The U.K. Ventures into the Great (World Trade) Unknown
While most discussion since the Brexit vote has focused on how the UK will negotiate the terms of its new trading relationship with the EU, much less has been said about the rest of the world.
Category: Economics
Will this be the Year of Japan’s Democratic Party (DP)?
The 2016 triennial House of Councillors or upper house election is set to test Prime Minister Shinzo Abe’s policy and popularity. Although the House of Councillors is less powerful than the House of Representatives, past prime ministers have been forced to resign after poor electoral results in the upper house. Prime Minister Abe does not face that prospect. His party is likely to suffer losses, though not big enough to lose majority.
An Atypical Quarter-End for Sure
No fundamental development can compare with the UK decision to leave the EU. It has set off a chain reaction whose outcome is still far from clear. Sterling is firm, alongside most of the major and emerging market currencies today. Sterling narrowly edged above yesterday’s highs to reach almost $1.3425 before encountering selling pressure.
China and US May Be Heading Toward WTO Case over Steel Dumping and Tariffs
China and the United States are set to square off in a suit before the World Trade Organization (WTO) regarding a brewing dispute over steel imports. China, along with several other countries, has been exporting large quantities of corrosion-resistant steel to the United States at rates domestic producers cannot match. As a result, the US has raised tariffs and may take anti-dumping measures. Meanwhile, China has threatened suit if the US does this.
Africa would have Preferred ‘Remain’
The fallout from the UK referendum that ended in victory for those wanting the country to exit from the European Union (EU) is still reverberating around the world. However, what does it mean for Africa?
Bad Brexit Timing for African Exporters
One would certainly be forgiven if, like us, you found yourself doing a double take at the news that Britain’s public voted in favour of leaving the EU. This is because shortly before the Brexit polls closed, opinion polls were showing the ‘remain’ vote marginally ahead.
Big Business in Africa: It’s Where the Jobs Are
Almost all developing countries have policies to promote small and medium-sized firms. The reasons for this choice are clear. Small firms appear to create lots of job with relatively little capital and jobs are desperately needed in sub-Saharan Africa with its growing young population. In contrast, large firms are usually ignored, it being implicitly assumed that their size indicates success.
Ghana is no exception.
Liberalism Takes Some Punches
Back in 1991, the eminent political scientist Samuel Huntington pointed out that democratic transitions around the world often come in waves. He pointed to a “third wave” of democratization that began in the 1970s with Spain and Portugal and continued into the 1980s, particularly in Eastern Europe and Latin America. After he wrote his book, this liberal wave seemed only to pick up speed, with transitions in the 1990s in parts of Africa and Asia.
Today’s Market Reversals are not that Surprising
The global capital markets are stabilizing for the first time since the UK referendum. It is not uncommon for markets to move in the direction of underlying trends on Friday’s; see follow-through gains on Monday, and a reversal on Tuesday. That is what is happening today. Turnaround Tuesday after such dramatic price action over the last two sessions has the feel of the proverbial dead cat bounce.
