Britannia Radio

Monday, January 19, 2009

 

How China Sees US As Obama Takes Office

Chris Buckley reports from Beijing:

Barack Obama will inherit a raft of problems when he becomes U.S. president on Tuesday, but he won't have to worry about China itching to challenge America's global economic and political dominance.

The United States is in recession while China's economy recently became the world's third-largest. But the message from a debate brewing in Beijing is clear -- China must avoid both complacency and confrontation in handling Washington.

Two Beijing sources who demanded anonymity to discuss internal matters said President Hu Jintao privately told officials last year the United States may be beset by woes but remains the undisputed global "hegemon": a superpower whose overall economic, political and military might China would be reckless to challenge.

Continue here.

# posted by Confidential Reporter @ 10:33 PM links to this post 

 

Jobless Migrant Workers Return to Chinese Villages

For Chen Xiaohong, the global economic crisis started with unsold portable DVD players.

"The factory just couldn't move the merchandise. It sat there for three months. They said it was because of the financial crisis," said Chen, a slight 37-year-old in a navy suit with the trouser legs rolled up to keep the hems out of the mud.

Chen, his wife and a half-dozen relatives worked at the factory on China's southern coast. Now they're all back in their rural village home earlier than expected for the country's biggest holiday, the Lunar New Year, with plenty of time on their hands.

Slumping global demand has forced Chen and tens of millions of other rural migrants who power China's factories into an early vacation, sending them back to their villages and turning what is usually a festive break from grinding work into a period of gnawing uncertainty. Many don't know whether their factories will reopen and where else they can find work.

Click here to continue reading.

# posted by Confidential Reporter @ 10:11 PM links to this post 

 

The 2009 Outlook for Listed Gold Mining Companies

Foreign Confidential....

For individual gold mining stocks, 2008 was a challenging time. Mutual funds that invest primarily in those stocks declined over 30%, though their five-year annualized return was nearly 7 percent.

But major mining companies should do well in 2009 thanks to increased consolidation within the industry. The biggest will be able to snap up quality small and midsize mining companies that have been unable to obtain financing. Undervalued, well-managed juniors should also do well; some will grow by acquisition into intermediate-sized miners. 

As for the price of the precious metal, China Confidential analysts predict gold will be around $850 an ounce at year-end, though it will probably hit a new high along the way. Expect a rocky ride. 

Looking to 2010, gold should rise steadily with fears of renewed inflation.

# posted by Confidential Reporter @ 9:26 PM links to this post 

 

Global Banking Crisis Worsens

Alan Zibel reports:

The day before President-elect Barack Obama takes office, the escalating troubles facing major banks around the world couldn't be clearer.

On Monday, the British government swooped in to boost its stake in troubled Royal Bank of Scotland to almost 70 percent and offered to insure banks against large-scale losses on risky assets in exchange for binding agreements to lend out more money.

It was the second major British bank bailout in three months. Shares of ailing RBS, parent of Providence, R.I.-based Citizens Financial Group., lost two-thirds of their value in Monday's trading. Shares of other European banks plunged as investors worried that one or more banks could be nationalized after RBS said last year's losses could reach $41.3 billion — the biggest ever for a British corporation.

Officials on both sides of the Atlantic have failed to contain the most severe credit crisis in decades, which has ravaged banks in places as diverse as Ireland, Iceland and Switzerland, along with the U.S. and Britain.

Now top officials in London, Washington and Brussels are scrambling to figure out how to stop the bleeding. They are trying to find the best way to prod banks into lending out more money, struggling for a solution 18 months after the most severe credit crisis in decades sent investors reeling.

Continue here.

# posted by Confidential Reporter @ 8:51 PM links to this post 

 

Russians Hope for Better US Relations Under Obama

Foreign Confidential....

Five billion people are expected to watch tomorrow's televised inauguration of Barack Obama. 

The unprecedented global audience for the swearing-in of a U.S. President will include many viewers in Russia. A great many Russians are expressing hope that Obama will improve relations between Moscow and Washington. 

Said one analyst: "After the collapse of Communism and the Soviet Union, there is no reason why we should not be enjoying good relations. We should work together to solve common problems. " 

A recent public opinion poll indicated 70 percent of Russians were interested in the U.S. election. Russian television has continued catering to that interest during the presidential transition, reporting many of Obama's appointments, positions, and even his criteria for a dog for his daughters.

Political analyst Andrei Kortunov, president of the Eurasia Foundation in Moscow, says the inauguration heralds the arrival of a politician from a new generation, a 21st century politician.