Tim Condon Quotations

Chinese producers will remain competitive in a wide range of manufactured products for some time.

We believe the BSP was selling dollars to blunt peso weakness.

Investors are conditioned to see politics-induced pricing weakness as a buying opportunity and our base case is that this time will prove no different. Still, this is shaping up as an exciting week.

Financial assets clawed back some of their recent losses as President Arroyo appeared to have weathered the latest storm.

The rating agency actions have reinforced a message to investors that fiscal consolidation in both countries is a trend and will drive asset prices higher. So markets are reacting to this.

Both were in recession last year and the recoveries there have not been particularly strong yet,

There's been very strong growth balanced between domestic demand and exports and falling inflation - a very satisfactory outcome from the point of view, I would suspect, of the policy-maker.

Looks like a people plan as opposed to a business plan. The emphasis seems to be improving peoples lives by improving social infrastructure. I don't know if there are enough goodies to have an impact on financial markets although if the whole country feels better it would be good for markets.

The central bank obviously would like to see two-way movement. That to a large extent depends on what happens with policies. For example, the relaxation of restrictions on capital flows takes away some of the upward pressure on the yuan.

If the US dollar remains firm, then flows looking for an appreciation of the yuan will remain at their 2005 levels or lower and we're forecasting a more or less unchanged trade surplus.