Featured Articles Archive

China's G20 agenda should have clear priorities.

China's G20 Mission should be Clear

Date: 23 August 2016

In December 2015, China announced that its priorities for the upcoming G20 Hangzhou summit were to make the global economy more innovative, invigorated, interconnected and inclusive. However, China is struggling to deliver practical outcomes in these areas because many of them are challenging domestic issues that lack a global focus.

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Jokowi's appointment of Mulyani is commendable.

Jokowi's Mulyani Appointment a Step in the Right Direction

Date: 23 August 2016

Once again, President Joko Widodo has reshuffled his cabinet. One pleasant surprise is the return of Sri Mulyani Indrawati, who until recently was Managing Director and Chief Operating Officer of the World Bank. She accepted the offer to serve as the Minister of Finance, replacing Bambang Brodjonegoro who now leads the Ministry of Planning.

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The Philippines' Duterte is living up to his billing.

The 'Dangerous Populist'

Date: 23 August 2016

The new Philippine president is waging a tough drug war, pushing economic growth domestically and greater pragmatism in foreign policy that could contribute to Southeast Asia’s future.

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The Credit Surety Fund should help Philippines micro and small businesses.

Stabilizing Philippine Economic Growth from the Bottom Up

Date: 23 August 2016

The local business community is upbeat with the passing into law of Republic Act 10744, otherwise known as the Credit Surety Fund Cooperative Act of 2015 on 6 February 2016. Essentially, the said law provides for the creation and organization of the Credit Surety Fund (CSF) cooperatives to manage and administer credit surety funds and to enhance the accessibility of micro, small, and medium-sized enterprises (MSMEs); cooperatives; and nongovernment organizations (NGOs) to bank credit facilities.

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Eurozone PMI comes in mixed with manufacturing down and services up.

Eurozone PMI Mixed while Markets are Still Waiting on Yellen

Date: 23 August 2016

The most interesting data today was the flash Eurozone PMI.  The aggregate reading was little changed.  The manufacturing PMI slipped to 51.8 in August from 52.0 in July.  The service PMI firmed to 53.1 from 52.9.  The composite ticked up to 53.3 from 53.2, which is the highest since January.

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A structural flaw created Chinese zombie firms that won't go away.

How China's Soft Budget Constraint Created Zombie Firms

Date: 22 August 2016

This year began with international media attention drawn to the weakness of China’s economy. This prediction was validated on 9 May 2016 when the People’s Daily ran on its front page an article written by President Xi Jinping that expounded on the need for ‘supply-side structural reform’.

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Philippines President Duterte's war on drugs is terrifying citizens.

Can Philippine President Duterte's War on Drugs Last?

Date: 22 August 2016

Duterte is gaining in the war on drugs, but at a terrifying cost to Filipino society.  The Philippines is drowning in a wave of killings as the government of the newly proclaimed President Rodrigo Duterte combats the illegal drug trade. Except for a few human rights advocates, there has been no outcry from the population.

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Indonesia's Wiranto has a sketchy background regarding human rights.

Indonesia's Jokowi Makes a Questionable Appointment

Date: 22 August 2016

In July, Indonesian President Joko ‘Jokowi’ Widodo courted controversy by appointing a former New Order general who has been accused of human rights abuses, Wiranto, as Coordinating Minister for Political, Legal and Security Affairs. As security and human rights have come to dominate the political dynamic in West Papua, the new appointment to the third most powerful position in Indonesia’s Cabinet raises new questions for Indonesia’s restive eastern province.

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Fed Vice-Chairman Fischer echoes Dudley's comments.

Team Dudley Includes Fischer

Date: 22 August 2016

Last week, some market participants were giving more credence to what seemed like dovish FOMC minutes than to NY Fed President Dudley's remarks that accused investors of complacency over the outlook for rates.  Yesterday, Vice-Chairman of the Federal Reserve Fischer seemed to echo Dudley's sentiment, and this has underpinned the dollar and is the major spur of today's price action.

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This will be a busy market week, no two ways about it.

The Dollar, What to Watch For, and Jackson Hole

Date: 22 August 2016

The US dollar lost ground against nearly all the major currencies last week. The sole exceptions were the Australian dollar, where pressure ahead of the weekend following Moody's decision to cut the outlook for five Australian banks wiped out the previous small gain, and the Norwegian krone, which was really flat with less than a 0.1% loss.

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Speculators were active in oil and treasury futures.

CFTC: Oil and 10-Year Treasury Hot Spots

Date: 22 August 2016

Summer doldrums continue to depress speculative activity in the currency futures market.  In the CFTC Commitment of Traders reporting week ending August 16 speculators made small adjustments to gross currency positions.  There was only one change more than 6k contracts.

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The UK's long-term economic outlook mostly unimpressive.

Post-Brexit UK Long-Term Economic Outlook...Meh

Date: 19 August 2016

Britain’s economy after the vote to leave the European Union has been marked by one word: uncertainty. However, the FTSE 100, the UK’s main stock index, seems to be ticking along nicely. Having quickly rebounded after the initial shock of Brexit caused a 3.15% drop, it rose a further 1.6% when the Bank of England cut the interest rate to a historic low of 0.25% to counterbalance the potential negative effects of Brexit on the UK economy.

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Working from anywhere lets people work longer and that has trade-offs.

Is Your Workday Getting Longer?

Date: 19 August 2016

Imagine if you could work whenever and wherever you wanted to. Would you work less and enjoy more time with family and friends? Or would you end up perpetually working, have work spill over into the rest of your life?

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Australia gets to keep its AAA credit rating.

Moody's Likes Australia's Credit

Date: 19 August 2016

Moody’s has reaffirmed Australia’s AAA credit rating, as Malcolm Turnbull seeks to put pressure on Labor and crossbenchers to pass measures to help repair the budget.

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Large corporations are finding themselves worrying about the valley of death.

The Other Death Valley is not Just for Startups

Date: 19 August 2016

Corporate leaders are facing the same valley of death faced by many startups, judging by the latest round of financial results. These large Australian businesses are operating in markets disrupted by new technology and changing business models.

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Deliveroo riders score a pay win over the company owners.

Stand and Deliver(oo)

Date: 19 August 2016

The standoff between couriers of food delivery service Deliveroo and the company’s owners is a standout case of workers using different methods to fight back in an emerging economy with loose employment relations.

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Africa's data gathering could be better and that would lead to better policy.

African Policy Decisions could Improve with Better Data

Date: 19 August 2016

African policy makers are increasingly called on to use evidence-based research to inform development decisions. However, this requires the rigorous collection of data as well as a coordinated system to disseminate it. This is why Kenya-based African Population Health Research Center is advocating for national policies to enable strong data systems. Donatien Beguy explains Africa’s challenges and opportunities.

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Saudi Arabia may boost output to gain an advantage ahead of the OPEC meeting.

Stacking the Deck before the Next OPEC Meeting

Date: 19 August 2016

Saudi Arabia suggests it may be increasing its August crude output to a new all-time high as it could give it more leverage to influence the September informal talks on a possible production freeze, Reuters reported on Wednesday, citing industry sources. 

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