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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (73333)	4/19/2011 11:58:01 AM
From: elmatador	1 Recommendation Respond to of 218913

Even this small money creates welfare. Consider what they were doing before:

To: Haim R. Branisteanu who wrote (73333)	4/19/2011 12:01:56 PM
From: elmatador	Respond to of 218913

Who's making the money? Li & Fung Trading. Here is why they make more money with the move. They tell that the move from China will causes prices to raise! Cheap goods from China could be ending The years of cheap goods from China could be over according to Li & Fung, one of the largest suppliers of Chinese goods for western retailers. Li & Fung, which supplies apparel and other consumer goods to Walmart, Gap and Debenhams, among others, has said that due to higher labour costs in China, which have resulted in wage increases of about 20% this year, "a new era in sourcing with higher prices had begun." Speaking to the Financial Times, Bruce Rokowitz, president of Li & Fung Trading, said, "The biggest topic on the minds of everyone in this business is that higher prices are really here to stay. At this point, retailers are not sure what they can pass on to consumers and what they cannot." These higher labour costs are moving the production of goods, such as clothing; away from China to countries such as Vietnam, Indonesia and Bangladesh, which have far lower wage costs.

To: Haim R. Branisteanu who wrote (73333)	4/19/2011 12:06:38 PM
From: elmatador	Respond to of 218913

Li & Fung – listed in Hong Kong – helps source goods and manage supply chains for foreign retailers including Wal-Mart, Gap and Abercrombie & Fitch. China: the end of cheap? March 28, 2011 10:45 am by Josh Noble 8 0 $11 for a pair of jeans. $9.50 for a pair of running shoes. $6 for an electric toaster. For years now, consumers in the west have been able to go shopping for next to nothing, thanks mainly to the China price – ultra-low manufacturing costs for products made in high volume and in quick time. But rising costs, especially wages, have put that model in jeopardy. For one of the biggest players in the China supply chain, alarm bells are ringing. Li & Fung, the multinational goods export group, has built its business supplying supermarkets and chain retailers with a whole new segment of almost throwaway items – from shoes, to clothes, to electricals. But there are signs that the days of the $7 dollar kettle are numbered. Li & Fung – listed in Hong Kong – helps source goods and manage supply chains for foreign retailers including Wal-Mart, Gap and Abercrombie & Fitch. The economic downtown was a further boon for the company, as price-conscious consumers plumped for the cheapest goods on offer. Li & Fung charges on commission: if it costs less, it gets paid less, and so must increase volumes to compensate. Acquisitions followed. But now the costs of producing in China are going up – in large part thanks to rising wages, as Li & Fung itself noted in an earnings statement: With the entry of China as a major supply market from 1979, the world has basically been in a low supply-cost era for the last 30 years. The change in wage policy in China in 2009 and the subsequent significant higher export prices brings this status quo to an end. The statement is an ambiguous one for the Li & Fung. The admission that the Made in China status quo, which has served the company so well, is done, is a clearly bad news. Sure enough, last week L&F reported a disappointing set of earnings. And yet, the company also announced increasing margins in 2010 – the highest in over 10 years. But despite the higher margins, the market remains unconvinced that Li & Fung is immune. Its shares have tanked 13 per cent in the past two days.

To: Haim R. Branisteanu who wrote (73333)	4/19/2011 2:19:48 PM
From: elmatador	Respond to of 218913

Among the 15 markets rated by S & P as AAA (the highest level of credibility), only five have a debt equivalent to less than 50% of GDP: Hong Kong (4.6%), Australia (22.3%), Sweden (39.6%), Denmark (44.3%) Finland (48.4%). That is, in most countries of the darlings of the financial market, examples of security for the investor, the population needs to work six months straight, without food to pay their debts. Ten countries with AAA are among the most indebted in the world. online.wsj.com Bankrupted Portugal and Iceland have the same rating as Brazil. BBB-