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Is China Too Expensive For Walmart?

Thursday, 16 Sep 2010 | 5:43 PM ET

Treasury Secretary Timothy Geithner went before Congress Thursday to talk about China's currency practices.

Geithner says China has done very little to revalue its currency and intends to take up the issue with the group of 20 nations.

But the current exchange rate is one of the core reasons why so many manufacturers moved their operations to China - it made labor cheap.

Will rising currency and the resulting labor costs compel American companies such as Walmart to leave?

Trading the Globe: China Too Expensive for Walmart
Oracle talks itself up, and higher labor costs and a rising currency could easily cause manufacturers to leave China. Bruce Rockowitz, Li & Fung Limited president, discusses the issue with CNBC's Melissa Lee and the Fast Money traders.

We can't think of anyone better to ask than retail insider Bruce Rockowitz, president of the global trading group Li and Fung.

Get all the details. Watch the video now!




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Trader disclosure: On Sept. 16th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (DO), (EOG), (FCX), (FTO), (XBI), (GS), (HES), (IBM), (JOYG), (MA), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (GLD), (SLB), (SWN), (SU), (SPLS), (RIG), (UPL), (VRTS); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman’s firm is short (ANF); Finerman & Finerman’s firm own (CFN); Finerman & Finerman’s firm own (HPQ); Finerman owns (ORCL); Finerman owns (WMT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (F) bonds; Pete Najarian owns (POT) call spreads; Pete Najarian owns (RIMM) call spreads; Pete Najarian owns (DD) call spreads; Pete Najarian owns (GDXJ) call spreads

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
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Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
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Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (RIMM)
Accounts managed by Kanundrum Capital own (ALK)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital are short (OIH)
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (BA)

For Dennis Gartman
Funds managed by Gartman own Gold
Funds managed by Gartman own Australian Dollars
Funds managed by Gartman own Canadian Dollars
Funds managed by Gartman are short Euros

For Peter Boockvar
***No Disclosures***

For Brian Stutland
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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