Capital investment inflows into national Treasury securities and via foreign direct investment are money trails that serve as indicators of investor confidence and interest. Both China and the U.S. have experienced recent declines in capital inflows, ABC News recently reported a large decline in the purchase of U.S. Treasury Securities; additionally, Russia plans on dumping more of its U.S. Treasury holdings to help out Europe. The net purchases of U.S. Treasuries in October, 2011 was $7.5 billion per Marketwatch.
The majority i.e. 84 percent of U.S. FDI or Foreign Direct Investment is accounted for by a small basket of just eight countries per the U.S. Department of Commerce. Since the U.K., Japan and France are among the top four, capital investments in those countries could negatively impact the U.S. as FDI is a contributor to domestic job growth. Interestingly, Switzerland is the highest supplier of FDI into the U.S.
The U.S. is not the only place that has experienced a decline in foreign capital inflow; China, the world's second largest economy, and second largest recipient of foreign direct investment experienced an $8.76 billion decline in its FDI per Bloomberg. However, according to the United Nations Conference on Trade and Development, China's 2010 FDI was over $106 billion, and according to China Daily, the country is on track for a year over year rise as its 11 month 2011 FDI is $103.77 billion.
The collection and tabulation of FDI data varies according to Jimmy Zhan in a research report prepared for the World Association of Investment Promotion Agencies. This is evident in the World Bank FDI data for China which places 2010 Net FDI at $185 billion, higher than the UNCTD data.
The majority i.e. 84 percent of U.S. FDI or Foreign Direct Investment is accounted for by a small basket of just eight countries per the U.S. Department of Commerce. Since the U.K., Japan and France are among the top four, capital investments in those countries could negatively impact the U.S. as FDI is a contributor to domestic job growth. Interestingly, Switzerland is the highest supplier of FDI into the U.S.
The U.S. is not the only place that has experienced a decline in foreign capital inflow; China, the world's second largest economy, and second largest recipient of foreign direct investment experienced an $8.76 billion decline in its FDI per Bloomberg. However, according to the United Nations Conference on Trade and Development, China's 2010 FDI was over $106 billion, and according to China Daily, the country is on track for a year over year rise as its 11 month 2011 FDI is $103.77 billion.
The collection and tabulation of FDI data varies according to Jimmy Zhan in a research report prepared for the World Association of Investment Promotion Agencies. This is evident in the World Bank FDI data for China which places 2010 Net FDI at $185 billion, higher than the UNCTD data.
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• Federal Reserve: U.S. industrial production declined .2% in November
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