Markets Archives - Page 408 of 782

How to Successfully Wield a Supermajority

Japanese Prime Minister Shinzo Abe’s Liberal Democratic Party and its junior coalition partner, Komeito, have won 70 of the 121 seats up for grabs in the upper house triennial elections held on Sunday 10 July. The seats obtained in the upper house are not only many more than the ruling coalition’s 61 seat target, but deliver a two-thirds majority in the upper house for constitutional revision when taking into account other pro-revision political parties.

China’s Changing Economy…it will Take a While

China is undergoing profound changes in its economic policy and structure. These changes represent a new model of Chinese economic growth. The recent Five Year Plan (FYP) is an evolutionary document. Building on earlier official statements on the new model of growth, it provides the most elaborate statement to date on the model’s content and implementation.

Emerging Markets now Between US Jobs Data and the FOMC Meeting

EM and other risk assets rallied on Friday after the strong US jobs data. It appears that markets are pricing in a benign backdrop for risk near-term; that is, the US economy is recovering but not by enough to warrant an imminent Fed rate hike. The July 27 meeting seems unlikely, and so the next likely window would be September 21. Yet EM typically weakens in the run-up to FOMC meetings and so investors should be very careful about taking on too much risk.

As Outbound Chinese Tourism Grows, Australia Looks to Cash In

Chinese tourism around the world is experiencing a boom: the numbers of tourists are increasing and the types of tourism diversifying. However, Australia will need a more culturally sensitive approach than the catchy advertising of old to capitalise on this emerging market.

Does Philippine President Duterte Need a Better International Image?

Since the election of Davao City Mayor Rodrigo Duterte as the next Philippine president in a landslide victory on 9 May 2016, the regional and international media have highlighted his outrageous remarks on various sensitive topics. For instance, he backed the extra-judicial killings of drug dealers, alleged that journalists were killed because they were corrupt and called Philippine bishops critical of him ‘sons of whores’. None of these remarks has dented his domestic support.

Australia in Danger of Credit Downgrade

Australia received a warning from Standard & Poor’s (S&P) this week that it is on downgrade watch. Although the nation presently enjoys a AAA rating, the downgrade warning signals that Australia will likely soon receive a reduced rating.

Is Chinese Push for Innovation Just a New Economic Bubble?

The Chinese government has put a heavy focus on innovation as a means of driving its economy and improving its recent, flagging performance. Local governments have heard the call and have rushed to erect new infrastructure and buildings designed to support this movement.

Unfortunately, there appears to be a big problem with this plan as an economic driver: businesses are not on board and nobody is making use of these newly built spaces and services.

Hello, Credit Repair Hotline? It’s Australia

Australia’s AAA credit rating was under pressure even before the election and is now looking decidedly shaky.

Reassurance and Change, Duterte Takes the Reigns in the Philippines

Rodrigo Duterte took his oath of office as the 16th President of the Republic of the Philippines on 30 June 2016. Duterte’s first seven days in office signals both reassurance and change, but it also foretells the complexity of what lies ahead for Philippine democracy.

Trade Balance Expands as Fed Turns Soft

Federal Reserve chiefs are reversing course on America’s economy as the country’s trade deficit widens with foreign nations. In May, the trade balance deficit rose 9.9% to $41.1 billion, far above expectations as exports fell and imports rose. Total imports were up 1.6% from the prior month, indicating America’s continued dependence on foreign production to meet domestic demand.