Lowie Cheah

Quantitative Easing (QE2), Fed’s “emergency cash” will not likely to derail gold’s 10-year rally. However, gold may possibly encounter a difficult road as these “emergency cash” which offered the fuel for gold’s ascent, dries up, at the least for now.

At the moment, gold’s performance being a safe haven is not quite clear as fund managers have cited a few factors for this, which contain, overvaluation of gold, slower progress, threat of deflation and resurgent USD.

Gold: Gold price has greater than doubled considering that 2008′s low

Just before that, the worth of gold tended to ascend in times of economic crisis. Gold has reached greater than 200% gain from its 2008 year’s low in the depth of economic crisis along with the value of gold went up by 20% considering that Fed’s chairman, Ben Bernanke spoke for the duration of Jackson Hole’s speech in August 2010, which marked the commencement of quantitative easing round two (QE2).

Last week’s Thursday, 30th June 2011, the USD 600 billion QE2 programmed has ended by Fed as the addition of cash for the monetary technique has induced the US interest levels to drop.

Mr Bob Haber, chief investment officer of fund supervisor Haber Trilix, stated that, “Even with QE ending, there’s no prospect of the Fed rising rates anytime shortly. We have negative US real rates of interest. And gold does quite well historically within an unfavorable real-rate environment.”

On last Friday, gold dipped beneath USD 1480 per ounce, almost USD 100 beneath its historical high of USD 1575.79, which was set on 2nd May 2011.

Gold: No hints of QE3 as of now

Fed’s Chairman, Ben Bernanke, didn’t give any hints of QE3 as of now. Even though the monetary policy just isn’t expected to become tightened, if Fed introduces extra market stimulus which was known as for previous week by Barack Obama, US President, to stimulate job development, gold price of gold will probably to rally.

Mr Mark Luschini, chief investment strategist at broker-dealer Janney Montgomery Scott, described that, “The notion of QE3 is much more liquidity, which will most likely be dollar unfriendly. And it will then even more run the chance of inflation.”

In the event the USD is strong, it will attenuate the status of gold as an alternative currency. Most commodities, which consist of gold and oil, denominated in USD, which continues to be the global’s reserve currency, even with the uncertainty in US economic climate outlook and also political tensions regarding the increasing debt limit in the world’s largest economic climate.

Mr Jeffery Sherman, commodities portfolio manager of DoubleLine Money, stated, “If danger assets promote off, and people shun the dollar, that’s when we are within a new regime, that’s when gold’s going to take off. But I really don’t see that happening”.

He also talked about which the danger of deflation, which was partially caused by the European Debt crisis, need to make investors go for US Treasuries along with the USD and hence lead to gold, susceptible to weakness. “Gold is somewhat of a safe haven, but it is safe haven only whenever you are anxious about inflationary pressures”, stated Mr Jeffery Sherman.

The European Central Bank (ECB) is set to let off its second rate hike considering that April 2011 on Thursday and may possibly then pause for the even though to find out the euro zone’s financial prospects as Greece confronts with its financial debt crisis.

Jean-Claude Trichet, president of ECB, reiterated on last week which the ECB governing council was “in a state of powerful vigilance” concerning inflation, which represents a code phrase for an announcement with the enhancement of rates. Jennifer McKeown mentioned that “A 25 basis point hike to 1.5% looks like an accomplished deal.” It’s a typical impression which can be shared by many other individuals.

Jean-Claude Trichet: To scale back euro-zone inflation

The ECB’s intention is to reduce the euro-zone inflation, that’s at the moment at 2.7%, towards the goal of just below 2%. ECB will even look in to the broader macro-economic picture, whereby one of many items contains unemployment which hovered at 9.9% with the third month consecutively while in the month of May, indicating which the euro-zone financial system is cooling down. Research group, Market, published the most recent purchasing managers’ index, shows a widening gap amongst the core euro-zone members and a number of other members.

