This sounds like an investment opportunity to me: China and India plan to increase coal imports by 78%, as reported in Bloomberg Businessweek.

Yesterday, I wrote about the worldwide shortage of copper, in the neighborhood of 500,000 metric tons. Now we have another commodity for which demand will be strong next year.

Continue reading China, India to Increase Coal Imports by 78%

China, India to Increase Coal Imports by 78% originally appeared on BloggingStocks on Tue, 14 Dec 2010 10:00:00 EST. Please see our terms for use of feeds.

In upcoming talks with China, the United States will try for what seems like the 1,000th time to encourage China to let its currency, the yuan, appreciate quicker, even as a growing list of sponsors add their name to a U.S. House bill, The New York Times (NYT) reported, that would require the Obama administration to impose duties or other trade barriers in lieu of currency action by Beijing.

China keeps the yuan in a tight trading band, arguing that it must keep the yuan valued at a low level to protect embryonic companies and sectors.

The United States argues that the yuan's artificially-low value unnaturally draws in trade revenue via cheap exports that, under a market-value yuan, would flow to other countries.

Continue reading U.S. House May Use 'a Stick' to Nudge China on Yuan

U.S. House May Use 'a Stick' to Nudge China on Yuan originally appeared on BloggingStocks on Thu, 16 Sep 2010 15:30:00 EST. Please see our terms for use of feeds.

The news on the import/export front is not good. The Commerce Department reported that our trade deficit widened to $49.90 billion in July, a 21-month high. Economists surveyed by the Wall Street Journal had expected the deficit to come in at $42.7 billion.

The wider deficit was caused by a increased imports and a drop in exports. Exports shrank by 1.3% to $150.45 billion, while imports jumped to 3.1% to $200.35 billion, up from $194.42 billion.

Continue reading U.S. Trade Deficit Surges to a 21-Month High

U.S. Trade Deficit Surges to a 21-Month High originally appeared on BloggingStocks on Wed, 11 Aug 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading China's Yuan Move: A Start

China's Yuan Move: A Start originally appeared on BloggingStocks on Wed, 23 Jun 2010 16:40:00 EST. Please see our terms for use of feeds.

Continue reading IMF Calls Appreciation of China's Yuan 'Highly Desirable'

IMF Calls Appreciation of China's Yuan 'Highly Desirable' originally appeared on BloggingStocks on Thu, 22 Apr 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Survey Forecasts China to Let Yuan Rise by July

Survey Forecasts China to Let Yuan Rise by July originally appeared on BloggingStocks on Tue, 13 Apr 2010 16:40:00 EST. Please see our terms for use of feeds.

A few months ago, the U.S. filed a complaint with the International Trade Commission against the "dumping" of Chinese steel pipe onto the U.S. market, driving down prices and crowding out U.S. producers. The commission voted in favor to the U.S. claim.

The case was prompted by pressure from the the United Steelworkers and seven U.S. steel producers. Leo Gerard, president of the United Steelworkers said: "China's government and exporters are being told we are fed up with their cheating on our fair trade laws and penalties for these transgressions are long overdue."

Continue reading U.S. Sets Import Duties on Chinese Made Steel Pipe

U.S. Sets Import Duties on Chinese Made Steel Pipe originally appeared on BloggingStocks on Sun, 11 Apr 2010 14:40:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Senate's Patience on China's Yuan Policy May Be Growing Thin

U.S. Senate's Patience on China's Yuan Policy May Be Growing Thin originally appeared on BloggingStocks on Wed, 17 Mar 2010 17:00:00 EST. Please see our terms for use of feeds.

China's exports rose 46% in February, signaling a sharp pickup in consumer demand in the United States and Europe. China reported a $7.6 billion trade surplus for the month.

This is the third month of increases in exports and the fastest in three years. Orders from the U.S., Europe and Japan accounted for almost half of the growth.

China's imports also rose by 45% over the previous year, led by crude oil for its factories.

Continue reading China's Exports Rise a Whopping 46%

China's Exports Rise a Whopping 46% originally appeared on BloggingStocks on Wed, 10 Mar 2010 09:50:00 EST. Please see our terms for use of feeds.

Continue reading Paul Krugman: China needs to end its fixed currency policy

Paul Krugman: China needs to end its fixed currency policy originally appeared on BloggingStocks on Mon, 16 Nov 2009 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Under the radar: Saudi oil exports to U.S. fall to 22-year low

Under the radar: Saudi oil exports to U.S. fall to 22-year low originally appeared on BloggingStocks on Wed, 04 Nov 2009 17:15:00 EST. Please see our terms for use of feeds.

It all started when President Obama, under pressure from U.S. unions, slapped a 35% tariff on tire imports from China. This move angered Beijing to no end, and to the point that China is challenging the action with the World Trade Organization.

