Daily Note – Playing chess or monopoly?

China PakistanSummary:

China pockets Pakistan, where’s America?

CPI Data Meet Yellen’s Condition for Rate Hike

United States: Earnings make a good start

Eurozone: Euro group meeting to discuss Greece: no formal deadline on 24 April


Good morning,

By far the biggest news today is the announcement by China’s President Xi Jinping that China has just signed agreements with Pakistan promising investment of $46bn (£30.7bn). The focus of spending is on building a China-Pakistan Economic Corridor (CPEC) – a network of roads, railway and pipelines between the long-time allies. They will run some 3,000km (1,800 miles) from Gwadar in Pakistan to China’s western Xinjiang region. The projects will give China direct access to the Indian Ocean and beyond.

Why is this important?

Because it reveals the geopolitical game that is being played out in Asia at the moment and the way in which America is being out spent. If you look east from Lebanon, the US has no trustworthy allies until you get to Indonesia. This is not good news for the Americans and it explains why the US is trying to get a deal with Iran and is cozying up to India.

Download a FULL PDF version of the Daily Note:

Global Macro-Daily Note 21st April 2015


The statements, opinions and analyses presented in the articles, newsletters, and other materials appearing on this website are provided as general information and for educational purposes. Opinions, estimates and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. David McWilliams shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided.

Categories: Daily Note