China and Emerging Markets

BCA Research suggests assets managed by sovereign wealth funds will grow from US$3 trillion to US$13 trillion in a decade.

The IMF is rapidly losing all sense of credibility and the G7 finance ministers failed to even mention the US dollar in their statement following last weekend’s meeting.

The RBA will meet on Cup day to decide upon what many feel will be a rate rise. The clincher will be the CPI data released on Wednesday this week.

ANZ Bank expects last week’s move by the PBOC to lift bank reserve requirements will be followed by an increase in official interest rates.

The Dow fell 248 points from its high to its low last night, finally settling down 63, as a tech sell-off revealed growing nervousness.

The US economy will definitely slow, suggests GaveKal, but there are no signs a recession is imminent.

China’s economic growth is slowing, Credit Suisse maintains, and not accelerating as suggested by others. But it is a good thing as it will make growth sustainable.

Morgan Stanley sees signs policymakers in China are turning more hawkish, which suggests further increases in interest rates and a stronger currency by the end of the year.

One of the more highly anticipated IPOs for the final quarter of 2007 is living up to expectations closing three weeks in advance and heavily oversubscribed.

Jobs numbers were good, housing numbers were woeful (which is good), oil shot up again (which is good for oil stocks) and end of quarter window dressing is in play.