Posted tagged ‘Upturn’

The Chinese Shopping Spree will get stronger

December 18, 2009

The Chinese Ambassador to Helsinki in Finland has confirmed my predictions during his speech at the luncheon meeting hosted by Finland-China Trade Association in December: among other intereting comments he stated that chinese companies will increase their activity to acquire foreign assets. That will put pressure on the value of USD. The best way for China to change the external value of RMB against USD is putting Dollars into circulation – RMB would get stronger against the USD. The same will happen with other currencies, but the ratio of Euro against RMB, however, will remain untouched. That will help US to reduce imports and increase exports. Also the repatriation of foreign profits made by US corporations abroad will get more attractive. This all will benefit the US.  Certainly there is the risk of inflation looming behind the corner, but the weapon is also near – interest rates. When the FED starts to increase the interest rates, more investments will flow to the US again. The seed for growth in the USA  is nurtured by all these measures – intended or unintended.

Business conditions in the USA are improving

April 20, 2009
According to the Tatum survey all but two indicators show an upward trend already! The lowest point of recession was reached in November 2008, and since then the condition has been improving. Only capital expenditure and employment are still weak or getting slightly weaker. This is similar to the message what Mr. Prof. Holmberg from MIT carried over in his NYC breakfast briefing. The brighter side is gaining momentum! Also certain industries are more lucrative in the future like nutrition, renewable energy, care of elderly etc.  It’s getting time to make investment plans again, and avoiding debt. Welcome spring and summer 2009!