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<blockquote data-quote="John Roberts" data-source="post: 55854" data-attributes="member: 126">Re: Uli Behringer of The Music Group Q&amp;AI am not sure Yuan is that much of a safe harbor, while the European banking and sovereign debt uncertainty is driving the short term relative currency valuation all around the world. This impacts China as the EU is a major customer for China. It is remarkable to see the dollar strengthen in the face of all the US QE, and that suggests other currencies are weakening more and this is a simple safety trade. There are still questions about China&#039;s housing market finding a fair level. Housing valuation was the trigger issue that slowed economic growth in the west and precipitated the economic uncertainty. China so far seems to be avoiding the fate of the west, but centrally planned economies often run into difficulty over time, we&#039;ll see if this time is different.&nbsp; These are all short term perturbations (I hope). My question is after the dust settles where does China end up for long term cost effectiveness? Of course this dust will not settle for years, and is hard to predict from current metrics.&nbsp; I was curious about Uli&#039;s opinion, while he seems to be betting with his wallet, on China for factory, and Europe for engineering?, or not... Customer service certainly need to co-located close to actual markets, and now may be a time for bargain hunting in EU zone.&nbsp; JR</blockquote>

[QUOTE="John Roberts, post: 55854, member: 126"] Re: Uli Behringer of The Music Group Q&A I am not sure Yuan is that much of a safe harbor, while the European banking and sovereign debt uncertainty is driving the short term relative currency valuation all around the world. This impacts China as the EU is a major customer for China. It is remarkable to see the dollar strengthen in the face of all the US QE, and that suggests other currencies are weakening more and this is a simple safety trade. There are still questions about China's housing market finding a fair level. Housing valuation was the trigger issue that slowed economic growth in the west and precipitated the economic uncertainty. China so far seems to be avoiding the fate of the west, but centrally planned economies often run into difficulty over time, we'll see if this time is different. These are all short term perturbations (I hope). My question is after the dust settles where does China end up for long term cost effectiveness? Of course this dust will not settle for years, and is hard to predict from current metrics. I was curious about Uli's opinion, while he seems to be betting with his wallet, on China for factory, and Europe for engineering?, or not... Customer service certainly need to co-located close to actual markets, and now may be a time for bargain hunting in EU zone. JR [/QUOTE]

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