The China over-invoicing export distortion is back (sort of)

The China over-invoicing export distortion is back (sort of)

Izabella Kaminska | May 08 07:04 | 2 comments | Share

Let’s face it. Chinese national statistics are to some degree always treated with a pinch of salt by analysts and economists alike.

That said, there’a s big difference between massaging subjective inputs in statistical methodologies and failing to adjust for misleading economic activity driven by actual economic behaviour. Read more of this post

Malaysia’s SC probes five firms for unlicensed contracts dealing

Updated: Thursday May 8, 2014 MYT 7:57:32 AM

SC probes five firms for unlicensed contracts dealing

“To assist SC’s investigation, relevant documents and IT equipment were seized. Statements were also recorded from the staff of the companies and other persons present during the raids,” the SC said. None of the companies or its representatives were licensed by SC to solicit for monies nor to deal in futures contracts. “The public is strongly advised not to deal with any unlicensed persons in connection with dealing in futures contracts and to contact SC should they have information about such dealings,” the regulator added. Read more of this post

Everything is rigged, art edition

Everything is rigged, art edition

Izabella Kaminska | May 08 16:23 | 4 comments | Share

John Gapper has an excellent column on Thursday about art auctions, focusing on the degree to which they are fixed or obfuscated by insiders and long-standing established practices. Read more of this post

Li Ka-shing’s withdrawal from China related to new leadership

Li Ka-shing’s withdrawal from China related to new leadership

Staff Reporter

2014-05-10

Recently, a lot of new property projects in China have offered discounts, with some in Beijing having cut prices dramatically in order to find buyers. Read more of this post

Water woes intensify in China due to rapid urbanization

Water woes intensify in China due to rapid urbanization

Staff Reporter

2014-05-11

Water shortages in China have been exacerbated due to rapid urbanization and industrialization, with many new cities facing water crises. Read more of this post

China’s shadow banking system a threatening US$4.3tn

China’s shadow banking system a threatening US$4.3tn

Staff Reporter

2014-05-11

The size of China’s shadow banking system is around 27 trillion yuan (US$4.3 trillion), only around one fifth of the banking sector’s assets, said a Chinese official. The low proportion does not mean the system’s risks should be underestimated; the underground sector still has the power to drag down the traditional banking sector and the real economy, reports our Chinese-language sister newspaper Want Daily. Read more of this post

The economically acceptable limits of a Chinese property downturn

Won’t somebody think of the property developers?

David Keohane | May 09 09:44 | 1 comment | Share

And so it goes, from Nomura’s Zhiwei Zhang:

Today’s 21st Century Business Herald reports that in Jiangsu Province the Rongchen Property Development Co. Ltd. defaulted on a RMB100m trust product that came due last August. The paper says that as yet the principal and interest have not been fully paid.

Read more of this post

In Indonesia, moderate Islamic party returns to political centerstage

In Indonesia, moderate Islamic party returns to political centerstage

Sun May 11, 2014 4:49am EDT

By Kanupriya Kapoor and Randy Fabi

JAKARTA (Reuters) – Indonesian presidential frontrunner Joko “Jokowi” Widodo has joined hands with the country’s most popular Islamic party, cementing the surprise resurgence of Muslim parties in this year’s election and possibly renewing their voice in the new government. Read more of this post

Palm oil imports latest casualty as China tightens credit

Updated: Thursday May 8, 2014 MYT 11:28:03 AM

Palm oil imports latest casualty as China tightens credit

Beijing’s crackdown on commodity financing in the face of slowing domestic demand could hit global palm oil demand – Reuters Photo. Read more of this post

Revamping ETFs: Exchange-traded funds are undergoing a bit of a renaissance, with new styles of indexing. How smart is smart beta?

Revamping ETFs

Exchange-traded funds are undergoing a bit of a renaissance, with new styles of indexing. How smart is smart beta?

BEVERLY GOODMAN

May 10, 2014 2:23 a.m. ET

Smart beta. It’s the ETF industry’s version of “New! And improved!”

Most of us range from fairly skeptical to deeply suspicious of any marketing terminology when it comes to buying cars or homes or Google Glass. But that doesn’t stop Wall Street from peddling one elixir after another, wrapped in academic research and carefully worded nonpromises. The latest? Smart beta, an umbrella term for index investing designed to beat the market, rather than simply match it. Read more of this post

Fluid control is a $130 billion market worldwide; Flowserve Sees Big Opportunities to Grow; A specialist in fluid-control products, the company is thriving along with its industrial customers

Flowserve Sees Big Opportunities to Grow

A specialist in fluid-control products, the company is thriving along with its industrial customers.

CHRISTOPHER C. WILLIAMS

Read more of this post

World Bank: Indonesia World’s 10th Largest Economy

World Bank: Indonesia World’s 10th Largest Economy

By Jakarta Globe on 11:29 pm May 04, 2014

1.  Indonesia has the 10th largest economy in the world, according to a recent report by the World Bank, with the country contributing 2.3 percent of global economic output.

Read more of this post

Indonesia Lags in Innovative Thinking

Indonesia Lags in Innovative Thinking

By Basten Gokkon on 11:54 pm May 06, 2014

1.  The World Bank announced Indonesia as the 10th largest economy in the world last week, jumping six ranks from its previous place, yet the country still lags in technological innovation, which is key to becoming a great nation, officials and experts say.

Read more of this post

Indonesia Needs More Listed Companies Ahead of AEC in 2015, OJK Says

Indonesia Needs More Listed Companies Ahead of AEC in 2015, OJK Says

By Yohanes Sirait on 06:47 pm May 05, 2014

1.  Indonesia needs to have more listed companies on the local bourse in anticipation of the advent of the Asean Economic Community at the end of 2015, according to Rahmat Waluyanto, the deputy chairman of Indonesia’s Financial Services Authority.

