Money Morning's Keith Fitz-Gerald nails China's GDP growth, gives his quick read on big bank's reported earnings, and cautions against taking a short-term view during any earnings season.
The planet's number two economy is growing more comfortable with its predominance on the world stage.
Despite attempts by the U.S. to dictate other nations' dealings with China, the Middle Kingdom has been establishing new economic and financial institutions to develop its global sway. And it's inviting the world to participate.
Meanwhile, America is staying away and warning others to do the same. But scores of leading nations are ignoring that advice and joining with China.
There are only five upcoming IPOs on this week's IPO calendar, expected to raise a combined $239 million. Four of the five are delays from previous weeks.
The biggest name this week is Chinese e-commerce giant Wowo Ltd. (Nasdaq: WOWO). The company follows in the tremendous footsteps of Alibaba Group Holding Ltd. (NYSE: BABA), another Chinese e-commerce company that had the largest U.S. IPO of all time in September.
I've been following one of the biggest "stealth" stories of the year: the rise of China's yuan as it gears up to take its place on the world stage.
Towards this very goal, China has taken steady, calculated steps for some time.
It's also no secret that China and Russia have a "special relationship" that will drive this trend.
When Gannett Newspapers posted me to China in 1996, the Pudong area of Shanghai was just beginning its transformation from swampy farmland and ramshackle wharves into a thriving financial district. Today it's one of the world's key financial centers, home to more than 5 million people, one of the world's tallest buildings, and an international airport.
When Apple shopped for a site for its first Shanghai Apple store, it chose a spot in Pudong.
The Pudong "experiment" has done so well, in fact, that Pudong has emerged as one of China's real financial anchors. Indeed, The Wall Street Journal recently wrote that "today, as worries of a China property crash are back in force, there is an unlikely bright spot: Pudong."
Since 1990, the amount of surface-area construction that's taken place in Pudong is the equivalent of two Manhattans. And while Pudong was conceived as an international gateway, it's actually become a model of how development should take place, as China's economy shifts from one focused on exports to one being driven by domestic spending.
China has been dominating the headlines in recent days... And not in a good way.
Since late last week, worries about slowing growth, financial-system shenanigans, and the potential for an "Asian Contagion" type spillover have whacked global stocks - and have left folks wondering if the Chinese Miracle is over.
But China's kind of like a still-young tech venture: There are going to be reversals, it's going to be volatile, and it's normal to expect this kind of whipsaw market action.
And let me tell you something else: While it's true that Beijing has some big problems to solve, investors who just write China off are going to miss out on one of the biggest profit opportunities in global technology.
Even as the broader economy there slows (meaning it's still growing - just at a slower rate than before), there's a tech-focused slice of that country's market that continues to advance at a scorching pace.
In fact, if you look at the numbers, I bet you'll agree with my assessment that we're looking at the hottest investable market on earth.
Today I'm going to tell you all about this market... and I'm going to show you exactly how to play this for maximum gain. Full Story
The U.S. dollar has been the world's de facto reserve currency for almost 90 years.
But this financial dominance may be nearing its end.
In recent years, China's been floating the idea the yuan should take on the dollar's role as the world's reserve currency.
In fact, the Chinese have already negotiated numerous bilateral trade deals that completely bypass it.
And they've even called for efforts to "de-Americanize" the global economy.
Whatever happens, China's economic rise foreshadows increased influence.
It's a trend that not only has serious implications, but also great profit opportunities, if you know what to expect...
Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to respond to China's newly released blast on U.S. foreign policy.
The statement was released in Chinese state-run media yesterday. It calls for a "de-Americanized world," and that's not all.
We've heard reports of a slowdown in the Chinese juggernaut. Forecasts have shown that China's economy will grow by "only" 7.5% in the second quarter of 2013.
Europe is already in a recession, and America's own economic growth is wheezing along at less than 1% this quarter.
Is the media hype about China's economic growth slowdown overblown, or will it have real fallout for the United States and Europe?
Money MorningChief Investment Strategist Keith-Fitzgerald speaks with FOXBusiness' "Varney & Co."about what these figures really mean for the global economy. Watch the following video for the answer.
China's "ghost cities" present the West with the shocking images of vast urban areas that sit nearly empty.
In a striking report, shown recently on CBS News' "60 Minutes,"there are rows of high-rise apartment buildings, tracts full of suburban American-sized detached homes and imposing government edifices in China's western desert that are empty and utterly devoid of any signs of life.
