Countries & Regions Archives - Page 324 of 369

November 9, 2011

Moody’s Downgrades South Africa

Moody’s rating agency changed its credit rating outlook from stable to negative for South Africa Wednesday, expressing concerns that politicians overseeing the continent’s largest economy won’t be able to stick to strict fiscal policies.

Moody’s has said it fears commitment to low budget deficits could be undermined by pressure from factions of the governing African National Congress party, its labor movement supporters and a population facing high rates of poverty and unemployment. The agency also said a debate driven by the party’s popular youth leader over whether mines should be nationalized is scaring investors.

via Moody’s Downgrades South Africa.

November 9, 2011

America and China must “crush” Germany into submission – Ambrose Evans-Pritchard

Having followed the German political scene closely for the last five months, it is clear to me that almost the entire German political establishment is out of its depth, ideological, sometimes smug, apt to view the EMU debt-crisis as a Calvinist morality tale, and lacking in deep understanding of what it has got itself into.

One can understand German worries about money printing – and especially the loss of fiscal sovereignty and democratic control – but matters have already moved on. It is too late for that.

via America and China must crush Germany into submission – Telegraph Blogs.

November 8, 2011

Global Liquidity ‘on the Cusp’ of Drying Up – WSJ.com

“Global liquidity has fluctuated wildly over the past five years and we are on the cusp of another retrenchment,” [Bank of Canada Governor Mark Carney] said in the text of a speech, which was focused on global liquidity, to the Canada-U.K. Chamber of Commerce in London.

Mr. Carney, who was appointed chairman of the Financial Stability Board at last week’s G20 Summit, said market volatility is increasing and activity declining as global liquidity shrinks. “The effect on the real economy will soon be felt,” he said. The Bank of Canada expects the euro-area to experience a brief recession.

via Global Liquidity ‘on the Cusp’ of Drying Up – WSJ.com.

November 8, 2011

‘Excessive Liquidity’ Not the Solution for Central Banks – WSJ.com

Governments and central banks shouldn’t throw principles overboard in their efforts to fight the debt crisis, Jürgen Stark, a hawkish member of the European Central Bank’s Executive Board, warned Tuesday. “Red lines mustn’t be crossed, otherwise efforts to solve the crisis today create the basis for a new crisis tomorrow,” Mr. Stark said in a speech in Lucerne, Switzerland.

via ‘Excessive Liquidity’ Not the Solution for Central Banks – WSJ.com.

November 7, 2011

Top German Economist: ‘It’s in Greece’s Interest to Reintroduce the Drachma’ – SPIEGEL ONLINE – News – International

[Economist Hans-Werner Sinn, president of the Institute for Economic Research, in Munich]: What politicians refer to as a “rescue” will not actually save Greece. The Greeks won’t ever return to health under the euro. The country just isn’t competitive. Wages and prices are far too high, and the bailout plan will only freeze this situation in place. So it’s in Greece’s interest to leave the euro and reintroduce the drachma.

via Top German Economist: ‘It’s in Greece’s Interest to Reintroduce the Drachma’ – SPIEGEL ONLINE – News – International.

November 7, 2011

Germany must do it, not China | Credit Writedowns

In the end this is Germany’s crisis to resolve, not China’s. Germany has benefited tremendously from the euro. Nearly all of its growth in the past decade can be explained by its rising trade surplus which, given monetary policy driven almost exclusively by the needs of slow-growing and consumption-repressed Germany, came at the expense of the rest of Europe.

If the Germans want to save Europe, they must reverse their polices and start running large trade deficits even if that comes with slower growth. If not, the euro will break apart and peripheral Europe will almost certainly default on its obligations to Germany. Either way Germany loses.

via Germany must do it, not China | Credit Writedowns.

November 7, 2011

Italy Nears Tipping Point as Bond Yields Spike – WSJ.com

Less than two weeks after European leaders unveiled an agreement that was designed to bolster confidence in the region, the yield on Italy’s 10-year debt drew close to the 7% mark, a line in the sand of both practical and psychological importance to the market. Psychologically, 7% has become a beacon due to the fact that Greece, Portugal and Ireland each sought bailouts soon after their debt reached these levels. While analysts said it is too simplistic to say that Italy will be forced to ask for support if its 10-year debt yields 7%, they said the recent selloff is taking the country to the tipping point.

via Italy Nears Tipping Point as Bond Yields Spike – WSJ.com.

November 7, 2011

Dow Jones Shanghai

Dow Jones Shanghai Index is also hesitant, with no advance over the last 3 trading days. Reversal below 304 would indicate a test of primary support at 284. Breakout above the descending trendline — and resistance at 330 — is unlikely with 21-day Twiggs Money Flow (respect of the zero line from below) warning of selling pressure.

Dow Jones Shanghai Index

November 7, 2011

Japan and South Korea

Dow Jones Japan Index is consolidating between 48 and 52. Breakout will signal future direction. 21-Day Twiggs Money Flow is rising but there is no clear break as yet above the zero line. Monday’s candle indicates continued hesitancy.

Dow Jones Japan Index

Dow Jones South Korea Index also showed hesitancy Monday. Reversal below 400 would warn of another test of primary support at 350, while respect of 400 would indicate a primary advance to 450*. 21-Day Twiggs Money Flow is declining but respect of the zero line would also signal a primary advance.

Dow Jones South Korea Index

* Target calculation: 400 + ( 400 – 350 ) = 450

November 7, 2011

ASX 200 hesitant

The ASX 200 index is testing its descending trendline. Recovery above 4350 would indicate a primary advance, while reversal below 4100 would test primary support at 3850. Bearish divergence on 21-day Twiggs Money Flow warns of medium-term selling pressure.

ASX 200 Index

The longer term chart displays a bullish divergence on 13-week Twiggs Money Flow, indicating long-term buying pressure. Breakout above 4350 would offer a weak advance but a correction that respects primary support would strengthen the signal.

ASX 200 Index Weekly

* Target calculation: 3900 – ( 4400 – 3900 ) = 3400