Read more of this post

Aging Indonesia Oil Fields Risk Bond Supply Shock

Aging Indonesia Oil Fields Risk Bond Supply Shock

By Yudith Ho & Fitri Wulandari on 12:04 pm May 06, 2014

1.  Indonesia’s aging oil fields are swelling fuel-subsidy costs, prompting a unit of the nation’s largest bank to forecast the government will sell almost 40 percent more bonds than last year.

Read more of this post

In China’s Xinjiang, Economic Divide Seen Fueling Ethnic Unrest

In China’s Xinjiang, Economic Divide Seen Fueling Ethnic Unrest

By Michael Martina on 01:37 pm May 07, 2014

Urumqi, China. Hundreds of migrant workers from distant corners of China pour daily into the Urumqi South railway station, their first waypoint on a journey carrying them to lucrative work in other parts of the far western Xinjiang region. Read more of this post

Singapore REITs on Foreign Jaunts Outperform as Home Market Stutters

Singapore REITs on Foreign Jaunts Outperform as Home Market Stutters

By Andrew Toh on 02:59 pm May 09, 2014

Singapore has 33 trusts on the stock exchange and the S-REIT index gained 6 percent year to date. (Reuters Photo/Edgar Su) Read more of this post

A Higher Minimum Wage Is Crucial for Indonesia

A Higher Minimum Wage Is Crucial for Indonesia

By Kristia Davina Sianipar on 05:50 pm May 07, 2014

On May 1, Indonesia for the first time commemorated Labor Day as a national holiday. Tens of thousands of workers thronged the streets of Jakarta, to celebrate and to voice their demands. President Susilo Bambang Yudhoyono declared May 1 a national holiday in July 2013, much to the delight of workers all over Indonesia. The move signifies monumental progress for the labor movement in Indonesia, but it is not enough. A one-day holiday cannot and should appease those who have been struggling for fairer pay. A higher minimum wage is not only imperative for the welfare of the workers, but also necessary for economic progress. Read more of this post

Thai Auto Sector Slams on Brakes as Political Crisis Rumbles On

Thai Auto Sector Slams on Brakes as Political Crisis Rumbles On

By Khettiya Jittapong & Pisit Changplayngam on 08:46 am May 09, 2014

Bangkok. Thailand’s auto sector, Southeast Asia’s biggest, has fired more than 30,000 subcontracted workers this year and slashed production, as sales plunge after months of political unrest that threatens to drive some manufacturers offshore. Read more of this post

Behind Bailout, a Very Real Fear of a Run on Indonesia’s Banks, Boediono Reveals

Behind Bailout, a Very Real Fear of a Run on Indonesia’s Banks, Boediono Reveals

By Novianti Setuningsih,Bayu Marhaenjati & Ezra Sihite on 10:10 pm May 09, 2014

Indonesian Vice President Boediono downplayed the extent of Bank Century’s problems to avoid scaring the public. (JG Photo/ Yudhi Sukma Wijaya) Read more of this post

Leaving the dream: Infosys battles worker exodus

Leaving the dream: Infosys battles worker exodus

Sat, May 10 2014

By Nivedita Bhattacharjee

MUMBAI (Reuters) – Infosys Ltd, once a bellwether for India’s $100 billion-plus IT outsourcing industry, is losing its cachet as the employer of choice for a generation of young IT workers, with staff leaving at an unprecedented pace as the Bangalore-based company struggles to regain ground lost to rivals. Read more of this post

What if Modi falls short? Some market players brace for shocker

What if Modi falls short? Some market players brace for shocker

Fri, May 9 2014

By Abhishek Vishnoi and Himank Sharma

MUMBAI (Reuters) – Indian markets are so confident the opposition party led by Narendra Modi will win the country’s elections that brokers fear anything short of a decisive victory could spark the worst sell-off in years. Read more of this post

Voters take a punt on India’s political future

May 11, 2014 6:43 am

Voters take a punt on India’s political future

By Avantika Chilkoti in Mumbai

By the end of Monday, more than 500m people will have voted in India’s vast general election, and opinion polls seem certain that there is a clear favourite to win. Read more of this post

Japan’s Fast Retailing eyes shopping spree; Uniqlo chain has spent roughly Y100bn ($980m) on mergers and acquisitions over the past decade

May 11, 2014 4:37 am

Japan’s Fast Retailing eyes shopping spree

By Jennifer Thompson in Tokyo

Tadashi Yanai, founder of the Fast Retailing group, likes to shop.

Japan’s Fast Retailing, which began life in 1984 selling cheap and cheerful clothes through its Uniqlo chain, has spent roughly Y100bn ($980m) on mergers and acquisitions over the past decade. Read more of this post

The Death Of Hedge Funds?

The Death Of Hedge Funds?

Tyler Durden on 05/09/2014 21:43 -0400

With the very largest and most experienced of hedge fund managers vociferously commenting on the “Truman Show” mirage of the markets, the danger of currently policies (there is no way to tell exactly how it all will end. Badly, we guess), and the need for stock-picking prowess, we thought the following chart might highlight the dawning of the death of an entire substrata of so-called hedge-fund managers (and not just the $0 AUM newsletter publishers) who appear unable to “stockpick” their way out of a Fed-provided paper bag. Since Q4 2010, Long/Short funds are down 6% while the immutable low-cost levered wealth creation policy vehicle of choice for the Fed (the S&P 500) is up almost 50% (dividends aside).

Read more of this post