Stock Preacher

A US$300M US energy department rebate scheme on energy-efficient appliances could be operating by Christmas. The UK’s main retail trade body meanwhile wants the government to drop value-added tax on eco-friendly white goods with a temporary car industry style scraping to kick start the demand. Clunkers schemes have certainly blown away expectations in the US and elsewhere; Germany’s helped pull the country out of recession this spring, and boosted car-making countries in central Europe. Even the UK’s stingier scheme stimulated sales. So why not try it with fridges? Like cars, sales of big-ticket white goods are suffering badly; US sales fell 15% in the seven months to July. And even offsetting the energy cost of destroying older products and building new ones, there are long-term benefits to the environment and consumers’ pockets. Read more

Popularity: unranked [?]

European shares hit a 10-month high last week but fell back on Friday, tracking losses on Wall Street. Talk that LVMH could sell its coveted Moët Hennessy division to long-time suitor Diageo sent the luxury brand group’s shares higher. LVMH has repeatedly denied it is planning to sell, in spite of rumors that Diageo is a willing buyer. It ended the week up 3.2% at €65.62. Nestlé shares fell 4.3% at SFr42.20 after the Swiss food group reported a slide in profits and sales in its interim results. Read more

Popularity: 1% [?]

Insurers in the USA, Germany and Switzerland say a pledge announced last week at a meeting of the world’s biggest polluters to limit global temperatures is essential to controlling the cost of protecting property. Munich Re, the biggest reinsurer, and Zurich Financial Services AG back the target set by the European Union, the USA and 15 more nations to hold the planet to within 2 degrees Celsius (3.6 Fahrenheit) of pre-industrial times.

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For the first time since last March due to safe haven buying. Silver and platinum also rallied. Gold price for April delivery went up US$25.70oz or 2.6%, to settle at US$1,002.20 oz. hitting US$1,007.70 on the day. March Silver closed at US$14.49 oz +. 555 pennies. April platinum rose US$19.20 to 1,095.70 oz. Gold’s hedge appeal was strengthened as US stock market tanked.

The DJIA continued to decline sharply on Friday after closing Thursday at its lowest level since 2002. Markets in Germany, France, the U.K. and Japan also dropped, and investors flocked to precious metals as a safe haven amid tumbling stock markets. US$ vs. the Euro went down sharply on Friday after trading up for several trading days, erasing most of this week’s gains helping Gold to top US$1,000 oz.

Popularity: 11% [?]

There’s no denying the strength of the Chinese economy now. Last week, it was announced that the size of the Chinese economy has now surpassed one of the biggest economies in the world; Germany.
After China’s revised GDP numbers were released, it became official that China has overtaken Germany as the world’s 3rd largest economy.

For 2007, China’s nominal GDP rate registered 13%, while its GDP totaled 25.73T Yuan. On the other hand, Germany’s 2007 GDP was only $$3.32T.

This is another example of how China’s economic growth is outpacing most countries during these tough economic times.

Countries like Germany have taken a huge hit in the current financial and economic environment. In fact, the weakening demand for Germany’s exports (it’s one of the largest exporters in the world) continues to weigh heavily on the German economy, and that’s a trend I expect to continue throughout 2009.

There are only two economies standing in China’s way from becoming the world’s largest economy, they are the USA and Japan. Do not be surprised to see China charge pas Japan in the next three to four years as Japan is burdened with a deep recession due to its aging population and lack of jobs for younger Japanese workers.

Further, expect to see Germany and Japan’s economies remain soft and slugish in the coming months and years.

China’s economic strength and size are solid reasons why investors are continuing to focus on China now.

Popularity: 6% [?]