China, in retaliation, has said that it would launch an "antidumping" policy against U.S. car exports to China. U.S. car makers export only about 9,000 vehicles to China at present. However, China is now the leading auto maker in the world, and barring U.S. imports would hamper the U.S. auto export market.

Continue reading The looming U.S./China trade war

The looming U.S./China trade war originally appeared on BloggingStocks on Sun, 01 Nov 2009 11:40:00 EST. Please see our terms for use of feeds.

Markets throughout the world have been rallying on the expectation that the world recession is ending. Lurking underneath the surface are some disturbing events.

Japan is in a sharp deflationary spiral. The Corporate Goods Index, which measures wholesale prices, plunged 8.5%, this after a 6.7% drop in June. This is the fastest drop on record.

Let's look at other deflationary numbers. Import prices fell 33.3% in yen terms and 26.5% on a contract-currency basis. Export prices fell 15.3% in yen terms and 6.5% in contract currencies.

Continue reading Japan's deflationary spiral: Wholesale prices plunge 8.5%

Japan's deflationary spiral: Wholesale prices plunge 8.5% originally appeared on BloggingStocks on Wed, 12 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Doomsday Scenario: Cheap vodka, rural America goes dark

Doomsday Scenario: Cheap vodka, rural America goes dark originally appeared on BloggingStocks on Mon, 09 Mar 2009 07:00:00 EST. Please see our terms for use of feeds.

Continue reading U.S. trade deficit falls to six-year low in December on declining imports

U.S. trade deficit falls to six-year low in December on declining imports originally appeared on BloggingStocks on Wed, 11 Feb 2009 10:50:00 EST. Please see our terms for use of feeds.

Now the demand for Chinese goods is falling sharply as the recession hits its trade partners. Factories are becoming idle. Workers are heading back to farms. One by-product of this is that China is not able to sell goods that it makes "in country" to its own middle class, further hurting its GDP. The other consequence is that outside nations that have been importing goods to China are beginning to see steep drops in their sales.

According to Reuters, "Department stores such as Hong Kong-based Parkson Retail are pushing discounts to regain sales, and Kingfisher, Europe's largest home improvements retailer, is closing stores ahead of the week-long Chinese New Year shopping period."

The news shows that there is no escaping a deep downturn. Even a nation like China, which has enjoyed hyper-growth for nearly a decade, is becoming less attractive to firms that have counted on the world's most populated country for a big piece of their sales.

Welcome to the global recession.

Douglas A. McIntyre is an editor at 24/7 Wall St.

China's economic downturn finally start to hurt other countries originally appeared on BloggingStocks on Wed, 21 Jan 2009 13:45:00 EST. Please see our terms for use of feeds.

Continue reading Martin Wolf: U.S. fiscal stimulus is a necessary task, but not the only one

Martin Wolf: U.S. fiscal stimulus is a necessary task, but not the only one originally appeared on BloggingStocks on Wed, 14 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

Continue reading November U.S. trade deficit falls to $40.4 billion on declining imports

November U.S. trade deficit falls to $40.4 billion on declining imports originally appeared on BloggingStocks on Tue, 13 Jan 2009 10:40:00 EST. Please see our terms for use of feeds.

China is supposed to be the perfect large economy. Its GDP has been growing at 10%. Its huge export base is driven by cheap labor. Its rising middle class has become one of the world's largest groups of consumers.

Someone forgot to tell the Chinese government that a deep recession would eventually undermine its exports. The world does not need inexpensive goods when it does not need any goods at all. When Japan, the US, and EU all fall apart at once, whatever edge China has as a manufacturer evaporates.

The part of the economic problem in China that is harder to see is that a bad economy hurts its imports. That new middle class starts to break apart as workers are laid off. They stop consuming foreign goods, and, even worse, they stop consuming Chinese goods. The entire economy of the world's most populated country starts to spiral down.

According to The Wall Street Journal, "China's exports in December fell 2.8% from a year earlier to $111.16 billion, while its imports fell 21.3% to $72.18 billion, the General Administration of Customs said Tuesday."

The Chinese economic miracle is broken and it cannot be fixed while the world economy is in trouble. China believed its export base made it "too big to fail." It has not worked out that way.

Douglas A. McIntyre is an editor at 24/7 Wall St.

China on the ropes originally appeared on BloggingStocks on Tue, 13 Jan 2009 04:04:00 EST. Please see our terms for use of feeds.

Continue reading A new year's resolution for the U.S.: End dependence on foreign oil

A new year's resolution for the U.S.: End dependence on foreign oil originally appeared on BloggingStocks on Thu, 01 Jan 2009 13:00:00 EST. Please see our terms for use of feeds.