Asia emerges as an economic zone

Source: Bloomberg

Source: Bloomberg

 

Asian currencies (Korea, Malaysia, Philippines, India, Indonesia, Taiwan and China) are now trading in lockstep with the Japanese yen. In large part this is managed: so many Asian countries compete in the same export markets that their central banks try to keep their currencies aligned with each other. Continue reading

Trade Deficit in U.S. Widens to Largest in Almost Five Years

 

  • Imports rise by most since 2015, outpacing export gains
  • Trump administration says data show ‘much work to be done’

The U.S. chalked up its largest trade deficit since March 2012 as a jump in merchandise imports in January exceeded a smaller gain in shipments overseas.

The gap in goods and services trade increased by 9.6 percent to $48.5 billion, matching the median forecast in a Bloomberg survey, Commerce Department figures showed Tuesday. The deterioration in January from the previous month reflected a 2.3 percent gain in imports, the most since March 2015, and a 0.6 percent pickup in exports. Continue reading

China overtakes US and France to become Germany’s most important trading partner

China became Germany’s most important trading partner as imports and exports rose to €170 billion (GETTY)

 

CHINA for the first time became Germany’s most important trading partner in 2016, overtaking the US and France.

German imports from and exports to China rose to €170 billion (£143billion) last year, Federal Statistics Office figures reviewed by Reuters showed.

The development is good news for the German government, which has made it a goal to safeguard global free trade after US President Donald Trump threatened to impose tariffs on imports and his top adviser on trade accused Germany of exploiting a weak euro to boost exports. Continue reading

Trade With Japan Collapses: Exports Decline 7th Month, Imports Plunge Most Since 2009

https://i1.wp.com/www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/05/13/japan%20trade_0.jpg

 

Abenomics was back in the spotlight tonight. Global trade with Japan has collapsed. Exports are down and imports are down even more. The result is an unexpected rise in Japan’s trade surplus, yet another failure of abenomics.

The Markit Japanese PMI shows Output falls at fastest rate in over two years, underpinned by a sharp
drop in new orders. Continue reading

The Trans-Pacific Partnership: Death of Western Sovereignty

(TRUNEWS) On February 4, the Trans-Pacific Partnership (TPP) is set for formal signature in New Zealand.

The TPP is a global version of the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT), which has been negotiated in secret for the last seven years and would place centralized regulation on 40 percent of the world’s economy.

NAFTA and GATT had a catastrophic effect on U.S. business competitiveness, and domestic export values, upon implementation in the 90’s, a trend the TPP is likely to follow. Continue reading

We Have Hit Keynesian Nirvana: A Third Of All Containers Shipped From Long Beach Port Are Empty

In the past several months, it has been virtually impossible to make any sense of the conflicting trends involving US and global trade. On one hand, there is global trade, which as we have covered since the spring, has been in a state of consistent decline. Some example of this:

Where things get more complicated, however, is when looking at the US. Here, macro data throughout the summer had suggested more or less smooth sailing in the trade space, and it was only a week ago that the facade started to crack, following the ugly advance trade report, when as we reported there was a “16% Surge In August Trade Deficit; Imports Jump As Exports Drop.” Continue reading

Swiss Peg Collapses – The Euro’s Nightmare

On September 6th, 2011 the Swiss National Bank (SNB) was aiming for a substantial and sustained weakening of the Swiss franc after Swiss companies threatened to leave because the rising franc reduced their exports. The SNB would no longer tolerate a EUR/CHF  exchange rate below the minimum rate of CHF 1.20. The SNB set out to enforce this minimum  rate with the utmost determination and it began to buy Euros in unlimited  quantities.

Socrates has been warning about January for the last year. Here is the forecast array on a daily level and it pinpointed the rise in in volatility for today the 15th with a Panic Cycle and turning point due as well as we can see. Continue reading

US Sees Huge Energy Opportunity In Europe

If 2015 is anything like 2014 we can expect a wild ride. Oil price volatility – including its downward trend – will linger well into the first and second quarters as global production persists and key conflicts in Eastern Europe and the Middle East show no end. For its part, the United States is better positioned than most – the US is poised to carry the global economy in 2015 with projected GDP growth of 3.1 percent. However, converting this potential into meaningful energy trade and/or soft power is another matter altogether and 2015 offers limited opportunities. Continue reading

David Cameron warns that second global crash is looming

PM says ‘red warning lights are flashing’ against a backdrop of instability and uncertainty, as G20 summit draws to a close

David Cameron has issued a stark message that “red warning lights are flashing on the dashboard of the global economy” in the same way as when the financial crash brought the world to its knees six years ago.

Writing in the Guardian at the close of the G20 summit in Brisbane, Cameron says there is now “a dangerous backdrop of instability and uncertainty” that presents a real risk to the UK recovery, adding that the eurozone slowdown is already having an impact on British exports and manufacturing. Continue reading

US poised to become world’s leading liquid petroleum producer

The US is overtaking Saudi Arabia to become the world’s largest producer of liquid petroleum, in a sign of how its booming oil production has reshaped the energy sector.

US production of oil and related liquids such as ethane and propane was neck-and-neck with Saudi Arabia in June and again in August at about 11.5m barrels a day, according to the International Energy Agency, the watchdog backed by rich countries.

With US production continuing to boom, its output is set to exceed Saudi Arabia’s this month or next for the first time since 1991. Continue reading

U.S. sales to Russia have only risen since sanctions imposed

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

US and China: The Fight for Latin America

According to Robert Valencia, China is vying for greater economic influence in Latin America, to include possibly constructing and operating an alternative ‘Panama Canal’ through Nicaragua. One unanticipated consequence of this burgeoning US-China rivalry, Valencia observes, is that it might push Latin American countries closer together.

During the first weekend of June, U.S. President Barack Obama and Chinese President Xi Jinping met in California to discuss cyber espionage and territorial claims in the Pacific Rim. While tension on these topics has hogged the headlines, the fight for influence in another area could be even more important—Latin America. Other emerging markets in Africa, where China has an overwhelming influence due to foreign direct investment in mining and oil, also offer economic opportunities, but Latin America has an abundance of natural resources, greater purchasing power, and geographic proximity to the United States, which has long considered Latin America as its “backyard.” Continue reading

Rare Earths Rouse Pentagon Fears

Specifically, to buy rare earth and other minerals that are crucial to the U.S. defense industry, and whose supply is currently at the mercy of China and its opaque political system. Japan, for example, was starved of rare earth elements during a maritime dispute with China in 2010. The United States wants to hedge that risk, given the damaging consequences an abrupt clampdown could entail. Continue reading

Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility

The world continues dumping and abandoning the USA as it remains lulled into a false sense of security — even by the traditional ‘allies’. The rude awakening is coming and it’s not a matter of ‘if’, but when. Some say 2013 is the year the United States has its rug (unsustainable standard of living) pulled out from under it and crown swiped.

A month ago we pointed out that as a result of Australia’s unprecedented reliance on China as a target export market, accounting for nearly 30% of all Australian exports (with the flipside being just as true, as Australia now is the fifth-biggest source of Chinese imports), the two countries may as well be joined at the hip.

Over the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world’s “reserve currency” in its trade dealings with the world’s biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process “slashing costs for thousands of business” and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar’s reserve currency status until one day it no longer is. Continue reading