NYSE Euronext (NYX) acquired American Stock Exchange (Amex) in 2008 to expand its equities, options and exchange-traded funds (ETFs) trading business. Recently NYSE announced plans to sell the majority of its stake in the Amex stock options market to seven companies -- including top banks, trading houses and brokerages. With this move, the company hopes to increase its trading volumes by giving major brokerages an incentive to bring their business to Amex. Major competitors are Nasdaq OMX (NDAQ), CME Group (CME), BATS Global and Direct Edge.
At this juncture, no. The yuan's record high of 6.7980 yuan to the dollar reached Tuesday represents just a minor adjustment in Beijing's monetary policy, and that's what investors should look forward to: an incremental and very slow effort by Beijing to let the yuan appreciate, with limits.
How much will China let the yuan appreciate in a year? Perhaps 5% a year. The aforementioned may not seem like much but it does represent a Beijing response to international political pressure, primarily from the United States and the European Union.
U.S. Treasury Secretary Timothy Geithner, in prepared Capitol Hill testimony Thursday, said China's exchange-rate policy is preventing more-balanced global economic growth.
"The distortions caused by China's exchange rate spread far beyond China's borders and are an impediment to the global re-balancing we need," Geithner said. Allowing the yuan to float more-freely would enable China to pursue "a more effective, independent monetary policy, which is particularly important now, with China's economy facing a risk of inflation in goods and in asset prices."
What could serve as the catalyst in 'the decade of 'the teens?' Exports, if President Barack Obama has his way. Obama wants to double U.S. exports in five years.
"The euro depreciation is very good news for the region" because the rest of the world economy is expanding, Charles Wyplosz, head of the International Center for Monetary and Banking Studies in Geneva, told Bloomberg News Thursday. "This is going to bring a welcome boost that may save the euro-zone from outright recession."
The IMF, in its revised World Economic Outlook, said an appreciation of China's currency, "appears highly desirable on its own."
The group also said a shift in China's economy away from exports and toward domestic consumption, along with structural measures to decrease savings, would be preferred, as well.
In the survey, 12 respondents said China's central bank will allow the yuan to float freely this quarter, while five expect it to occur by September 30. The median estimate for the yuan's strengthening was a 3.1% appreciation to 6.62 yuan to the dollar by the end of 2010.
"I believe very strongly that it is in China's interest to have currency flexibility, to keep moving the renminbi," Paulson said at the Boao Forum for Asia, using another name for the Chinese currency, Bloomberg News reported. "It gives the government a very valuable and I think it is going to become an increasingly necessary policy tool to deal with inflation."
I've called it "monetary mercantilism." Either way, the policy will remain a net negative for both global and U.S. GDP growth until China is convinced to move, gradually, to a currency rate that's determined by economic fundamentals and the free market.
It was an historic day when Rio de Janeiro was chosen as host for the 2016 Summer Olympic games -- the first emerging market ever to host the games.
It many ways it marked a formal "coming out" party, if you will, for emerging markets. It was a statement -- a confirmation -- of the the developing world's improved status in the early globalization era. It said, "We've arrived."
Those who say central bank officials will intervene to weaken the yen argue that export-dependent Japan will be hurt if the yen appreciates more against the dollar. The yen has already risen about 20% versus the greenback in the past 12 months, and further yen increases, assuming Japan's exporters raise prices to protect their dollar-denominated profits, will result in lost sales, as Japanese goods --- particularly autos --- become too expensive for American consumers.
I recently attended a Lakers' basketball playoff game and took notice of the fact that Toyota Motor Corp. (NYSE: TM) was a major sponsor advertising at Staples Staples Inc (NASDAQ: SPLS) Center. This, while our home grown car companies are all on the verge of collapse.
As we write stories on the depressed economy readers frequently comment about "buying American" as a theme that will help the greater good by keeping jobs and money in the United States.
This patriotic notion got me thinking about what would happen if we carried it further? Would we stop advertising and promotion of foreign products? Would we restrict discussion of foreign products in the media all together? Would we limit the production of foreign products here, even if they are providing jobs for Americans?
Union Pacific is the leading rail freight carrier in the United States, transporting coal, chemicals, industrial products and freight over an enormous track network: 32,000 miles of route track in 23 states in the western U.S.
The global economy will likely contract in 2009 for the first time since World War II -- including a decline in trade - - the World Bank announced in its most recent report.
Chinese Premier Wen Jiabao is expected to announce "a new stimulus package" in his annual address to the nation's legislature, Li Deshui, ex-statistics bureau head told reporters in Beijing Wednesday, Bloomberg News reported.