Currency Wars in Asia?

Jesper Koll -

The devaluation of the Chinese yuan is unlikely to mark the start of competitive currency devaluations coming to Asia Yes, the move was clearly forced by real economic forces, but I do not believe, this is the start of an imminent series of future devaluations from China. Why? I am… Read More »

CNY Devaluation: Is the Market Misreading It?


Understanding China exposure by commodity is not so simple Below we show commodities with the greatest end-market exposure to China. Among the complex, we see the greatest exposure in the bulks and base metals, although lean hogs screens high as well. By comparison, oil – which was one of the… Read More »

Large yuan depreciation not on the horizon


Schroders believes today’s moves by the PBoC do not signal the start of a substantial devaluation in the yuan as financial and social stability remain the overriding concerns for policymakers. The decision by the People’s Bank of China (PBoC) to alter the way in which it fixes the yuan – now… Read More »

Impact of euro depreciation on tourism in Europe

Oddo Securities -

Eurozone countries contain the leading tourist destinations worldwide and should benefit from the euro’s depreciation. This effect could, on our rough estimates, add 0.2 points to the Eurozone’s GDP August is approaching. Well-deserved holidays await the writers of this note and their regular readers. Before shutting up shop, a rapid… Read More »

Greeks, Media and Commodities


The media frenzy over Greek antics shows no sign of abating as it seems that the Greek tragedy is becoming a never-ending story The practical confiscation of €50 billion of public holdings may help to cover some EU bank loans but will hardly solve the problem of excessive indebtedness. The… Read More »

Costs vs Price; Oil & Gas Headwinds Remain

Adam Longson, Stefan Revielle, Elizabeth Volynsky, Lee Jackson -

The scale and speed of price falls in metals and bulks markets this year is now prompting investors to seek some perspective How do spot prices sit relative to each commodity’s cost curve now? What production capacity is at risk? And how does all of this compare with the history… Read More »

Gold prospects are not shining


The backdrop for precious metals in general, and gold in particular, has deteriorated Central banks have stopped accumulating goldAccording to IMF data, holdings of gold by Central Banks have been peaking. The post financial crisis appetite for bullion is receding as several central banks have already reached their target breakdown… Read More »

Oil slides on demand-supply imbalance


The accord with Iran could open the flood gates in the coming months Iran is currently producing less than 3 million barrels a day, but has been mentioning a medium term target of production resumption to the vicinity of 5 million barrels. If drawing a parallel with the resumption of… Read More »