China Leads The Way …
Source: http://blogs.moneyandmarkets.com/blog/real-wealth/0/0/china-leads-the-way-Posted on Monday, November 10th, 2008 | In Commodities
China’s $585 billion spending package is equivalent to the U.S. spending nearly $3 trillion in fiscal stimulus. Massive? You bet it is! Inflationary? Absolutely! A boost to the entire global economy? YES! — Larry
China unveils stimulus package as growth slows
Program will spend more than $585 billion to jump-start economy
November 10, 2008 (MarketWatch) — China unveiled on Sunday what it described as a “massive” economic stimulus package in an effort to reverse slowing economic growth in the world’s most populous country.
China’s state-run news agency, Xinhua, said that the program will “will loosen credit conditions, cut taxes and embark on a massive infrastructure spending program in a wide-ranging effort to offset adverse global economic conditions by boosting domestic demand.”
The package is valued at about 4 trillion yuan ($586 billion), to be spent over the next two years.
Resource stocks on fire as China unveils stimulus
November 10, 2008, Hong Kong (MarketWatch) — China’s $586 billion economic stimulus package sparked a rally in Asian markets Monday, raising hopes that Beijing’s efforts to boost a slowing domestic economy will support commodity prices amid fears of a prolonged recession in the developed world.
Chinese stocks in Shanghai and Hong Kong posted across-the-board gains, while miners, steelmakers and energy shares fronted the surge in Tokyo, Sydney, Seoul and Mumbai.
Sylvain Brunet, an analyst at Exane BNP Paribas, wrote in a report that the stimulus package is good news for all mining and steel stocks, as China’s “disproportionate weight in metals consumption” has a significant impact on the supply-demand equations of several metals.
China accounts for 55% of iron ore seaborne consumption, 40% of coking coal, 38% of carbon steel and 35% of aluminum, Brunet noted.
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 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
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