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WUHAN - China's manufacturing industry is losing out to the United States in terms of its cost advantage, a new report has suggested.
Prices of energy, logistics and some raw materials in China have surpassed those in the United States, according to the 2015 China Purchasing Development Report, released on Thursday by the China Federation of Logistics and Purchasing.
The report said that the United States has slashed its energy costs with exploitation of shale gas, increasing the competitiveness of American manufacturers.
"Many raw materials are cheaper in the United States," the report said. "For example, US cotton is 30 percent cheaper than that in China." It also pointed out China's price disadvantages with statistics in sectors including logistics and industrial land.
Citing a survey by the Boston Consulting group, the report said the cost advantage of China's manufacturing industry over the United States has plummeted to 4 percent in 2014 from 14 percent in 2004.
"If the trend continues, China's cost advantage in manufacturing could be completely wiped out by 2020," the report predicted.
It suggested China steps up innovation and relies on made-in-China equipment and Chinese brands to sustain growth in the futur
The fluctuations in crude oil have dictated the direction for the stocks. A slide in oil futures has more times than not resulted in a tumble in the broader stock market. Conversely, a rise in oil prices, as was seen on Monday when West Texas Intermediate oil CLZ5, +0.60% saw a 2.5% pop to settle at $41.74 a barrel, has delivered a bump to stocks. The following table from Dow Jones data show that a strong positive correlation between oil and stocks has really taken hold in July and August of this year.
All the main U.S. indexes surged sharply higher on Monday, highlighted by a more than 230-point rally in the Dow Jones Industrial Average DJIA, +1.38%
|Year||Same Direction (Down days)||Same Direction (Up days)||Total Same Direction||Total Days||% of Days|
|Since Aug. 19||25||20||45||63||71.43|
|Aug. 19-Nov. 14, 2014||17||17||34||63||53.97|
|Aug. 19-Nov. 15, 2013||26||19||45||64||70.31|
More than 70% of the time that oil has moved in a given direction, stocks have followed. Compare that with a roughly 52% correlation for 2014. For all of 2015, the correlation is a little over 60%, according to Dow Jones data.
Our larger purpose, though, was to engage with local politicians. It is worth recalling what sparked the revolution in 2010 – which spread from Tunisia across North Africa and the Middle East. The risings began when Mohamed Bouazizi, a market trader, was driven to the horrific extreme of self-immolation because he had been denied ownership of his own goods and the right to engage in commerce. His was a protest against the violation of property rights, and he was not alone. In an authoritative study of the Arab Spring, the Peruvian economist, Hernando de Soto, chronicled hundreds of cases of entrepreneurs in Arab countries being driven to suicide by police corruption and harassment.
The Arab Spring, in other words, began as a movement against arbitrary government. Citizens were fed up with living under regimes that could make up the rules as they went along, seizing property without due process, rigging the law in favour of their clients. They wanted freedom: freedom of speech, freedom of assembly, freedom of worship, freedom of association and, not least, freedom to enjoy their own property.
The answer ought to be obvious. Religion isn’t going to disappear, much as some Leftists might like it to. The question is whether observant Muslims can be represented by values-based democratic parties, of the sort that the Western Right takes for granted, but that have so far barely existed in the Arab world except in Morocco and Tunisia.
No one can definitively answer that question, and the recent history of North Africa cautions against excessive optimism. Still, as Benedikt Koehler – a fellow CapX contributor and also a conference delegate – has regularly argued here, freedom and free markets were an integral part of early Islam. The aspiration to liberty is universal. Don’t write off an entire region.
For the first time in at least a decade, imports fell in both September and October at each of the three busiest U.S. seaports, according to data from trade researcher Zepol Corp. analyzed by The Wall Street Journal. Combined, imports at the container terminals at the ports of Los Angeles, Long Beach, Calif. and around New York harbor, which handle just over half of the goods entering the country by sea, fell by just over 10% between August and October.
The declines came during a stretch from late summer to early fall known in the transportation world as peak shipping season, when cargo volumes typically surge through U.S. ports.
In Brussels, at the political headquarters of NATO, and in Mons, the military “Pentagon” of NATO just an hour south, officials will be working through the weekend. The 28-nation alliance, after all, is founded on one key premise enshrined in the Article 5 of its founding treaty: “The Parties agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all and consequently they agree that, if such an armed attack occurs, each of them, in exercise of the right of individual or collective self-defence recognised by Article 51 of the Charter of the United Nations, will assist the Party or Parties so attacked.” It is worth noting that the only country to ever activate Article 5 was the United States after the 9/11 attacks in 2001.
If France would like to become the second such country, the first step would be to call for an Article 4 consultation, which would convene the ambassadors of the 28 nations, who are in permanent session in Brussels, to discuss the situation and decide a course of action. This happened most recently in 2014, when Turkey requested an Article 4 meeting after the Islamic State attacks there.
It seems likely that an Article 4 meeting would conclude that the Paris massacres, given their scale and scope, should be considered an attack under Article 5. That would be entirely appropriate. The terrorist attacks — assuming that the Islamic State is, in fact, responsible for them — are the culmination of a long-running humanitarian disaster in Syria that has destabilized the Middle East and initiated the flow of millions of refugees into the heart of Europe. NATO can no longer pretend the conflict does not affect its most basic interests.http://foreignpolicy.com/2015/11/14/natos-turn-to-attack-paris-terrorist-isis/
billion cubic feet (Bcf)
|Region||11/13/15||11/06/15||net change||implied flow||Bcf||% change||Bcf||% change|
Working gas in storage was 4,000 Bcf as of Friday, November 13, 2015, according to EIA estimates. This represents a net increase of 15 Bcf from the previous week. Stocks were 404 Bcf higher than last year at this time and 207 Bcf above the five-year average of 3,793 Bcf. At 4,000 Bcf, total working gas is above the five-year historical range.
The flurry of new entrants into the market has coincided with a 12% slide in global copper prices, a tumble that has sent copper to its lowest levels in more than six years.
Analysts at Goldman say that this type of trading pattern tends to precede a pullback in Chinese metal demand. China accounts for roughly 40% of global copper demand and is the world’s top copper buyer.
“Over the past five years, periods of rising SHFE open interest and falling metals prices have been associated with concurrent or imminent weakening in China’s commodity intensive ‘old economy’,” they said in a note to clients.
This signal has been correct on four of five occasions since mid-2011 and suggests upcoming Chinese economic data could continue to disappoint, driving copper prices even lower, they said.