US Bonds: Debt Sell-Off by China

There is interesting development in the US these days.

This is the Reuters report on it.

 "A regional US manufacturing gauge published today hit its highest level since October, but also suggested a rebound in that sector might run out of momentum.

At the same time, US capital flows data underscored analysts’ worry that the economic recovery could be stymied by a steep rise in bond yields, making borrowing more expensive for homeowners and companies.
The data showed China sold US Treasuries in December for the fifth straight month, analysts said, underscoring the risk that waning appetite for US debt among major foreign holders could spark a selloff and send yields rising in future.

A gauge of manufacturing in New York state rose in February as inventories jumped, the New York Federal Reserve said in a report today.

The New York Fed’s “Empire State” general business conditions index rose to 24.91 in February, the highest level since October and up from 15.92 in January.

On the surface, the main index appeared to reinforce the impression that industrial companies are continuing to bounce back after the long recession which ended last year. Economists polled by Reuters had expected a February figure of 18.

Despite a stronger-than-expected headline reading, however, some analysts said the details of the report were somewhat more bearish.

“A lot of the improvement was driven by a correction of inventories,” said Anna Piretti, senior US economist at BNP Paribas in New York. “It’s a temporary factor. What worried me more was a sharp decline in new orders.”

The inventories index rose sharply, to zero from negative 17.33, its highest reading in more than a year.
But the new orders index tumbled to 8.78 in February from 20.48 in the previous month — a warning sign that activity could decelerate in future.

“This clearly indicates that some of the demand that we hoped would sustain the recovery in manufacturing is not there,” Piretti said.

However, the report offered some signs of improvement in the job market at factories.

Employment indexes were positive for a second consecutive month, although at relatively low levels, the Fed said.

The expectations index for six months ahead slipped to 52.78 in February from 56.

Over the longer term, borrowing costs may determine how anemic the US economic recovery will prove to be.

Overall, net capital inflows into the United States rose to US$60.9 billion (RM208 billion) in December, from an inflow of US$30.9 billion the prior month, but foreigners cut purchases of long-term securities, the Treasury said today.

The data also showed that China has now been a net seller of some US$45 billion of U.S. Treasuries over the last five months, wrote Alan Ruskin, chief international strategist with RBS Securities Inc., which he added was “a long enough period to hint strongly at a trend.”

Much of China’s selling has been in short-dated Treasury bills, but China has not indicated that instead it will buy longer maturity US government notes and bonds. “That is the bad news for the U.S. dollar and the Treasury market,” Ruskin wrote."

Celebrating Chinese New Year Lunch

So as the morning breaks on the 2nd day of Chinese New Year (15 February 2010), we started on our journey home to see dad and all the siblings and their families. As we do not celebrate the New Year's Eve Dinner together, this was our occasion to meet and dine.

Malacca was within sight after a 2 hour's drive. Traffic was manageable.

We managed to meet most of the siblings and had a great  time bonding. This year one of my brother and his wife took on the task to cook and there was the usual traditional Hainanese food on the table for all to savour. The kids loved receiving 'ang pows' for sure.

Apart from  going back to see dad,, I visited 2 relatives in Merlimau. One is Auntie 6 and the other,her daughter,Chin. I also visited my brother in Tangkak at Taman Tiara.

Traffic was snarlingly bad as we attempt to come home. I think we lost easily an hour driving 'bumper to bumper'.

Tired but it was one great day of the new lunar calendar  of the Tiger for all of us.

Here are some photos of our big meet in Malacca.

The Lonpac Insurance AGM

London Pacific Insurance held their AGM at the Shangrila Hotel on 11 February 2010.

As usual, just like for Public Bank AGMs, the thick Chinese crowd mingled around, hoping to get door gifts and a good breakfast.

The organisation of the AGM was good. They gave coupons to both shareholders and proxies. All got parking endorsement tickets, a good packet of breakfast, a lunch pack and a aluminium hot and cold drinking jug.

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Lucilla YuMing: Simple Yet Attractive

I spent the afternoon watching an old classic Lucilla YuMing movie called' "Father Takes a Bride". This late 1950 movie is in black and white. Yu Ming is better known as the 'Audrey Hepburn' of Hongkong.

