Over the weekend there was a good article in the “Wall Street Journal” which helped put the slowdown in the Chinese economy in perspective.

“China’s slowdown, at first blush, is a major setback for the world. China accounts for 15% of world economic output and has contributed as much as half of the world’s growth in recent years. But that overstates its impact on other countries. China exports far more than it imports, so a slowdown in its growth has a limited impact on its trading partners. Exports to China amount to less than 1% of GDP for the U.S., U.K., France, Italy and Spain, 2.6% for Germany and 2.7% for Japan…”

Clearly, for countries that are exporting commodities such as Brazil and Russia, the slowdown in China has more dire consequences. The implications of the collapse in oil and other raw materials on these and other emerging economies is something we will be watching closely in the coming months. Devalued currencies and the resulting deflation which effects a countries debt, as well as potential social unrest, could cause the Chinese slowdown to have broader effects on the developed economies in the future.

{ 0 comments }

China Cuts Rates

by Marilou Long on August 25, 2015 in currencies

After the extreme volatility yesterday, the market is rebounding on news that China cut interest rates and lowered the required reserve ratio.  As you recall, this current downturn in the market was triggered by the devaluation of the yuan several weeks ago.  From the linked Bloomberg article: China fell back on its major levers to […]

Read the full article →

Congratulations to Laura!

by Marilou Long on August 20, 2015 in Recommended Reading

Laura was recognized today at The San Antonio Business Journal’s Women’s Leadership Awards Luncheon.  It was a very impressive group of sixteen women.  The linked article has a slideshow of this year’s winners.  

Read the full article →

China Devalues the Yuan

by Marilou Long on August 11, 2015 in currencies
Read the full article →

Global Growth Update from Capital Economics

by Laura Ehrenberg-Chesler on August 6, 2015 in Commodities

I thought this short piece from Capital Economics this morning was succinct and right on target. “Global growth rebounded in the second quarter and the latest business surveys suggest that it has picked up further at the beginning of Q3. Growing fears of a hard landing in China have weighed on sentiment and pushed commodity […]

Read the full article →

Nike – Counterpoint to the Evil Corporation

by Laura Ehrenberg-Chesler on July 30, 2015 in lifestyle

Over the years movies, books, and news stories like to paint big corporations as evil empires out to harm the little guy, and sometimes the world.  While we don’t ascribe bad motives or actions to most large companies, it sure is nice to see that companies like Nike, and many others, are demonstrating their ability […]

Read the full article →

Watch the Slope of the Yield Curve

by Marilou Long on July 28, 2015 in Economic Indicators

We have always used the slope of the yield curve as an indicator for economic activity, so it was interesting to see Richard Bernstein talk about it in this video today.

Read the full article →

Texas is Still Adding Jobs

by Marilou Long on July 21, 2015 in Economic Indicators

The Wall Street Journal has an interesting opinion piece today about how the Texas economy is holding up during this current downturn in the energy industry.  From the linked article: Last week’s “beige book” release from the Federal Reserve Bank of Dallas shows that despite the struggling oil and gas industry, the Texas economy is […]

Read the full article →

Interesting Commentary from Andy Brenner Today

by Laura Ehrenberg-Chesler on July 10, 2015 in Energy

I thought this morning’s commentary from Andy Brenner at National Alliance was worth posting for his comment on the near term move in rates, and why oil may catch a bid. “With the Greece conclusion in sight and the Chinese market rebounding,  the Treasuries and Bund markets are taking it on the chin….If you bought ten […]

Read the full article →

Q1 GDP Revised Upwards

by Marilou Long on June 24, 2015 in Economic Indicators

The previous estimate for Q1 GDP was -0.7%, but stronger consumer spending led to a revision upwards to -0.2%.  From the linked WSJ article: The revision showed consumer spending was stronger than previously estimated and that firms stocked up more on inventory. Still, the data continues a familiar pattern in the current expansion, in which […]

Read the full article →