Markets Archives - Page 379 of 731

Federal Reserve Assures Recession is not Imminent

Fighting increasingly worrying data about the American economy, the Federal Reserve has made a plea to the world to remain calm. A historically unprecedented presentation by the last four Federal Reserve chairmen—Janet Yellen, Ben Bernanke, Alan Greenspan, and Paul Volcker—focused on how the economy remains on a “solid course,” despite increasing evidence that a recession might be looming.

The phrase comes from standing Chair Yellen, who added that the U.S. has made “tremendous progress” from the financial crisis of 2008.

Accusations Continue Flying over the South China Sea

Recent developments in the South China Sea are a serious cause for concern for Southeast Asian states, which have a huge interest in ensuring the safety and security of these waters given their importance for international shipping. Ongoing militarisation in the disputed waters increases the risks of unintended military confrontations, threatening regional stability.

Philippine Voters are Drifting Away from the ‘Establishment’ Candidates

The Philippines will hold their presidential election on 9 May 2016. The dramatic campaign was until recently seen as fight between four major candidates, each gathering a roughly equal share of the vote.

Indonesia and Vietnam Lead Emerging Markets News

In the EM local currency bond space, the Philippines (10-year yield -9 bp), Mexico (-5 bp), and Ukraine (-4 bp) have outperformed this week, while Peru (10-year yield +21 bp), Brazil (+18 bp), and Russia (+11 bp) have underperformed. To put this in better context, the 10-year UST yield fell -4 bp this week to 1.73%.

In the EM FX space, ARS (+2.3% vs. USD), RUB (+0.8% vs. USD), and HUF (+0.3% vs. EUR) have outperformed this week, while BRL (-2.7% vs. USD), MXN (-2.2% vs. USD), and ZAR (-2.1% vs. USD) have underperformed.

Mortgage Rates Fall as Treasury Yields Stay Low

In another sign of slow growth and weak demand, mortgage rates fell to their lowest point this year as Treasury yields fell to almost their lowest rate in history. U.S. Treasuries fell to less than 1.7% during Thursday trading, nearing the all-time low achieved earlier this year of 1.64%.

Japan is not Really an Export-Oriented Economy

The surging yen has been the main feature in the foreign exchange market in recent days, but its advancing streak has been stopped with today’s setback. The greenback traded briefly dipped below JPY107.70 in North America yesterday but has not been below JPY108 today. It is near JPY109 as NY dealers return to their posts.

Australia’s High Housing Costs Heighten Hospitality Headwinds

Watch any tourism or branding campaign for an Australian city, and chances are you’ll see plenty of appealing imagery of amenities in and around the CBD – be it restaurants, nightclubs, parks or galleries. It is a common mantra in urban planning that good “amenity” is valuable to the economy both in its own right, particularly to attract tourism, and for attracting a productive workforce that boosts the economy more generally.

Australia’s Dynamic View of Asia

As the China boom passes into history and Australians are left to rethink their relationship with that vast country, politicians will seek to craft a new ‘Asia’ in the Australian imagination in response to new circumstances. That has, after all, long been the pattern.

Is China Dreaming?

The ‘China Dream’, a signature slogan of President Xi Jinping, has drawn worldwide attention. At a time when the growing assertiveness of China is being linked to the revival of the idea of Sino-centrism, the resurgence of a once ‘humiliated’ nation is being viewed by some countries with much apprehension. However, what exactly is Xi’s vision of the ‘China Dream’?

Federal Reserve Puts Rate Hikes on Hold

The Federal Reserve has fully reversed course, indicating that interest rate increases are likely to come later rather than sooner, as weak economic growth plagues the United States. Recently released Federal Open Market Committee (FOMC) minutes point to the central bank’s hesitance to raise borrowing costs for Americans due to protracted weakness throughout the broad economy.