The Hong Kong government’s election reform proposal will theoretically allow for greater flexibility and competition for the 2017 race for Chief Executive. Pan-democratic lawmakers are vowing to veto the proposal, threatening the result and ultimately the 2017 ‘one person one vote’ election.
Reports exaggerated the significance of the May 12 procedural vote in the US Senate. Some called it a rebuke of Obama. Others said it was a stunning blow or a sharp defeat. It was none of these things. After looking at what happened, we quickly concluded that this was an easily fixable minor setback.
Anyone who has looked at the cost for rent in New York, San Francisco, and similar cities knows just how expensive it can be to live in these towns. But, could these high rents actually be hurting the economy?
Retail sales failed to rise in April, causing the Federal Reserve to lower its GDP forecast as Americans are slow to spend and stimulate the consumer-driven economy.
The combination of the disappointing US retail sales and small inventory build has encouraged a new bout of dollar selling. The world’s biggest economy may have contracted close to 1% in Q1 and Q2 is off to a weak start.
China and India are ready for breakthrough diplomacy that has the potential to reorder the face of Asia, while supporting global growth prospects.
From May 14th to 16th, India’s Prime Minister, Narendra Modi, will make a three-day trip to China and meet President Xi Jinping. It can be seen as Act 2 to the September 2014 visit President Xi made with Prime Minister Modi in New Delhi. The meeting did result in substantial trade deals but not yet in a diplomatic breakthrough.
Equities and bond markets are mostly trading higher today. The dollar changed little against the euro and yen, but it is softer against the dollar-bloc. Sterling extended is a post-election rally with the help of a gain in average weekly earnings, but returned offered after a somewhat more dovish BOE Quarterly Inflation Report.
France GDP grows 0.6% in first quarter of 2015, above estimates of 0.4%. Lower oil prices and a weaker euro helped exports, driving a higher growth rate than the European country has seen for two years. Some analysts believe this could be the beginning of a recovery after three years of stagnation.
The main legislative hurdle to granting Obama Trade Promotion Authority (fast track) was supposed to be in the House of Representatives. This makes the defeat on a procedural vote in the Senate even more surprising. Vocal opposition came from the minority leader of the Senate (Reid) and one of the leaders of the left wing of the Democratic Party (Warren). However, the defeat had little to do with their protests.
After decades of international isolation, Iran is eager to enter its post-sanction era, while Washington is divided about Iran’s future and Brussels remains apprehensive.
Recently, Peter Wittig, German Ambassador to the US, said that alternatives to a deal to curb Iran’s nuclear program are “not very attractive.” He added that Germany and other nations are ready to move beyond sanctions, despite what the US Congress might do.
