NS VIEWS(30TH APRIL):
"There is nothing really good happening with the euro at all. The economy is weak and you have the southern European countries falling apart."
On the Euro dropping to $1.20 by the end of the year:
"I would say quicker than that, probably by August. It's going to be quick because things are really falling apart and there will be, there's got to be, a solution of some sort between now and August. Let's face it, we were $1.50 at the beginning of this year, or in December, and now we're at $1.33."
On his trading recommendation for Asia down the road:
"Further horizon is to long Asia and short the Euro. [Erlichman: Can you give us more color on that really quickly?] It is clear that Asia has come out of this recession in 2008-9 screamingly fast, and very strong, and Europe isn't coming out of it at all and the United States is in the middle. So sell Europe, buy Asia."
U.S. stocks tumbled the most since February as Securities and Exchange Commission fraud accusations against Goldman Sachs Group Inc. spurred concern the fallout from the financial crisis isn’t over.
Goldman Sachs sank as much as 16 percent, the most in 15 months, after the SEC sued the company and one of its vice presidents for misstating and omitting key facts about a collateralized debt obligation. JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley sank at least 3.3 percent as all 27 shares in a gauge of banks and brokerages retreated. Google Inc. plunged 6.5 percent after its earnings trailed some analyst estimates.
he Standard & Poor’s 500 Index fell 1.8 percent to 1,189.80 at 12:33 p.m. in New York and retreated 1.9 percent earlier, the most intraday since Feb. 4. The Dow Jones Industrial Average declined 145.10 points, or 1.3 percent, to 10,999.47. Both slipped from their highest levels since September 2008, the month Lehman Brothers Holdings Inc.’s bankruptcy intensified the credit crisis.
“People are watching to see what the fallout is going to be,” said Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York, who doesn’t own Goldman Sachs shares. “There are uncertainties if other institutions are involved. Only time will tell if that could have a larger effect on the economy. We don’t know that yet.”
Indian economy, he said, grew at about 7% in 2009-10, which was quite impressive by global standards. “I am hopeful that the growth rate will climb back to between 8.25% and 8.75%, and perhaps at the midpoint around 8.5% in 2010-11.”
The last trade deficit in the country came in April of 2004 and was $2.26 billion.
For the month of March, the country’s imports totaled $119.35 billion and exports reached $112.11 billion. Both of these numbers are up drastically in comparison to March of 2009.
The deficit will more than likely turn around within the near future, but the numbers are enough to spark concern in the eyes of the Chinese.
The deficit in March mainly came from China’s trade with Taiwan, Japan and South Korea, Customs said, while it continued to run surpluses with the U.S. and the European Union. Those big trading partners have been among those arguing that China’s practice of keeping the yuan effectively pegged to the U.S. dollar gives its exporters an unfair advantage and contribute to the large trade surpluses.
All of this comes at a time when the United States and leaders throughout Europe are pushing China to increase the value of the yuan, which economist suspect is nearly 40% undervalued
SOURCE:A FRIEND
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