China on the verge of recession?

Not this year but possibly the next. None believes the official GDP growth numbers from the Chinese government. Throw in a power struggle and that electricity consumption had a startling drop in April and many are on edge about their investments in this country.

Count Jim Jubak and I among those bearish. He's got a good article up today about why China could be headed for more than just a hiccup in it's economy. I think the real estate bubble in Shanghai and the smaller cities could tip the scale.

In a market that is hard to get reliable stats for, I would try to focus on power consumption and non-performing loans numbers to try to predict where this market is headed.

BRICs still not cheap enough yet?

Troubling signs of slow growth in India and a weak rule of law in Russia contribute to the fact that the BRICs still might not be low enough for the cautious investor. The BRIC Bear Market still has a ways to go. Throw in the uncertainty with the ruling Communist Party in China surrounding Bo Xilai and the subsequent power struggle, and we may have a ways to go before things stabilize. Plummeting housing prices are sparking fears of the housing bubble bursting in cities all across the Middle Kingdom as well.

China and Corruption

The power struggle ensuing behind closed doors is becoming more and more public knowledge as information about Bo Xilai trickles out. There is a good editorial at the Post about how it might effect our future, and why we must tread lightly when investing in China for the future. Rampant corruption in China threatens the entire fabric of their government -led economy.

Inflation hits China hard.

Inflation is affecting the Chinese. I know Chinese graduates are heading to the big cities with high hopes, then having trouble finding jobs that pay even minimal wages. Something to keep an eye on in hopes of them avoiding civic unrest.

Asia Business Worries Over Swine Flu

Uncertainty abounds regarding outbreak of swine flu. We are still in the early stages but investors are nervous and eagerly awaiting to see how this all plays out.

Stay up to date on the investigation by the Center for Disease Control and Prevention (CDC).

Yuan Being Pushed

Keeping in line with the Chinese government pushing the yuan internationally recently, Argentina will be allowed to make orders from China in RMB and not the USD so commonly used. Countries short on dollars might find this particularly advantageous. The US government continues to hand out money at a staggering pace so we will see how this plays out.

Weakening Rupee

Bloomberg has an informative article related to the strength of the rupee. With so much attention given to the currency of China, keeping informed on how other nations are doing can fall a bit to the wayside. Keep up to date!

Brazil does bailouts too!

Not quite a bailout actually, it's a sovereign wealth fund signed into law. But another nation's government is taking a very active role in trying to protecting itself from the global economic turmoil. Let's hope Lula invests wisely...

Plus Minus

Brazil did alright this year but growth could slow to half speed next year, the AP reports. Everyone is feeling the crunch and this country is no different.

Cut Happy

China cut interest rates again, in wake of the record Fed cut. Hopefully this isn't another case of too little, too late. The Hang Seng was off more than 3 percent today.

Can we Party?

China's economy is slowing, see what the president of the country has to say about it. There's clearly more to it than just numbers, as he indicates steady growth must be maintained to limit social unrest.

Terrorist attacks in Mumbai.

Attacks in Mumbai at hotels and other sites... thoughts are with them.

Just go to Google News and you can see the latest.

Beijing Tea Party...

Came across a less than ringing endorsement of the interest rate cut in China. The tone of the NY Times article seems to question if the cut was even needed and would be effective. Scroll to the bottom where it was reported 2,000 people 'watched' another 500 ransack a factory they had just been fired from. Things seem a bit rougher there than what I had gathered from previous reports...

In The Name of Money

With gas prices falling, so integral to the Russian economy, they're looking to get friendly all over again with the EU. If the EU tries to leave them out of the picture, the Russians may get left behind... and not like being there.

No more fun with PBR?

Petrobras might get nationalized. Sure Brazil has plenty of poor people to support, but is socialization really the answer?

India being hit hard.

India is feeling the effects of the trouble with the world economy, as inflation is rising and factory growth slowing. A country that hasn't had any reforms over the past few years might struggle to do so in the near future due to elections.

G(r)8 Debate

The only country in BRIC, Russia, that's part of the G-8 took part in discussions with the 7 other members recently. A decent supply of food for the world seemed a bigger concern than any woes the economy might be going through. Expanding the G-8 could be in the works. If China is allowed to join then they may be held to higher standards, good for everyone.

The next likely president for Russia has liberal ideas for the economy

Is this a hint at the opening up of Russia? The man who many think will be the next president of Russia wants to open up the economy more. He wants to possibly shake up the leadership of some state run corporations. Of note is that he realizes how much of a problem corruption is in his country; a true roadblock to the development of the economy there.

Keys to the Brazilian Boom

An informative article from the Houston Chronicle talks about how the Brazilian economy is being pushed forward by the increasing confidence in banks by it's citizens. A large part of consumer financing is for autos, fueled by a marked increase in car production in 2007.