Chinese movers
Although it probably doesn't even come close,
today feels like newsroom madness.
China revaluing its yuan has meant a sudden demand for reports on the latest research houses, fund managers' opinions on the issue and the compilation of a guide on how to interpret the impact of the dual move (Malaysian ringgit included).
i don't know what to make of the situation. The news of the yuan unpeg comes around the same time as a report on 4 other blasts in London. Both occurred yesterday, but the financial world gives a slightly more than cursory glance at how the blasts affected the stock market before raving and ranting over its latest news darling, the higher renminbi.
blatant disconnection?
yes, no , maybe.
i don't know enough to really say.
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REPOST:
augh.. eyes burning from staring at the computer all day long and compiling reports. 33 emails to answer based on one event.
and i know the internet banking guy who is helping us has it even worse than me
this china ah...
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3 comments:
hey shu. since you're a professional now, i was wondering if you could maybe adumbrate what revaluing the yuan means internationally and domestically. i know this is big, but i have only a vague idea of what this means. care to elucidate me as well as your loyal readers?
haha i think you're giving me wayyyyy too much credit mel. i am so not a professional yet.
well from what i know so far, the yuan move is a pretty small one and doesn't do anything big for the US trade deficit. it does invite alot of speculation though and can involve some shifts in capital movement. basically the yuan move is big for investors 'cause they want to know where they should put their money in.
-shu
the yuan move of 2.1% doesn't have a huge impact economically speaking. but the revaluation is definitely making political waves. think China-US trade row. 2.1% appreciation doesn't help US trade deficit much (china has limited trade role in US anyway) and China's exports aren't going to be hindered that greatly because they still have very low labour costs compared to other international rivals. it is however China's way of telling US that they have done something even though US wants and expects a 10% revaluation.
shu
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