Our outlook for the machinery sector is increasingly one of caution. We are beginning to see U.S economic weakness and the credit crunch negatively impact international markets.

Japan's machine orders have fallen for two consecutive months, with a huge 14.5% decline in August. China Petroleum & Chemical Corp., or Sinopec (SNP) plans to cut its oil imports for the fourth quarter of 2008, which portends of slower manufacturing activity ahead.

As foreign economies deal with weaker exports to the U.S and Europe, industrial customers are cutting back on capital spending. Equipment orders are decelerating in almost every end market -- from machines used in construction, infrastructure, agriculture and base metal projects.

Over the next 6-12 months, we believe the biggest potential problem area is global construction spending. Investors should realize the conditions that created the U.S. housing crisis existed in various markets outside the U.S. Excess liquidity and easy money played

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Our outlook for the machinery sector is increasingly one of caution. We are beginning to see U.S economic weakness and the credit crunch negatively impact international markets.Japan's machine orders have fallen for two consecutive months, with a huge 14.5% decline in August. China's Sinopec (SNP) plans to cut its oil imports for the fourth quarter of 2008, which portends of slower manufacturing activity ahead.As foreign economies deal with weaker exports to the U.S and Europe, industrial customers are cutting back on capital spending. Equipment orders are decelerating in almost every end market -- from machines used in construction, infrastructure, agriculture and base metal projects.Over the next 6-12 months, we believe the biggest potential problem area is global construction spending. Investors should realize the conditions that created the U.S housing crisis existed in various markets outside the U.S. Excess liquidity and easy money

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Bank of America Corp. (BAC) will almost double its stake in state-owned banking giant China Construction Bank Corp., and will control nearly 20% of China’s second-largest bank when the deal is finalized. The official announcement yesterday (Monday) ends months of speculation that the Charlotte, N.C.-based BofA would dump part of its three-year-old investment the Beijing-based bank to offset the effects of the global financial crisis. In an article on Saturday, Money Morning reported that the deal was close, though noting that the actual timing was unknown. Bank of America plans to be “a long-term and significant strategic investor in CCB,” the U.S. lender said in a statement. The shares to be acquired to carry a restriction, however: They can’t be sold before Aug. 29, 2011, unless the China bank provides special permission. According to Caijing– the influential China ...

President-elect Barack Obama won a historic election on a promise of “change.” James Howard Kunstler says Americans still have no idea just how big this change will be. He says we are heading into a “long emergency”, out of which a new, very different economy will emerge.

More from Jim in Whiskey & Gunpowder:

The current occupant of the White House has sedulously prepared for his successor the biggest shit sandwich the world has ever seen, and there is naturally some concern that Mr. Obama might choke on it. The dilemma is essentially this: The consumer economy we all knew and loved has died. There will be pressure from nearly every quarter to keep it hooked up to the costly life support machines even though it is dead. A different economy is waiting to be born, but it is nothing like the one that has died. The economy-to-come is one

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Bank of America Corp. (BAC) will likely boost its stake in state-owned banking giant China Construction Bank Corp., paying about 36 cents a share (2.46 yuan), or 1.2 times the Beijing-based lender’s book value, China’s Caijing magazine reported last Friday, citing unidentified sources.

No timetable or total dollar value for the deal was given. The magazine report was picked up by the Reuters wire service, and by other U.S. media outlets, such as Forbes.com.

To smooth the way for the share purchase by Bank of America, Central Huijin Investment Co. Ltd. - the investment arm of the People’s Bank of China that’s run by the Ministry of Finance - has asked China Construction Bank to audit its third quarter results using international accounting standards.

Caijing, an influential Chinese-language business-news publication, said it did not know how many shares that Bank of America intended to buy.

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China North East Petroleum Holdings Limited, a pioneer in China’s oilfield drilling and production industry, today announced a spectacular increase in revenue and net income for the third quarter of 2008.

Total sales for the third quarter increased 227% over the same quarter last year to $19.7 million. The jump was due to an increase in crude oil production, and the price received for crude oil from PetroChina (PTR), the company’s sole customer. Crude oil production doubled to 172,730 barrels over the same quarter last year. The production boost was attributed to refracturing improvements, and the implementation of water injection technology, improving the efficiency of existing oil wells, together with the addition of 30 new wells drilled during the third quarter.

Gross profit also soared for the quarter, increasing 241%, to $9.2 million, with net income jumping 229% to $4.0 million.

Quarterly results boosted nine-month sales figures from $11.8 million last

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An article in The Standard reports that the Chinese government is going to increase the amount of gold it holds in its $1.9 trillion dollars of cash reserves. Even a small increase would send the price of gold soaring.

An article in The Standard reports that the Chinese government is going to increase the amount of gold it holds in its $1.9 trillion dollars of cash reserves. Even a small increase would send the price of gold soaring.

The export business in China is really struggling. According to the Chinese government's own statistics, 67,000 factories across China in the first half of the year. I suspect those numbers are too low. The Chinese government isn't very good about admitting to bad news.

The export business in China is really struggling. According to the Chinese government's own statistics, 67,000 factories across China in the first half of the year. I suspect those numbers are too low. The Chinese government isn't very good about admitting to bad news.