Monday, October 17, 2005

China under "presure" once again

Chinese President Hu Jintao, was again under pressure from the West to let the Yuan strengthen. French Finance Minister Thierry Breton said on Saturday that "The renminbi is today undervalued". In spite of the continued pressure from the West at the G20 meetings this weekend it was oil that took the spotlight. The outcome was that more had to be done in the spectrum of investing in refining and investing in renewable energy. Clearly the high energy prices we are seeing are taking a toll on the global economy. I am looking for a slowdown in the U.S. (and therefore the world) economy in the next 6-9 months. In the near term U.S. rates will continue higher and therefore the dollar should do better (especially against Asian currency's).


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