The US Secretary of Defense has ordered the US military to develop options for more assertive freedom of navigation (FON) operations around China’s man-made islands in the South China Sea. There are significant legal, operational and political risks involved with these operations.
The notion of a ‘middle-income trap’ has entered the lexicon of policymakers in emerging markets in Asia and elsewhere. Many leaders of countries that have experienced fast growth — such as Chinese Premier Li Keqiang — worry that economic growth will come off the boil as their countries reach middle-income status.
The Occupy Hong Kong Movement was sparked by Beijing’s announcement of rules for the popular selection of Hong Kong’s Chief Executive in 2017. Essentially, Beijing would appoint a 1200-person committee that would vet the candidates and present 2-3 that would be on a ballot for Hong Kong citizens among which to choose.
A new study by the International Monetary Fund (IMF) investigates the dangers of financial systems that have grown too big too fast. The excessive growth of the American financial system causes an enormous drag on the US economy, reducing GDP by 2 percent every year. That equates to some $320 billion lost each year.
How Did This Happen?
It is not that May did not have its challenges. The German bund extended flash crash had knock-on effects throughout the capital markets. The dollar, which had been trending lower since mid-March, staged an impressive rally in the second half of May that completely unwound the weakness in the first half of the month, and carried it to new multi-year highs against the Japanese yen and New Zealand dollar.
After the 25 April 2015 earthquake, and the massive aftershock on 12 May, Nepal is entering the second phase of its recovery and reconstruction. Losses are still being tallied, so it is not yet possible to detail a complete list of the required long-term policies and strategies. However, if the country’s governance were to improve and appropriate policies were adopted, a stronger and more picturesque Nepal could emerge from the crisis.
The US dollar’s strong advance in the second half of May showed signs of tiring as last week drew to a close. It could be a function of month end flows, but the magnitude of the dollar’s advance and the near-term event risk will likely encourage more defensive activity.
Declarations of support for “hardworking people” were commonly heard in the UK general election. This was echoed in the Queen’s Speech, when David Cameron said the 26-bill package was a “programme for working people”. Our research shows that there is another story to be told about Britain’s hardworking people, however, and the support they need.
Japan’s most important foreign policy goal is to create an environment under which China’s rise will be peaceful and cooperative. In strategic terms, maintaining the balance of power in the region and creating crisis prevention and management mechanisms are the most effective means of achieving this policy goal.
There is a specter haunting Europe. A specter that rejects the status quo. Last weekend, Spain’s ruling PP lost majorities in all key municipalities and regional governments. The opposition itself is fragmented, and nine of the ten major municipalities will be run by what appears to be loose coalitions. One wag said that it was as if Spain got Italian political results with the Italians to manage it.
