Tag: brazil

Currency Lessons: Think a Sinking Currency is Always Good For Manufacturers?
August 28, 2013 0

Currency Lessons: Think a Sinking Currency is Always Good For Manufacturers?

By News Desk

Here is a bit of reality: Currency collapse confounds India Inc Indian companies such as Whirlpool of India Ltd say they can’t plan more than a couple of months out as a fast-falling rupee currency drives up the cost of imports, forcing them to raise prices even as consumer spending crumbles. Companies that import finished goods or raw materials are the worst hit as they scramble to hold onto margins while balancing the need to raise prices without deterring buyers.

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