 

The plot is simple. After the death of their mother,YuMing and her two bothers would not entertain the idea of their father re-marrying. However, their father had fallen in love with a school teacher. The lady in question was a younger Wang Lai. This is the first time I have seen her at this tender age possibly in her thirties.

As things would have it, something happened. The two children who went to their mother's grave were stuck in a cemetery as they were locked in. A police search was underway and radio broadcast managed to help trace the children. It was teacher Li played by Wang Lai who found the children. That  endeared the children to her and as they were leaving the hospital in smiles, we knew 'Father Will take a Bride'!

The movie also starred the late Betty Lo Tih's brother who played YuMing's love interest.

I am looking forward to watch such YuMing films such as 'Sun,Moon and Star' and A Night in Hongkong'.

Native Expressions 4: Good To Know

We are back again with some more native expressions from De Mente's book. Here are some interesting ones .

1.To be blind-sided:

It means that you have been defeated, disadvantaged and surprised by something that you couldn’t or didn’t foresee coming.

E.g.

I was totally blindsided by her accusation.
The union negotiating team blindsided me with a new proposal.
That lawyer almost always manages to blindside his opponents.



2.Be a sweetheart:

To be generous, kind or going out of your way to help is described as ‘being a sweetheart’ This is a very personal way of asking someone to do something for you or for someone else.

E.g.

Be a sweetheart and do the week-end shopping for me.
Be a sweetheart and wash my car for me.
I’ve had enough of being a sweetheart. Walk the dog, yourself!

3.Back down:

The term comes from the concept of literally backing up in the face of danger of some kind, or backing down to avoid a confrontation or defeat.

E.g.

I refused to back down when the boss threatened to demote me.
If you back down now, you will never be respected ever again.
No matter how serious the challenge, do not back down!

4.Asleep at the wheel:

Doing things without knowing what you are doing. Blindly doing business without noticing what is going on in the market place may be referred to as being ‘asleep at the wheel’

E.g.

Between 1960 and 1980, American automobile manufacturers were asleep at the wheel, giving Japanese car-makers an extraordinary opportunity to win market share in USA.
Some people go through life sleeping at the wheel.
Wake up,man! You are asleep at the wheel!

5.Across the board:

Taken from a description that refers to the entire width of a board, it means everything and everybody.

E.g.

The pay-rise was across the board. There was a pay hike for everyone.
He made an across the board accusation, blaming everyone in the team for the defeat in the game.
The Chairman’s criticism was across the board. He left nobody out.

'Flipping Fantastic' by Jane Langford

 

A short story is written in prose form. It has a plot which is a sequence of events. The plot has to deal with a central conflict faced by the protagonist. The events also carry a message about life and human nature.

Let us analyse the title. " Flipping Fantastic". We know what fantastic means. It refers to something  extraordinary, out of the usual or norm. So when some one says something or an act  is 'fantastic', it means it is extraordinary or superb.'Flipping' in the context of this short story means 'to react strongly and especially enthusiastically'. So the title,"Flipping Fantastic" could mean 'extraordinarily superb'.

Set out in the form of diary entries by twin brothers and their mother, the story starts with the last day of primary school at Peter Hill where the  twin brothers both acted parts in a school play. Then out of the diary pages, is reflected the thoughts of both the twin brothers, Tristan and James on the new schools they will be attending shortly. The diary pages of the mother will reflect her thoughts on the behavioral aspects of her twin sons.

Tristan is no ordinary boy. He is physically challenged and is wheel-chair bound. He has  always been pushed around by James or his mother. Interestingly, Tristan has developed a 'can do' spirit and he is most confident for a person who needs help to get around. James, on the other hand, is shy. He is the exact opposite of Tristan, needing words of encouragement to spur him on.

In fact, James feels that having Tristan go to a special school called Chesterlea Grange, where Tristan will be home only during week-ends, is somewhat disadvantageous to him as he needs Tristan's help in Highfields, the new school he will be attending which is a day school for ordinary students. Moreover, he is shy and believes there is  no one there whom he will be able to depend upon.

That is the exposition of this short story. We will move on in the next posting.