The services PMI is out in China we see the familiar sight of below expectation and contraction once again.Is the professed change working, that is, moving from manufacturing to consumption and service driven economy.Looks like it is not doing so for the moment.Till China, does clean up its act especially the booming bad loans and the worsening bond market situation, the economy will go ONE direction and the they will have to sing a different tune very soon.
Tinkering with the currency, and I expect a major wrong move to be made very soon enough, and the powers that be is trying to take the Shanghai index over 3k psychological level before they begin experimenting with the currency.They have started making their moves and we should see some serious progress towards devaluing the currency even further.If they do not jump start the manufacturing sector soon enough, there will a lot of empty containers lying in China and ships leaving their shores with fewer of them come september / october later this year.
The Chinese will have to stick to their famous adage , that is if it is a question of me dying or you dying then you better die.This devaluation will hit the EM.'s who have been enjoying a relative calm recently.Hence let us wait and watch and see what they will do in the coming week to ten days.Especially when the bond defaults begin soon.
Tinkering with the currency, and I expect a major wrong move to be made very soon enough, and the powers that be is trying to take the Shanghai index over 3k psychological level before they begin experimenting with the currency.They have started making their moves and we should see some serious progress towards devaluing the currency even further.If they do not jump start the manufacturing sector soon enough, there will a lot of empty containers lying in China and ships leaving their shores with fewer of them come september / october later this year.
The Chinese will have to stick to their famous adage , that is if it is a question of me dying or you dying then you better die.This devaluation will hit the EM.'s who have been enjoying a relative calm recently.Hence let us wait and watch and see what they will do in the coming week to ten days.Especially when the bond defaults begin soon.