Meanwhile, in London, the Bank of England is expected to take care of its main rate of 0.5%, that’s with the record-low level, on Thursday. Market curiosity is targeted on whether Jean-Claude Trichet will signal a further rate hike inside the later a part of this 12 months, or no matter whether is Jean-Claude Trichet suggesting the bank will settle into a wait-and-see mode as the leaders of the European Union (EU) deal with Greece’s challenges. Commerzbank economist Michael Schubert explained that Jean-Claude Trichet “will probably give little away on what happens thereafter”.

A phone meeting was held by euro-zone finance ministers on last Saturday, 2 July 2011, to approve the EU’s share of fund payments using the International Monetary Fund (IMF), that is really worth a total of EUR twelve billion, to assist Greece to stop a financial debt default. This transfer came about right after the Greece lawmakers handed new prudence measures which was ordered from the collectors to make way for continued emergency funding from Europe, as well as the IMF.

In accordance to Deutsche Bank Global Markets Research, the central bank will be the single largest holder with the Greek public debt, whom had purchased all around EUR 47 billion well worth of sovereign bonds on secondary markets.

Jean-Claude Trichet: Debt-laden nations need to transform prior practices

Jean-Claude Trichet ordered the EU lawmakers that Greece along with other debt-laden nations must alter past practices “that were not affordable, and really should have been prevented”. He also mentioned the soaring salaries offered to public employees in several countries which have been threatened by the debt crisis and stated that currently, you will find there’s correction. Also, a single critical essential issue for that markets and economists is always that regardless of whether will the ECB voluntarily renew bonds issued by Athens once they grow to be because of, to provide up non-public traders to join Greece rescue attempts. By ploughing a few of the maturing bonds back again in to the new bonds with terms of approximately thirty years would indicate supplying Greece some buffer. However, this may not handle the root of the difficulty, which can be the country’s inefficient economy. Other worldwide ratings companies may possibly nevertheless imagine that this type of rollovers will contribute into a de-facto default and Jean-Claude Trichet emphasised throughout very last week that ECB will not likely take part.

The USD traded higher against nearly other currencies except the CHF. Soon after the FOMC rate announcement and Bernanke’s press conference, It seemed that the traders are confident about USD. But for the stock market, equity investors did not welcome Bernanke’s comments and the stocks gave up all its gains and traded lower in the course of Bernanke’s speech and right after the US market closed. Why this happened was because that Bernanke’s speech was not particularly shocking. Bernanke divulged Fed’s plan in April, once the purchasing of assets are completed but through the FOMC, he didn’t say anything that provides traders some better insights of what the Fed will do next. In fact, Fed really will not have any clue on what to complete following, which can be the key takeaway for this month’s Bernanke’s speech. Bernanke admitted that Fed did not know why the slower development persisted, that is a very honest admission for Fed. Even so, this is extremely disappointing for investors as Bernanke is saying that Fed does not have any notion how the economic climate will move forward. According to the thriftiness from the shoppers, the high unemployment numbers and also the possible effect of Greece government defaulting their debts, nobody can blame the Fed for not realizing where the economy is heading to, even if other critics or financial analyst would argue that it can be Fed’s job to know as this concerns the long term of where the economic system need to be heading and what methods they really should take. Also, if Fed is not sure about their very own economic system, how can they anticipate investors to feel that there will probably be recovery inside the economic system for the following few months? The only point that can be certain is that Fed will not be growing the interest rates anytime quickly and will be placing their reinvestment plan on hold until finally the nonfarm payroll numbers and retail sales numbers are good. Given the current situation from the US economy, the enhance in interest rates may possibly require at least six to seven much more meetings according to the present trend of US economic system development, in spite of Bernanke mentioned that the extended period means two to three much more meetings.

Bernanke: No alter of game program

As of now, Fed’s game plan, which was outlined in April 2011, did not modify. Fed’s asset purchase plan will be completed by end June 2011 and if the Fed deem fit, Fed will reinvest the payments from maturing securities. To summarise, there is a lot for Fed to become worried about, consequently, no point rushing towards the exit. It’ll take some years for US to reach complete employment, which implies that Fed may be take it easy on their monetary policies so long as it can be essential. The truth is, Bernanke is keeping the door wide open by saying that if required, Fed can inject much more stimulus. If on account of the default of Greek that will affect the markets, causing asset prices to drop drastically around the planet, Bernanke could seriously consider to inject much more stimulus. Even so, for the time being, QE3 is hugely risky for USD.
Bernanke: To continue viewing US financial reports

As such, it is going to be of paramount value to continue watching the incoming US economic reports because the answer will probably be in the information. If the numbers continued to become reduced, Fed?fs reinvestment strategy will be continuing. But if data exhibits improvement, Bernanke may possibly contemplate added actions to get rid of emergency stimulus, that will include a rate hike.

