Daily Dispatches

Andy Mukherjee: Petrodollars will test Asia's dollar fixation

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By Andy Mukherjee
Bloomberg News Service
Tuesday, January 23, 2007

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mukherje...

SINGAPORE -- A glance at stock values suggests that lower energy prices are an unalloyed blessing for Asia. That may not be true.

Morgan Stanley Capital International's emerging-market equity index for Asia has risen 22 percent since oil began its descent in early August last year.

Summers, Trichet warn Davos party-goers they underestimate risk

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By John Fraher
Bloomberg News Service
Monday, January 22, 2007

http://www.bloomberg.com/apps/news?pid=20601109&sid=akRtIlTTEx2Q&refer=h...

BERLIN -- Lawrence Summers has a message for investors heading to the Swiss mountain resort of Davos this week to toast a year of booming returns and record bonuses.

"It's worth remembering that markets were very upbeat in the early summer of 1914," the former U.S. Treasury secretary observes.

China will spend foreign exchange on 'strategic' resources

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By Xiao Yu and Wing-Gar Cheng
Bloomberg News Service
Monday, January 22, 2006

http://quote.bloomberg.com/apps/news?pid=20601087&sid=a3qbrjQctNl0

BEIJING -- China, the world's biggest consumer of coal and metals, will use its foreign exchange reserves to buy "strategic" resources, Vice Premier Zeng Peiyan said.

The government will increase the nation's purchases of resources for strategic stockpiling when there are "plentiful" reserves, Zeng said in a speech carried on the Ministry of Land and Resources Web site today.

IMF will tell central banks to stop double-counting gold, Blanchard learns

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Blanchard Lauds IMF
Central Bank Gold Lending
Accounting Change
As Industry Landmark

Precious Metals Economic Research Entity
Has Championed This Issue as Key to Adding
Even More Transparency, Price Growth to Gold Market

Company Press Release
via PRNewswire
Monday, January 22, 2007

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/0...

China's multi-billion-dollar question

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By Richard McGregor
Financial Times, London
Sunday, January 21, 2007

http://www.ft.com/cms/s/cf2b2a5c-a989-11db-9185-0000779e2340.html

With a vaguely worded statement from Wen Jiabao, China's premier, at the close of a weekend meeting in Beijing on finance policy, the die has been cast for a momentous change in the management of the country's massive foreign exchange reserves.

Mr. Wen said the management of the reserves, the world's largest at more than a thousand billion dollars, should be improved and the channels through which they are invested diversified.

GATA supporters in Southeast Asia invited to dinner in Singapore

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11:15a ET Sunday, January 21, 2007

Dear Friend of GATA and Gold:

GATA supporter Gabriel Low, who lives in Singapore, has graciously agreed to organize there an informal dinner for GATA supporters in Southeast Asia if there is enough interest. The dinner would discuss mutual interests and possible mobilization on behalf of the liberation of the gold market. If you might be interested in attending such an event, please e-mail Gabriel here:

Leading Canadian banker recommends gold, denounces fiat system

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11a ET Sunday, January 21, 2007

Dear Friend of GATA and Gold:

Gold got a stirring endorsement and the central bank system of infinite money a denunciation last week from a remarkable source -- a leading banker in Canada's financial establishment.

The banker, Anthony S. Fell, chairman of RBC Capital Markets and former president of Royal Bank of Canada, delivered the endorsement and denunciation at RBC's client appreciation dinner in Vancouver.

China's reserves reach trillion; premier promises to start spending

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From Xinhua News Agency
via China Daily, Beijing
Sunday, January 21, 2007

http://www.chinadaily.com.cn/bizchina/2007-01/21/content_788400.htm

Chinese Premier Wen Jiabao said that China would steadily push forward the foreign exchange rates reform and actively explore and expand the use of its US$1.06-trillion foreign exchange reserves.

China would strengthen operation and management of foreign exchange reserves and facilitate the balance of international payment, said Wen at the two-day Third National Financial Work Conference.

Chinese govt. economist says yuan requires big revaluation

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From Reuters
Sunday, January 21, 2007

http://asia.news.yahoo.com/070121/3/2w3xo.html

BEIJING -- China's policy of allowing the yuan to gain a modest 3-5 percent a year is not sustainable as the cost of preventing a faster rise will crush the central bank, a Chinese economist said.

Zhong Wei, a professor at Beijing Normal University and an editor of a magazine run by the State Administration of Foreign Exchange, told a weekend forum in Beijing that China needed another revaluation to build up a properly functioning exchange rate system.

Ecuador calls foreign debt 'illegitimate,' may default on 60%

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By Lester Pimentel and Jeb Blount
Bloomberg News Service
Friday, January 19, 2007

http://www.bloomberg.com/apps/news?pid=20601086&sid=aI1do2.SxVJs

Ecuador's credit rating was cut by Standard & Poor's two days after the country's economy minister told investors the government was considering repaying only 40 percent of its foreign debt.

S&P cut the rating one level to CCC, leaving it four levels above default, from CCC+ and lowered the rating outlook to negative from stable. Economy Minister Ricardo Patino, speaking today in Rio de Janeiro, said he expects to finish a debt restructuring plan by the end of the month.

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