Month: June 2013

European Car Sales Hit 20-Year Low; Don’t Worry, Things Have Stabilized
June 19, 2013 0

European Car Sales Hit 20-Year Low; Don’t Worry, Things Have Stabilized

By News Desk

NPR reports European Car Sales Hit 20-Year Low For May . Country by Country Details Passenger car sales dropped by 5.9% from May 2012 in the 27-country European Union to 1.042 million units, the lowest level since May 1993 German car sales dropped 9.9% in May, Italy was down 8%, France down 10.4%, Spain down 2.6% PSA Peugeot-Citroen, Renault, Ford, General Motors and Fiat all suffered double-digit declines in May Volkswagen had a 2.8% drop in brand sales and 5.9 percent decline for the group

Cash Squeeze in China, Interest Rate Swaps Rise Most in 22 Months; China’s Credit Bubble About to Pop; Shadow Banking Crackdown
June 19, 2013 0

Cash Squeeze in China, Interest Rate Swaps Rise Most in 22 Months; China’s Credit Bubble About to Pop; Shadow Banking Crackdown

By News Desk

In a followup post, Ambrose Evans-Pritchard writes Fitch says China credit bubble unprecedented in modern world history China’s shadow banking system is out of control and under mounting stress as borrowers struggle to roll over short-term debts, Fitch Ratings has warned.  "The credit-driven growth model is clearly falling apart. This could feed into a massive over-capacity problem, and potentially into a Japanese-style deflation," said Charlene Chu, the agency’s senior director in Beijing. "There is no transparency in the shadow banking system, and systemic risk is rising

Brazilian Currency Touches Four-Year Low Prompting Intervention; Currency Intervention Madness Displayed in Chart Form
June 18, 2013 0

Brazilian Currency Touches Four-Year Low Prompting Intervention; Currency Intervention Madness Displayed in Chart Form

By News Desk

The Financial Times reports Brazil declares new ‘currency war’ Brazil has declared a fresh “currency war†on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country’s struggling manufacturers. Guido Mantega, the finance minister who was the first to use the controversial term in 2010, said the government would not “sit by passively†as developed nations continue to pursue expansionary monetary policies at the expense of Brazil.“When the real appreciates, it reduces our competitiveness