Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

China Makes Nice With Neighbors

By

World in Your Hands: An Overseas Update

PrintPRINT
Japan's Nikkei was closed today for the Emperor's Birthday, but there is no keeping China off the airwaves. Newspapers this morning are reporting on how the mainland and Taiwan are edging towards a contentious free trade agreement. Whether offering olive branches to its next door neighbors or cozying up with commodity cash cows continents away in Africa and Caracas, Beijing knows where its economic bread is buttered. By contrast, a tougher stance is being taken in its relations with both Europe and America even as we speak. The decade is ending, as it began, with China's role in the financial firmament hogging the headlines. This secular play is here to stay and American investors have a variety of options to capitalize, from closed end vehicles including The China Fund to single stocks such as China Life Insurance (LFC).

Speaking of China, it recently overtook the U.S. as the world's biggest automaker. Thus this news about Ford (F) selling its Volvo unit to a Chinese car company should come as no surprise.

You can now add heart drugs to cuckoo clocks and chocolate. Comes news this Wednesday that Swiss drug maker Novartis (NVS) is paying $120 million to buy a privately held U.S. biopharmaceutical firm called Corthera. The amount seems ample compensation for access to potential riches in "decompensated heart failure."

Decoupling is deemed to have decamped elsewhere. Not long ago it was all the rage but to see European markets reaching 14 month highs a day after our own exchanges did exactly the same is an eerie echo. Seems when we sneeze, the rest of the world still catches a cold and contrarily, America's relative return to financial health remains the best barometer for how overseas countries are faring.

Unfortunately the high profile abduction in Columbia mentioned yesterday has ended in tragic circumstances. The rewards of investing in Latin America are real - and attracted Maria's attention only 24 hours ago - but its risks also loom large. Very large.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE