The G20 has become the key vehicle for implementing and promoting global economic governance. China is set to host this year’s G20 summit in Hangzhou on 4–5 September.
What can we expect from the G20 under China’s leadership?
The US dollar is trading firmly, largely within yesterday’s ranges. The odds implied by the September Fed fund futures eased to 36% from 42% before the weekend, but ahead of Fischer’s Bloomberg TV appearance, and tomorrow’s ADP employment estimate, the market seems cautious about fading the dollar’s strength.
As China assumes leadership in the grouping, Beijing a wants greater role for Africa and the developing world in the G20.
When China’s Foreign Minister Wang Yi spoke in the Hangzhou Summit in May, he made it clear that Beijing intends to cooperate with other G20 countries to deliver ten outcomes. One of these focuses on Africa.
More than seven decades after 1945, international multilateral organizations continue to represent the victors of World War II, not the economic powerhouses of the 21st century. However, change is in the air.
This Great Graphic comes from the Wall Street Journal. It shows what is happening to the pay of the least compensated in the US. Their pay is going up at a pace that is exceeding the averages and inflation.
The data is from Q2 16. Weekly wages for full-time employees in the 25th percentile, earning about $13 an hour, are up about 3.1% from a year ago. The Labor Department data show that this is the largest increase since 2009. The pace of increase exceeds the pay of median workers who make about $20 an hour for full-time work.
The US dollar staged a strong pre-weekend rally on hints that the Fed will raise rates before the end of the year. There was initially follow through dollar buying in Asia before a more stable tone emerged in Europe, where London markets are closed for a bank holiday. The easing of the dollar’s upside momentum may set the stage for a bout of profit-taking later today and tomorrow.
With 17 simple words and the help of clarification from her deputy, Yellen changed the near-term dynamics in the capital markets. By saying that “…I believe that case for an increase in the federal funds rate has strengthened in recent months,” Yellen placed her marker down.
The US dollar had spent the last full week of August mostly confined to narrow trading ranges against the major currencies until the Yellen spoke as at the end of the week. She confirmed the constructive assessment of the economy already offered by both Fischer and Dudley in recent days. While acknowledging that the case of a rate hike was strengthening, she shed no light on the timeframe.
There is growing evidence that inequality is increasing not only in Australia but also internationally within the advanced industrial economies. The age of endless growth in prosperity for everyone is a distant memory of a more hopeful age.
Analyses of state responses to the South China Sea arbitral award often frame the issue as a binary choice between a rules-based or power-based approach to international relations. However, states are unlikely to view the matter this way, because international law is not autonomous from politics.