My Sister of Eternal Flower (In Chinese: 花花世界花家姐), is the title of Hong Kong TVB drama starring by Charmaine Sheh as Fa Lai Chu, Raymond Lam as Hugo, Pierre Ngo as Mike, and Toby Leung as Jenny. This drama is produced by Kwan Wing Chung.

My Sister of Eternal Flower Details
Title:                       花花世界花家姐
Language:            Cantonese
Country:                 Hong Kong
Episodes:              20
Release Date:      16 May 2011

Cast
Charmaine Sheh as Fa Lai Chu
Raymond Lam as Tseung Yik (Hugo)
Toby Leung as Fa Lai Ping (Jenny)
Alex Lam as Fa Wai Chung (Danny)
Pierre Ngo as Luk Ho Cheong (Mike)
Bowie Woo Fung as Tseung Sum
Yoyo Chen as To Ting
Catherine Chau as Gau Gau
Chun Wong as Fa Lai Chu’s uncle
Wong Ching as Gau Gau’s father
Lily Ho as Chi Hei (Kim)
Annie Chong as Luk Mei Tsz (Gigi)

Summary of the Story about My Sister of Eternal Flower
FA Lai-Chu is a kind hearted and innocent lady with the IQ of a ten-year-old. When her parents passed away, she takes the full responsibility to care for her younger sister and brother. While she is not able to bring home the bacon, she does an exceptional job protecting her siblings, though this often means bringing home hilarious troubles!  Taking charge of the family is Fa’s younger sister, Jenny. She is working hard to support the family, taking care of her mentally challenged sister and their younger brother, who is immature and has no business sense. Hugo is the opposite. He is someone who likes to play all day long with his 2 rich friends. He is also dating with Agnes, who is a beautiful model.

Tseung Sum owns a company named Nexus. While he suffers from stroke and in a coma, his playful grandson Hugo took over the company. As Hugo was incapable and loses control of the company to Mike, a genuinely skilled manager by moving all the big clients to his own company with the help from Jenny. Mike is also Jenny’s ex-boyfriend.

At the low point of his life, the only one that backed him up was a mentally low-IQ girl Lai-chu. Soon after, Yik Yik begins to see the beauty of Sister Fa’s heart and inevitably falls for her. They even started their own business selling Pig Pig豬, where Lai-Chu sews it herself. It is complete with a set of 5pigs (Lai Chu’s parents, Lai Chu, Jenny, Danny – 3 siblings). Later on, Mike secured a deal with his business partner who bought Pig Pig 豬 copyright for HKD10,000,000 and only pay Lai Chu amount of HKD3,000,000 of the shares.

Above are the Pig Pig 豬, cute aint? Too bad, it is not for sale in Singapore yet.

When Tseung Sum wakes up from his coma, he completely opposes Yik Yik and Lai Chu’s relationship and orders Yik Yik to break up with Lai Chu. Unwilling to disappoint his grandfather, Yik Yik adheres to the order and returns to the normal life that he once led. Who do you think will he choose at the end? Lai Chu or Agnes?

♔ lowie

Soon Soon Kopitiam
124 Jalan Serampang
Taman Pelangi
80400 Johor Bahru
Johor Malaysia
T: +607-332 6500 / +6016-559 3362

This is how the shop looks like..

White Coffee (both hot and cold)

Chee Cheung Fun — just nice.

Soon Soon ‘Recommended’ Noodles — to me, it is too plain. I have to add some soy sauce to make it taste better.

Value for Money: ♨♨♨♨
Quality of Food: ♨♨♨
Recommended: ♨♨

♔ lowie