Their existence has raised more than a few red flags among investors.
The yuan will replace the U.S. dollar as the world’s dominant reserve currency. That’s why now’s a good time to invest in the yuan. Read more...
China plans to add 800 miles to its subway system over the next two years. By all measures, this is a massive infrastructure buildout. Here's what it means for those 1.3 billion citizens and for investors in China, too.
This is great news for mining companies.
"Data out today provides convincing evidence that the modest macro recovery we've been anticipating is well underway," wrote Shanghai-based Andy Rothman, China Macro Strategist for CLSA Asia-Pacific Markets. "Industrial value-added, power generation, retail sales and new home sales all improved in October, while inflation remains so low that it is not a policy factor."
Infrastructure investment in October was up 24.9% year-on-year, continuing the rebound begun in September.
Rothman explained, "...this infrastructure rebound is the result of the government fixing approval and financing bottlenecks for projects originally scheduled to be built this year, not due to a stimulus."
Looking at prices, industrial input prices fell by 1.7% year-on-year in October, an improvement from the 4.1% decline seen in September.
"We are starting to see a bit of a bump up in both input and output prices, which is consistent with our view that the growth rate of industrial inventory levels has slowed and a modest macro recovery is underway," Rothman concluded.
This has led some economists to believe that this increase in industrial production in China will be positive for commodity prices, including Li-Gang Liu and Hao Zhou who work for Australian bank ANZ.
If this is the case, it'll benefit the global "mega miners" that have seen their share prices tumble since the slowdown in China began back in 2011.
Mining Companies That Benefit from China DemandBHP Billiton (NYSE: BHP), based in Australia, is the world's largest mining company and sells iron ore, base metals, potash, aluminum, metallurgical coal, thermal coal, manganese and oil products to China.
BHP is China's third-largest supplier of iron ore where growing stockpiles in China due to sluggish production had undermined pricing.
But this is starting to change.
The 18th National Party Congress is now underway in Beijing. Attendees are girding for a week of symbolic posturing and speeches, the culmination of which will be a new set of Chinese leaders and a new Chinese President for the next 10 years.
While this is a complicated process when things are running smoothly, this particular Congress is really critical. China is a mess. Recent economic challenges and corruption on a scale that has boggled even the most jaded of insiders are at the top of the "fix it" list.
Outgoing Chinese President Hu Jintao's replacement and China's presumptive new leader looks to be a man named Xi Jinping.
At 59 years old, he's a power player with close ties to the People's Liberation Army (PLA).
While he's not a military man per se, as the son of a revolutionary general he currently holds several significant offices that give him wide-ranging and very significant exposure to both the State and Communist Party.
What's significant about this is that there are three parallel strands in Chinese government structure: the Communist Party, State, and Military.
The Party and State are deeply intertwined, but the military is less so, except at the top levels of leadership. Consequently, China's new leader is intimately familiar with the Chinese military and also the likely new head of China's Central Military Commission.
I'm not so sure we've ever seen this exact combination before and I think it's going to challenge President Barack Obama in ways that he hasn't thought through yet.
The selection of Mo was praised by a Chinese nationalist tabloid as a sign that mainstream China could "no longer be refused by the West for long."
Mo grew up in Shandong province in northeastern China, and during the Cultural Revolution, he left school to work in the fields, finishing his education in the army, according to The Guardian. The author draws upon his rural upbringing in his novels, mixing historical perspective with mythical elements.
His real name is Guan Moye, but he chose "Mo Yan" as a pen name meaning "don't speak," to reflect the culture in which he grew up.
The new Nobel laureate is of the same generation as the new leaders set to take over the Politburo Standing Committee next month after the convening of the 18th National Congress of the Communist Party of China.
This group of men (and one female contender) are "old enough to remember the suffering of the Cultural Revolution, but also young enough to fully experience how China has grown through Deng [Xiaoping]'s opening of the economy to market forces," says CLSA China Strategy research.
They've seen vast political reforms take place, transforming China "from a country ruled by the contradictory personal whims of Mao to one ruled through institutions and rules," says William H. Overholt in The Washington Quarterly.
During these decades, "freedoms blossomed, affecting everything from clothing to haircuts to job or marital choices to social and political speech," says Overholt.
As a result of these policies, they've been able to witness China's incredible growth, with GDP averaging 10 percent per year and more than 500 million people moving out of poverty over the past 30 years.