How many shopping baskets do 100 Euros cost around the world?

Every four months, the global team at ING look at the relative prices of a basket of goods all around the globe - their measure of Purchasing Power Parity (PPP).  The shopping basket consists of 25 products or services including food, non-food consumables, energy and services.  Looking at how many shopping baskets 100 Euros can buy will give us a sense of which local currencies are cheap or expensive.

Using this measure, emerging market (EM) currencies such as Mexican Peso, Indian Rupee, Chinese Renminbi and Polish Zloty look cheap while Brazilian Real and Turkish Lira look expensive.  In addition, Chinese Renminbi is subject to appreciation pressure because of its positive current account plus foreign direct investment balance while Turkish Lira looks even more vulnerable with a negative current account and foreign direct investment balance.

ING also calculated that while in early 2004,  the 100 Euros would buy on average 40% more shopping baskets in EM countries than in the U.S.; currently that difference has shrunk to 20%, indicating the strengthening economies and currencies of EM countries versus the depreciating dollar during this time.

Going forward I still like holding a basket of emerging market currencies versus the USD, especially countries with positive current account fundamentals with rising interest rate trend.

Which coupon sites?

Image via CrunchBase

The group buying sites seem to have all sprung up in the last couple of years, and their popularity no doubt has increased as many people are watching their budgets like a hawk as many economies are still fighting back (or just barely surviving) from the global financial crises.  Everyone probably enjoys a good deal or two in general. 

I have enjoyed using Groupon quite a lot due to their different products or services (and the relevancy and usefulness), city and now country coverage.  However, some people do complain that they prepay all these services and products upfront but end up not using them, thus wasting a lot of money.  Recently I came across this Scoutmob site which has a completely different model.  You can email the deal to your PC or phone or if you have a smart phone, download the app and then view the deals on your smartphone.  When you are at the location, then you open the email or the app to view the deal, and then show it to the restaurant so that the deal can be applied to your final tab.  It is that simple - no prepayment or waste of money.  The deal lasts for about 3 to 4 months. This I think is a brilliant model that would attract a lot of new converts, especially when they expand their cities and their types of services beyond food and drinks. 

Companies such as Walmart is combining the Facebook "Like" button idea with group buying. 

Related articles

• Review: So many coupon sites, so little time (seattletimes.nwsource.com)

Impressions from Hong Kong trip

After a hiatus from the blog, I am happy to write about my recent 3 1/2 weeks to Hong Kong.  It was a pleasant and fruitful trip - I not only met many family members and old friends, but also caught up with personal friends and old friends from the broker and investment community. 

Hong Kong is as usual full of energy, convenience, variety and opportunities.  No one would disagree that much of its dynamism is because of its close relationship with and dependence on China.  There are many reasons for China-related fund flows into Hong Kong. 

About 2 1/2 million mainland Chinese tourists visit Hong Kong per month (HK has a population of 7 million); and this number is expected to increase about 15%-20% this year.  Hong Kong is the favorite place for the mainlanders to shop for LV bags, watches, apartments and even milk powder.  Mainland Chinese buyers are particularly hot on Hong Kong apartments apparently because many apartments have harbour view (a luxury item in China), the amenities in Hong Kong are better than those of mainland, Hong Kong is still a China city and so is close to home, and many apartments can be found close to the airport (for example West Kowloon).

Are you a Vata, Pitta or Kapha?

I have recently been reading about Ayurveda or "knowledge or science of life" from the spiritual texts of ancient India.  The basic principle of Ayurveda is that vibrant health is attained when all aspects of life: physical, mental, emotional, behavioural, spiritual, familial, social and universal, are balanced, as described in the wonderful Ayurveda guidebook and cookbook called "Eat, Taste, Heal."  The three doshas or biological energies,Vata, Pitta and Kapha determine our individual nature. The doshas ensure optimum health when we are in a balanced state while promote disease during an imbalanced state.  Living and eating in a way that balance your doshas (primary and secondary) will lead to a healthier life. This self-test will help you to determine your constitution and will provide some suggestions how to bring balance back to your doshas.

Related articles

• The Ancient World | India (guardian.co.uk)

Eat the City

In today's newsletter from the Care2 Healthy Living and Green, the concept of Food as Art was discussed.  One of the featured artist is Chinese artist Song Dong, who built up this work called "Eating the City" entirely based on cookies and biscuits.  The idea behind this work is to reflect on the rapid development of cities in China, where new infrastructures are eating away the older China housing and buildings, showing transience and short-lived nature of existence.  According to the artist, "the purpose of my work is for the city I build to be destroyed."  Literally the city is to be eaten.  The work was displayed in the famous department store, Selfridges in London in 2007, though the store had to deal with the Public Health Department ruling that the biscuits were not fit to be eaten.  Nevertheless, this is a very sweet display of the artist's concept.

What a coincidence!

Coincidence is an occasion when two or more similar things happen at the same time, especially in a way that is unlikely and surprising, according to the Cambridge dictionary. 

When I called up my insurance company last week, I was asked by the sales person some of my personal information including my date of birth.  Then after I told her, a large "wow" was uttered, and the person's voice completely brightened (I can imagine the job is not perfectly stimulating for her most of the time).  What is the chance that your sales agent would have exactly the same date of birth in the same year and have the same gender as you? We then had a most friendly chat about my insurance plan, which was nice.

This is not the first time that happened to me.  Long time ago when I worked in a large bank sitting in the trading room, the bank celebrated the birthdays with their employees every month. The employees (who had the birthday that month) would come out and cut the cake together. There it was!  A guy came out and started cutting the cake with me. When he asked me what day I was born, I told him, and then he said so was I, same year and same date! Coincidence which happens unexpectedly can really bring some smile and ah-ha to one's daily life.

Bossa Nova

Bossa Nova, ("new trend" in Portugese) is Brazilian popular music originated in the late 1950s which was a mix of samba and jazz. The music is played in syncopated 2/4 time, and is relaxing and romantic. It was described as the music of the Brazilian middle and upple classes, often reflecting love, beaches, beautiful women as opposed to samba which reflects the daily struggles of the working classes.  The founders of bossa nova are often considered to be composer Antonio Carlos Jobim and guitarist Joao Gilberto. The bossa nova movement only lasted for a few years from 1958 to 1963 though its popularity quickly spread to the U.S. in the 1960s and contributed to the jazz music.

This widely popular "The Girl from Ipanema" is best heard in its original Portugese version by its creators, Jobim, Gilberto and Vinicius de Moraes (lyrics).  I often lost myself in the romantic, carefree, hypnotic rhythms of this beautiful version especially after a hard day's work.  Try it - simply out of this world!

Related articles

• 50 great moments in jazz: Stan Getz's Jazz Samba (guardian.co.uk)
• Brazil honours 'Girl from Ipanema' writer (ctv.ca)