US interest rates are going UP. Why? Because nobody with money-ie Asia and the Middle East want to invest at 3% with a currency dropping like a stone. Bernanke will raise rates because he has to, not because he wants to. Foreigners are swimming in USD and they do not need anymore, in fact they are spending them on infrastructure projects.
China has raised reserve requirements again. Going up to 15 on June 15 and then 15.5 % on June 15. Hong Kong dropped 4.4 % and the Shanghai dropped 7.7%. China is going to slow in q2 and q3 as the heavy industries are geared down to clean up the air before the Olympics. I suspect late q3 and early q4 will see a significant rebound in activity.
LIBOR: Revised parameters for setting the rate. Not good for financials. Already today the rate moved from 2.68 to 2.77. Higher financing costs for financials equals lower profits-especially if you are levered 16-30X.
Hedge funds could become a dying breed-notice the drops in the CME and NYX. Could trading volumes be plunging?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment