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

To: RealMuLan who wrote (16413)	11/21/2004 12:58:33 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

G20 MEETING Zhou says PBoC to monitor data before further monetary policy move Saturday, November 20, 2004 11:19:44 AM afxpress.com BERLIN (AFX) - People's Bank of China governor Zhou Xiaochuan said the PBoC will monitor the response of commercial banks to its recent interest rate increase to see if further policy changes are needed "We are going to observe how the commercial banks respond to the new policy and then we can see whether we need to go further to consider interest rate policy or not," Zhou told journalists ahead of today's meeting of G20 finance ministers and central bank governors "We just adjusted benchmark savings rates and lending rates and on the other hand we have agreed steps to liberalise interest rates, so I think the commercial banks can respond according to the market situation," he said The PBoC raised interest rates for the first time in nine years on Oct 28, hiking its benchmark one-year lending rate by 0.27 percentage points to 5.58 pct Zhou said the Chinese authorities will be closely monitoring economic data over the months ahead "Up to now for China the current account is basically balanced, so we don't have a very large trade surplus," he said. The US has sometimes criticised China's fixed exchange rate peg to the dollar, seeing a yuan appreciation as one possible solution to the US current account deficit Zhou said the US current account and budget deficits are just one factor in the dollar's recent slide "There are so many reasons for this -- the twin deficits and the low savings rate, but (Fed chairman) Alan Greenspan already said that," he said ================================================================ Yiwu, Given that he was at G20 meeting I would presume his view carries policy weight. Correct? Mish

To: RealMuLan who wrote (16413)	11/21/2004 1:02:08 AM
From: mishedlo	Respond to of 116555

G20 MEETING Schroeder calls on central banks to halt "worrying" dollar slide Saturday, November 20, 2004 1:05:26 PM afxpress.com BERLIN (AFX) - German Chancellor Gerhard Schroeder has called on the European Central Bank and other central banks to intervene to halt the US dollar's "worrying" slide "The ECB and other central banks should think about doing something," Schroeder told reporters on the sidelines of today's meeting of G20 finance ministers and central bank governors "The development in the euro/dollar relationship is very worrying," he said ========================================== Intervention huh? If not what? Does the US have any incentive to halt the slide? China? Mish Schroeder said the US current account and budget deficits are "clearly the cause" of the dollar's slide, and criticised the US government's lack of action to correct this imbalance in the world economy "Partnership means that one does something about it," he said "One can hardly call on Europe to make structural reforms, which we are doing, and then not emphasise your own economic problems," he said Schroeder said more cooperation with Asian countries, particularly with China and Japan, is also necessary on exchange rate issues The euro rose to a record high of 1.3074 usd last week. It neared that high again yesterday after US Federal Reserve Chairman Alan Greenspan warned that the size of the US deficits will put investors off dollar-denominated assets European policy-makers are concerned that the strength of the euro will undermine Europe's fragile, export-led economic recovery, but central bankers have so far shown little inclination to intervene in currency markets to halt the dollar's slide.

To: RealMuLan who wrote (16413)	11/21/2004 1:06:04 AM
From: mishedlo	Respond to of 116555

Koizumi says world needs strong dollar; Bush says US committed to this Saturday, November 20, 2004 4:26:08 PM afxpress.com SANTIAGO (AFX) - Japanese Prime Minister Junichiro Koizumi said the world economy needs a strong dollar, while President George W. Bush said the US remains committed to a policy of dollar strength During a brief public appearance with Koizumi on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum summit, Bush said he had "explained to him that my nation is committed to a strong dollar." Koizumi replied that a strong dollar is in the interest of both the US and the world economy "I completely agree with the view of the president that a strong dollar has a good impact on the US economy and is also important for the world economy," Koizumi said The dollar tumbled to the lowest level against the yen in over four years on Friday as markets bet against central bank intervention to arrest the US currency's decline The dollar fell as low as 102.92 yen in late European trading, the lowest level since April 2000 Meanwhile, the euro reached a peak of 1.3067 usd on Friday, flirting with the record high of 1.3074 usd seen on Thursday

To: RealMuLan who wrote (16413)	11/21/2004 1:09:29 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

G20 MEETING China´s Zhou: too soon to talk about loosening yuan/dlr peg UPDATE Saturday, November 20, 2004 6:00:11 PM afxpress.com G20 MEETING China's Zhou: too soon to talk about loosening yuan/dlr peg UPDATE (Updates with Zhou quotes, background) BERLIN (AFX) - People's Bank of China governor Zhou Xiaochuan said it is too soon to talk about moves to loosen the yuan/dollar peg China's currency has been pegged at about 8.3 yuan to the US dollar for the past ten years, and G7 countries have been pressing China to move to a more flexible exchange rate regime "It is still not the stage to talk about a specific technical arrangement," Zhou told journalists at the G20 finance ministers and central bank governors meeting China has conceded that there is a need to revalue the yuan but officials say this will take time "Now China is in the preparation stage. We are prepared to follow financial institutional reforms to develop the financial markets, especially the foreign exchange market," Zhou said "We are reviewing our old foreign exchange control systems," he added The US has been calling for the yuan's value to be set by the market or at least to vary within a large band Washington has sometimes criticised China's fixed-exchange rate peg to the dollar, seeing a yuan appreciation as one possible solution to the huge US current account deficit But the Chinese central bank has repeatedly said it will maintain the basic stability of the yuan's exchange rate around a "rational and balanced level."

To: RealMuLan who wrote (16413)	11/21/2004 1:14:07 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

G20 MEETING G20 sees mid-term oil price 35-40 usd/barrel - draft communique Saturday, November 20, 2004 6:24:33 PM afxpress.com BERLIN (AFX) - Finance ministers and central bank governors from the world's 20 leading economies expect the price of oil to move between 35-40 usd per barrel in the medium-term, according to a draft of the communique to be issued at the conclusion of the G20 meeting on Sunday However, the G20 nations expect oil-producing countries to have little free capacity until 2010, meaning prices will be sensitive to unexpected changes in demand and supply, the draft communique says ==================================================================== How the F would they know? Seriously, is this stupid or what? Mish

To: RealMuLan who wrote (16413)	11/21/2004 1:16:04 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

G20 MEETING Japan says has confidence in US adherence to strong dollar policy [Oh man - I have to post this one just for humor. mish] Saturday, November 20, 2004 7:10:06 PM afxpress.com BERLIN (AFX) - Japan said it has confidence that the US government is still sticking to a strong dollar policy despite the currency's recent slide "I have confidence in the United States government," said Hiroshi Watanabe, vice finance minister for international affairs at the Ministry of Finance Watanabe told journalists at the G20 meeting in Berlin that he welcomed today's exchange of views on US dollar policy between President George Bush and Japanese Prime Minister Junichiro Koizumi Speaking on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum summit in Santiago, Bush said he had explained to Koizumi that the US remains committed to a strong dollar, while Koizumi said a strong dollar is in the interest of both the US and the world economy Meanwhile, Japan's Vice Finance Minister Ryotaro Tanose reiterated that excessive moves in exchange rates are not desirable