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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (8192)	6/22/2004 11:37:11 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

US Commerce Secretary calls on China to adopt more flexible exchange rate Tuesday, June 22, 2004 9:36:54 AM BEIJING (AFX-ASIA) - US Commerce Secretary Don Evans today urged China to establish a more flexible exchange rate, reiterating allegations that Beijing is seeking to boost exports by keeping the yuan artificially low "We think it's very important to have a flexible, market-driven exchange rate. That coupled with free trade and free flow of capital," Evans told journalists during his visit here "There is a working group between the United States and China working on that and we will continue to work for it." The US last year began accusing China of keeping its currency undervalued, a practice many US politicians claim allowed China to enjoy a 124 bln usd trade surplus with the US in 2003 Beijing has so far refused to budge on its peg of 8.28 yuan to the dollar, citing the need to maintain stability in its finance and banking sectors, especially amid signs that the nation's economy is overheating China will keep the "basic stability of the Chinese yuan rate around a rational and balanced level," Zhou Xiaochuan, governor of the People's Bank of China, said last week ============================================================= If and when China ever does what we are asking, we are no longer gonna want what we are asking for. Mish

To: yard_man who wrote (8192)	6/22/2004 11:41:34 AM
From: mishedlo	Respond to of 116555

UK economic recovery set to slow down in 2005 - NTC Tuesday, June 22, 2004 9:54:20 AM LONDON (AFX) - The UK economic recovery will peak in the final quarter of this year before slowing down in 2005 as higher borrowing costs begin to bite, according to the latest UK leading indicator from NTC Research Though the indicator fell for a fourth successive month to 100.4 in May from a revised 101.1 in April, NTC said the current upturn of the UK business cycle will peak in the final quarter of 2004 before turning downwards in 2005 It said the slowdown in growth is principally a reflection of the recent rises in interest rates, with the yield curve having a particularly negative effect on the indicator in May The Bank of England has raised borrowing costs by a quarter point on four occasions since last November, taking the key repo rate up to 4.50 pct. The markets expect further rate hikes to come as the central bank seeks to rein in rampant consumer spending, particularly in the housing market NTC said consumer confidence also had a negative effect on the indicator in May and noted that new car registrations saw its positive influence weaken M4 money supply and the FTSE non-financials share price index provided strong positive contributions to the indicator though the magnitude of their positive influences also eased NTC's forecast echoes that made by the Bank of England's governor Mervyn King last week He said it is a "reasonable" central view that UK growth is likely to be "robust" over the next year before easing back towards its long-term average which the central bank estimates at around 2.5 pct The indicator is compiled from a raft of economic data from money supply to new housing starts fxstreet.com