What a Tariff Means for the Tire Industry – And Your Portfolio
Trade relations between the United States and China became threatened last week when President Obama enacted a new tariff of 35% on Chinese made automotive tires. The tariff, which has increased by nearly 800% from 4% to 35%, could bring about a wave of protectionism in what has so far been a relatively “friendly” recession.
The [...]
How to Profit from Inflation: Think Emerging Markets
It’s par for the course that emerging market economies are flush with inflation. The root generally stems from vast government subsidies and legislative measures intended to help businesses compete in international trade. Although inflation is often considered a terrible stain on any portfolio, the good news is that with emerging markets, it may just make [...]
Risen Dragon: China’s Magnified Economic Influence
The emerging market train from the 1990s has turned into a worldwide super power. Just recently, China took a bold step to establish itself as an economic superpower by purchasing $50 billion in IMF bonds. The move will help China further establish itself in economic trade, as well as produce new outlets for its exports, [...]
Have You Missed the Asian Investment Boat?
No investor can deny the obvious benefits of foreign stocks in 2009. As the dollar crumbled to test multi-year lows and the financial crisis wrecked American banks, international markets experienced nothing but a tidal wave of investment, as money poured out of developed nations and into economically viable emerging markets. With the international markets sailing [...]
How to Profit from China’s Massive Oil Deal in Australia
A $15 billion deal for liquefied natural gas (LNG) involving Australia, China and global-oil heavyweight Exxon-Mobil Corp. (NYSE: XOM) has prompted many investors to worry that China may be using its global-markets muscle to “paper over” cracks in the global economy.
In reality, however, this mega-deal is a harbinger of what’s to come, and highlights the [...]
The Mergers that Died in China
Amid international takeovers and merger deals propagating through China and the rest of the world, it is important to remember which deals never made it to the signing table. China’s anti-monopoly law came into effect in August 2008 and has since denied several large foreign purchases of Chinese companies.
Leaving a Bad Taste around The World
One [...]
Chinese Government Doles More Money to China Eastern Air
China Eastern Airlines received another 2 billion yuan infusion to help the company complete its merger with Shanghai Airlines. Just last year, the government infused 7 billion yuan in the company to help it survive, and now that troubles are now off the books, the merger is set to be completed as soon as regulatory [...]
Bank of America Forced to Sell its Chinese Holdings
To meet the reserve guidelines of the US Treasury, Bank of America announced the sale of 13.5 billion shares of China Construction Bank after the bank’s stress tests revealed it would need to raise more money. Bank of America sold 6% of the company to a group of Asian investors for $7.3 billion.
Unwinding its Holdings
Forced [...]
Panzhihua Iron & Steel Solder Merger
The Chinese steel industry just soldered together more of its competition. Panzhihua Iron & Steel, which was already a major player in the steel industry, became that much larger with its purchase of PZH Steel.
A Complex Deal
The new company will trade under the PZH Steel Name and returned back to the market last Wednesday. The [...]
Cashing in on the Chinese Credit Card Boom
ChinaTrust Financial Holding Co., the owner of the largest credit card issuer in China, is looking at potential takeover possibilities to further consolidate what has been an excellent growth business in China.
The Initial Steps
The board voted to approve doubling the capital behind the bank to make it better suited to withstand large financial losses and [...]
