Manifest currency? U.S. dollar’s global dominance not set in stone

May 23, 2012

Incumbency, it is often said, confers many advantages.

Sitting U.S. presidents certainly have reaped its benefits – in the past 80 years, only three have been unseated.

Is U.S. economic patriotism hurting?

May 15, 2012

Any Americans believing that their country is being bought up by the Chinese might want to pay heed to a new report from the Vale Columbia Center on Sustainable International Investment. It says that China is a minimal player in terms of foreign direct investment in the United States and that Washington should in fact be doing a lot  more to get it to gear up its buying.

China bear Pettis says world coming around to his view

May 3, 2012

Few mainstream economists have been quite as downbeat on China as Peking University professor and noted China watcher Michael Pettis. Pettis has long held that the world’s No. 2 economy will grow at a maximum of 3.5 percent a year for the rest of the decade, well below a consensus call that appears to have settled into the 5-7 percent range. “And honestly, I think if I’m wrong, it will be to the downside rather than the upside,” he told Reuters.

Euro zone hopes for funds from the Fund

By Mike Peacock
April 20, 2012

Focus for the euro zone is firmly on Washington with G20 policymakers gathering ahead of the IMF spring meeting. The Fund is seeking an extra $400 billion-plus in crisis-fighting funds which, tallied with the $500 billion euro zone rescue fund about to be established, adds up to a meaningful firewall for the markets to ponder before they consider pushing Spain and Italy to the edge.

Foreign investors still buying American

April 17, 2012

Overseas investors have yet to sour towards U.S. assets despite high government debt levels, according the latest figures on capital flows.

Biggest indicator of the week: China GDP

April 10, 2012

It wasn’t very long ago that economic numbers out of Asia would barely register a blip on Wall Street’s radar screen. That’s not the case anymore. Commerzbank touts Chinese gross domestic product figures due out on Friday as the most important gauge of global economic health following last week’s disappointing U.S. employment report.

Euro zone perspective – nowhere near out of the woods

By Mike Peacock
April 10, 2012

After the Easter break, a bit of perspective — to paraphrase the immortal Spinal Tap, maybe too much perspective.

from Breakingviews:

China’s trade deficit is sign of things to come

March 12, 2012

By Wei Gu and Edward Hadas
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

China renminbi as reserve currency: yuan a bet?

February 8, 2012

China’s importance to the global economy makes it difficult to believe the role of the yuan in foreign exchange will not continue to expand. Will that dominance advance sufficiently to make the Chinese renminbi one of the world’s reserve currencies? A new study from the Brookings Institution suggests that in the long run, the ascendance of the yuan to reserve-currency standing is likely. It notes that of the six largest economies in the world, China is the only one whose currency does not have reserve status. But the road to getting there will be long and tortuous, the study warns, and there will be plenty of potholes.

from Global Investing:

January in the rearview mirror

February 2, 2012

As January 2012 drifts into the rearview mirror as a bumper month for world markets, one way to capture the year so far is in pictures - thanks to Scott Barber and our graphics team.