Playing Ball with China
- Oct 23, 2014
By Peter G. Hall, Vice-President and Chief Economist, Export Development Canada
If you build it, he will come. In this case, "it" is not a baseball diamond, but a renminbi (RMB) hub, and "he" is not Shoeless Joe Jackson, but rather a business community eager to trade and invest in RMB. So far, the “build-it-first” approach has paid dividends for Hong Kong, London, Taipei, and Singapore. Frankfurt, Luxembourg, Seoul, and a host of other jurisdictions are also showing initial promise after recently signing hub agreements. But will this approach work for Canada?
First off, we do not have a hub, but let's assume for a moment that one will be established that includes all the usual bells and whistles. This would typically include the designation of a local clearing bank by Chinese authorities that can settle transactions locally in RMB, a bilateral swap agreement between the central banks, and direct trading between the RMB and the Canadian dollar (rather than having to loop RMB trades through USD).
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Daily Update (Source: RBC Financial Group
US new home sales rise in September to highest level since July 2008 from a downwardly revised reading in August
Oct 24, 2014
- New home sales edged upward by 0.2% to 467,000 units in September 2014, although followed a downwardly revised 15.3% jump recorded in August to 466,000 (was 18.0% to 504,000). Market expectations had been for sales of 470,000 units in the month.
- The inventory of unsold new homes increased by 1.5% to 207,000 units in September from 204,000 in August; however, the rise in overall sales resulted in the months’ supply of new homes available for sale remaining unchanged at 5.3 months.
- Despite disappointing downward revisions to the pace of sales in the summer months, new home sales still surged to lofty levels in the third quarter. The 446,000 unit average recorded during the three-month period
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