Thursday, October 1, 2015

Lots of newsbits

Bunch of stuff for you:

Conversable Economist - exchange rate moves in historical terms. Hey, if you've been listening to all that blather about EM currency collapse, can you tell me if they've told you that the rupee and yuan have both appreciated in the last year? So, in other words, dollar-denominated debts in these two countries have worked out well for their corporations? Really? So there's no reason to worry about dollar-denominated debt in China and India? Really?

FT - making the China numbers add up. A lot of chatter about various measures of China GDP, so that you don't get stuck listening to the uninformed crap of some hedge fund cokehead who read once about the Li Keqiang index.

Oh and by the way, September China consumer sentiment came in at 118.2, strongest reading since May 2014. Gee, that really sounds like the Chinese are panicking about their equity market "collapse", eh?

Reuters - India's final monsoon total: 14% deficit. Well, Skymet sure pooched that call. Nevertheless, it takes more than a 14% deficit to truly dent Indian farm yields.

Bloomberg - China continues spending on high-speed rail. And everyone uses it too. So don't believe any stories about "ghost trains":
The 1,318-kilometer (819 miles) Beijing-Shanghai high-speed line started turning a profit last year, three years after opening, according to state media.


A line from Beijing to downtown Tianjin, a 39 minute express, has proven so popular that a second line will now be built.
And, just so you economics newbies understand why they're doing this:
China enjoys clear "catch-up" advantages versus developed nations, which see smaller marginal gains from infrastructure spending, said Mark Williams, chief Asia economist at Capital Economics Ltd. in London. That’s why China’s investment may pay off more than Japan’s in the 1990s, he said.
This heavy infrastructure spending is why China sees productivity gains year after year, while India is forever stuck in the 1920s. - China central bank adds to gold reserves. Really? So gold is still worth something to the Chinese? Hm... so does that mean we should sell them all the gold we have?

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