Markets Archives - Page 372 of 731

When a Candidate Wins and a Country Loses

‘Shut up!’ ‘Go to hell!’ ‘A disgrace to your race!’ These words were uttered by the leading contender in the Philippine presidential race, Davao City Mayor Rodrigo Duterte, in April 2016. The first was directed at Australian and American diplomatic envoys after the Australia Ambassador tweeted her reaction to Duterte’s so-called ‘rape joke’. Women’s groups who filed a complaint over the incident before the Commission on Human Rights were on the receiving end of the second statement.

Small Country, Smaller Economy, Big Storm Damage

TC Winston struck Fiji on 20 February 2016, causing widespread devastation. Classed as category five, TC Winston is the strongest cyclone to have ever hit Fiji and has impacted close to 350,000 people. This comes just four years after the category four cyclone TC Evan ravaged Fiji, causing damages estimated at around FJ$195 million (US$108 million).

U.S. Unemployment Claims Jump, Mortgage Rates Fall

In an increasing sign that U.S. workers cannot afford to buy houses as much as they used to, unemployment claims rose as mortgage rates fell, suggesting demand for houses is dropping as employment declines.

Aussie Subs with a French Flair

Australia’s decision to award the French firm DCNS the contract to design and build new submarines for its Navy was a controversial one. DCNS will build a scaled down conventional version of its Barracuda-class nuclear submarine with all, or most, of the submarine to be built in Adelaide, South Australia.

As well as the French option, there were two other contenders — ThyssenKrupp Marine Systems (TKMS) of Germany with a Type 216-class submarine, and the Japanese government with a proposal based on the existing Soryu-class submarine.

IMF Tells Zimbabwe “Bold Economic Reforms” Needed

The International Monetary Fund (IMF) has weighed in on the deepening economic crisis in Zimbabwe. The African nation, already one of the poorest countries in the world, has been plagued by drought, suffered from deflation, and struggled with falling commodity prices around the world. Given the nature of Zimbabwe’s economic output, the IMF fears there is very little relief in sight for the African nation, according to a report it released on Wednesday.

Singapore Increases Military Spending as Geopolitical Tensions Rise

Singaporean authorities have increased military expenditures to upgrade its military while presenting a strong front during the South China Sea territorial dispute, according to Reuters. Contractors, such as Boeing and Lockheed Martin, value Singapore’s business due to the city-state’s lucrative economic growth and timely payment history. Many nations in Asia have increased military spending because of higher economic growth and increased nationalism.

Weak Demand Remains throughout U.S. Despite Factory Orders Increase

A surprising jump in factory orders may reverse a decline in U.S. exports, but weak demand remains throughout America and the world.

The trade balance deficit between America and the rest of the world fell 14%, due largely to a major decline in exports, which fell nearly 1% from February, as foreign markets continue to struggle with a strong dollar, low commodity prices, and stagnating growth. Meanwhile, cash-strapped Americans are buying fewer foreign-made goods, as imports fell 3.6% from the prior month.

The Turkish Political Mess Likely Won’t End Well

It has been long recognized by the investment community that power in Turkey was concentrated in Erdogan’s hands. He enjoys incredible power in the ceremonial presidential post and brooks no rivals.

Common among authoritarian leaders is that they habitually turn on handpicked successors, as they grow fearful of competitors. This is precisely what has played out in Turkey in recent days and now has come to a head.

Could a Dovish Fed Limit the EM Currency Sell-Off?

In light of the Fed’s dovish tilt in March, the global liquidity outlook turned further in favor of EM. As a result, EM extended the bounce off the January/February lows. There is no clear narrative as to why EM is softer this week, but it just seems to be a much-needed correction and positioning flush-out.

Measuring China’s Private Sector Success

State-owned enterprises (SOEs) are often thought to dominate the Chinese market, with profound implications for the global economy. The US–China Economic and Security Review Commission stated that ‘Soviet-style, top-down planning remains a hallmark of China’s economic and political system’.