Friday, 10 August 2012

Friday's . . . Chinese take away, no way . . .

After yesterday's pronouncement by Rio Tinto boss Tony Albanese that Chinese GDP would achieve an 8% growth rate this year it came as somewhat of a surprise to this blogger that the July export numbers from China rose yoy only 1% instead of the expected 8%. The Chinese now are not going to hit this years target of an increase in exports of 10%. What now are we left to think . . . More QE seems the natural answer from the bulls, but I think whatever we get will be not too little and not too late, but just not effective.

The UK export figures were even worse than the Chinese and they registered a 3.1% contraction for the period. This comes with a weak pound and is the worse contraction in 15years. Clearly part of the story is that the main customer for the UK is the Eurozone . . . Watch this space for more disasters. I won't get into the Grexit, but rest assured it's coming to a space near you soon.

At least the US trade deficit narrowed in June.

In Japan it looks as though the government is likely to get the sales tax increase from 5 to 10% through. It doesn't add up for the keynesians of course, but given the huge debt burden and shrinking population how can they keep the current status quo.

I had coffe with old mate toay in Melbourne and in the process stopped into a pretty nice bike store. The top of the range model in stock was the Look 695 with full Shimano Dura-Ace Di2 for a coll 15k.  The multicolored frame looks a treat with integrated but adjustable stem and a long integrated seat tube was very sexy.

I've enjoyed being in Melbourne, it's a great city with a special restaurant seen and some pretty happy people. I'm going to come back more often, hopefully for a bike ride.

Bon weekend!

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