking ways to support the German industry’s expansion efforts by expanding credit transactions. Continue reading
In the end, they will side with Russia. Not only because of legal issues or political issues such as the Snowden ‘scandal’, but because they have historically leaned pro-Russian despite the last 70 years of strong relations with the United States. The current Chancellor, Angela Merkel, is heavily Russian influenced as she grew up in the Soviet controlled eastern portion of Germany and voluntarily participated in the DDR — and held leadership positions. She was groomed to be pro-Russian. Her predecessor, Gerhardt Schröder, strengthened business ties between nations during his tenure, plus he now works for Gazprom, a state-owned (KGB/FSB) Russian gas company — and knows exactly who and what entity he works for.
It doesn’t take a genius to see where this is going as leaves don’t fall far from the tree. The espionage ‘scandal’ is only an excuse — because it’s quite clear every nation spies on another, including allies — to do what Germany has long wanted to do: Kick NATO and the Western powers out and rule the European continent on its own.
NATO being shown the door is only one crisis away and a Russian invasion of Ukraine could prove that. NATO, the protectorate of Europe against Soviet aggression, is unprepared to fend off a Russian attack and will sit idly by while anger stirs against its intentional complacency. That would be the nail in the coffin for the West and a boost for Germany’s Fourth Reich to take the military lead, as it’s slowly pushing for now.
Germany is to scupper a free trade agreement between the European Union and Canada because the clauses giving legal protection to investors would give them too much power, according to a report in a leading Germany newspaper.
The Canada deal is considered a template for the United States-EU free trade agreement, the Transatlantic Trade and Investment Partnership (TTIP), which is still under negotiation. If Germany rejects the Canada agreement, then the American deal looks likely to fail, too.
A senior European Commission official in Brussels told the Sueddeutsche Zeitung: “The free trade treaty with Canada is a test for the agreement with the United States.” If the one with Canada is rejected, “then the one with the United States is also dead.” Continue reading
LONDON — While the 70th anniversary of D-Day last month received a lot of attention, another event, in July 1944 — the Bretton Woods conference, named for the mountain resort in New Hampshire where it was held — was perhaps even more significant in shaping the modern world. It not only led to the creation of what are now the International Monetary Fund and the World Bank, but it also confirmed the central position of the United States dollar in the international monetary system.
Why does this matter for us now? Just as America displaced Britain as the world’s pre-eminent economic power in the interwar period, so, too, the large debts and fiscal pressures confronting the West, and the rise of China and other economic powers, challenge us to think about the future of finance.
For most of the 19th century the British pound had been the world’s “reserve currency,” the currency in which trade and finance were denominated. “As sound as a pound” became a widely used expression. The pound was pegged to gold at a fixed rate of just under £4 per ounce. Continue reading
A decade after releasing its report on U.S. unpreparedness ahead of the Sept. 11, 2001 attacks, the 9/11 Commission has released a new assessment on the growing threat of cyber-terrorism.
“One lesson of the 9/11 story is that, as a nation, Americans did not awaken to the gravity of the terrorist threat until it was too late,” the commission wrote in a new report on the 10th anniversary of the original, which revealed the intelligence failures that led to the hijacking of four planes by Osama bin Laden’s al Qaeda terrorist organization. Continue reading
Washington: The US denies that a ban on US airliners flying to Tel Aviv and a stark US travel warning are ploys to push Israel to agree a Gaza truce.
“I would wholly disagree with that argument,” deputy State Department spokeswoman Marie Harf said, when asked if the two directives were a political move to put pressure on Israelis.
“We issued travel warnings because one of our top priorities is protecting US citizens overseas,” she told reporters on Tuesday. Continue reading
The rise of the BRICS countries–Brazil, Russia, India, China and South Africa–may challenge the world order and lead to the end of US domination.
The five countries set up the New Development Bank during a recent summit in Brazil, which offers an alternative to the US-led International Monetary Fund and the World Bank.
The five countries participating in the economic cooperation forum are likely to deepen their cooperation in various fields, which may rival the dominance of the United States and G7 countries in the world.
The BRICS countries will also increase their sway if they can improve their governance, considering the fact that they account for 42% of the global population and their GDP and trade volume each make up for about 20% of the world’s total. Continue reading
The showdown with Russian president Vladimir Putin comes at moment of surging global supplies of LNG, which can be diverted to European markets and reduce the Kremlin’s political leverage. The price of LNG in Asia has crashed from $20 to $11 per British thermal unit since February.
The pan-EU group Gas Infrastructure Europe said the network of LNG terminals in Britain and the Continent is currently operating at just 20pc of its full capacity. It could in theory boost flows by 160bn cubic metres (BCM), if there is available gas.
This is more than Russia’s entire shipments, which reached 155 BCM last year. The European network of pipelines does not cover every region and would leave pockets in eastern Europe without supply.
“We have a lot of free capacity in LNG in Europe. It would be extremely difficult to replace Russian gas in a just a few months but it is possible to raise supply,” said one official. Continue reading
BERLIN/WASHINGTON/MOSCOW (Own report) – The EU and USA have expanded their sanctions against Russia and – in addition to individuals – have now also placed important Russian companies on their lists. Washington has restricted dealings, for example, with Rosneft and the Gazprombank. Brussels has announced the possibility of preventing EU companies from doing business with Russian companies and is planning to list them by the end of July. German business circles are protesting. They have already suffered billions in losses. Experts are warning that, with its sanctions against Russia, the West may experience, in the economic arena, an overreach similar to that experienced by the US in the military arena with its war on Iraq. With the power of the West obviously waning, it has already become noticeable that even close allies are defecting. Observers explain this with the Crimea conflict: NATO countries had been unable to retain the Crimea within the reign of its allied Ukrainian government; therefore it seems that an alliance with NATO countries would no longer be a reliable assurance against ones enemies. Defections can be noticed in Asia and Latin America, not least of all because of the recent founding of the BRICS development bank, rivaling the US-dominated World Bank. Russia and China are among the founders of this bank. Continue reading
By creating their own multilateral financial institutions, the BRICS emerging-market powers are shaking up global economic governance but remain far from dismantling the post-war system dominated by the West.
For the past 70 years, the International Monetary Fund and the World Bank have been the pillars of the world’s economic system, coming to the rescue of countries in trouble and supporting development projects, respectively.
China, the world’s second-largest economy, continues to have just slightly more voting power in the IMF than Italy, about five times smaller.
And, since their creation in 1944, the IMF and the World Bank have only been led by Americans and Europeans. Continue reading
With the decision by Bulgaria to suspend construction of the South Stream natural gas pipeline, there is more pressure on Serbia, which is balancing its longstanding ties with Russia against its desire to join the European Union.”The Serbian situation is the most difficult because it ‘paid ‘ the entrance to the pipeline by giving to Gazprom low prices for NIS (Naftna Industrija Serbia – Oil Company of Serbia) and Banatski Dvor (and underground gas storage in Vojvodina),” Jelena Milic, director of the Centre for Euro-Atlantic Studies for Belgrade, told SETimes.
“It is not regulated by the energy agreement with Russia what will happen if Russia gives up the project or if it will not be able to realise its obligations. Serbia counts on incomes of transit and to pay back its debts to Russia,” Milic said. Continue reading