Red China: Near-Term Missions for China’s Maiden Aircraft Carrier

As China’s maiden aircraft carrier nears its sea trials one question that evades analysts’ minds is why China is building a carrier. For many of the carrier’s potential missions: from “recovering” Taiwan; to “solving” the Paracel, Spratly and Diaoyu (Senkaku) Islands disputes; to “safeguarding” China’s Sea Lines of Communication (SLOC), a fully operational carrier is considered logistically unattainable, at least in the near term. While several [...]

12 Countries Most Likely to Go Belly-Up

by Dian Chu, SA

Risk analysis firm Maplecroft just released its new fiscal risk index ranking of 163 countries. Europe trumps all other regions with 11 out of twelve countries rated as “extreme risk.” However, quite surprisingly, only one PIIGS country–Italy which takes the top spot–is in the top 12.

The others include many big economies in Europe – Belgium (2), France (3), [...]

Gasoline: No Cure For High Prices Like High Prices; Gasoline Jumped 6 Cents in One Day

By Dian L. Chu

Crude oil market has been on a wild roller coaster ride ever since riots started escalating in Egypt and Libya. The latest Libyan supply disruptions sent WTI futures surging above $103 a barrel in New York on Thursday, Feb. 24, while Brent oil in Europe was also closing in on $120 a barrel.

However, both oil markers retreated mostly due to traders scrambling to [...]

Top 12 Countries Most Likely To Go Belly Up

By Dian L. Chu

Risk analysis firm Maplecroft just released its new fiscal risk index ranking of 163 countries. Europe trumps all other regions with 11 out of twelve courtiers rated as “extreme risk.” However, quite surprisingly, only one PIIGS country–Italy which takes the top spot–is in the top 12.

The others include many big economies in Europe – Belgium (2), France (3), Sweden (4), Germany (5), [...]

China Inflation: Getting Worse and Coming To A Wal-Mart Near You

By Dian L. Chu, EconForecast

On Tuesday Feb. 15, China reported its consumer prices (CPI) rose 4.9% year-over-year (yoy) in January, which came in less than expected. Economists were expecting 5.4% inflation, based on a Bloomberg survey.

However, after digesting the data, Asian markets closed mixed on that news, with China’s Shanghai Composite staying flat after a choppy trading session.

Well, the reason why markets reacted that way [...]

Social Network: Tech Bubble 2.0?

By Dian L. Chu, EconForecast

Talk about another internet bubble.

New York Times broke the news on Jan. 2 that Facebook, the social network website, was able to get $500 million in funding–$450 million from Goldman Sachs and $50 million from Digital Sky Technologies, a Russian investment firm that has already pumped about half a billion dollars into Facebook.

But the real eye popping fact is that this latest deal [...]

Gold, Dollar, Euro & China: Four To Tango in 2011

By Dian L. Chu, EconForecast

For the most part of 2010, the typical image of Europe—one of cultural sophistication—has been replaced by widespread riots, burning cars, large scale strikes over labor reform and unemployment resulting from austerity measures amid a sovereign debt crisis in the region.

Gold Chart’s European Tale

Fear about defaults and more bailouts throughout the European Union (UN) has formed a dark storm [...]

Outlook 2011: Five Stocks Due For a Pullback (CAT, AMZN, NFLX, X, BIDU)

By Dian L. Chu, EconForecast

It is inevitable that when you have a market run up like we have had recently driven mostly by liquidity and Santa Claus Rally, many stocks would see pullbacks in the New Year.

The following are just five of such candidates that I believe capable of some meaningful downside risk, and are not intended to be all inclusive.

Could This CAT Bounce?

Caterpillar stock has had an [...]

Big Banks Are Stifling Economic Growth & Taxing Consumers

By Dian L. Chu, EconForecast

Have you noticed the price of oil lately? It’s $90 a barrel in a dismal economy with unemployment hovering around 10%. The problem with Fed chairman Bernanke`s latest QE 2 initiative is that he has just given more access of cheap money to the big banks.

Non-Productive Use of QE Money

And what are they doing with all this cheap money? Nothing productive [...]

From Quantitative Easing To Stagflation?

By Dian L. Chu, Economic Forecasts & Opinions

The United States economy grew at a sluggish annual rate of 2 percent in the third quarter, the Commerce Department reported last Friday. On the bright side, the economy is growing faster than the 1.7 percent growth in the second quarter and has registered the fifth straight quarter of expansion.

But here comes the dark side – the [...]